The outlook for the Robotic Surgery Equipment Manufacturing industry is mostly bright, with revenue projected to increase at an average annual rate of 14.9% to $4.2 billion in the five years to 2016
Los Angeles, California (PRWEB) October 21, 2011
The outlook for the Robotic Surgery Equipment Manufacturing industry is mostly bright, with revenue projected to increase at an average annual rate of 14.9% to $4.2 billion in the five years to 2016. While the industry's growth will start to slow down slightly as robotic systems increasingly saturate the market, innovation and new product introduction will likely drive rapid growth. From 2011 to 2012, revenue is projected to increase 21.1% to $2.6 billion. Nonetheless, the industry's outlook is not completely rosy. New federal regulations involving excise tax and market approval processes are expected to constrain profitability, while adversely affecting new product introductions. For this reason, IBISWorld has expanded its industry research report collection to include Robotic Surgery Equipment Manufacturing and other industries within medical devices and the life sciences sector.
The Robotic Surgery Equipment manufacturing industry has displayed healthy growth in the five years to 2011. The US economic downturn brought down the entire manufacturing sector, but it has had minimal effect on the performance of medical robotic systems. While revenue marked its lowest growth rate (over the five-year period) during the height of the recession in 2009, the industry has remained recession proof. In fact, revenue is estimated to increase at an average annual rate of 30.7% during the five years to 2011, with 28.6% growth from 2010 to 2011 to reach $2.1 billion.
The Robotic Surgery Equipment Manufacturing industry's growth has been mainly fueled by growing acceptance of minimally invasive surgery (MIS). Compared with traditional open-heart surgery, MIS involves smaller incisions to carry out complex surgery, leading to less trauma and faster recovery for patients. The technique also benefits hospitals by reducing the length of patient stays, thereby enabling them to better manage costs. As such, MIS has been gaining popularity in the medical field in the past five years, driving up demand for industry systems. Since robotics provide surgeons with a more precise, repeatable and controlled ability to perform procedures in tight spaces, they are increasingly demanded and used in MIS. The aging US population has also supported demand, since the occurrence of health issues that require medical devices is higher in the elderly population.
Buoyed by strong demand and sales, industry profit margins have increased considerably during the past five years. In 2011, industry participants are expected to bring in profit (earnings before interest and taxes) margins of 11.8% on average, up from just 8.1% in 2006. Rising profitability has also led to a wave of new entrants over the same period. Since 2006, the number of total enterprises is expected to increase at an average annual rate of 6.6% to 33 companies.
Apart from the dominant major player, Intuitive Surgical, this industry is highly fragmented. Intuitive's robotic surgical system (da Vinci) was the first to go to market, and it is also one of the only products that can be used in most surgical fields. Other companies include Accuray Inc. (CyberKnife, TomoTherapy), Hansen Medical, Otto Bock and Prosurgics Ltd.
According to IBISWorld analyst, Janet Shim, in the five years to 2016, the industry will likely face risks associated with increased regulation. “Because of increased taxes and changes in the 510(k) market approval reform, manufacturers may experience lower margins and reduced innovation activity,” says Shim. “Nonetheless, the outlook will remain positive, with revenue forecast to rise by 14.9% annually to $4.2 billion by 2016.” Continued acceptance of MIS and new product innovation will likely spur further growth for the industry.
IBISWorld’s latest industry research report provides in-depth information on the Robotic Surgery Equipment Manufacturing industry which manufactures computer-controlled mechanisms that support the treatment of illness and injuries. Many manufacturers also provide installation and support services for robotics, which are included in revenue. The industry excludes patient-oriented services and teaching workshops. Major products and services includes are Robotic surgery systems, Robotic surgery accessories and Robotic surgery equipment services.
For more information, download the full report from IBISWorld on the Robotic Surgery Equipment manufacturing industry
Robotic Surgery Equipment Manufacturing industry Report Table of Contents
About this Industry
Industry at a Glance
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Jargon & Glossary
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