Robotic Surgery to Flourish in Asia, Report Claims

The Asia-Pacific market for image-guided surgery (IGS) and robot-assisted surgery (RAS) is expected to show strong growth in the coming years, according to a report from market research firm Frost & Sullivan.

The market generated $217.4 million in revenues in 2013 and is expected to grow at a compound annual growth rate of 22.1 percent to reach $590.4 million in 2018.

Higher disposable incomes, deeper penetration of health insurance, and improvement in the overall quality of life in the region have created a huge demand for quality healthcare services. This includes growing interest in safe and efficient treatment protocols that can be achieved with IGS and RAS, Frost & Sullivan said.

Medical tourists in the Asia-Pacific region seeking surgical interventions for noncommunicable diseases are also creating demand, according to the firm.

IGS and RAS have found higher acceptance in recent years due to their application in surgeries for multianatomical diseases. Although initially targeted at neuro applications, IGS systems are now being used in orthopedics; cardiac; ear, nose, and throat; dental; and spinal surgeries. RAS applications have been extended from prostate surgeries to cardiac, orthopedic, and spinal surgeries, among others.
IGS has experienced substantial deployment across most Asia-Pacific countries over the past five years, while RAS is expected to remain the reserve of top-tier hospitals, mostly in Japan, Taiwan, and South Korea, Frost & Sullivan said. Australia’s RAS adoption rates have been moderate, while Southeast Asia is still in the initial stages of adoption.

A lingering issue is the cost of the systems, and there are also reimbursement concerns. IGS systems cost $250,000, while RAS units range from $1 million to $3 million. Developing countries such as Malaysia, Thailand, Vietnam, and the Philippines do not offer reimbursement for IGS and RAS products, while reimbursement amounts are often negligible in Australia, Taiwan, Japan, and South Korea, the firm said.

Image-guided and robot-assisted surgeries also have made successful inroads into the western European market. The significant cost and clinical benefits offered by such advanced surgical systems has been key to boosting their adoption rates, Frost analysts reported.

Frost & Sullivan estimates the market to reach $1.69 billion in 2018.

“While image-guided surgery is well-established, robot-assisted surgery has been slow to gain acceptance in Western Europe owing to large initial investments and lower reimbursement values,” Frost & Sullivan Healthcare Industry Analyst Beulah Devadason noted. “Nevertheless, the relative reduction in the length of hospital stay, and better surgical outcomes as demonstrated by several clinical studies, continue to motivate hospital authorities to adopt both systems.”

Marketing efforts have focused on improving awareness about the advantages of image-guided and robot-assisted surgical systems. This is translating into higher revenues and overall market growth. However, spending cuts across the European Union healthcare sector remain a major cause for concern. Budget conscious hospitals have higher expectations when spending on expensive equipment and manufacturer-specific consumables.

“Market participants must demonstrate cost-effectiveness and improved clinical outcomes of their product offerings in order to fuel greater uptake,” Devadason said. “Rigorous marketing drives in the European region will further enhance the existing growth trend in procedure volumes, positively impacting sales of image-guided and robot-assisted surgery in the coming years.”