Hip and knee replacement is the largest market segment in orthopedic implants. This article discusses the key determinants of the market value, including demographics (aging population) and pricing. The global market for hip and knee replacement implants will approach US$34 billion by 2036.
The global market for hip and knee replacement implant will approach US$34 billion by 2036. Hip and knee replacements are used to treat severe osteoarthritis (OA), which is one of the most disabling diseases in developed countries. The number one risk factor for OA is age, which has become a global healthcare challenge due to a worldwide aging population. However, the global market is disproportionally dominated by the US, which is expected to occupy a lion's share of over 50% in 2026, and US-headquartered implant manufacturers will continue to lead in the increasingly competitive market landscape.
The new IDTechEx report, "Materials for Bone Implants 2026-2036: Trends, Players, and Forecasts", provides an in-depth breakdown of the microscopic and macroscopic market drivers for implant adoption, including regional analyses dissecting the local clinical history and market trends in the US, Europe, and Asia. The report also delivers a granular 10-year forecast of the hip and knee replacement market in terms of both unit demand and market value, segmented by type and region.
The value of the hip and knee replacement implant market is determined by population, adoption rate, and implant pricing. These factors are further affected by a myriad of parameters such as demographic structure, trends in implant design, surgeon preference, etc, and each of these demonstrates significant regional variation. IDTechEx's new report explores these factors in detail, and this article aims to provide insight on two of the key determinants: demographics and pricing.
Growth-share matrix for hip and knee replacement markets. Source: IDTechEx.
Demographics is a key market driver
The rapid increase in the global population aged 60 and older is the most significant factor propelling the market. Age-related joint degeneration is the leading cause of joint replacements. Developed countries, where the geriatric population already outnumbered the juvenile, typically demonstrates high hip and knee replacement adoption rate. For example, in the UK, the annual adoption rate for hip replacement exceeds 200 per 100,000 population. However, these markets are reaching saturation and often constrained by public healthcare capacity.
On the other hand, high-income countries, although having a far larger population, are currently smaller markets due to a younger population. In addition, many low-income countries lack adequate healthcare access, which limits the adoption of joint replacements further. However, these regions will likely experience fast growth in the coming decades, as the healthcare infrastructure matures and the median age increases.
Value-based approach to pricing
Hip and knee replacement manufacturers typically adopt a value-based pricing strategy, where the cost of raw materials have limited impact on the implant price. Unlike commodity goods, implant production is characterized as low-volume and high-mix, demonstrating limited economy of scale. Premium pricing can often be applied to implants that require more advanced manufacturing techniques such as 3D printing. For instance, patient-specific custom-made implants can be priced at 10x the off-the-shelf counterpart.
Regional difference in pricing is common in the industry. The highest price is seen in the US due to higher utilization of surgical robotics and advanced materials as well as higher overhead. In contrast, the Chinese market enjoys a considerably lower price by approximately 80% compared to the US. This is a result of policies that facilitated the bloom of domestic manufacturers, which can take advantage of the local supply chain. Pricing also varies with order type. A leading player expressed that an approximately 20% difference in price is quoted between one-off and recurrent orders.
Outlook for the hip and knee replacement market
The US will remain the global profit pool and largest market share holder for hip and knee replacement in the next decade, owing to the high adoption rate, premium pricing and rapid adoption of enabling technologies. High-income countries in Western Europe represent mature markets with large, stable volumes but limited long term growth potential due to saturation. Many Asian countries are high-growth, low-penetration markets due to the large population base but uneven healthcare access.
For more details on hip and knee replacement implants, materials trends and projected demand, see the IDTechEx market report "Materials for Bone Implants 2026-2036: Trends, Players, and Forecasts". For more information on IDTechEx's other reports and market intelligence offerings, please visit www.IDTechEx.com/Research.
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