GLOBAL NEUROTECH DEVICES MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

The global neurotech devices market was valued US$ 13.44 Bn in 2023 and is expected to reach US$ 37.04 Bn by 2031 growing at a compound annual growth rate (CAGR) of 13.5% from 2024 to 2031.

Neurotechnology devices are increasingly being used both in clinical and consumer applications. There are mainly two types of neurotech devices - invasive and non-invasive. Invasive devices require surgery for implantation and work by interfacing directly with the brain or nervous system. Examples include brain-computer interfaces like neural implants which can be used to control prosthetic limb movement or communication. These provide superior resolution of brain signals but come with risks of surgery and infections.

Global Neurotech Devices Market- Regional Insights

• North America has been the dominant region in the global neurotech devices market for the past decade. The region accounts for over 1% of the total market share in 2024. The North America region currently dominates the global neurotech devices market. With a strong presence of leading industry players and well-developed healthcare infrastructure, the U.S. and Canada account for over 40% of the worldwide sales. Some of the key factors that have enabled North America's dominance include heavy investments in R&D by both public and private players, supportive regulatory environment fast-tracking new product approvals, and significant availability of skilled neuroscientists and engineers. The large patient population diagnosed with neurological disorders also ensures that the steady demand pushes growth.
• Asia Pacific is expected to be the second-largest market for neurotech devices, accounting for over 7% of the market share in 2024. China and India specifically have seen exponential uptake due to rising medical expenditures, growing public awareness about brain health, and increasing government focus on neurological care modernization. With a combined population of over 2.5 billion, these nations present enormous market potential. Local manufacturers are making considerable investments to boost the domestic production of low-cost neurotech solutions through technology transfers and collaborations with multinational innovators. This is improving access for neurotech solutions vast numbers in rural communities as well as meta-regions within these countries.
• Europe is expected to be the fastest-growing market for neurotech devices, with a share of 8% during the forecast period. The neurotech devices market in Europe is experiencing robust growth, driven by the increasing awareness of neurological disorders and advancements in technology. The demand for innovative solutions such as brain-computer interfaces, neurostimulation devices, and wearable neurotech products is on the rise. Key factors influencing market expansion include a growing aging population, rising prevalence of neurological conditions, and government initiatives supporting healthcare technology. Established players and startups are actively contributing to the market's competitive landscape. Regulatory approvals, strategic collaborations, and product launches are shaping the market, with a focus on enhancing patient outcomes and addressing unmet medical needs.  

Figure 1. Global Neurotech Devices Market Share (%), By Region, 2024

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Analyst’s Views:

The neurotech devices market is poised to grow substantially over the next decade driven by rising cases of neurological disorders and increasing investments in brain research. Growing accessibility of innovative neurostimulation and neurodiagnostics devices as well as favorable reimbursement policies will further propel the market growth. Asia Pacific is expected to emerge as the fastest growing regional market owing to its rapidly developing economies and healthcare infrastructure in countries like China and India.

However, high cost of neurotech devices remains a major restraint to widespread adoption globally. Data privacy and security concerns around brain-computer interface devices can also impede the market growth. Nevertheless, the market sees new opportunities from ongoing R&D to develop novel devices for indications like Parkinson’s disease, epilepsy, and Alzheimer's. Integration of devices with artificial intelligence and cloud computing will enhance therapeutic effectiveness. Collaborations between device makers and pharmaceutical companies are expanding indications for neurostimulation therapies.

North America currently dominates the neurotech devices landscape led by the U.S. which sees early technology adoption and availability of research funding. Investments towards developing minimally invasive devices for neurological ailments will strengthen the region’s position in the coming years. Europe is another lucrative market backed by universal healthcare and supportive regulatory guidelines for medical devices.

Global Neurotech Devices Market - Drivers

• Rising incidence of neurological disorders: The rising prevalence of neurological disorders, such as Parkinson's disease, epilepsy, Alzheimer's disease, and migraine, has significantly increased the demand for advanced neurotechnology devices that help improve patients' quality of life. As per the World Health Organization (WHO), neurological disorders currently affect over 1 billion people worldwide with Alzheimer's and other dementias posing the largest economic burden among neurological conditions. The growing burden of neurological disorders is primarily attributed to the aging global population and increasing life expectancy. As people are living longer, they are more prone to develop age-related neurodegenerative conditions.
• Growing geriatric population: The global aging population is a key driver behind the growth of the neurotech devices market. As life expectancies increase around the world, the number of people aged 65 and over is projected to nearly double from 727 million in 2020 to over 1.5 billion by 2050, according to a United Nations report. As the baby boomer generation continues to enter their senior years, the prevalence of neurological disorders like Alzheimer's and Parkinson's disease are expected to rise substantially in the coming decades. This growing geriatric population is fueling the demand for innovative neurotech solutions that can help improve quality of life and allow for independent aging. Technologies like brain computer interfaces which translate brain signals into movement commands for prosthetic limbs or assisted daily living devices are becoming increasingly important. Companies are also developing neural implants to treat neurological movement disorders through deep brain stimulation. Passive devices to monitor brain health and detect early signs of cognitive decline through electroencephalogram tracking are another major focus areas. Regulatory approvals for such products have grown in recent years.

Global Neurotech Devices Market - Opportunities

• Integration of AI & IoT in neurotech devices: The integration of artificial intelligence (AI) and internet of things (IoT) technologies into neurotech devices offers tremendous opportunities for advancement in the neurotechnology market. AI and IoT capabilities can enhance current neurotech devices by enabling continuous monitoring of patients both inside and outside of clinical settings. This around-the-clock data collection and analysis would allow for more personalized care and early detection of potential health issues. By leveraging vast amounts of patient data over time, AI algorithms could also be trained to more accurately diagnose neurological conditions, predict symptom flare-ups, and even suggest customized treatment plans. With IoT, neurotech devices would be able to constantly communicate with each other as well as healthcare providers, facilitating remote care management and fast response in emergency situations. This level of around-the-clock monitoring and automated analysis powered by AI/IoT integration could fundamentally change healthcare delivery for many living with neurological disorders.
• Growing R&D investments: The neurotech devices market has a great opportunity for growth through increasing R&D investments. As researchers and companies gain a deeper understanding of the human brain and nervous system, they are developing novel technologies to treat neurological and brain related diseases. Neurological disorders pose an immense global health burden, with over a billion people estimated to be living with conditions such as Alzheimer's, Parkinson's, epilepsy and stroke worldwide. The lack of effective treatments for many of these diseases indicates a clear unmet need. Stepped up R&D involving multidisciplinary collaborations between medical experts, physical scientists, engineers and data analysts hold promise to propel new breakthroughs.

Global Neurotech Devices Market - Trends

• Wireless & wearable neurotech devices: The neurotech devices market is being significantly impacted by the rise of wireless and wearable neurotech devices. These new types of devices are allowing for non-invasive and portable brain monitoring solutions that can be used both in clinical and consumer settings. Wireless electrode caps and headbands that can monitor brain activity, detect epileptic seizures or measure brain waves for biofeedback are now widely available for consumers. Devices like these from companies like Muse and Melon are easy to use at home without the constraints of bulky clinical-grade electroencephalogram (EEG) machines. They are also finding new applications in areas like gaming, meditation and sleep tracking. This increased accessibility and wider range of use cases is attracting more users and driving revenues for companies in this space.
• Brain-computer interface technology: The rapid advancement of brain-computer interface technology is poised to significantly influence the neurotech devices market in the coming years. Brain-computer interfaces (BCIs) allow for direct communication pathways between the brain and external devices, opening up possibilities for new neurotech solutions to complex healthcare and quality of life challenges. As BCIs become more sophisticated, non-invasive, and personalized, major neurotech companies are increasingly focusing their research and development efforts on this expanding area. Startups are also emerging with new prototypes for BCIs aimed at consumer applications such as augmented reality, virtual reality, and digital entertainment/media. BCI technologies could enable thinking alone to control external software, apps, robots, prosthetics or other devices through neural signals in the future. Several clinical trials are underway to explore the use of BCIs for treating neurological conditions like paralysis, epilepsy, depression, and Alzheimer’s.

Global Neurotech Devices Market - Restraint

• High cost of neurotech devices: The high cost of neurotech devices has been a significant restraint on the growth of the neurotech devices market in recent years. Neurotech aims to enhance and expand human capabilities through emerging technologies such as brain-computer interfaces (BCIs), neural implants, and neurostimulation devices. However, the R&D and production costs associated with these sophisticated technologies make the resulting products extremely expensive for most consumers and healthcare systems.
• Lack of skilled neurologists: The lack of skilled neurologists is proving to be a major roadblock for the growth of the neurotech devices market. Neurology is a specialized branch that requires several years of advanced medical training to gain expertise in diagnosing and treating complex disorders of the brain and nervous system. However, most countries are facing an acute shortage of neurologists due to the rising disease burden and limited number of medical graduates opting for advanced training in neurology each year.

Figure 2. Global Neurotech Devices Market Share (%), By Product Type, 2024

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Recent Developments

On January 11, 2024, Rune Labs, a precision neurology software and data company, announced a strategic round of US$ 12 million, increasing the total amount raised by the company to over US$42 million. The round was led by new brain disorder fund, Nexus NeuroTech Ventures, with participation from existing investors, including Eclipse, DigiTx Partners, Moment Ventures and TruVenturo GmbH.

On June 9, 2023, the United Nations Educational, Scientific and Cultural Organization (UNESCO) announced that it is all set to host an international conference to develop an ethical framework for the usage of neurotech devices that feed brain-wave data to computers through dry electrodes and implants.

Top Companies in the Global Neurotech Devices Market

• Boston Scientific Corporation
• BrainCo, Inc
• Cochlear Limited
• Control Bionics, Inc
• LivaNova PLC
• Medtronic plc
• Nihon Kohden Corporation
• Natus medical Incorporated
• Integra LifeSciences
• Blackrock Microsystems
• NeuroSigma, Inc.
• NeuroVigil Inc.
• Neuralink Corp.
• Abbott Laboratories
• Advanced Bionics AG

Definition: Neurotech devices are technological innovations designed to interact with and influence the nervous system for diagnostic, therapeutic, or research purposes. These devices encompass a range of technologies including brain-computer interfaces, neurostimulation devices, and wearable gadgets that monitor or modulate neural activity. Neurotech devices hold promise in treating neurological disorders, such as epilepsy and Parkinson's disease, by directly interfacing with the brain or peripheral nerves. They also play a crucial role in neuroscientific research, providing insights into brain function. As the field advances, these devices contribute to enhancing brain-machine communication, rehabilitation, and understanding the complexities of the human nervous system.