Neurology Devices Market Trends

Growth Drivers

• Administrative expenditure on neurology devices: The aspect of government healthcare spending, especially in Europe and the U.S. is one of the critical drivers of the market. According to an article published by the CMS in 2024, Medicare expenditure for neurology devices increased to USD 4.4 billion as of 2023, which was attributed to a surge in the incorporation of deep brain stimulators. Besides, the FDA has also escalated acceptances for artificial intelligence (AI) neurodiagnostic tools, with 25 latest neurology devices approved in 2023, thereby denoting a positive impact on the overall market.
• Affordable interventions and health quality enhancement: The aspect of initiating cost-effective interventions and augmenting health and medical quality is another growth driver for the market. According to a clinical study published by the AHRQ in 2022, it has been demonstrated that neurostimulation devices with early intervention tend to diminish hospitalizations by almost 35%, especially among epilepsy patients, thereby saving USD 1.6 billion in the U.S. healthcare expenses in 24 months. Likewise, as per the 2023 IQWiG report, Germany has reported that ongoing EEG monitoring in ICUs has reduced stroke misdiagnoses by approximately 45%, thus enhancing the market exposure.
• Rise in disease occurrences: Neurological diseases are gradually increasing, with Alzheimer’s incidence in the U.S. expected to double to 14 million by the end of 2050, thus suitable for uplifting the market internationally. According to an article published by the RKI in 2024, the prevalence of Parkinson’s disease has increased to 20% over the last 7 years, thereby reaching 400,200 patients in 2025. Therefore, this surge has been effectively compounded by an increase in the aging population, with almost 24% of the population in Europe anticipated to be more than 65 years of age by the end of 2030, which has further enhanced the demand for neurology devices globally.

Historical Patient Growth & Its Impact on Market Expansion

Historical Patient Growth (2014-2024) - Neurology Devices Users (Millions)

Sources: CDC, RKI, INSEE, INE, AIHW, MHLW, ICMR, NHCC

Manufacturer Strategies Shaping the Neurology Devices Market

Revenue Opportunities for Manufacturers (2023-2025)

Sources: FDA, ICMR, CMS, WHO

Challenges

• Burdens in reimbursement documentation: Payers in the U.S. and Europe currently demand real-world evidence for achieving coverage in the market. As stated by the HAS in 2023, there has been a requirement for affordable data for almost 36 months, which includes QALY metrics, a need that tends to delay Boston Scientific’s WaveWriter SCS unveiling by nearly two years. Similarly, the 2023 CMS Coverage with Evidence Development (CED) policy in the U.S.  for DBS devices has mandated more than 4.5-year patient registries that cover 2,500 subjects. This documentation burden has added USD 15 to USD 18 million in developmental expenses per device, thereby limiting the market growth.
• Constraints in hospital budget: The global hospital budget in the market has failed to keep up with technological expenses. As per the 2024 AHA Organization report, U.S.-based hospital purchasing data has displayed a 10% decline in capital equipment budget for neurological departments since 2020, which has pressured 70% of infrastructure to expand device replacement cycles to 8 to 12 years, which has increased from the pre-pandemic period. Besides, the G-DRG system in Germany has reduced neurology procedure reimbursements by €1,400 per case as of 2023, thereby causing a hindrance in the overall market.