Orthotics and Prosthetics Industry Outlook
Industry Insights
INDUSTRY OVERVIEW1
The global orthotics and prosthetics (O&P) industry is experiencing significant growth, driven by demographic shifts, technological advancements, and rising chronic health conditions. In 2023, the market was valued at approximately $7.6 billion and is projected to reach $15.3 billion by 2033, reflecting a Compound Annual Growth Rate (CAGR) of 7.3%. The United States, a major contributor to this market, is expected to grow at a 5.6% CAGR, reaching $3.7 billion by 2033. Currently, prosthetics account for 55% of the market, while orthotics make up 45%.
KEY GROWTH DRIVERS2
Aging Population: As the global population ages, the incidence of mobility impairments, musculoskeletal disorders, and degenerative conditions such as osteoarthritis and osteoporosis is increasing. This demographic trend is a major driver of demand for both orthotic and prosthetic devices.
Chronic Health Conditions: The rising prevalence of diabetes and vascular diseases has led to a surge in limb amputations, significantly increasing the need for prosthetic solutions. Additionally, conditions like bone density loss and neurological disorders are contributing to the growing demand for orthotic support.
MARKET SEGMENTATION3
Orthotics Product Categories
• Custom Orthotics: Experiencing growth due to increased cases of diabetic foot complications and plantar fasciitis.
• Off-the-Shelf (OTS): Popular for general use with minimal self-adjustment features.
• Sports Orthotics: Rising sports participation is driving demand for injury prevention and performance enhancement.
PROSTHETICS PRODUCT CATEGORIES3
• Orthopedic Prosthetics: High demand from athletes and trauma patients due to superior functionality.
• Limb Prosthetics (Upper/Lower): Valued at $1.67 billion in 2023, projected to reach $2.44 billion by 2030 (CAGR 5.5%). Lower and upper leg amputations are most common.
• Myoelectric Prosthetics: Expected to grow at a CAGR of 18.5% (2020–2027), with 61.2% of the market focused on upper-limb prosthetics.
• Cosmetic Covers: Market expected to grow from $300 million in 2023 to $600 million by 2032 (CAGR 7.75%).
Technological Advancements: Innovations in materials science have enabled the development of lighter, more durable, and biocompatible devices. Technologies such as 3D printing allow for rapid, costeffective, and highly customized production. Smart orthotics, equipped with sensors and real-time data tracking, are enhancing patient outcomes by enabling dynamic adjustments and improved user experiences.
• 3D Printed Orthotics: Offer lightweight, customizable, and quickly produced solutions.
• Pediatric Orthotics: Growing awareness of childhood musculoskeletal issues is fueling demand.
• Smart Orthotics: Provide real-time monitoring and adaptive support for enhanced user experience.
• Cranial Remolding Orthoses (CRO): Market projected to grow from $220 million in 2023 to $360 million by 2032 (CAGR 5.5%).
• Breast Prosthetics: Demand driven by postmastectomy patients, with a focus on natural aesthetics and comfort.
• Maxillofacial Prosthetics: Market expected to grow from $1.5 billion in 2023 to $2.8 billion by 2032 (CAGR 7.1%), driven by congenital anomalies, trauma, and surgical interventions.
• Mobile Clinics: Expanding access to care in rural areas through mobile care sites.
REIMBURSEMENT TRENDS 4
Reimbursement is primarily provided through Medicare, Medicaid, the Department of Veterans Affairs (VA), and private insurers. The 2024 Medicare DMEPOS Fee Schedule saw a 2.6% net increase, reflecting a 3.0% CPI-U adjustment and a -0.4% productivity offset. Reimbursement policies vary by state and are influenced by documentation of medical necessity and geographic market conditions.
The industry is also subject to audits such as Recovery Audit Contractor (RAC), Comprehensive Error Rate Testing (CERT), and Targeted Probe and Educate (TPE), which ensure compliance with billing practices and medical necessity requirements.
LEGISLATIVE DEVELOPMENTS
The Medicare Orthotics and Prosthetics Patient-Centered Care Act (H.R.4315) aims to:
• Eliminate drop shipping
• Allow Medicare beneficiaries to receive replacements for custom-fitted devices
• Streamline access to care
Although introduced, the bill has not yet advanced through Congress.
STRATEGIC OPPORTUNITIES AND CHALLENGES
Opportunities
3D printing and smart technologies offer scalable, personalized solutions
and sports orthotics are emerging as high-growth segments
expansion into emerging markets with improving healthcare infrastructure
KEY TAKEAWAYS
Challenges
for workforce training to keep pace with technological advancements
The O&P industry is poised for continued innovation and expansion through 2033. Companies that prioritize personalized, technology-driven solutions and improve accessibility will be best positioned to lead in this evolving landscape. As awareness grows and technology advances, the industry will play an increasingly vital role in enhancing mobility, independence, and quality of life for millions of individuals worldwide.
Pediatric
High research and development (R&D) and compliance costs
Mobile clinics can bridge access gaps in underserved areas
VGM Industry Insights provides data-driven analysis and trends within the durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS) sector. Our focus areas include market trends, innovation, and strategic decision-making, helping stakeholders stay informed and competitive. We are committed to a forward-thinking approach, continuously monitoring industry developments to drive progress and innovation.
ALAN MORRIS SVP of Strategy
TYLER COULANDER Market Strategy Manager
