Brain Implants Market

Market Overview

The global brain implants market size was valued at USD 1.9 billion in 2023 and is projected to reach USD 5.1 billion by 2032, registering a CAGR of 11.8% during the forecast period (2024-2032). The rise in the predominance of the elderly population, which is more prone to epilepsy and Parkinson's Disease, is the primary driver of the brain implants market growth.

Brain implants, also known as neural implants or neuroprosthetics, are medical devices that communicate directly with the human brain to monitor brain activity, activate neural circuits, or provide therapeutic therapies. These implants can cure neurological problems, restore sensory or motor function, and improve cognitive ability. Brain implants are often made up of electrodes or sensors surgically inserted in specific brain areas and external components like stimulators or monitoring systems. In addition, there is an increase in demand for less invasive devices. Patients are increasingly seeking treatments with higher success rates, less pain, and long-term effectiveness, all delivered by brain implants. As a result, demand for these implants is likely to rise, driving market expansion. 

Furthermore, essential market players are investing extensively in R&D operations, fueling innovation, and the introduction of sophisticated brain implants. These technologies are intended to give even more efficiency and better patient outcomes, and they are projected to boost demand and growth in the brain implant market opportunity. However, tight government controls on medical device production to ensure device quality and safety cause product clearance delays, limiting market growth. Furthermore, different governments frequently enact varying legislation, complicating the clearance procedure for enterprises looking to market their products globally. Furthermore, the high cost of brain implant devices may limit the market's expansion. 

Highlights

• Deep Brain Stimulation accounts for the largest market share by type.
• Parkinson's Disease is the most common application in the market.
• Hospitals are the major end-users of the market.

Market Dynamics

Global Brain Implants Market Drivers:

Increasing Prevalence of Neurological Disorders

The increasing incidence and prevalence of neurological illnesses such as Parkinson's Disease, epilepsy, chronic pain, and depression fuels the desire for brain implants. As the world population ages and lifestyles change, the prevalence of neurological illnesses is predicted to rise, presenting a substantial market potential for novel neurostimulation treatments. According to the Parkinson's Foundation, Parkinson's Disease affects more than 10 million people globally, accounting for less than 1% of the overall population. The majority of persons who develop Parkinson's Disease are above the age of 60, while one in every 10 is under 50. The sickness affects people from all ethnicities and civilizations. Parkinson's Disease is the second most prevalent neurological illness worldwide. Approximately 5% to 10% of patients have a hereditary propensity. The disorder is more prevalent in men than in women. 

Furthermore, Deep Brain Stimulation (DBS) implants have emerged as a viable therapeutic option for Parkinson's patients in terms of treating movement symptoms and enhancing quality of life. DBS is the insertion of electrodes into particular brain regions to provide electrical stimulation and control aberrant neural activity associated with Parkinson's Disease. Studies have shown that DBS is effective and has long-term advantages in lowering motor fluctuations, dyskinesias, and medication requirements in patients with severe Parkinson's Disease. Medtronic unveiled the Percept PC DBS system in June 2023, incorporating new brain-sensing technologies. 

Additionally, as the world's population ages and the prevalence of neurological diseases rises, brain implant therapies will become increasingly important in providing symptomatic relief, improving functional results, and improving patients' quality of life. Continued innovation, research, and investment in brain implant technologies are critical for meeting the unmet medical demands of this rising patient population. 

Global Brain Implants Market Restraints:

High Cost

Brain implant operations and equipment can be costly, rendering them unavailable to some patients, especially in areas with low healthcare resources or poor insurance coverage. The high cost of therapy may restrict patient access to brain implant therapies, causing inequities in care and impeding brain implants market growth. In the United States, brain implant surgery can cost anywhere from USD 35,000 to USD 100,000, which includes the device, hospital costs, and anesthesia. Insurance companies and Medicare may cover some or all of the treatment costs for qualified people. According to a 2013 research, the median cost for a neurostimulator implant lead at UHC-affiliated institutions was USD 34,052. According to a 2023 study, each Neuralink implant surgery is expected to cost USD 10,500, including tests, parts, and labor, plus an additional USD 40,000 for insurer fees. 

Moreover, Deep Brain Stimulation (DBS) is a popular brain implant therapy for disorders like Parkinson's Disease and essential tremors. The high cost of DBS treatment might be financially difficult for people, especially those who need adequate health insurance coverage or access to healthcare resources. Deep brain stimulation (DBS) devices can cost anywhere from USD 16,000 to USD 100,000, depending on the country. In the United States, surgery can cost between USD 35,000 and USD 100,000, including the implant, anesthesia, and hospital expenses. 

Global Brain Implants Market Opportunity:

Technological Advancement and Innovation

Continuous advances in neuroscience, materials science, and engineering present prospects for creating novel brain implant technologies. Novel electrode designs, biocompatible materials, and wireless communication technologies improve device performance, lifetime, and patient outcomes. There are opportunities for corporations to invest in research and development to generate next-generation brain implants with improved functionality, precision, and safety. In 2024, Elon Musk claimed that his business, Neuralink, had surgically inserted the first computer chip in a living human brain. The chip is designed to let individuals operate phones and computers merely by thinking about what they want to do with them.

Additionally, introducing innovative materials, such as graphene, indicates a big step forward in the search for less intrusive and more efficient brain implants. The translucent brain implant developed by a research team at the University of California, San Diego, exemplifies this industry's inventiveness. In the meantime, Neurosoft's claim of a softer brain implant indicates a move toward patient comfort and long-term use. Thus, the brain implant industry is at a crossroads, where it must weigh the latest scientific breakthroughs against the prospect of moral quandaries.

Regional Analysis

The global brain implants market share is bifurcated into North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

North America Dominates the Global Market

North America is the most significant global brain implants market shareholder and is estimated to grow at a CAGR of 11.9% over the forecast period. It is projected to follow a similar trajectory throughout the forecast period, with no noteworthy variations. The country's healthcare facilities are of the best quality and easily accessible to a broad population, thanks to favorable regulations that make healthcare inexpensive to most of the region's residents. This aspect aids in achieving higher selling rates around the country. The rising prevalence and incidence of numerous neurological illnesses indicate a significant market opportunity for brain implants. According to the Alzheimer's Association's 2023 Alzheimer's Disease Facts and Figures study, 6.7 million Americans aged 65 and older will be living with Alzheimer's dementia in 2023. This figure might rise to 13.8 million by 2060 if no medical breakthroughs are made to prevent, treat, or cure Alzheimer's. As a result, the necessity to diagnose and treat these diseases drives demand for neurological treatments, including brain implants, which is predicted to expand the number of product manufacturing businesses in the country. 

Additionally, due to the rising number of cases of neurological illnesses, the North American market, notably in the United States, is predicted to expand steadily. Clearance for brain implants is projected to drive market expansion. Product approvals for brain implants are expected to boost their use for neurological illnesses. In 2023, Cognixion®, a leading developer of noninvasive Brain-Computer Interface (BCI) and Augmented Reality (AR) technology, announced that its flagship product, the Cognixion ONE™ Axon, has been granted U.S. Food and Drug Administration (FDA) Breakthrough product status. Thus, the North American brain implant market will likely expand significantly throughout the forecast period due to the reasons above, such as the rising frequency of neurological illnesses and product approvals.

Asia-Pacific is anticipated to exhibit a CAGR of 12.1% over the forecast period, driven by factors such as the rising prevalence of neurodegenerative and psychiatric disorders, unmet need for effective and long-term treatment solutions, rising affordability, and an increase in the number of awareness programs. Increasing efforts by neurosurgeons and neurology clinics to create knowledge about brain implants will likely provide considerable potential prospects for the market in this area. Furthermore, due to their low-cost structure, global market players make significant R&D investments, which are essential regional market drivers. 

Furthermore, according to neurology.org, the top three most common neurological disorders in Asia are stroke, migraine, Alzheimer's Disease, and other dementias. Neurological disorders were most prevalent among those aged 65 to 74, and males were more likely than females to suffer from them. This burden varied greatly across different places and countries in Asia. 

The European market for brain implants accounted for a significant share in 2023. Various initiatives and campaigns conducted by non-profit organizations to improve community awareness of brain illnesses are helping to drive market growth in the region. Furthermore, reimbursements granted by European countries and considering brain implants as a cost-effective intervention from the payer perspective in the United Kingdom contribute to their expanding market penetration. For example, according to a Dynseo article from September 2023, the Alzheimer's Society in the United Kingdom launched "Dementia Friends," a campaign to raise awareness about the issues that persons with dementia experience.

Segmental Analysis

The global brain implant market is segmented based on type, application, and end-user.

The market is further segmented by type into Deep Brain Stimulation, Vagus Nerve Stimulation.

The deep brain stimulation segment accounted for the most significant brain implant market share in 2023 and is predicted to have the highest CAGR throughout the forecast period, owing to an increase in people with Parkinson's Disease and tremors. Deep brain stimulation is the implantation of electrodes into specific brain areas, usually the thalamus or basal ganglia, to provide electrical impulses. These electrical pulses regulate aberrant brain activity associated with movement disorders such as Parkinson's Disease, essential tremor, and dystonia. DBS is frequently utilized when drugs fail to treat symptoms or when patients encounter severe medication-related side effects. It significantly improves motor function, lowers tremors, and improves the quality of life for people with movement disorders. DBS is a reversible and adaptable therapy approach, with healthcare providers tweening external programming to enhance therapeutic effects.

Furthermore, implanted DBS devices effectively treat Parkinson's Disease and tremors by providing electrical impulses to the brain to regulate aberrant brain activity that produces the symptoms of these movement disorders. Thus, lowering perceptions of tremors and boosting a patient's quality of life contributes to the segment's growth.

Vagus Nerve Stimulation is the implantation of a device that provides electrical stimulation to the vagus nerve, a main nerve that connects the brain to many organs in the body. VNS is primarily used to treat refractory epilepsy, but it has also shown promise in the management of treatment-resistant depression and other neuropsychiatric disorders. The mechanism of action of VNS in epilepsy is not entirely understood. However, it is thought to include control of aberrant neuronal activity inside the brain. VNS therapy provides long-term seizure reduction and increased quality of life for individuals with refractory epilepsy who have not responded to traditional treatment options.

The market can be bifurcated by application to Parkinson's Disease and Epilepsy.

The Parkinson's disease segment accounted for the most significant brain implants market share in 2023 and is predicted to have the highest CAGR throughout the forecast period. Parkinson's Disease (PD) is a neurodegenerative condition defined by the progressive death of dopaminergic neurons in the brain, which causes motor symptoms such as tremors, stiffness, bradykinesia (slow movement), and postural instability. DBS enhances the quality of life for people with severe Parkinson's Disease by reducing motor symptoms and medication-related adverse effects. The increase in Parkinson's disease prevalence among adults and the elderly is driving sector growth.

Epilepsy is a chronic neurological illness characterized by recurring seizures caused by aberrant brain electrical activity. Vagus Nerve Stimulation (VNS) is a brain implant therapy for refractory epilepsy. VNS includes implanting a device stimulating the vagus nerve, modifying aberrant neural activity, and lowering seizure frequency and severity. VNS therapy provides long-term seizure control and a higher quality of life for patients with refractory epilepsy who have not responded to antiepileptic medicines or other treatment options.

Based on end-users, the market is fragmented into Hospitals and neurology Clinics.

The hospital's segment dominated the brain implants market size in 2023 and is expected to continue to do so during the forecast period due to an increase in patient admissions and the availability of trained medical staff in hospitals, which helps to provide better services to patients, an increase in the geriatric population, which is more prone to neurological Disease, and an increase in healthcare expenditure. Hospitals are major end users of brain implant technologies, providing complete neurological care and specialized services to patients with neurological illnesses. Neurosurgical departments at hospitals offer the skills, facilities, and resources necessary to undertake brain implant procedures such as Deep Brain Stimulation (DBS) and Vagus Nerve Stimulation (VNS). 

Additionally, hospitals offer a multidisciplinary approach to patient care, with neurologists, neurosurgeons, nurses, and other healthcare professionals working together to diagnose, treat, and manage neurological problems. Brain implant surgeries are usually carried out in hospital operating rooms under sterile circumstances, with postoperative care provided in hospital wards or intensive care units. Hospitals are essential in delivering brain implant therapy, guaranteeing the best patient outcomes and safety throughout treatment.

Neurology clinics diagnose, treat, and manage neurological disorders, providing outpatient and specialized care to patients who have Parkinson's Disease, epilepsy, essential tremor, and dystonia. Neurology clinics offer a variety of noninvasive and minimally invasive treatments, including medication management, neuromodulation therapies, and neurorehabilitation. 

Brain implant therapies like Deep Brain Stimulation (DBS) and Vagus Nerve Stimulation (VNS) may be provided by neurosurgical teams from connected hospitals or specialized centers. Neurology clinics offer continuous monitoring, programming, and follow-up care to patients with brain implants, assuring therapy optimization, symptom control, and patient satisfaction. These clinics provide easy access to neurological experts, diagnostic testing, and therapeutic interventions, improving the quality of life for those with neurological illnesses.

Recent Developments

• January 2024- Boston Scientific agreed to acquire Axonics, Inc.
• July 2023- Boston Scientific received FDA approval for the next innovation in image-guided programming software for deep brain stimulation.
• January 2024- Abbott (NYSE: ABT) received FDA approval to launch the Liberta RC™ DBS system, the world's smallest rechargeable deep brain stimulation (DBS) device with remote programming, to treat individuals with movement disorders.