Market Challenges And Opportunities
Da Vinci Systems Market Drivers:
- Increasing adoption of minimally invasive surgeries: The growing adoption of minimally invasive surgeries such as laparoscopy is a major factor driving the Da Vinci systems market growth. Compared to traditional open surgeries, minimally invasive procedures result in shorter hospital stays, lower readmission rates, and reduced pain. Robotic surgery with the Da Vinci system further enhances the benefits of minimally invasive surgery through improved dexterity, precision, and control. The system provides surgeons with 3D-HD visualization, intuitive instrument movement, and superior ergonomics. This has led to its increased adoption for complex minimally invasive procedures across gynecology, urology, general surgery, cardiothoracic, and head and neck specialties. For instance, according to data published by the National Center for Biotechnology Information (NCBI) in September 2022, in 2016, 2017, and 2018, there were a total of 10.6 million, 10.6 million, and 10.7 million surgical procedures performed, respectively. Out of these, about 17% of the procedures in 2016, 17.4% in 2017, and 18% in 2018 were minimally invasive surgeries.
- Technological advancements in surgical robotics: Continuous advancements in surgical robotics technology such as instrument articulation, motion scaling, and tremor elimination allow for more precise and safer procedures. Intuitive Surgical, the pioneer in robotic surgery, continues to launch new and advanced Da Vinci systems with improved capabilities. For instance, the latest Da Vinci X and Xi systems include thinner arms, longer instrument shafts, and imaging enhancement features compared to their predecessors. The company also launched Da Vinci SP, the first robotic-assisted surgical system optimized for single port procedures. Such technological improvements are fueling the adoption of robotic surgery, thereby driving market growth. For instance, in June 2023, Apollo Hospitals, a pioneer in healthcare innovation, launched the Da Vinci Xi Robotic Surgical System, a groundbreaking advancement in surgical procedures that promises enhanced precision and superior patient care. Cutting-edge technology represents a significant achievement that has the potential to transform surgical healthcare, creating new opportunities for both patients and surgeons.
- Improved clinical outcomes: Numerous clinical studies have demonstrated the clinical benefits of Da Vinci surgery over open and laparoscopic approaches. Robotic surgery has been associated with lower rates of complications, shorter hospital stays, less blood loss, and quicker recovery in procedures such as prostatectomy, hysterectomy, mitral valve repair, and lung resection. Growing evidence of favorable surgical outcomes is encouraging patients and surgeons to opt for robot-assisted procedures using the Da Vinci system. This is expected to propel market growth during the forecast period.
- Rising prevalence of chronic diseases and cancers: The increasing prevalence of chronic conditions such as cardiovascular disease, hernia, gynecological disorders, and cancers requiring surgical treatment is driving the demand for minimally invasive surgical procedures using the Da Vinci system. With its wristed instruments and HD 3D visualization, the system allows complex cancer and reconstructive surgeries to be performed with enhanced precision and control. The rising volume of surgical procedures is therefore expected to support market growth going forward. As per the data provided by World Health Organization on September 16, 2023, chronic diseases are responsible for 41 million deaths annually, which is approximately 74% of all global fatalities. Each year, 17 million people succumb to NCDs before reaching the age of 70, with 86% of these premature deaths occurring in low- and middle-income nations. The majority of NCD-related deaths, accounting for 77%, are concentrated in low- and middle-income countries. The leading causes of NCD deaths include cardiovascular diseases, claiming the lives of 17.9 million individuals each year, followed by cancers (9.3 million), chronic respiratory diseases (4.1 million), and diabetes (2.0 million, including deaths due to kidney disease caused by diabetes).
Da Vinci Systems Market Opportunities:
- Emerging markets represent significant growth opportunities: Emerging markets such as China, India, Brazil, and Mexico have significant growth potential for Da Vinci surgical systems owing to their underpenetrated nature, rapidly improving healthcare infrastructure, and rising medical tourism. As awareness regarding the benefits of minimally invasive surgery increases in these regions, major players can focus on increasing their footprint by engaging in partnerships, training programs, and regulatory approvals. For instance, intuitive surgical is expanding training centers and distribution partnerships in India to expand robotic surgery adoption. Capturing these high-growth markets will open up substantial opportunities.
- Development of low-cost robotic surgery systems: While Da Vinci leads the surgical robotics space, the development of lower-cost robotic surgery systems presents a major opportunity for new market entrants. Startups such as CMR Surgical, Medtronic, and Johnson & Johnson are working on next-gen, flexible, portable robotic surgery systems for under US$500,000 to improve access to robotic surgery. With pressures to reduce healthcare costs globally, affordable surgical robots could witness high demand from hospitals and ASCs, thereby driving market growth.
- Growing applications in new procedures: The capabilities of Da Vinci and next-gen robotic systems are being explored for an expanding range of surgical procedures beyond urology and gynecology such as cardiothoracic, head and neck, colorectal, and reconstructive surgeries. With enhanced surgical precision, visualization, and maneuverability, these systems can enable better outcomes in complex cases. The increased uptake across new surgical applications represents a significant opportunity for market growth.
- Simulator training for surgeons: Robotic surgery requires specialized skillsets, and extensive training is essential for safe and effective procedures. This presents an opportunity for companies to develop advanced simulation technologies and training programs to assist surgeons in developing robotic surgery skills without risk to patients. Companies like Mimic and 3D Systems provide virtual reality simulators for Da Vinci training. The launch of advanced training tools can help drive wider adoption of robotic surgery.
Da Vinci Systems Market Restraints:
- High costs associated with robotic surgery: The high capital cost of purchasing and maintaining Da Vinci surgical systems, estimated between US$1.5 million and US$2.5 million, is a major adoption barrier, especially for smaller hospitals and ASCs. The recurring cost of instruments and accessories is also very high. Insufficient volume and reimbursement may hinder the return on investment, making the costs seem unjustifiable. This limitation has resulted in a lower adoption rate by numerous healthcare institutions. As exemplified in a Nature article from April 2022, the Da Vinci surgical robotic system carries a hefty price of US$ 2 million, prompting inquiries and concerns about its affordability and the potential displacement of more cost-effective treatment options.
- Lack of reimbursement in emerging markets: While developed countries like the U.S. and Europe have favorable reimbursement for robotic surgery procedures, emerging markets still lag in coverage policies. The absence of reimbursement for providers hinders adoption in countries such as China, India, Mexico, and Brazil despite the cost benefits. Improving reimbursement frameworks will help drive growth in these markets.
- COVID-19 impact on elective surgeries: The COVID-19 pandemic resulted in the deferment of many elective surgeries, including robot-assisted procedures. Limited hospital access due to surging cases and healthcare resource constraints adversely impacted procedure volume and system sales. While demand is gradually recovering, the pandemic has restrained market growth in the short term.
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