United States Ophthalmic

United States Ophthalmic Market: An Overview of Current Trends and Future Outlook

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Introduction to the United States Ophthalmic Market

The United States represents one of the largest ophthalmic markets globally. It accounts for over 30% share of the global ophthalmic device market in terms of revenue. Various factors such as growing geriatric population, rising prevalence of eye diseases, increasing healthcare spending, and technological advancements are fueling the growth of the US ophthalmic industry.

Rise in Ageing Population

As per U.S. Census Bureau, the population aged 65 and above is projected to grow dramatically from 52 million in 2018 to over 95 million by 2060. Ageing is one of the major risk factors for various eye diseases such as age-related macular degeneration, diabetic retinopathy, glaucoma, and cataracts. With overall life expectancy increasing, the incidence of age-related Ophthalmic conditions is likely to surge in the coming years. This demographic shift will drive significant demand for ophthalmic devices and treatments.

Prevalence of Eye Diseases

Eye diseases pose a major health burden in the United States. As per the National Eye Institute (NEI), more than 120 million Americans suffer from various eye conditions with direct medical costs exceeding $140 billion annually. Cataracts, refractive errors, age-related macular degeneration, glaucoma, and diabetic retinopathy are the leading causes of vision impairment and blindness. With rising prevalence of chronic diseases like diabetes and growing lifestyle-related risk factors, the incidence of associated eye disorders is projected to spike in the future. This will propel the need for early detection, treatment, and management of ophthalmic conditions.

Technological Advancements

Advanced technologies are revolutionizing the field of ophthalmology. Treatments that were previously only possible through invasive surgeries are now delivered via minimally-invasive procedures using new-age devices. They include laser systems for refractive error correction, cataract removal, glaucoma, and diabetic retinopathy treatment. SMILE, small-incision lenticule extraction (ReLEX), and femtosecond lasers have emerged as alternatives to traditional LASIK and other invasive refractive surgeries. Intrastromal corneal rings, minimally-invasive glaucoma surgery (MIGS) devices, and drug-delivery systems have improved glaucoma management. Phakic IOLs, presbyopia-correcting IOLs, and premium IOLs are transforming cataract surgery outcomes. Such technological advancements and novel products are propelling the US ophthalmic device market.

Rising Healthcare Expenditure

The United States spends more per capita on healthcare than any other country globally. Total national health expenditures grew at an average annual rate of 4.6% from 2008 to 2018, reaching $3.6 trillion or 17.7% of GDP in 2018 as per CMS. Private health insurance, out-of-pocket spending and Medicaid are some major sources accounting for over 50% of total healthcare spending in the country. Americans have access to advanced therapies and state-of-the-art technologies, which are approved sooner than in other nations. This leads to higher adoption rate of new ophthalmic devices. Growing healthcare expenditure thus augurs well for continued growth of the US ophthalmic industry.

Demographic and Geographic Segmentation

The US ophthalmic market can be segmented based on demography, geography, product, end-user and others. In terms of geography, large population states like California, Texas, New York and Florida represent lucrative opportunities owing to high healthcare spending and disease burden. The western region dominates currently led by states like California and Washington. However, the southern and mid-western regions are expected to witness faster growth over the years supported by expanding healthcare infrastructure, investments by device majors and shift of population towards these areas.

Product-wise, ophthalmic surgical devices constitute the largest segment accounting for almost 60% share of total market revenues. Refractive surgery devices including cataract, glaucoma and retinal devices make significant contributions as well. Standalone ophthalmic diagnostic equipment is another key segment gaining prominence with non-mydriatic fundus cameras and OCT systems. Growing use of combination devices and integrated platforms with AI and IoT capabilities will reshape the market landscape in future. Cataract surgery devices are likely to hold the major share within surgical devices segment.

Key Players and Market Trends

Some of the prominent players in the US ophthalmic devices industry include Johnson & Johnson Vision, Alcon, Bausch + Lomb, Carl Zeiss Meditec AG, Essilor, HOYA Corporation, NIDEK, Topcon, and Ziemer Ophthalmic Systems among others. Industry giants are focusing on new product launches, mergers/acquisitions to bolster their product portfolios and market presence.

Strategic partnerships, integrated platforms to enhance efficiency, proliferation of ambulatory surgery centers and expanding network of refractive centers are some of the major trends observed in the market. Adoption of value-based reimbursement models and shift towards lower-cost interventions like phacoemulsification and implantable collamer lenses will be significant influences. Growing trend of home-based and remotely-managed care especially in the aftermath of COVID-19 pandemic is expected to open new opportunities. However, pricing pressures from payers may pose challenges.

Overall, The United States ophthalmic market size was valued at around $8.6 billion in 2019 according to Grand View Research and is estimated to reach over $13 billion by 2027, witnessing a CAGR of 5.4% during the period.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it