Vagal Nerve Stimulation (VNS) Market: Information by Products (Implantable VNS Devices, External VNS Devices), By Application (Depression, Epilepsy, Others), By End User (Hospitals, Ambulatory Surgical Centers), and Region(North America, Europe, Asia-Pacific, and Rest of the World)—Forecast till 2030

Vagal Nerve Stimulation Market Forecast

The Vagal Nerve Stimulation Market is expected to reach USD 604.54 million by 2030 at 10.10% CAGR during the forecast period 2022-2030.

Market Overview:

Vagal nerve stimulation is a procedural treatment to treat patients with epilepsy. In this process, an electrode is implanted in the neck of the patient to deliver electrical impulses to the vagus nerve. It is a non-surgical alternative to surgical removal of brain tissue for the control of epileptic seizures.The seizures of epilepsy are triggered by uncontrolled electrical discharges spreading through the brain. The nerve stimulation process uses a different approach as it provides intermittent electrical stimulation to a nerve outside the brain, which influences certain patterns of brain activity. In contrast with anti-seizure drugs, the effectiveness of healing patients with epilepsy through vagal nerve stimulation is expected to impact the vagal nerve stimulation (VNS) market positively.

The Vagal Nerve Stimulation (VNS) market is mainly driven by the increasing prevalence of neurological disorders and risinginvestment of biotechnology and pharmaceutical industries in R&D. However, factors such as the higher cost of the vagal nerve stimulation treatment procedure are expected to restrict the market's growth during the forecast period. Furthermore, the increasing strategic mergers and acquisitions will create opportunities for market participants.

COVID-19 Analysis:

The COVID-9 has a significant impact on the production of vagal nerve stimulation devices. Due to the pandemic, many countries have imposed a lockdown that has hugely hampered their production processes. The 1Q, 2Q, and 3Q have been most affected by the pandemic. Also, the disruption in the supply chain networks has affected them hugely due to the disruption in their raw material supplies. The remote working of the pandemic has hugely affected the VNS device's production in the COVID-19 pandemic period.

The losses that occurred due to the pandemic have enabled manufacturers to change the pricing structure. The pricing structures of all products are dependent on production expenses, research and development activities, supply chain costs, and inventory costs. The pandemic and effective lockdowns implemented by countries such as the United States, China, India, Japan, Germany, the United Kingdom, and others have impacted inventory management, production lines, labor, and supply chains in the market. Also, the priority treatment of COVID-19 patients has affected the treatment of neurological disorder patients. This has largely affected the vagal nerve stimulation market. However, the lack of inventory management, supply chain disruptions, and growing labor costs have increased the production and distribution costs of the VNS devices. As a result, VNS prices have risen. The VNS therapy and device costs are expected to increase by 2% to 3% due to the COVID-19 impact.

Market Dynamics:

Market Drivers

• Increasing prevalence of neurological disorders

According to WHO estimates, neurological disorders cause 4.5%-11% of all illnesses, whether in low- or high-income countries.This number is higher than the number of respiratory diseases, gastrointestinal disorders, or cancers, and the burden is likely to increase further over the coming years. The US has also shown a considerable increase in neurological disorders and is expected to continue this growth trend over the next 20 years. The prevalence of such neurological disorders has been estimated to vary from 0.9% to 4% (970–4100 per 100,000 population) with an average of around 2.3% (2390 per 100,000 population). Epilepsy is one of the most widespread neurological disorders, affecting nearly every country on the planet. Countries such as India and China have seen the highest number of populations suffering from this condition. This increasing prevalence has led to the growing demand for various devices and therapies, including vagal nerve stimulation (VNS). Vagal nerve stimulation is used to treat a growing number of neurological disorders. It helps to treat neurological disorders such as epilepsy, depression, and other clinical applications. Because of the high prevalence of neurological disorders around the world, VNS can be used during the forecast period.

• Increasing investment of biotechnology and pharmaceutical industries in R&D

Market Restraints

• Higher cost of vagal nerve stimulation treatment procedure

The growing incidents of various neurological disorders, including depression, epilepsy, and other conditions, are driving the adoption of VNS devices and therapies across the globe. As per the Epilepsy Foundation, the VNS therapy currently costs approximately USD 30,000, including the implant and surgical procedure. Also, there are limited numbers of patients undergoing treatment for such neurological conditions, which has highly impacted the cost structure of the VNS treatment as a large number of patients still prefer medical treatment for such neurological disorders. This factor highly affects the adoption of VNS devices and treatments. Moreover, the high cost associated with VNS surgery is significantly affecting the adoption of VNS devices. Conclusively, the high cost of VNS therapy, huge surgery costs, and preferred medical treatments are expected to hinder the growth of the vagal nerve stimulation market during the forecast period.

Market Opportunities

• Increasing strategic mergers and acquisitions

The growing number of neurological disorders has enabled the rapid adoption of vagal nerve stimulation. In addition, increased research & development has led to the new technological advance products coming in the market. Massive investments are assisting start-up companies in developing competitive products for vagal nerve stimulation therapies and surgery.Moreover, the growing number of patents for the VNS from the new start-up companies is expected to enable them to contribute to a high market share in the vagal nerve stimulation market. However, as these upcoming start-up companies have a high-skilled workforce and advanced products, they provide significant strategic mergers and acquisition opportunities for the large players in the market. The large market players should invest in such upcoming start-ups and guide them to achieve their goals in strategic ways. Itis expected to bring various developments in the market and enable large companies to lead the market during the forecast period. Therefore, the increasing strategic mergers and acquisitions are expected to provide a lucrative growth opportunity for the vagal nerve stimulation market during the forecast period.

Vagal Nerve Stimulation (VNS) Market Share (%), by Products, 2019Source: MRFR Analysis

Value Chain Analysis

The vagal nerve stimulation market is growing steadily and is expected to continue growing at the same rate in the near future. This is due to the growing contribution of existing players to making the products more effective. The supply chain analysis for the vagal nerve stimulation market comprises four major components, which start with research and product development, followed by manufacturing of the products, distribution & sales, and ends with post-sales monitoring.

The key market players focus on incorporating innovations into their current techniques to keep any discrepancies at bay. In May 2020, LivaNova PLC published a new study in the International Journal of Bipolar Disorders based on Vagus Nerve Stimulation Therapy (VNS Therapy) for Treatment As Usual (TAU). This has considerably improved the outcomes for patients suffering from Treatment-Resistant Bipolar Depression (TRBD).

Segment Overview

The Vagal Nerve Stimulation (VNS) market has been divided based on products, application, and end user.

By Products

• Implantable VNS Devices

The implantable vagal nerve stimulator is a device that controls seizures for some people with epilepsy. Unlike other types of epilepsy surgery that involve surgery on the brain or cutting an area of the brain, the implantable vagal nerve stimulator device uses electrical stimulation through the vagal nerve in the neck to reduce subjection. The effectiveness of healing patients without any surgery is a major driver for the significant growth of implantable vagal nerve stimulator devices.

• External VNS Devices

The external Vagal Nerve Stimulation (VNS) devices rely completely on electrical signals that can be passing through the skin and muscles of the neck without affecting the tissue it is passing through. This procedure must be precise enough to regulate and access specific activity of the nerve. Growth in technology and the introduction of new external VNS devices are expected to fuel the growth of the vagal nerve stimulator market.

By Application

On the basis of application, the market is bifurcated into depression, epilepsy, and others.

• Depression

Depression is a neurological disorder that creates a persistent feeling of sadness and loss of interest. It affects how an individual feel, behaves, and thinks. Depression can lead to a variety of physical and emotional problems. Depression occurs with symptoms such as angry outbursts, irritability or frustration, sleep disturbances, including insomnia, and many others. People with depression usually show severe symptoms to cause evident problems in daily activities, such as work, school, social activities, or relationships with others. With proper diagnosis, therapy, and effective medication, depression can be cured. With technological advancements in the healthcare sector now depression can be cured effectively by using stimulation therapies such as nerve stimulation devices.

• Epilepsy

Epilepsy is a neurological disorder in which brain activity becomes abnormal, causing seizures or periods of unusual behavior and loss of awareness and sensations. Epilepsy affects both males and females of all races, ages, and ethnic backgrounds. Treatment with medications or surgery can control seizures for people with epilepsy.

• Others

Apart from the above applications of vagal nerve stimulation devices, many other neurological disorders can be cured or treated with the help of these devices. Some of them include trauma, headache, very low blood sugar, and loss of consciousness.

By End User

The vagal nerve stimulation market on the basis of the end user is divided into hospitals, ambulatory surgical centers, and others. The emergence of multispecialty clinics for neurology, cardiology, and other critical conditions in developed countries is expected to drive the vagal nerve stimulation market.

• Hospitals

The vagal nerve stimulator is used widely in hospitals worldwide to treat epilepsy that is not controlled with normal medication. The nerve stimulation treatment prevents the frequency of seizures by sending mild electrical impulses through the vagal nerve to the brain. VNS treatment helps the patient recover fast, with less intense seizures, improved quality of life, and alertness.

• Ambulatory Surgical Centers

The ambulatory surgical centers are the facilities where surgeries that do not require hospital admission are performed. Ambulatory surgical centers provide a suitable environment and cost-effective services, which are less stressful than many hospitals can offer. Patients choosing to have surgery in an ambulatory surgical center arrive on the day of their procedure, have their surgery in a fully equipped operating room, and recover under the care of skilled nurses, all without any hospital admission.

• Others

Apart from the above given end-user segments, the vagal nerve stimulation devices are used for various research projects by government research institutes and commercial organizations. These firms focus on innovating the existing products line to offer enhanced services. The development of healthcare facilities in major developing countries is expected to help grow the market in the years to come.

 Vagal Nerve Stimulation (VNS) Market Share, by Region, 2019 (%)Source: MRFR Analysis

Regional Analysis

The vagal nerve stimulation (VNS) market, based on region, has been divided into North America, Europe, Asia-Pacific, and the Rest of the World.

North America:

North America accounted for a market size of USD 326.35 million in 2019 and is expected to exhibit a CAGR of 9.87% during the forecast period. North America is divided into the US and Canada. North America is expected to dominate the vagal nerve stimulation market due to well-developed technology, increasing prevalence of neurological disorders, rising healthcare spending, and increasing government support for research & development. Moreover, increasing R&D activities and the presence of major companies have fueled the growth of the market in this region. Companies in the US, such as Innovative Health Solutions Inc., announced FDA approval for its IB-Stim to reduce abdominal pain in children suffering from irritable bowel syndrome (IBS).

Europe:

Europe holds the second position in the vagal nerve stimulation market. This is due to the high government support and funding for research & development. Availability of funds for research will drive the market in Europe region over the review period. However, the high cost of neurostimulators and lack of skilled professionals are expected to stun the growth of the vagal nerve stimulation market in this region.

Asia-Pacific:

The Asia-Pacific vagal nerve stimulation market is anticipated to register the second-highest growth rate at a CAGR of 10.69% over the forecast period from 2020 to 2027. Asia-Pacific is the fastest-growing vagal nerve stimulation market after Europe due to the presence of swiftly developing healthcare technology, a large patient population, and high healthcare expenditure. Furthermore, growing opportunities in countries like India, Japan, China, and South Korea will make this an emerging, growing market across the globe.

Rest of the World:

The Rest of the World vagal nerve stimulation market is segmented into two major regions, namely the Middle East & Africa and Latin America. Latin America held the largest market share in 2019, valued at USD 15.08 million, and is expected to grow to USD 24.90 million by 2027. Countries in the Middle East, Africa, and Latin America are major contributors to the vagal nerve stimulation market in this region. The Middle East & Africa have a slightly lower share than Latin America due to the limited availability of medical facilities, limited availability of funds, and poor political conditions in Africa. However, Latin American countries are expected to have potential growth opportunities owing to the development of healthcare facilities in the developing countries of this region.

Competitive Landscape

The vagal nerve stimulation market is profitable, both for existing players as well as new entrants. The market is highly competitive, with all the players contesting to gain market share. Intense competition, rapid technological advances, frequent changes in government policies, and environmental regulations are key factors that confront market growth. A substantial level of rivalry is noted among the existing manufacturers in the market.

Vendors with better technical and financial resources could develop innovative products. Therefore, vendors must develop new technologies to stay up-to-date of emerging technologies that could affect the continuing competitiveness of their product lines in the market.

List of Key Companies Covered in this report:

• LivaNova, PLC (UK)


• ReShape Lifesciences Inc (US)


• ElectroCore Medical LLC (US)


• Boston Scientific Corporation (US)


• NeuroMetrix, Inc. (US)


• ImThera Medical, Inc. (US)


• Inspire Medical Systems, Inc (US)


• Parasym Ltd (UK)


• Innovative Health Solutions, Inc. (US)

Recent Developments

• In September 2020, NeuroMetrix Inc. launched the Quell application for Apple Watch, the first Smartwatch Application for an over-the-counter pain relief device.The Quell app is a stand-alone programme that works independently of the iPhone. It allows a Quell user to operate the device and monitor pain alleviation from the wrist, an unprecedented level of ease for a TENS device.


• In May 2020, LivaNova PLC published a new study in the International Journal of Bipolar Disorders based on Vagus Nerve Stimulation Therapy (VNS Therapy) for the treatment as usual (TAU). This has considerably improved the outcomes in the patients suffering from treatment-resistant bipolar depression (TRBD)

Report Overview:

The study examines current short- and long-term market effects, assisting decision-makers in developing short- and long-term business plans by region. North America, Europe, Asia-Pacific, and the Rest of the World are all covered in the report. Market drivers, restraints, opportunities, challenges, Porter's Five Forces, Value Chain, and COVID-19's impact on the market are all examined in this research.

Scope of the Report & Segmentation

Vagal Nerve Stimulation (VNS) Market, by Products

• Implantable VNS Devices


• External VNS Devices

Vagal Nerve Stimulation (VNS) Market, by Application

• Depression


• Epilepsy


• Others

Vagal Nerve Stimulation (VNS) Market, by End User

• Hospitals


• Ambulatory Surgical Centers


• Others

Vagal Nerve Stimulation (VNS) Market, by Region

• North America




• US


• Canada




• Europe




• Western Europe




• Germany


• France


• UK


• Italy


• Spain


• Rest of Europe




• Eastern Europe




• Asia-Pacific




• China


• Japan


• India


• Australia


• South Korea


• Rest of Asia-Pacific




• Rest of the World




• Middle East


• Africa


• Latin America