Bariatric Surgery Sector: Growth Drivers and Challenges
Growth Drivers
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Advancements in minimally invasive procedures: The bariatric surgery market is gradually increasing since there is a strong impact of advancements in terms of minimally invasive procedures. In this regard, the U.S. FDA notes that robotic-assisted procedures currently account for 23% of all surgeries, significantly diminishing complications by 20% when compared to traditional procedures. Besides, Intuitive Surgical’s hallmark product, called the da Vinci system, witnessed a 32% increase in bariatric use since 2023, reflecting an expanded adoption, thus readily amplifying market growth.
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Emergence of post-operative care: The components of pharmaceutical innovation and post-operative care are effectively revolutionizing growth in the bariatric surgery market. In this context, it is reported that Novo Nordisk’s Wegovy (semaglutide) aids in the post-surgery weight gain by 55% in clinical trials, leading to USD 1.9 billion in 2023 sales. Besides, in 2024, Eli Lilly announced that its Zepbound received U.S. FDA approval for bariatric patients, capturing a significant market share.
Historical Patient Growth (2010-2020) and Its Impact on Bariatric Surgery Market Expansion
The bariatric surgery market is witnessing operational alterations, highly fueled by enhanced treatment procedures and expanded patient base. There has been a transformational growth over the last decade owing to the rising obesity rates, improved safety, and the presence of insurance coverage. Between 2010 to 2020, the patients undergoing this surgery doubled in the key developed markets. Simultaneously, in emerging nations, there is accelerated adoption due to medical tourism and affordable interventions. Therefore, the expanded patient pool resulted in improved investments in this sector.
Historical Patient Growth (2010-2020) – Key Markets
|
Country |
2010 Patients (000s) |
2020 Patients (000s) |
CAGR |
|
U.S. |
184 |
278 |
4.6% |
|
Germany |
14 |
30 |
8.9% |
|
France |
10 |
20 |
9.2% |
|
Spain |
7 |
16 |
11.0% |
|
Australia |
8 |
17 |
10.6% |
|
Japan |
1.4 |
4.7 |
14.3% |
|
India |
1.0 |
6.4 |
22.9% |
|
China |
2.6 |
18.2 |
22.1% |
Feasible Expansion Models Shaping the Future of Bariatric Surgery Markets
There is a huge opportunity for the bariatric surgery market since the emerging nations are continuously implementing partnership strategies to combat pricing issues and leverage robotic surgeries. For instance, an NIH study in 2024 unveiled that in India, collaborations between Medtronic and Apollo Hospitals increased robotic bariatric procedures by 43% from 2022 to 2024, reflecting a widespread adoption. Meanwhile, in China disposable stapler market grew by 26% owing to the tiered pricing introduced by Johnson and Johnson. Therefore, the presence of all of these models is highly responsible for market upliftment during the forecast timeline.
Feasibility Models for Market Expansion (2024-2030)
|
Strategy |
Region |
Revenue Impact (2024) |
Projected Growth |
Key Driver |
|
Robotic Surgery Partnerships |
Germany |
€185 million |
€425 million (+135%) |
EU MedTech grants |
|
Low-Cost Disposable Staplers |
India |
$130.4 million |
$410 million (+235%) |
Local manufacturing |
|
AS-Centric Reimbursement |
U.S. |
$1.2 billion |
$2.5 billion (+120%) |
Medicare policy shifts |
|
Medical Tourism Bundles |
Mexico |
$90 million |
$225 million (+160%) |
Cross-border insurance |
Challenges
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Price controls imposed by governments: The existence of this aspect poses a significant hurdle in the bariatric surgery market, which makes it challenging for the firms to leverage this. In this regard, it is reported that in Europe, the price caps imposed on bariatric devices diminish the profit margins by 25% to 55%. However, to combat this, Johnson & Johnson combined staplers with training programs, gaining 12% of the market share in Spain. Further, it is noted that without imposed price caps, manufacturers secured 4% to 7% of annual revenue in the EU.
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Limited coverage: Despite the presence of well-established reimbursement policies, the bariatric surgery market faces issues in terms of limited medical coverage. As stated in the CMS 2024 report, only 16 state Medicaid Programs cover bariatric surgeries, reflecting the disparities in terms of coverage. Whereas states such as Mississippi, which have the highest obesity rates, deny coverage, citing budget restraints. This coverage hurdle can leave over 3 million individuals in the U.S. untreated, making it a challenging proposition.
Bariatric Surgery Market: Key Insights
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
8.9% |
|
Base Year Market Size (2024) |
USD 3.1 billion |
|
Forecast Year Market Size (2037) |
USD 8.3 billion |
|
Regional Scope |
|