Vagus Nerve Stimulation (VNS) Market Size, Share & Industry Analysis, By Type (Invasive, and Non-invasive {nVNS}), By Application (Epilepsy, Treatment Resistant Depression (TRD), and Others), By End User (Hospitals, and Specialty Clinics), and Regional Forecast, 2019-2032

The global vagus nerve stimulation market size was valued at USD 505.2 million in 2018 and is projected to reach USD 2,294.3 million by 2032, exhibiting a CAGR of 11.4% during the forecast period.

The anatomical location and functional capabilities of the vagus nerve in controlling brain functions has been instrumental for market players and healthcare providers conducting research on stimulation of the vagus nerve. Spinal Cord Stimulation (SCS), Deep Brain Stimulation (DBS), and Vagus Nerve Stimulation are some of the prominent treatment methods for diverse chronic and acute conditions. There are various clinical trials being conducted by market players to evaluate the effect of vagus nerve stimulation in treating various conditions including heart failure, among others.

MARKET TRENDS

Shift of Healthcare Providers from Medication to Electrical Stimulation for Treatment of Neurological Disorders to Fuel the Market

The shift from traditional medication to electrical stimulation of nerves has been pivotal in development of new treatment options for different applications. Epilepsy, treatment resistant depression (TRD), and other neurological conditions are some of the primarily established applications of the vagus nerve stimulation technique. Resistance or lack of response from patients to epilepsy drugs and anti-depressants are prime candidates for vagus nerve stimulation technique. Increasing incidence of neurological conditions and growing prevalence of treatment resistant depression are propelling the shift of healthcare providers for treatment of these conditions through electrical stimulation devices. This is projected to further propel the vagus nerve stimulation market growth during the forecast period.

MARKET DRIVERS

Introduction of Innovative Non-invasive Vagus Nerve Stimulation Devices to Fuel Demand

Vagus nerve stimulation is a technique of electrically stimulating the vagus nerve, which controls specific functions and areas of the brain. Traditional and conventional vagus nerve stimulation devices are implanted in the patient’s body and leads are placed on the vagus nerve, which provide electrical stimulation whenever required. Technological advances and growing demand for innovative devices has led to the introduction of small-sized implantable VNS devices in the market. These small-sized implantable devices offer various clinical benefits to patients and healthcare providers. Introduction of innovative devices is anticipated to drive the growth of the global market during the forecast period.

Constant focus by market players to innovate and introduce new products has led to emergence of non-invasive vagus nerve stimulation (nVNS) devices in the market. These devices are also known as transcutaneous vagus nerve stimulation devices (tVNS). For example, gammaCore (nVNS), a non-invasive vagus nerve stimulation device from electroCore Inc., received US FDA approval in late 2019. This device offers clinical benefits including avoiding surgical procedures to implant and replacing the implanted devices, thereby eliminating the side effects associated with implantable devices. Other market players including tVNS Technologies GmbH, Parasym Ltd., among others have also received US FDA and CE Mark approvals for their non-invasive VNS devices. This is projected to drive the adoption of these devices and drive the growth of the vagus nerve stimulation market trends during the forecast period.

Growing Prevalence of Epilepsy and Other Conditions to Fuel the Demand for VNS Devices Globally

Epilepsy is among the most common neurological conditions, with significantly higher prevalence in emerging countries. According to the Epilepsy Foundation of America and World Health Organization (WHO), an estimated 50 million people globally were suffering from epilepsy. China, India, and Brazil were among the countries with higher proportion of the population suffering from the condition. According to National Institution of Mental Health (NIMH), an estimated 18 million people in America were suffering from some form of depression. This was further augmented by growing prevalence of treatment resistant depression and increasing number of patients suffering from the condition, leading to higher demand for electrical stimulation devices including VNS for the treatment of these conditions. The above factors combined with introduction of non-invasive VNS devices by market players is further projected to fuel the adoption of these devices and boost the market growth. 

MARKET RESTRAINT

High Cost of Surgical Implantation and Lower Treatment Rates in Emerging Countries to Limit the Adoption of VNS Devices

Depsite increasing incidence of epilepsy, depression, and other chronic conditions globally, and higher prevalence of these conditions in emerging countries, there are certain factors that are limiting the adoption of VNS devices. One of the major factors restraining the growth of the market is lower treatment rates in emerging countries for neurological disorders. This is presenting a limited number of patients undergoing treatment, and out of those, a large proportion still prefer regular medication for treatment of these conditions. This further limits the number of patients preferring VNS treatment. Added to this is the high cost of implantable VNS devices, along with high cost of the surgery, and lack of approved non-invasive VNS devices, are some of the major factors restraining the market growth.

SEGMENTATION

By Type Analysis

Invasive Vagus Nerve Stimulation Devices Dominated the Global Market

Based on type, the VNS devices market is segmented into invasive and non-invasive. The invasive VNS devices are implanted in the chest of the patient and leads are placed on the vagus nerve. The implantable and invasive VNS devices segment dominated the vagus nerve stimulation market share in 2018. Technological advances in these implantable devices, leading to reduction in size of the device and timely programmed stimulation, along with other benefits, have been instrumental in the dominance of these devices in the global market.

Non-invasive segment is projected to register a significant CAGR during the forecast period. Introduction of new devices by market players and shift of patient preference towards non-invasive devices are factors projected to fuel the demand for these devices, and drive the market growth during the forecast period.

By Application Analysis

Clinically Proven Effectiveness of VNS in Epilepsy to Aid Dominance of the Segment

In terms of application, the market is segmented into epilepsy, treatment resistant depression, and others. Other clinical applications of vagus nerve stimulation include treatment of migrane, obstructive sleep apnea, headache, and acute heart failure. Various clinical trials are being undertaken by market players in association with research institutes to explore and expand applications of VNS devices. However, proven effectiveness of VNS in epilepsy and treatment resistant depression (TRD), along with higher penetration of these devices for epilepsy treatment in developed countries, is primary reason for dominance of epilepsy application in the global vagus nerve stimulation market.

Treatment resistant depression (TRD) is among the other major application areas for VNS therapy. Growing prevalence of the condition, along with introduction of non-invasive devices in the market, is expected to drive the growth of the segment during the forecast period.

By End User Analysis

Higher Adoption of VNS devices by Speciatly Clinics to Enable Dominance of the Segment

The emergence of specialty clinics for neurology, cardiology, and other conditions in developed and emerging countries is attracting a large patient pool suffering from chronic and acute conditions. The pool mainly comprises of patients suffering from conditions which can be treated in outpatient settings and do not require inpatient admission and hospital stay. Growing number of specialty clinics, along with adequate reimbursement policies provided by these settings, are some of the major factors responsible for higher proportion of epilepsy and TRD patients being treated in these facilities. 

These factors, along with emphasis of regional and national government agencies for treatment of patients in outpatient settings, is further fuelling the demand for vagus nerve stimulation devices in the global market. Hospitals segment is projected to lose market share in the VNS market during the forecast period.

Regional Analysis

The VNS market size in North America stood at USD 244.7 million in 2018. The market in the region in characterized by higher diagnosis and treatment rates for neurology conditions, coupled with adequate reimbursement policies for VNS devices. These factors, along with higher awareness among patient population towards new treatment options and availability of advanced VNS devices in the region, are responsible for dominant share of the region in the global market. The market in Europe and Asia-Pacific is projected to register comparatively higher CAGR during the forecast period.

Increasing number of non-invasive VNS devices receiving CE mark approvals in 2018 and 2019, are anticipated to drive the demand for VNS devices in Europe during 2019-2026. Expected regulatory approvals for these non-invasive devices in Asia Pacific, and presence of a large and underpenetrated market in the region, together are projected to drive the market growth in Asia Pacific during forecast period. The market in Latin America and the Middle East & Africa is currently in nascent stage. However, developing healthcare infrastructure in these regions and growing prevalence of neurology disorders is projected to fuel the VNS market demand during forecast period.

KEY INDUSTRY PLAYERS

Diverse Portfolio and Core Focus of LivaNova PLC, to Propel the Company to a Leading Position

Competition landscape of vagus nerve stimulation market depicts a monopoly dominated by LivaNova PLC. A diversified product portfolio of implantable vagus nerve stimulation devices, along with constant innovations by the company leading to new device introductions, are prominent factors responsible for the dominance of the company.

However, regional and domestic key players such as BioControl Medical, Parasym Ltd., tVNS Technologies GmbH, and electroCore Inc., have entered in the monopolistic market competition with innovative non-invasive devices. This is projected to positively impact the global market as these companies are anticipated to gain market share during the forecast period.

LIST OF KEY COMPANIES PROFILED:

• LivaNova PLC


• BioControl


• electroCore, Inc.


• Parasym Ltd


• Innovative Health Solutions Inc.


• tVNS Technologies GmbH


• Others

KEY INDUSTRY DEVELOPMENTS:

• June 2019 – Innovative Health Solutions Inc., a US-based company, announced US FDA approval for its IB-Stim for reduction of abdominal pain in children between 11-18 years of age suffering from irritable bowel syndrome (IBS).


• November 2018 – electroCore Inc., a commercial stage medical devices company, received US FDA approval for its non-invasive vagus nerve stimulation (nVNS) device named “gammaCore”. The device received approval as an adjunct therapy for treatment of cluster headache in the U.S.

REPORT COVERAGE

The vagus nerve stimulation market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over the recent years.

Report Scope & Segmentation