How Much Can Intuitive Surgical’s System Revenue Grow Over The Next Three Years?

by Trefis Team
Intuitive Surgical
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Intuitive Surgical (NASDAQ:ISRG) manufactures and sells robotic surgical systems. Its primary device is the da Vinci Surgical System, which helps surgeons perform minimally invasive surgeries through directions from a console. The company has a significant patent portfolio and currently faces little direct competition in the robotic surgery market. Some of its potential competitors are Auris Health, which was recently acquired by Johnson & Johnson, and Mazor Robotics, which was acquired by Medtronic last year.  The da Vinci systems’ revenue could grow from $1.13 billion in 2018 to around $1.50 billion in 2021, led by an expansion of procedures, according to Trefis estimates. Look at our interactive dashboard analysis ~ How Much Can Intuitive Surgical’s System Revenue Grow By 2021? ~ for more details on the expected performance of the company. In addition, you can see more of our data for healthcare companies here.

 da Vinci Systems’ Sales Have Grown In High Teens On Average In The Recent Years

  • Intuitive Surgical’s da Vinci systems revenue grew from $800 million in 2016 to $1.13 billion in 2018, reflecting average annual growth of around 19%.
  • This can be attributed to an uptick in overall demand for robotic surgical systems, given the associated advantages, including minimally invasive process, reduced surgical complications, and easier post-surgery recovery process.

Sales Will Likely Continue To Trend Higher In The Near Term, Albeit At A Slower Pace

  • Systems revenue could grow from $1.13 billion in 2018 to around $1.50 billion in 2021.
  • This growth will likely be led by an increase in number of units sold, while the average revenue per unit could hover around $1.20 million.
  • Growth in units sold can primarily be attributed to expansion of procedures, which has aided the growth in the near term.
  • The most common procedure was gynecology over the last few years. However, the wider adoption of other procedures is aiding the growth.

Higher System Sales Has Resulted In Continued Growth In The Company’s Installed Base, Which Further Aids The Revenue Growth For Other Segments

  • The company’s installed base has grown from less than 4,000 units in 2016 to a little under 5,000 units in 2018, and it can grow to north of 6,000 units by 2021.
  • This reflects a high single-digit growth rate in the coming years.
  • The growth in installed base impacts the company’s service revenues, as well as instruments & accessories business.

da Vinci Systems Account For Close To 30% of Intuitive Surgical’s Total Sales

  • Intuitive Surgical generates its revenue from three sources ~ sales of da Vinci systems, sales of instruments & accessories, and the service business.
  • The da Vinci system accounted for 29% of the company’s total sales in 2016.
  • This figure increased to 30% in 2018.
  • However, it could decline slightly to 29% in the coming years, as the growth in overall installed base, aids the other two segments’ growth.


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