In 2015, the WHO estimated that around 360 million people—about 5% of the global population— have disabling hearing loss. For some people with hearing loss, cochlear implants can be used to improve hearing.
A cochlear implant is a surgically implanted electronic device, which consists of two major components: An external sound processor and an internal implant. The sound processor receives sound waves and processes them into detailed digital information while the implant converts the digital information into electrical signals, which are sent to the auditory nerve from an electrode array placed inside the cochlea. The auditory nerve sends impulses to the brain, where these sound waves are processed and interpreted.
Global cochlear implants market by volume 2015-2020 (thousands of units)
Source: Technavio
A National Institute on Deafness and Other Communication Disorders (NIDCD) fact-sheet on cochlear implants says in 2012, the FDA estimated that 324,200 people had received implants worldwide.
While this number seems small in relation to the number of people with hearing loss worldwide, there are a lot of complex factors that go into whether a deaf person can get an implant, whether they will benefit from it and whether they want one in the first place. While we can’t get into these factors in a 500-odd word blog post, we can discuss two major developments that are leading to growth of the global cochlear implants market.
Technological developments for next-generation sound processors
New versions of the cochlear implant are yielding smoother, cleaner sound and in some cases resulting in better-than-normal hearing.
For instance, in September 2013, Cochlear, developed and launched the next-generation Nucleus 6 sound processor. The upgrades increased sales by 27%. The next year, Advanced Bionics, a subsidiary of Sonova, received the TÜV approval, following approvals by the FDA and Health Canada, for its next-generation Naida CI Q90 sound processor. This sound processor can automatically filter out noise and help people focus on specific sounds by way of its Ultrazoom technology and AutoSound OS. This makes understanding speech in a noisy setting—say a conference or a party—much easier.
High growth potential in emerging economies
According to The Hindu, the Chief Minister’s comprehensive health insurance scheme has seen more than 2,000 children in India fitted with cochlear implants.
Similarly, in December 2015, Neutron Biotechnology obtained a tender from China Disabled Person’s Federation for 2,000 cochlear implants.
As we mentioned above, only a small percentage of those with hearing loss have received a cochlear implant. But as the technology improves and insurance and funding schemes are extended to cover the devices, the option will be available to more and more people.
Additionally, growing emerging markets for the implants and increased regulatory approval by government bodies is proving space for companies like Cochlear, MED-EL, Sonova and William Demant to expand and fine-tune their products over the forecast period.
