To exceed market value of $10.6 billion by 2025, provided ENT clinics remain open and hospitals continue operating elective ENT procedures at the current rate
The ear, nose and throat (ENT) medical device market has been significantly impacted by the COVID-19 pandemic, as mass closures of ENT clinics and postponement of elective ENT procedures in hospitals drove down device sales by approximately 76% in the worst-hit months of 2020. The ENT market will continue undergoing its surge in revenue in 2021 to compensate for the 2020 losses. This will then likely be followed by a return to its pre-pandemic compound annual growth rate (CAGR) of 3.8 per cent, thus exceeding the market value of $10.6 billion by 2025, according to GlobalData.
A GlobalData market analysis of ENT device sales from leading manufacturers throughout 2020 such as Medtronic, Smith and Nephew, Stryker and Cochlear has revealed the severity of the initial impact of COVID-19 on the industry, coupled with their remarkably rapid rate of recovery.
Brian Hicks, Medical Devices Analyst at GlobalData, commented, “Many of the leading ENT device manufacturers have reported year-over-year (YOY) losses ranging from 20-30 per cent in their ENT business units during the most impacted financial quarters. When investigating closer into hospital and clinic-purchasing patterns of their devices on a monthly basis, we see a much steeper decline in sales during the hardest hit month, which was concentrated in April, and frequently exceeded 50 per cent when compared to their pre-pandemic levels.”
Regarding the market recovery, Hicks illustrated, “The sudden bounce in trajectory towards complete sales recovery was in line with the timing of the gradual reopening of ENT clinics and resumption of many elective procedures. Unsurprisingly, the pent-up demand for high-selling devices, such as hearing aids, and those for common ENT procedures for example cochlear implantation, drove the uptick in revenue.”
Provided ENT clinics remain open and hospitals continue operating elective ENT procedures at the current rate, GlobalData expects most of the device manufacturers to fully recover and report YOY growth by their next fiscal quarter. Despite their recent recovery, the current surge in COVID-19 cases across North America, Europe and many other regions cast doubt on their long-term sustainability.
Hicks added, “Any additional cutbacks on ENT procedure volumes and ENT clinic closures will negatively impact the device market again. Fortunately, as the imminent production of multiple effective COVID-19 vaccines will lead to a healthier vaccinated population, the likelihood of additional ENT clinic closures and procedure postponements will subside.”