Pedicle Screw Fusion Faces Maturing Market… But Still Growing

For markets in an phase of maturity — facing the introduction of competing new technologies taking away market share — price reductions are an effort to counterbalance the forces for declining demand.  However, in the case of pedicle screw fusion systems in spine surgery, price pressures are acting independently of demand.  In essence, there is such demand for spine surgery treatments that, even in the face of new device treatments competitive with pedicle screw fusion, there is growth in procedure and unit volumes such that even a nominal -0.7% CAGR decrease in prices from 2011 to 2020 is associated with a 9% CAGR in the pedicle screw fusion systems market.  

In the “short” run (i.e., 5-10 years), this can be sustained, but demand for alternative spine surgery devices will continue to accelerate and prices for pedicle screw systems will be forced to drop more steeply in response.

Below is a graph of pedicle screw fusion system unit volumes against average selling price during the 2010 to 2020 forecast period.

Source: MedMarket Diligence Report #M520: Worldwide Spine Surgery 2010-2020.

Unit volume growth in pedicle screw systems in the face of declining prices and increasing markets for competitive technologies is testimony to the enormous demand for spine surgery solutions to chronic back pain and the other adverse sequellae of spine trauma and disease.

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