Hearing Aid Market Overview 2023
The hearing aid market is an exciting and growing sector of the medical technology industry, and the outlook for 2023 and beyond is exceptionally promising.
In this article we’ll explore the Total Addressable Market (TAM), the biggest companies, the new laws (United States), spending & growth of the hearing aid market.
Hearing Aid Total Addressable Market (TAM)
The Total Addressable Market (TAM) for hearing aids is the total estimated market value for hearing aids or the maximum revenue potential for the industry. This figure is based on the number of people who are likely to need hearing aids, as well as the cost of the hearing aids themselves.
Currently, the total addressable market (TAM) for hearing aids is estimated to be around $15 billion and is expected to rise further in the coming years due to an aging population. As people get older, they are more likely to experience age-related hearing loss, and thus more likely to require hearing aids. This growing demand for hearing aids will cause the TAM to continue to increase, presenting an opportunity for businesses to capitalize on the growing demand for these devices.
Additionally, technological improvements in hearing aids, such as the development of more advanced, digital hearing aids (ex. Bluetooth hearing aids), are expected to further increase the TAM as the devices become more widely available and popular.
This dramatic increase in the Total Addressable Market (TAM) of the industry implies that the sector is well-positioned to experience sustained and continuous growth over the coming years.
This positive outlook is further bolstered by the fact that the industry has been performing well in recent times, with consumer demand for the services and products offered expected to remain strong.
As a result, it is likely that the industry will continue to thrive and expand its reach in the near future, especially with the new rule OTC rule changes, which will open up the market to more companies and better options for consumers.
Federal Rule Changes for the Hearing Aid Market
The federal government has recently implemented several new rules and regulations that are expected to have a significant impact on the hearing aid market, and by significant, we mean a major impact on the market.
The U.S. Food and Drug Administration (FDA) has finalized a rule that enables the sale of certain types of hearing aids over the counter (OTC) without a prescription.
This rule allows individuals with mild to moderate hearing loss to have greater access to hearing aids by making them more affordable and easier to obtain.
Prior to this rule, hearing aids were only available with a prescription from a licensed healthcare provider, which required individuals to go through a more lengthy and costly process to obtain them.
This new rule is expected to benefit millions of Americans who may have otherwise been unable to afford or access hearing aids. It is an historic step forward in improving access to hearing healthcare for people with hearing loss.
Under the new rule, certain types of hearing aids that are deemed appropriate for individuals with mild to moderate hearing loss will be able to be sold over the counter (OTC) without a prescription.
This means that individuals will be able to purchase these hearing aids directly from a retailer or online, rather than having to visit a licensed healthcare provider in order to obtain a prescription. This will make it easier and more convenient for individuals to access hearing aids, and is expected to make them more affordable as well, since the cost of a visit to a healthcare provider can be a significant barrier for many people.
It’s important to note that not all hearing aids will be available OTC. Only those that are deemed appropriate for mild to moderate hearing loss will be available without a prescription.
If you have more severe hearing loss, you will still need to visit a licensed healthcare provider in order to obtain a prescription for a hearing aid.
Overall, this new rule is expected to greatly increase access to hearing aids for individuals with hearing loss, and to make it easier and more convenient for them to obtain the hearing healthcare they need.
The new labeling requirements for OTC hearing aids are intended to ensure that consumers have the information they need to make informed decisions about the devices they are considering purchasing. Some of the specific requirements that have been put in place include:
- A label on the hearing aid that clearly states that it is an OTC hearing aid
- A label on the hearing aid that indicates the type and degree of hearing loss for which it is intended
- A label on the hearing aid that provides information about its fit, wear, and maintenance, as well as any potential risks or adverse effects
- A user manual that provides detailed information about the hearing aid, including how to use it, how to care for it, and any potential risks or adverse effects
These requirements are intended to help consumers understand the capabilities and limitations of OTC hearing aids, and to ensure that they are aware of any potential risks or adverse effects associated with the devices. By providing clear and accurate information about the hearing aids, the FDA hopes to help consumers make informed decisions about whether an OTC hearing aid is the right choice for their needs.
Biggest Companies In The Hearing Aid & Hearing Device Market
Sonova is a company that is dedicated to providing innovative hearing solutions that improve people’s quality of life.
From their advanced hearing aids to their revolutionary audio streaming services, Sonova provides a comprehensive range of products and services designed to meet the needs of customers around the world.
They have a team of highly dedicated and experienced professionals who work hard to ensure that every product and service they offer meets the highest standards of quality and performance.
William Demant is a renowned Danish company, established in 1904, that specializes in the production of hearing aids, cochlear implants, accessories, and other hearing-related products.
With a rich history of innovation, William Demant has been at the forefront of the industry, leading the way with ground-breaking technology and helping people with hearing loss to access the world of sound.
The company continues to strive for excellence, committing to the highest quality and most dependable products on the market.
GN Store Nord is a publicly listed company on the Copenhagen Stock Exchange. Founded in 1869, GN Store Nord has a rich history and a strong presence in the Nordic region.
The company operates in the communication and hearing healthcare sectors, and has a wide portfolio of products and services.
GN Store Nord is a leader in research and innovation, and has a wide network of distributors and partners. The company is dedicated to a higher quality of life for people with hearing loss and strives to create innovative solutions that enhance communication. GN Store Nord is committed to providing customers with the best quality products, services, and support.
These three companies, when taken together, account for nearly half of the entire market share in their respective sector. This demonstrates the magnitude of their influence and dominance in the industry, and just how significant their collective presence is in terms of their overall impact. It is clear to see that these three companies have an immense amount of influence and power within the sector, and it is likely that this will remain the case for some time to come.
On average, people are spending a significant amount of money on hearing aids each year, with the average figure being around $2,000. Keep in mind, that each type of hearing aid may have a different baseline price.
This figure includes not only the cost of the device itself, but also any additional maintenance costs and fees associated with any hearing tests that may be necessary.
We expect this number to fluctuate over the next few years as OTC laws are put in effect and products are forced to compete on technology, quality & price.
The hearing aid market is showing a healthy growth rate. According to industry estimates, the average annual growth rate of the market is estimated to be around 5%, and projections suggest that the growth rate could be even higher in the coming years.
This is likely due to the increasing awareness of hearing loss and the development of new technologies that make hearing aids more accessible and effective for a wide range of users. As technology continues to improve, we can expect the hearing aid market to continue to experience steady growth.