Orthopedic Software Market Report Scope & Overview:

Orthopedic Software Market Size was valued at USD 384.2 million in 2023 and is expected to reach USD 710.2 million by 2032, growing at a CAGR of 7.1% over the forecast period 2024-2032.

The orthopedic software market report provides the key statistical insights and trends shaping the industry. It covers adoption rates across hospitals, clinics, and independent practitioners, along with user demographics by provider type. This report focuses on the orthopedic software overview and its integration with imaging systems (PACS, EHRs, 3D imaging) for improving diagnostic and surgical planning. It further compares the trends in regulatory compliance, and status with regard to compliance with standards (FDA, HIPAA and MDR (EU)). The rising impact of AI and automation is also analyzed, highlighting AI-driven diagnostics, automated treatment planning, and predictive analytics adoption. These insights provide a comprehensive understanding of the orthopedic software market, helping stakeholders navigate technological advancements and regulatory landscapes.

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Market Dynamics:

Drivers

• An increasing number of individuals are affected by orthopedic disorders, such as osteoarthritis
  and osteoporosis, leading to a higher demand for effective software solutions to manage these conditions.

The growing incidence of orthopedic diseases is the key factor driving the growth of the orthopedic software market. Low back pain, osteoarthritis, and rheumatoid arthritis are among the globally leading causes of disability affecting more than 1.71 billion people living with musculoskeletal disorders. Low back pain, in particular, is the most prevalent condition, with approximately 570 million suffering worldwide, and the top cause of disability. Musculoskeletal diseases impose a major burden in India. Rheumatoid arthritis is a chronic disorder that affects approximately 0.5–1% of the adult population, more commonly women. However, osteoarthritis, especially of the knee, is even more common and affects 22% – 39% of those over the age of 50 years.

The demand for joint replacement surgeries is also rising. The average age of hip and knee replacement patients in the United States is dropping, and growing numbers of patients in their 40s are now having these procedures done. This trend is believed to be driven by the growing life expectancy and demand for staying active in middle age. Moreover, the incidence of sports-related orthopedic injuries among older adults is expected to increase considerably. These injuries are expected to rise by 123% from 2021 to 2040, showing a clear need for effective management and treatment. These figures highlight the growing need for high-level orthopedic care. Due to the growing burden of musculoskeletal disorders, orthopedic software solutions are invaluable in organizing patient information, treatment planning, and improving overall outcomes.

Restraints

• The substantial expenses associated with deploying orthopedic software systems can deter
  healthcare providers from adoption.

The high costs associated with orthopedic software systems are hindering their adoption among healthcare providers. Such expenses include licensing fees, hardware upgrades, and extensive staff training. For instance, the Centers for Medicare & Medicaid Services (CMS) estimates that the average cost for a small hospital to implement an Electronic Health Record (EHR) system is around USD 15 million. These large financial needs can be a barrier for smaller healthcare organizations with tight budgets. Moreover, the maintenance and updates of these systems remain ever costly, making the return on investment hard to justify for many institutions. Such systems are an additional expense, which only heightens the already present anxiety over the return on investment since the advantages of these kinds of solutions are not always apparent at once. As a result, while orthopedic software solutions could facilitate better patient care and operational efficiency, the high initial and recurring expenses prevent many healthcare providers from adopting them.

Opportunities

• Incorporating AI and ML into orthopedic software enhances diagnostic accuracy and enables
  personalized treatment planning, presenting significant growth prospects.

Artificial Intelligence (AI) and Machine Learning (ML) are increasingly integrated into orthopedic software, enabling accurate reviews of large pools of patient cases to improve care through better diagnostic accuracy and customized treatment plans. The recent progress emphasizes the disruptive nature of these technologies. On the other hand, NHS Scotland launched an AI virtual physiotherapist called “Kirsty” to help patients suffering from back pain. This service allows nearly one million residents in the Lothians to book same-day appointments, bypassing traditional waiting times. The AI, which was developed by Flok Health, runs therapy sessions over a phone app and suggests personalized therapeutic exercises. Initial feedback indicates significant improvements in patient conditions compared to conventional physiotherapy methods.

In Germany, hospitals are leveraging AI to enhance diagnostic precision. For example, radiologists in Minden are using an AI system from Siemens Healthineers to probe X-ray images, discovering cancerous tumors that had been missed by human review. Such AI applications are not only enhancing diagnostic precision but are also speeding up detection which paves the way to timely interventions. Additionally, AI has also been used by researchers at the University of Illinois Urbana-Champaign to create materials that mimic biology for bone regeneration. Inspired by the porous structures of termite mounds, these 3D-printed microstructures adapt to the mechanical demands of bone, potentially revolutionizing prosthetics and orthopedic restoration by closely mimicking natural bone properties. These serve as examples of the growing application of AI and ML in orthopaedics and how it can represent the future by enabling accurate diagnoses, personalised interventions, and novel solutions for complex medical challenges.

Challenges

• Some healthcare professionals are hesitant to transition from traditional methods to digital solutions due
  to concerns about workflow disruptions and data security.

Various hurdles associated with the orthopedic software market are restricting the market from adapting to orthopedic software services on a larger scale. One of the biggest challenges is that orthopedic professionals are hesitant to adopt digital solutions largely due to fears around data privacy and security. Adding to this apprehension is the existing expense attached to deploying these software systems, which is not limited to just the infrastructure and training but the service as well. These financial challenges disproportionately weigh on smaller practices and clinics, making it difficult to adapt technologies. Moreover, skilled and trained professionals trained to use orthopedic software are rare, which drives another hindrance to its adoption in clinical workflows. These hurdles contribute to delayed adoption of orthopedic software solutions while their benefits of improved patient care and operational efficiency are evident.

Segment analysis:

By Product

The orthopedic EHR accounted for the largest revenue share of 26% in 2023. Reasons for this supremacy include the rise in the number of digital health solution adoptions and the federal government's requirement towards EHR implementing. According to the Centers for Medicare & Medicaid Services (CMS), as of 2023, more than 95% of all eligible and critical access hospitals have implemented certified health IT. Orthopedic EHRs provide many advantages like, better patient care coordination, advancing clinical decision support, and enabling workflow management. They allow orthopedic practices to easily maintain patient profiles, monitor progress, and access the information that other healthcare providers have made regarding the patient. The integration of advanced features like artificial intelligence and machine learning in orthopedic EHRs further enhances their capabilities, contributing to their market dominance. Moreover, the increasing emphasis on value-based care models and the need for holistic patient data management in orthopedic practices have further boosted the adoption of orthopedic EHR solutions. Another key factor that is driving the adoption of orthopedic EHRs is an increase in the emphasis on interoperability and data exchange in healthcare. The growing push for interoperability spearheaded by government initiatives, including the ONC Interoperability Standards Advisory, has created a framework for interoperability that has spurred adoption of EHRs in orthopedic practices.

By Mode Of Delivery

In 2023, Web/cloud-based software had the largest revenue share of 85%. There are a few primary reasons as to why they have that significant of a market share. The cloud-based solutions offer both scalability and flexibility, making them an appealing choice for organizations adopting them. More than 75% of hospitals across the United States have adopted cloud-based health IT infrastructure, as of the data from 2023 as per the Office of the National Coordinator for Health Information Technology (ONC). The orthopedic software oversees the solutions of cloud technology which helps you to access patient data from various locations that assists the healthcare professionals to collaborate with patients as well as each other leading to an increase in the overall patient care. Additionally, these solutions often require lower upfront costs and reduced IT maintenance, making them more cost-effective for healthcare organizations.

By Application

Orthopedic surgery segment held the highest revenue generating segment in the market with a revenue share of 55% in 2023. The reason that orthopedic growth is dominating is due to the rising cases of orthopedic injuries or diseases and also the need for better surgical planning and execution tools. More than 7 million orthopedic surgeries are performed in the United States each year, American Academy of Orthopaedic Surgeons (AAOS) Orthopedic surgery software is essential for pre-operative planning, intraoperative guidance, and postoperative follow-up, and directly related to better surgical outcomes and patient satisfaction. The orthopedic-specific software and they both provide 3D modeling, virtual surgical planning, and real-time navigation capabilities, improving precision and efficiency in the operating room.

The increased need for minimally invasive surgeries (MIS) has also been a major factor driving the growth of the global orthopedic surgery software market. According to the U.S. Food and Drug Administration (FDA), the last decade has witnessed a dramatic rise in the clearance of robotic-assisted surgical devices for orthopedic uses, suggesting advancement in surgical technologies. Orthopedic surgery software that works in conjunction with these robotic systems enables to offering of enhanced vistas and control to surgeons during the procedure, which translates to enhanced clinical outcomes and quicker recovery from the surgery. Additionally, the aging population and the subsequent increase in age-related orthopedic conditions have contributed to the growth of this segment.

By End-user

In 2023, the hospitals segment accounted for the largest revenue share 55% in the market. The dominance can be driven by due to their extensive adoption of advanced technologies to improve patient care. Hospitals benefit from integrated systems that manage patient records, surgical planning, and postoperative follow-ups efficiently. In the U.S., hospital spending on health IT solutions increased significantly following federal incentives under programs like the Medicare EHR Incentive Program. Moreover, hospitals often serve as centers for innovation and training, further driving their dominance in adopting orthopedic software solutions.

Regional analysis:

In 2023, North America held the largest orthopedic software market share of 42%. This dominance of North America can be justified by the well-established healthcare infrastructure, early adoption of digital health technology, and high healthcare expenditure in the region. In 2023, U.S. healthcare expenditures total USD 4.3 trillion or 18.3% of the U.S. gross domestic product (GDP), according to the Centers for Medicare & Medicaid Services (CMS). The region's leadership in medical research and innovation also contributes to its market dominance, with numerous orthopedic software companies based in North America.

The orthopedic software market is projected to grow at a fastest compound annual growth rate (CAGR) from 2024 to 2032. The region is witnessing this growth due to factors such as increased healthcare spending with growing awareness of digital health solutions and government steps to modernize their healthcare systems. The aforementioned factor is expected to increase the penetration of orthopedic software in India owing to the development of a comprehensive digital health ecosystem under National Digital Health Mission, launched by the Indian Government. Additionally, the significant population base in countries such as China and India, combined with the increasing incidence of orthopedic disorders associated with aging populations and changing lifestyles, adds to the growth potential within the region. The World Health Organization (WHO) estimates that by 2050, 1 in 4 people in Asia-Pacific will be over 60 years old, indicating a growing need for orthopedic care and associated software solutions.

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Key Players:

Key Service Providers/Manufacturers

• Koninklijke DSM N.V.

• DuPont

• BASF SE

• Corbion N.V.

• Cargill, Inc.

• Novozymes A/S

• Ginkgo Bioworks

• Biocon Limited

• Amyris, Inc.

• Evonik Industries AG

Key Users

• Unilever

• Procter & Gamble

• Nestlé

• L'Oréal

• Pfizer Inc.

• GlaxoSmithKline plc

• AstraZeneca plc

• Johnson & Johnson

• The Coca-Cola Company

• PepsiCo, Inc.

Recent developments:

• In March 2023, Stryker targeted an advanced robotic-assisted surgery system, the Mako Total Knee 2.0, which optimizes orthopedic surgical procedures with the current trend of less invasive surgeries.