Intuitive Surgical Inc. (ISRG) is a leading provider of robotic surgery in the United States. In other regions, including Asia, the ISRG stock intends to take even more leading positions. However, Intuitive Surgical may face strong rivalry in this market.
Intuitive Surgical’s da Vinci robotic surgeons are sold throughout Asia, including South Korea, India, China, and Japan. The ISRG stock manufactures robots used for urological and colorectal surgery, gall bladder removal, hernia repair, head and neck surgeries, and various other procedures. Asia is home to a population of over 3 billion people. In other words, this is by far the ISRG stock’s largest market. However, the share of da Vinci systems sold here does not surpass 20 % of the ISRG stock’s total number of surgical systems. Thus, in 2020, 157 da Vinci was delivered to this market or over 17 % of its total annual sales.
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According to estimates, the robotic surgical market will reach $ 10 billion by 2027. More than a quarter of this amount is expected to be spent in China. Chinese authorities, however, have a much greater interest in robotic surgical equipment. More than 30 start-ups have received funding from it over the past few years, including surgical robots’ production. In China, there are several local companies whose surgical robots are used throughout the country. Beijing Tinavi Medical Technologies is an example.
South Korean and Japanese companies are also trying to break into the robotic surgical systems market. South Korean companies Curexo and Robodoc have developed joint replacement devices for hips and knees. Another company, Meere, developed its Revo-i robot for ten years and debuted it in 2017. Medicaroid Corporation became the first robotic surgical system manufacturer to receive approval in Japan last August.
Based on Intuitive Surgical’s data, da Vinci’s penetration rate in Asia is almost 40 times lower than in the U.S. There may be several reasons, including the high cost of equipment and training for doctors. Despite the growing competition, the ISRG stock still has excellent growth potential in this market. As countries differ in financial capabilities and legislation, the distribution in Asia will likely not be uniform. The competition may not be an issue since Intuitive Surgical manufactures better and more innovative equipment than its competitors.
Intuitive Surgical Inc. (ISRG) ‘s shares closed Wednesday’s session at $761.02, down -0.76%. The volume of the stock was 0.37 million shares. Shares of ISRG have risen by 52.13% in the past year. And they have moved up by 4.75% in the past week. Since the beginning of the year, the stock has gained 7.53%, while it lost -5.47% during the past three months. The ISRG stock’s current market value is $89.05 billion, and it has 117.60 million outstanding shares.
