Australia Robotic Surgery Services Market Analysis

Australia Robotic Surgery Service Market Executive Summary

The Australia Robotic Surgery Service market size was valued at $51 Mn in 2022 and is estimated to expand at a compound annual growth rate (CAGR) of 20.8% % from 2022 to 2030 and will reach $233 Mn in 2030. Australia's health spending has been increasing over the years, driven by factors such as an ageing population and advancements in medical technology. In 2020, the country's total health expenditure was estimated to be AUD 183.7 billion, which was equivalent to 9.5% of its Gross Domestic Product (GDP).

Robot-assisted surgery refers to the use of computer-controlled robotic “arms” to guide cameras, imaging tools and miniaturised surgical instruments. They may be used for pre-operative planning and/or the actual surgery. During procedures, a surgeon views and directs the robot from a console in the operating theatre, like a video game. The master-slave robotic system means the robot is exclusively controlled by the surgeon and makes no autonomous movements. 5G internet connection makes remote surgery a realistic possibility. This could be a surgeon operating the robot from a separate ‘clean’ room, or even from a different hospital. Having highly-skilled surgeons operate remotely could afford all geographies enhanced standard of care.

The number of robotic surgeries performed in Australia has been increasing steadily, with the country now having one of the highest adoption rates of this technology globally. The Australian government has been working to address these concerns and has taken several measures to support the growth of robotic surgery in the country, such as investing in the development of new technologies and training programs for healthcare professionals, which will boost the robotic surgery service market across the nation.

Market Dynamics

Market Growth Drivers

Over the course of the projection period, it is anticipated that the Australia robotic surgery service market would expand at a lucrative pace due to the rising patient population and increased use of sophisticated automated surgical tools.

Additionally, it is anticipated that a rise in the number of contemporary healthcare facilities and a growing understanding of the advantages of utilising new medical technology would encourage market expansion in the region. International investors are drawn to engage in the creation of automated instruments as a result of expanding government efforts to build state-of-the-art healthcare infrastructure, which is anticipated to fuel market expansion in this field over the coming years.

Market Restraints

The high price of robotic surgical equipment in Australia is a major deterrent to the use of these services. This is because setting up a robotic surgery programme is expensive and requires specialised knowledge and training in addition to the high cost of the equipment itself.

Furthermore, there is currently a lack of knowledge in Australia regarding the advantages of robotic surgery, particularly among medical professionals and patients in remote and disadvantaged areas. To improve the uptake of these services in Australia, this fundamental obstacle must be overcome.

The high price of robotic surgical equipment in Australia is a major deterrent to the use of these services. This is because setting up a robotic surgery programme is expensive and requires specialised knowledge and training in addition to the high cost of the equipment itself.

Additionally, there is still a dearth of awareness of the benefits of robotic surgery in Australia, particularly among medical professionals and patients in isolated and underserved locations. This crucial barrier needs to be removed in order to increase the use of these services in Australia.

Competitive Landscape

Key Players

• Sirtex Medical (AUS)
• Medical Robotics Technologies (AUS)
• Flinders Medical Centre (AUS)
• St Vincent's Hospital (AUS)
• Stryker Corporation
• Smith & Nephew
• TransEnterix Surgical, Inc.
• Renishaw plc.
• Intuitive Surgical
• THINK Surgical, Inc.
• Zimmer Biomet

Notable Deals

Intuitive Surgical acquired Medical Robotics Technologies - In 2019, Intuitive Surgical, a multinational company that provides robotic surgical systems, acquired Medical Robotics Technologies, an Australian company that develops and supplies robotic solutions for various medical specialities. This acquisition was aimed at expanding Intuitive Surgical's presence in the Asia-Pacific region and strengthening its portfolio of products and services.

In 2020, Flinders Medical Centre, a leading Australian healthcare provider, merged with Calvary Health Care, a Catholic healthcare provider, to form a new entity called Calvary Flinders Private Hospital. The merger aimed to provide enhanced access to high-quality care and services for patients in South Australia.

Healthcare Policies and Regulatory Landscape

Policy changes and Reimbursement scenario

The regulation of robotic surgeries in Australia is governed by the Therapeutic Goods Administration (TGA), which is the country's regulatory authority for medical devices. The TGA is responsible for the evaluation and approval of medical devices, including robotic surgical systems, for use in the Australian market.

To be approved for use in Australia, a robotic surgical system must meet certain safety and performance requirements, such as demonstrating an acceptable level of accuracy and reliability. The TGA also ensures that the information provided to patients about the benefits and risks of using a robotic surgical system is accurate and up-to-date.

In addition to TGA regulation, the use of robotic surgical systems in Australia is also governed by the professional standards and guidelines set by the relevant medical speciality organizations, such as the Royal Australian and New Zealand College of Obstetricians and Gynaecologists and the Urological Society of Australia and New Zealand.

Healthcare facilities that use robotic surgical systems are also subject to regular inspections and audits to ensure that they are meeting the standards set by the TGA and the relevant medical organizations. The reimbursement of robotic surgeries in Australia is governed by the country's public health insurance program, known as Medicare, and private health insurance companies.

Under Medicare, patients are eligible for reimbursement for a range of surgical procedures, including those performed using robotic technology. The exact level of reimbursement for a given procedure will depend on several factors, such as the patient's diagnosis, the type of procedure performed, and the location of the healthcare facility.

Private health insurance companies also offer coverage for a range of surgical procedures, including those performed using robotic technology. The level of coverage and reimbursement provided by private health insurance companies can vary, depending on the patient's insurance policy and the type of procedure performed.