GLOBAL NEUROPROSTHETICS MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

The global neuroprosthetics market size is expected to reach US$ 26.12 Bn by 2030, from US$ 12.66 Bn in 2023, exhibiting a CAGR of 10.9% during the forecast period.

Neuroprosthetics are medical devices that substitute a motor, sensory, or cognitive modality that might be damaged as a result of injury or disease. There are different types of neuroprosthetics based on their function. Motor neuroprosthetics are used to restore motor functions such as reaching, grabbing, standing, or walking. Some examples include brain-computer interfaces that can decode neural signals from the motor cortex to control prosthetic limbs or exoskeletons. Sensory neuroprosthetics provide artificial sensory input to the brain, such as vision prostheses that stimulate the visual cortex to provide a sense of sight to the blind. Cochlear implants are used to provide a sense of sound to the deaf by directly stimulating the auditory nerve.

Global Neuroprosthetics Market- Regional Insights

• North America is expected to be the largest market for neuroprosthetics during the forecast period, accounting for over 35.7% of the market share in 2023. North America has established itself as the dominant region in the global neuroprosthetics market. With a strong presence of key industry players and advanced medical infrastructure, the U.S. Alone accounts for over 50% of the market. Major players like Medtronic, Boston Scientific, Abbott, and NeuroPace have their headquarters in the region and invest heavily in research and development.
• The region is an early adopter of newer neuroprosthetic technologies. Factors like the growing geriatric population, the rising prevalence of neurological disorders like Parkinson's and Alzheimer's, and favorable reimbursement policies have led to higher product adoption. Many clinical trials for novel neuroprosthetic devices take place in the U.S., allowing early market access on approval.

• Asia Pacific market is expected to be the second-largest market for neuroprosthetics, accounting for over 25.2% of the market share in 2023. Asia Pacific region has emerged as the fastest-growing market for neuroprosthetics. Countries like China, Japan, India, and South Korea are key drivers. With improving healthcare infrastructure and rising medical expenditures, more patients are now able to access both routine and sophisticated neuroprosthetic therapies.
• The growing expertise of neurosurgeons, coupled with increasing collaborations between local hospitals and global players, has boosted adoption. Governments are also encouraging private sector investment in this field through incentives. The large patient pool suffering from neurological conditions makes Asia Pacific an attractive market for industry players targeting future growth.
• Europe market is expected to be the fastest-growing market for neuroprosthetics, with a share of 19% during the forecast period. The growth of the market in Europe is attributed to the increasing prevalence of motor neuron disorders in the region.

Figure 1. Global Neuroprosthetics Market Share (%), By Region, 2023

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Analyst View: The global neuroprosthetics market has strong growth potential over the next decade. The rising incidence of neurological disorders such as Parkinson's disease, epilepsy, and Alzheimer's disease will drive demand for neuroprosthetic devices that can treat and manage these conditions. Additionally, increasing government funding for neuromedical research presents an opportunity for innovators to develop novel technologies. North America currently dominates due to supportive reimbursement policies and the concentration of key players. However, Asia Pacific is poised to be the fastest growing region, with developing healthcare infrastructure and a growing medical tourism industry in countries like India and China.

Global Neuroprosthetics Market- Drivers

• Rising Prevalence of Neurological Disorders: The global neuroprosthetics market is being primarily driven by the rising prevalence of various neurological disorders across the world. Neurological disorders such as Parkinson's disease, epilepsy, essential tremor, dystonia, and Alzheimer's disease are affecting a significant proportion of the global population. Just to give some perspective, it is estimated that over 50 million people are affected by epilepsy worldwide, and this number continues to rise each year. Similarly, over 10 million people are living with Parkinson's disease and this number is projected to double by 2040. Alzheimer's disease, which is the most common form of dementia, affects over 50 million people globally, and this number is expected to rise multifold in the coming decades as average life expectancy increases.

The higher risks and incidences of such neurological conditions are fueling the need for developing advanced treatment methods. Neuroprosthetics are emerging as a breakthrough technology that can help improve the lives of people suffering from various neurological diseases and conditions. Implantable devices like deep brain stimulation systems have already found major success in effectively treating movement disorders like Parkinson's disease. Ongoing research and clinical trials suggest that neuroprosthetics also hold promise for developing therapies for more complex conditions like Alzheimer's, stroke, spinal cord injuries, and epilepsy. With limited treatment options currently available for several severe neurological disorders, neuroprosthetics are poised to transform the landscape of neurological healthcare in the coming years.

• Technological Advancements: The neuroprosthetics industry has grown by leaps and bounds over the past decade, owing to significant technological advancements. Advancements in the fields of nanotechnology, biocompatible materials, neural engineering, and wireless communication systems have enabled the development of smarter and miniature neuroprosthetic devices. Contemporary systems are far more advanced and refined than early neuroprosthetics, which were bulky, invasive, and had short battery lives. Today’s devices feature miniaturized high-density electrode arrays, sophisticated electronics and software, wireless power transfer, biocompatible encapsulation, and enhanced integration with peripheral nervous systems.

Device manufacturers are continuously working to enhance the performance, computing power, bandwidth and sustainability of neuroprosthetic systems. For instance, researchers are developing neural interfaces made from bendable and flexible electronics that can conform better to brain surfaces. Technologies like optogenetics and high-density microelectrode arrays are augmenting our understanding of brain activity and neuronal pathways. The application of machine learning and big data techniques is further helping to improve prosthetic training, interfaces, and performance over time. Advancements are also being made in creating autonomous, implantable and wireless devices with vast potential for new neurotechnologies and clinical applications. Fueled by growing R&D investments, technological breakthroughs are certain to make neuroprosthetics more effective, reliable, and commercially viable solutions in the years to come.

• Government and private funding for research: Government and private funding for neuroprosthetic research is fueling the expansion of the global neuroprosthetics market. Both public and private investment in this field has increased substantially over the past few years as the potential for life-changing technologies continues to emerge.

In addition to government grants, private donors and ventures are also injecting substantial capital into neuroprosthetics companies and university laboratories. Elon Musk’s Neuralink raised over US$ 500 million in private funding as of 2021 to develop implantable brain-machine interfaces. Other pioneers, such as Synchron and Blackrock Microsystems, routinely receive angel investments for their work developing neural interfaces. Corporate partnerships between academic research bodies and medical device giants like Medtronic and Boston Scientific serve to expedite the translation of neuroprosthetics prototypes into real-world technologies.

Global Neuroprosthetics Market- Opportunities

• Customization and miniaturization of neuroprosthetic devices: Customization and miniaturization of neuroprosthetic devices present a great opportunity in the global neuroprosthetics market. With advancements in materials science, 3D printing, flexible and stretchable electronics, neural interfaces are becoming more personalized and less invasive. Implant sizes are shrinking, which allows for improved targeting of neural structures and minimally disruptive integration with the native nervous system. Researchers are working on novel solutions such as high-density electrode arrays, hybrid bioelectronic devices, and neural dust - extremely small untethered sensors that can be implanted throughout the body and brain to precisely monitor and modulate neural activity.

As these devices become smaller, less complex to implant, and able to interface with more discrete brain regions, they open up the possibility of treating numerous currently untreatable neurological and neuropsychiatric conditions. Miniaturized neural interfaces show promise for restoring sensory and motor function in spinal cord injury, improving speech and mobility outcomes for stroke patients, assisting with epilepsy management, reducing tremors for Parkinson's disease patients, and alleviating chronic pain. Customization allows prosthetics to be tailored for each individual's unique neural geography and physiology. This personalized approach could provide more effective symptom control and superior quality of life improvements for patients compared to one-size-fits-all treatment alternatives.

• Rising Healthcare Expenditure: One of the significant factors influencing the growth rate of the global neuroprosthetics market is the growing healthcare expenditure, which helps in improving its infrastructure. For instance, according to the International Health Care System of the U.S., in June 2020, U.S. government organizations aim to improve the healthcare infrastructure by increasing funding, setting legislation and national strategies, and cofounding and setting basic requirements and regulations for the Medicaid program. Similarly, in November 2022, the Canadian Institute for Health Information reported that the total health spending in Canada was US$ 331 billion in 2022, or US$ 8,563 per Canadian, while health expenditure represented 12.2% of Canada's gross domestic product (GDP) in 2022, following a high of 13.8% in 2020.
• Advancements in brain-computer interface technology: Advancements in brain-computer interface technology hold tremendous opportunities for growth in the global neuroprosthetics market in the coming years. Brain-computer interfaces (BCIs) allow direct communication pathways between the brain and an external device, and recent breakthroughs have improved both the quality of the signal decoding and interfaces between the brain and computers. BCIs decode neuron firing patterns in brain areas related to movement and translate them into commands for an external device, such as a prosthetic arm. Researchers have demonstrated BCIs that can successfully translate brain signals related to imagined movements in real-time with improved accuracy compared to several years ago.

BCIs offer hope to patients suffering from severe neuromuscular disabilities by providing them with restored capabilities they had lost. Successfully demonstrating devices that can restore aspects of mobility, dexterous manipulation, and communication could reshape the neuroprosthetics market. For example, clinical trials are underway evaluating the ability of BCIs to allow people with tetraplegia to operate prosthetic arms or wheelchairs solely through their brain activity. If these trials continue to show promise in restoring functions patients need in daily lives, it may encourage greater adoption of the technology. The potential for BCIs to improve quality of life for those with impaired mobility and interaction with the physical world represents a huge growth opportunity.

Global Neuroprosthetics Market- Trend

• Use of robotic technologies in neurorehabilitation: The use of robotic technologies in neurorehabilitation is having a transformative impact on the global neuroprosthetics market. Robotic devices offer precise movement and repetitive therapeutic activities that are hard to replicate manually, even for experienced therapists. This allows patients to receive highly frequent, intensive, and consistent therapy beyond what was previously possible. Recent clinical trials have demonstrated how the integration of robotics can enhance motor recovery in patients suffering from a variety of conditions, such as stroke, spinal cord injury, and multiple sclerosis.

For example, a 2021 clinical study published in Neurology involving 140 stroke patients showed those receiving robot-assisted upper limb rehabilitation achieved substantially better motor functionality outcomes compared to conventional therapy alone. Several large rehabilitation hospitals have now incorporated robotic devices into their treatment protocols based on compelling evidence of advantages. This has increased demand for next-generation neuroprosthetics that can be combined with artificial intelligence-controlled robotic systems. Device manufacturers are accordingly developing more sophisticated hardware and software to interface brains and bodies through innovative neural interfaces.

• Shift towards non-invasive neuroprosthetics: The neuroprosthetics industry has seen a significant shift in recent years towards the development of non-invasive devices and technologies. Traditional neuroprosthetics, such as brain implants and neural interfaces, have required surgeries to implant electrodes or devices within the brain or nerve tissues. However, there is now a growing preference among patients, clinicians, and researchers for options that do not involve invasive surgery or penetrate the skin in any way. Such non-invasive neuroprosthetics can provide similar functional improvements to restore motor abilities or senses without the health risks associated with surgery.

This shift is having a major impact on the global neuroprosthetics market. Companies that were heavily focused on invasive brain-computer interfaces and neural implants are now diversifying their portfolios to include non-invasive alternatives. They are investing more in research and development for wearable technologies, laser-based optical neural interfaces, magnetic stimulation devices, and other external technologies that can interact with neuronal activity from outside the body. For example, Neuralink, an American neurotechnology company, unveiled plans in 2021 to expand from brain implants to non-invasive technologies using focused ultrasound.

Global Neuroprosthetics Market - Restraint

• Risks and complications associated with neuroprosthetic implantation: The risks and complications associated with neuroprosthetic implantation pose significant challenges for the growth of the global neuroprosthetics market. Neuroprosthetic implantation is a highly complex surgical procedure that carries risks of complications. Some of the risks include adverse tissue response, nerve damage, infection, device migration, or failure. Since these implantable devices interact closely with the brain and the peripheral or central nervous system, any minor error or complication during or after the surgery can have long-term neurological consequences for the patient. This makes both patients and doctors hesitant to adopt these emerging neuroprosthetic technologies unless their safety and efficacy is proven over long-term use.

Additionally, the lack of standardized surgical protocols and expertise among doctors for different neuroprosthetic implants is also a major concern. Complications can arise if the implantation is not performed meticulously by highly skilled neurosurgeons following standardized procedures. This clinical risk is further heightened for newer and more complex neuroprosthetic technologies that are still under research and development with limited long-term safety data available. Unless these risks and complications are significantly reduced through more research and training, it will be difficult to scale up the adoption and commercialization of advanced neuroprosthetic devices.

Figure 2. Global Neuroprosthetics Market Share (%), By Type, 2023

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Global Neuroprosthetics Market- Recent Developments

Product Launch and Approval

• In November 2022, Cochlear Limited, the global leader in implantable hearing solutions, received U.S. Food and Drug Administration (FDA) approval for the CochlearTM Nucleus 8 Sound Processor. The Nucleus 8 Sound Processor is the smallest and lightest behind-the-ear cochlear implant sound processor available in the industry.
• In October 2022, Axoft, a neurotechnology company, announced the launch of its brain-machine interface (BMI) to better treat neurological disorders. It was launched through a U.S. Food and Drug Administration (FDA) breakthrough device designation. The company secured USD 8 million in capital to fund pre-clinical studies with the U.S. FDA and to scale up prototypes of its neural implants.

Business Development Activities by the Market Players

• In December 2022, the Government of Saskatchewan, through the Ministry of Health and the Saskatchewan Health Authority (SHA), implemented the expanded Cochlear Implant Program to help those who needed their external sound processor replaced. Under the new program, individuals will co-pay US$ 840 per implant, with the Ministry of Health covering the remainder of the cost, which is often US$ 8,000 to US$ 12,000.
• In April 2021, Rice University and Houston Methodist, a research center, announced a partnership to launch the Center for Translational Neural Prosthetics and Interfaces, which brings together scientists, clinicians, engineers, and surgeons to solve clinical problems with neurorobotics.

Top companies in Global Neuroprosthetics Market

• Second Sight
• Med-El
• Retina Implant
• Sonova Holding AG.
• NeuroPace, Inc.
• Nevro
• Medtronic plc
• Abbott
• Cochlear
• Boston Scientific Corporation
• Livanova
• Demant A/S
• Cyberonics Inc.
• NDI Medical LLC

Definition: Neuroprosthetics are medically implanted devices that aid in restoring motor and sensory abilities that are lost due to damage in the nervous system. There are three main types of neuroprosthetic products available globally. The first one is motor neuroprosthetics, which help restore limb movements in patients with paralysis or amputations by translating brain signals into commands that control prosthetic devices or robotic limbs. Cochlear implants that help restore hearing in deaf people form the second category of sensory neuroprosthetics. The third category is cognitive neuroprosthetics, which help patients with neurological disorders like Alzheimer's by improving memory, attention, or other cognitive functions.