Elective procedures spark surge in demand for robotic systems in medtech industry: GlobalData
Q3 earnings posted by Zimmer Biomet and Stryker Corp show that global levels of elective surgery continued to recover
In the medtech industry, the return of elective procedures has sparked a massive surge in demand for robotic systems for the final quarter of 2020. Robotics is set to see significant growth over the next few years after experiencing an unstable period in 2020 and the global market value for robotics is projected to surpass $275 billion by 2025, up from $115 billion in 2019, according to GlobalData.
Kevin Dang, Medical Devices Analyst at GlobalData, commented, “Robotic systems are commonly used in elective surgery procedures and many patients were deferred due to the COVID-19 pandemic. As a result, the demand for these devices dropped during the second quarter of 2020 and medical device companies saw their sales plunge. However, recent third quarter earnings posted by leading companies such as Zimmer Biomet and Stryker Corp show that this is no longer the case as global levels of elective surgery continued to recover.”
Zimmer recently released its Q3 earnings, which exceeded analyst expectations. Net sales increased by 2 per cent compared to the previous year – a significant improvement from the 38 per cent year over year decline in Q2. Similarly, Stryker reported net sales increased by 4.2 per cent in the third quarter compared to a 24.3 per cent decrease in the previous quarter.
Dang predicted that with robotics companies making a remarkable recovery in the third quarter, they are setting up for a strong comeback in the final quarter of 2020.