Surgical Robots Market Trends

Growth Drivers  

• Government spending on healthcare technology: Funding from the government is a crucial factor in the acceptance and growth of surgical robots. For instance, in the U.S., Medicare.gov reported government reimbursable expenditures for surgical robot products of approximately USD 1.2 billion in 2023. Further, there are still major governmental and EU-funded programs in Europe, such as EU Horizon 2020 and other initiatives that are still redistributing investments towards robotic-assisted surgery. Investments are projected to continue increasing since countries are focused on improving the capacity of modern healthcare infrastructures.
• Increasing patient pool & disease prevalence: As a result, the growing incidence of disease ahead of surgical intervention has made surgical robots increasingly relevant. For instance, in Germany, the incidence of diseases treated with robotic-assisted surgery will rise by 14% by the end of 2025. This will fuel additional demands for robotic surgical systems. The growing, aging population in North America and Europe continues to drive the need for advanced surgical techniques.
• Healthcare quality improvement & cost-effectiveness: Surgical robots are becoming increasingly recognized as a mechanism for improving quality in health care. A report from the Agency for Healthcare Research and Quality (AHRQ), published in 2022, described the introduction of robotic-assisted surgery (RAS), which was found to decrease the length of stay in early treatment of patients diagnosed with prostate cancer by 19%. The results also support an increased emphasis on cost-efficient interventions that improve outcomes for patients.

Historical Patient Growth (2010-2020) & Future Revenue Opportunities for Surgical Robots Manufacturers

The rise of surgical robots in the global healthcare landscape has been influenced substantially by the increasing adoption of minimally invasive procedures and robot-assisted surgeries. There was significant growth in the number of patients undergoing robotic-assisted surgeries between 2010 and 2020. The historical pool of patients in countries such as the USA and Germany will see steady growth due to government backing and modernization of public and private healthcare systems. The increase in robotic surgeries suggests more than the actual demand for healthcare. Regarding countries such as China and India, we witnessed slow adoption of robotic technologies in the beginning.

Manufacturer Strategies & Revenue Potential in the Surgical Robots Market

Leading surgical robot manufacturers on the market have established the market landscape through product innovations, partnerships, and regional development. Intuitive Surgical entered 2023 with new models of the da Vinci Surgical System and increased its market share by 11% growth.  Similarly, Medtronic capitalized on this focus with its Hugo system, launching AI-driven functionalities that improved usability.  These manufacturers utilized a strategy of innovations reflective of industry trends of adding AI, improving surgical precision, and developing recovery times. Manufacturers have used partnerships and market development to increase the sales market size. The table below employs revenue growth strategies related to manufacturers' market position.

Challenges

• High up-front & maintenance costs: A single surgical robot may range in cost from USD 1 - 2 million. Governments and hospitals find it difficult to justify ROI. Robotic procedures are reimbursed under the same DRGs or CPT codes as laparoscopic surgery, but they end up costing significantly more.
• Payer skepticism & limited medicaid coverage: Medicaid pays around 65–77% of Medicare rates. This leaves many people without access to procedures. Medicaid patients are taking part in a high-robot area. Whereas, patients still have the lowest uptake of the procedure, likely due in part to cost restrictions.