The global surgical robotics market is expected to reach $11.65 billion by 2025.
Global Market Scenario
The medical industry, globally, has witnessed several technological advancements in the recent years in diversified branches. For instance, previously, surgeries were done by using open surgical procedures, which witnessed a noteworthy transformation when minimally invasive surgical procedures were introduced in the medical world. Medical robotics and computer assisted surgical systems stood distinctively as the most advanced extension of minimally invasive surgical procedures. These systems can be segmented into three types: rehabilitation systems, hospitals and pharmacy systems, and surgical robotics system. Among these, the surgical robotics systems are being widely adopted across the globe at present.
Advantages of Surgical Robots
Surgical robots increase the accuracy of surgeons while reducing the risk to the patients. For instance, heart bypass surgery requires the patient’s chest to be opened by making a long incision. The surgeon first cuts through skin, then tissue and muscle, then fascia, and then reaches the heart. However, through non-invasive surgical robots it becomes easy to perform critical surgeries with minimal incision and high accuracy. Surgical robots have several advantages such as decrease in post-operative pain, reduced risk of infection, and less blood loss. They provide effective representations of body parts and increase dexterity which aid the surgeons while working on inaccessible body parts. They also offer shorter recovery time and leave lesser scars as compared to the traditional open surgery.
Surgical Robotics Market – Growth Factors, Challenges & Opportunities
Factors such as rising demand of minimally invasive surgeries, rising incidence rate of chronic diseases, general awareness regarding computer aided surgeries, rising disposable income and introduction of technologically advanced systems, such as SurgiBot, Amadeus, Single Port Orifice Robotic Technology (SPORT), and Modus V, among others, are propelling the growth of this market.
With the rising incidence rate of chronic diseases and due to continuous technological advancements in medical surgeries, the demand for minimally invasive surgeries and miniature robotics is growing. As per the current scenario, the high costs of robotic systems hinder the adoption of surgical robotics systems among the hospital and ambulatory surgical centers. However, with technological innovation and increasing demand for low cost surgical systems from end users, the price is likely to decrease during the forecast period.
Rising incidences of colorectal cancer, neurological disorders, interventional cardiology disorders and gynecological diseases, growing geriatric population, and active participation of the government and the industry players in the technological advancement in the field of computer assisted robotic surgeries have boosted the overall growth of this market.
Another factor responsible for sustainable growth of the market is the recurring revenue model. In recurring revenue business model, the vendor makes money first through one-time sale of the robotic system and then generates recurring revenue from the sale of equipment and accessory products and maintenance services used in the robotic system.
Challenges Faced by the Market
Furthermore, the lack of clinical evidences on the efficacy of surgical robotic systems serves as a challenge for the market players to get regulatory approvals and clearance. However, newly established players are putting efforts to get necessary regulatory clearance to enter into the market and bring in clinical evidence in order to increase the adoption rate of surgical systems in the near future.
Surgical Robotics Market Segmentation by Product
The market consists of various product segments such as surgical systems, instruments and accessories and maintenance services. The instruments and accessories segment had the highest market value in 2017, growing at the CAGR of 15.54% during the forecast period 2018-2025. However, services (maintenance and up-gradation) are expected to grow at the CAGR of 14.14% during the forecast period 2018-2025.
All the major surgical robotics systems have been covered into the global surgical robotics market volume data. The market for surgical systems by value is expected to grow at the CAGR of 11.22% during the forecast period, 2018-2025. Among all surgical systems, the da Vinci surgical system accounted for the highest installation volume in 2017 and is anticipated to reach 8,005 installation units in 2025, growing at the CAGR of 7.72% during the forecast period.
The growth can be attributed to the increasing adoption rate of da Vinci surgical robotics system for increasing rate of general surgeries, gynecology, urology, cardiothoracic and head and neck medical complications. However, the Sensei Robotic System manufactured by Hansen Medical (Auris Surgical Robots) is anticipated to grow at the highest CAGR of 22% during the forecast period.
Surgical Robotics Market Segmentation by Application
The application segment of the market consists of general surgery, gynecology, urology, orthopedics, interventional cardiology, and neurology, among others. The gynecology segment acquired the highest market value in 2017 and is expected to grow at the CAGR of 7.0% during the forecast period 2018-2025. This can be attributed to the increasing incidence rate of gynecological complications among women globally and continuous technological advancement in robotic systems.
However, General Surgery is expected to be dominant with revenue generation of $5.49 billion by 2025. Also, the segment is expected to witness the highest growth rate of 20.30% during the forecast period 2018-2025. Based on the application, gynecology accounted for the largest market share by robotic surgical procedural volume in 2017.
Surgical Robotics Market Segmentation by End-User
The end-user segment comprises hospitals and ambulatory surgical centers and others. The hospitals accounted for the highest market value in 2017, growing at CAGR of 13.20% during the forecast period 2018-2025. However, the revenue generated by the ambulatory surgical center is anticipated to grow at the highest CAGR of 18.20% during the forecast period 2018-2025.
Furthermore, based on the end-user, hospitals accounted for the largest market share by robotic surgical system installation volume in 2017 and it anticipated to reach 2,566 units by 2025. However, robotic surgical system installation volume at ambulatory surgical centers are estimated to grow at the highest CAGR of 17.2%. Some of the equipment and accessories of the robotic systems are required to be changed for each surgery. Consequently, the surgical robotics market has attracted considerable attention of the end-users and several new players have emerged in the market space.
Surgical Robotics Market Segmentation by Geopgraphy
The geographical region consists of North America, Europe, Asia-Pacific, Latin America and Rest of the World (RoW). North America acquired the highest market value in 2017 and is anticipated to grow at the CAGR of 11.1% during the forecast period 2018-2025. The Asia-Pacific region (consisting of Japan, China, Australia, India and South Korea, among others) as well as Latin America (consisting of Brazil and Mexico, among others) are each expected to register a high growth rate during the forecast period 2018-2025.
Based on the geography, North America accounted for the largest market share by robotic surgical system installation volume in 2017 and it anticipated to reach robotic surgical system installation volume of 1092 units by 2025. However, Asia-Pacific and Latin America are anticipated to grow at the highest CAGR during the forecast period 2018-2025. This can be attributed to the increasing incidence rate of chronic diseases, technological advancements in the robotic assistive technologies and rising disposable income in these regions.
Competitive Landscape of the Market
Business expansions and contracts market strategy currently dominate the market, followed by approvals and certifications. Companies also rely heavily on product launches and technological developments in order to sustain their position and to enhance their business strength and outreach. The company Intuitive Surgical is currently holds a strong market position and accounts for approximately 70% of recurring revenues. As per the current market scenario, it is important for the new players to focus on forming strategic partnerships and developing low cost surgical robotics systems that can be used in multiple types surgical procedures.
The market has a plethora of opportunities to grow as the demand for minimally invasive cancer procedures is booming. Also, hospitals and clinics are extensively purchasing surgical robots to train their surgical teams. There is a huge addressable market that is still under-penetrated. In the U.S. alone there are more than 3,000 hospitals and 5,000 clinics without any robotic surgery programs.
The key players in the global surgical robotics market are Intuitive Surgical Inc., Stryker Corporation, Mazor Robotics, MedRobotics, TransEnterix and Hansen Medical, among others.
