U.S. Hearing Aids Market Size, Share & COVID-19 Impact Analysis, By Product (Hearing Devices (BTE, ITE, RIC, CIC, Others) and Hearing Implants (Cochlear Implants, Bone Anchored Implants)), By Age (Adult and Pediatric), By Distribution Channel (Government Services, Manufacturer Owned Retail Networks, National Retailers, Independent Retailers/Small Chains, and Online Retailers), and Forecast, 2022-2029

The U.S. hearing aids market size was USD 3.31 billion in 2021. The market is projected to grow from USD 3.46 billion in 2022 to USD 5.86 billion by 2029, exhibiting a CAGR of 7.8% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with hearing aids experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, this market exhibited a decline of 11.8% in 2020 as compared to 2019.

These devices are designed to wear behind or in the ear to enhance the auditory capacity of patients suffering from auditory loss. The market is witnessing a significant growth rate due to a surge in patients suffering from auditory loss.

• In March 2021, the National Institute on Deafness and Other Communicable Disorders (NIDCD) published a study reporting roughly 10% of the U.S. adult population suffering from tinnitus and other auditory disorders. Moreover, nearly 25% of postage 65 suffer from disabling loss.

The growing focus on restoring listening capacity, technological advancements in the auditory loss industry, and favorable regulatory policies are the key factors augmenting the market's growth. Moreover, the increasing insurance coverage, coupled with new product launches by key players, would support market growth during the forecast period.

COVID-19 IMPACT

Outbreak of COVID-19 Negatively Hampered Sales Due to Declining Patient Visits

The emergence of COVID-19 has impeded the demand for auditory assistance products due to the decreased patient volume.

Key players operating in the market recorded a significant decline in their revenues due to the COVID-19 pandemic. The reallocation of healthcare resources, the declining number of patient visits to emergency care and outpatient settings, disruptions in the supply chain, and other major parameters impacted the sales of auditory devices in the United States, especially during the first half of 2020.

• For instance, Sonova registered a 16.6% decline in total revenues generated from the U.S. during 2020. Its cochlear implants segment registered a decline of 20.0% in revenues compared to 2019.


• Cochlear, a leading player in cochlear implants, registered a decline of 6.5% in revenues generated in 2020 compared to 2019 from North America.

Due to lifting of restrictions, the demand for these devices has organically improved as patient footfalls have started to rise as compared to pre-pandemic levels. The recovery was estimated to increase 24.5% in revenues in 2021 due to the recommencement of elective procedures and increased patient visits during 2021.

• For instance, Sonova registered a growth of 36.5% in revenue from the U.S. in 2021 compared to 2020. Sonova’s ‘Cochlear Implants’ segment registered a growth of 49.9% in revenues of 2021 as compared to 2020. The recovery was due to an increase in sales of auditory devices through private audiology practices and sales through retail outlets.


• Also, Cochlear recorded a strong recovery of 10.4% in revenue of 2021 as compared to 2020 from North America.

LATEST TRENDS

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Increasing Adoption of Technologically Advanced Devices in the U.S. to Augment Growth

Major players operating in the market are launching technologically advanced products for patients suffering from auditory loss. The introduction of artificial intelligence is considered a significant revolution in the market. The advent of AI has helped develop in-built smart services for patients such as adaptive sound and active noise cancellation. Nowadays, languages can also be incorporated as per patient’s choice.

• For example, in August 2021, the company launched a breakthrough product, ReSound One, that includes an additional microphone in the ear canal. The product is the first of its kind, having a microphone and receiving-in-ear design (M& RIE) used to collect sounds and enhance user experience.

Similarly, many players are developing devices with Bluetooth connectivity and improved design, making it less noticeable. In addition, Bluetooth devices offer several features such as music streaming, phone calls, and help users manage alerts from their phones to the devices. These factors are anticipated to create a huge demand for technologically advanced devices in the near future.

DRIVING FACTORS

Rising Prevalence of Hearing Loss in the U.S. to Aid Market Growth

One of the key factors driving the market over the forecast period is the growing demand for cost-effective devices to manage auditory loss. The growing prevalence of auditory loss in the U.S. is projected to lead to the rise in demand for hearing aids.

• According to the World Health Organization (WHO), auditory loss is a common disorder, especially in industrialized countries. In the U.S., nearly 14-15% of the total population, or 48 million citizens, suffer from some degree of listening.

These devices are commonly used to manage auditory deficiency in adult and pediatric patients. Therefore, the increasing number of patients suffering from audiological disorders is anticipated to support the market growth during the forecast period.

Also, the increasing aging population in the U.S. susceptible to auditory loss is likely to support market growth. According to the United Nations, the population aged 65 years and above in the U.S. is expected to reach 35 million in 2000 to 80 million in 2040, which is anticipated to create huge demand for these devices in the near future.

Favorable Regulatory Policies and Increasing Insurance Coverage in the U.S. to Drive Growth

Another important factor that is anticipated to influence the market growth is the favorable reimbursement and regulatory policies associated with hearing aids in the U.S.

Several regulatory changes have been undertaken in the U.S. to provide access to auditory loss assistive products to patients suffering from this condition.

Based on a law signed by President Trump in 2017, the FDA has been given three years to develop safety standards and establish regulations, which will allow over-the-counter sales of these devices for patients with mild to moderate auditory loss without consulting an audiologist. These factors are expected to lead to a surge in the adoption of these aids in the U.S.

RESTRAINING FACTORS

High Cost and Lack of Favorable Reimbursement Policies to Affect Demand for Hearing Aids in the U.S.

One of the major restraining factors of the market is the high cost of these products. Despite being considered a prescription product, most insurance providers do not cover these devices. Only a few states provide cover for the costs of these devices for children. The majority of the population is dependent on out-of-pocket expenses for the examination, devices, and services to fit and maintain these devices. Lack of favorable reimbursement policies is attributed to the low adoption of these devices among the patient population.

Moreover, the stigma linked with these devices or the challenges patients face in adjusting to them would also contribute to their lower usage. The high cost seems to be the biggest restraint to the adoption of these devices among hearing loss patients.

SEGMENTATION

By Product Analysis

Increasing Adoption of Hearing Aids for Hearing Loss Management to Drive Hearing Devices Segment

Based on product type, the market is segmented into hearing devices and hearing implants. The hearing devices segment is further segmented into behind the ear (BTE), in the ear (ITE), receiver in the canal (RIC), completely in the canal (CIC), and others (invisible in the canal).

The hearing devices segment accounted for the largest U.S. hearing aids market share in 2021. The largest share of this segment resulted from the rising adoption of these devices and the growing cases of auditory loss in the general population.

• The Kaiser Family Foundation in 2021 reported leading consumer brands such as APPLE and Bose would provide audio tests and customer service online from audiologists and other specialists along with devices sold. The newfound demand for these devices is due to the 2017 legislation signed by Donald Trump to issue regulations by 2020. The rising demand supported by technological innovations by market players is anticipated to drive the growth of the hearing devices segment.


• Moreover, the Hearing Industries Association in 2021 reported the unit sales in the U.S. increase by 61.6% for H1 2021 as compared to unit sales for H1 2020. Moreover, the growth in sales was 13.5% compared to pre-pandemic levels in the U.S.

Also, the free or low-cost health care benefits offered by the U.S. Department of Veterans Affairs (VA) are responsible for driving the adoption of these devices among veterans in the U.S.

The hearing implants segment is further separated into cochlear implants and bone-anchored implants. The strong growth of the segment is attributed to the rising cases of complete auditory loss among the elderly population in the U.S. It is responsible for increasing the demand for cochlear implantations to treat complete auditory loss and driving the segment's growth in the market.

By Age Analysis

Rising Geriatric Population to Help the Adult Segment Dominate the Market.

Based on age, the U.S. market is segmented into adult and pediatric.

The adult segment is anticipated to dominate the market in terms of share during the forecast period. The growing geriatric population in the country and the increasing awareness about various devices for treatment of auditory disability available in the market are likely to contribute to the segment’s dominance.

• According to the National Institute of Deafness and Other Communication Disorders (NIDCD), approximately 28.8 million U.S. geriatric adults could benefit from hearing aids. In addition, as per the study, more than 56.4 million American citizens were aged 65 and above during the period.

The U.S. hearing aids market growth is attributed to the increasing geriatric population and is expected to support the adoption of these devices to manage auditory loss caused by aging.

The pediatric segment is anticipated to hold a significant market share during the forecast period owing to the increasing emphasis on screening tests of infants, which is responsible for the early detection and treatment of auditory impairment. In addition, various studies have shown that the early ear implantations restore auditory defects and is positively associated with earlier open-set ability and oral communications. Thus, the penetration of these devices is growing among children, which is likely to foster the growth of the pediatrics segment.

By Distribution Channel Analysis

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Manufacturer-owned Retail Networks Segment Dominated in 2021 due to Establishment of New Stores

Based on distribution channel, the market is segmented into government services, manufacturer-owned retail networks, national retailers, independent retailers/small chains, and online retailers.

The manufacturer-owned retail networks segment dominated the market in 2020. The dominance of this segment is attributed to the increasing focus of major market players on acquiring and establishing new retail stores. Along with this, the surging number of company-owned retail stores is expected to drive the market growth during the forecast period.

The online retailers segment is expected to account for a substantial market share due to increasing inclination of customers toward online channels. Online channel was the preferred distribution channel for manufacturers and consumers during the COVID-19 pandemic owing to strict regulations imposed by governments. In addition, the entry of major players in the e-commerce segment and their market intelligence are expected to drive market growth.

KEY INDUSTRY PLAYERS

Diverse Portfolio of Sonova and Demant A/S to Help Dominate the U.S. Market

The competitive landscape of the market represents the existence of established and emerging players. In the U.S. market, Sonova and Demant A/S were leading the market in 2021. These two companies accounted for a dominant revenue share.

Sonova dominated the market due to its comprehensive portfolio of products, which comprises technologically advanced devices for many people with listening disabilities. In January 2021, Sonova announced the launch of the Naida Marvel, which is another addition to the Phonak product portfolio. The device is fully-connected and delivers rich sound to the user. The device can connect to any Bluetooth device such as smartphones, TV, and tablets.

On the other hand, Demant A/S is projected to be the second-largest company in terms of the revenue share due to its strong presence in the U.S. and the robust portfolio of cochlear implants.

Other companies, such as GN Store Nord A/S, Cochlear Ltd, WS Audiology, and Starkey, held significant market shares due to their product offerings in the hearing devices segment. In August 2021, GN Store Nord A/S launched a breakthrough product, ReSound One, which includes an additional ear canal microphone. The product is the first of its kind, having a microphone and receiving-in-ear design (M& RIE) that collects sounds and enhances user experience. Furthermore, ongoing R&D initiatives due to the strong investment activities are expected to lead to the emergence of new players in the market during the forecast period.

LIST OF KEY COMPANIES PROFILED:

• Sonova (Switzerland)


• Demant A/S (Denmark)


• GN Store Nord A/S (Denmark)


• Cochlear Ltd (Australia)


• WS Audiology (Denmark)


• RION Co., Ltd. (Japan)


• Starkey (U.S.)


• MED-EL (Medical Electronics) (Austria)

KEY INDUSTRY DEVELOPMENTS:

• April 2021 – GN Nord A/S launched ReSound Assist Live in conjugation with ReSound hearing aids. This launch will allow healthcare professionals to provide remote services to fit and test new devices. The development helps the company strengthen its product portfolio and establish its market presence.


• January 2021 – W/S audiology launched the Signia Active Pro earbud-style devices that offer high-tech audiological benefits. The new product offers Bluetooth connectivity and receiving phone calls, among other features coherent with regular earbuds. The development will improve the adoption of the product due to its ease of use and utility.

REPORT COVERAGE

An Infographic Representation of U.S. Hearing Aids Market

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The research report provides a detailed analysis of the industry. It focuses on key aspects such as leading companies, products, and age. Besides this, it offers insights into the market trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several factors that have contributed to the growth of the market in recent years.

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