Kallum Titchmarsh, Adam Jonas, Patrick A. Wood, Drew Ranieri, Jakob Dodd, Roberto Valdes Sanchez Navarro and Justin X. Wang of Morgan Stanley recently released a report questioning if BCIs are “The Next Big MedTech Opportunity?” The analysts estimate a total addressable market (TAM) worth around $400 billion in the U.S. alone.
“The hype continues to grow, so is now the time for the BCI? What not too long ago felt like science fiction might now become a reality,” they wrote.
According to the analysts, the broad range of companies developing unique technologies, all of which vary in mechanism and invasiveness, has them expecting commercialization of BCIs for medical purposes in approximately five years. The analysts say $400 billion reflects a large number for the U.S. alone, but they expect limited penetration in the first 20 years of launch.
The highest uptake of BCIs could come in conditions like motor neuron disease, such as ALS, multiple sclerosis and stroke, they said. Analysts project just under $1.5 billion in revenue generated by BCIs out to 2035. They foresee the market hitting north of a $500 million annual run rate in 2036, then hitting a $1 billion annual run rate by 2041.
“To us, these numbers seem very plausible, particularly when compared to existing MedTech end markets like spinal cord stimulation ($2bn annual run rate), sacral neuromodulation ($1bn annual run rate), and hypoglossal nerve stimulation ($800mn annual run rate), all of which require a surgical implant across different conditions,” the analysts said.
Which brain-computer interface companies could come to the fore?
The analysts singled out a number of BCI companies collecting interest in the market. All of those companies have featured on various MassDevice lists of BCI and neurotech companies you need to know in recent years:
- 2024 – Another 5 brain-computer interface companies you should know
- 2024 – 7 neurotech companies you need to know
- 2023 – 5 more brain-computer interface companies you need to know
- 2022 – 7 brain-computer interface companies you need to know
Elon Musk’s Neuralink venture continues to collect attention, but the analysts suggest that Synchron’s BCI system, which is uniquely delivered through an endovascular approach to tap into blood vessels to capture signals from the brain, could be the leader.
Paradromics was also mentioned by the analysts. The company already has two FDA breakthrough device designations for its Connexus system. One recognizes its potential to help patients communicate after losing the ability to speak. The second covers the severe loss of movement to control computer devices.
Precision Neuroscience is another one on their radar, with its Layer 7 thin-film brain-computer interface technology. In Layer 7, Precision Neuroscience embedded 1,024 electrodes in a flexible film that conforms to the brain surface. The film comes in at one-fifth the thickness of a human hair.
Other names listed include Blackrock Neurotech, developer of the Utah Array, which has been in humans for more than 15 years. They also mentioned BCI headphone maker Neurable, implantable brain pacemaker maker Motif Neurotech, closed-loop BCI developer CorTec and thin-film cortical BCI maker InBrain Neuroelectronics.
What have some of those BCI companies been up to this year?
Since the start of the year, here is what some of our previously covered BCI companies have been up to:
- Neuralink completed the first human implant of its Telepathy BCI implant in January and later completed a second this year. Controversial entrepreneur Elon Musk, Neuralink’s co-founder, said he expects the total implants to reach “high single digits” in 2024. However, the company hit a snag over a potential wiring issue with the BCI in May, saying that several threads retracted from the brain in the weeks following the first human implant. The company also has a sight-restoring implant in the works.
- Synchron in July reported the world’s first use of Apple Vision Pro paired with its implanted BCI. That marked the latest integration of Synchron’s BCI with popular consumer technology after a recent collaboration with OpenAI. Synchron later added Amazon Alexa features to its BCI and recently reported positive clinical trial results.
- Precision Neuroscience expanded its executive team with the additions of Jayme Strauss and Mike Kaswan in July. In October, the company reported positive clinical data for its Layer 7 cortical interface.
- Neurable brought in a funding round worth $13 million to support its AI-powered MW75 Neuro headphones. It launched the BCI-enabled headphones in September.
- Paradromics was accepted into the FDA Total Product Life Cycle Advisory (TAP) program in July. In preparation for a clinical trial in 2025, the company also launched a patient registry so patients can submit interest.
- CorTec, which develops a closed-loop BCI, won FDA investigational device exemption (IDE) for the system in May.
- Blackrock Neurotech, developer of technologies used in BCIs since 2004, picked up a $200 million investment from a cryptocurrency company.
- Onward Medical won FDA breakthrough device designation for its ARC-BCI system and was accepted into the FDA TAP program not long after. Onward reported a third BCI implant in September.
- InBrain Neuroelectronics announced that it is leading a project that it believes could revolutionize the landscape of BCIs. The company then announced the first human implant for its BCI system in September.