Rhythm management business market opportunity
According to Boston Scientific’s (BSX) estimates, the market opportunity for its Rhythm Management (or RM) segment, which involves the cardiac rhythm management (or CRM), electrophysiology (or EP), and diagnostics subsegments, was ~$14 billion in 2016.
The total addressable market size for the RM business is projected to rise at a CAGR (compound annual growth rate) in the range of 3%–5% from 2016 to 2020.
The above diagram shows Boston Scientific’s expectations for the operating margins of its new Rhythm & Neuro segment.
Boston Scientific projected the addressable market size for its CRM business, including its implantable cardioverter defibrillators, cardiac resynchronization therapy defibrillators, and pacemakers, to be ~$9.3 billion in 2016. The company expects this market to remain more or less flat until 2021.
On the other hand, the addressable market size for the company’s EP portfolio, which includes RHYTHMIA and other ablation solutions, was estimated to be ~$4.3 billion in 2016. Boston Scientific has projected the addressable market size for its EP business to grow at a CAGR of 10%–12% from 2016 to 2021. The insertable cardiac monitor market’s size was estimated to be ~$0.6 billion in 2016, and it’s projected to grow at a CAGR of 8%–10% from 2016 to 2021.
A major factor driving the growth of Boston Scientific’s CRM business is the company’s rapid ascent to the number two position in the high-voltage defibrillation category. Despite having been completed six years after the initial launch of its subcutaneous implantable defibrillator system, which is used for preventing heart and other vascular tissue damage resulting from sudden cardiac arrest, this product category continues to witness double-digit growth.
In the next article, we’ll discuss the growth prospects of Boston Scientific’s CRM portfolio in greater detail.