Gastrointestinal (GI) Endoscopy Devices Market

Market Overview

The global gastrointestinal (GI) endoscopy devices market size was valued at USD 43.28 billion in 2022. It is estimated to reach USD 80.91 billion by 2031, growing at a CAGR of 7.2% during the forecast period (2023–2031).

Gastrointestinal endoscopy is an endoscopic procedure that enables doctors to examine the digestive system by inserting a long, flexible, lighted instrument known as an endoscope through the rectum or the throat. The devices used for gastrointestinal endoscopy procedures are called gastrointestinal endoscopy devices. These gastrointestinal endoscopic procedures can diagnose and treat conditions affecting the pancreas, bile ducts, esophagus, stomach, small intestine, and colon.

Early symptoms of gastrointestinal cancer are frequently found through endoscopic assessment, considerably improving the likelihood of successful therapy. For instance, colon cancer treatment, including surgery, can have better results with early diagnosis. Depending on whether the upper GI tract (esophagus, stomach, duodenum, and jejunum) or the lower GI tract (rectum, colon, and terminal ileum) is being examined, gastrointestinal endoscopy can be classified as upper or lower endoscopy.

Highlights

• GI endoscopy visualization systems dominate the product type segment
• Hospital dominates the end-user segment
• Distributors dominate the distribution channel segment
• North America is the highest shareholder in the global market

Market Dynamics

Market Drivers

Rising Geriatric Population

The growing geriatric population is a key gastrointestinal endoscopy device market driver. According to estimates published by the United Nations in 2020, the global geriatric population aged 65 or older in 2019 comprised roughly 727 million people, or 9.3 percent of the global population, and is projected to surpass 1.5 billion people by 2050, or 16.0 percent of the global population. In addition, the growing geriatric population is a major concern for developed countries such as the U.S., Canada, the UK, France, Germany, and other European nations. The disease burden brought on by geriatric patients is the highest due to the effects of aging and an unhealthy lifestyle.

Furthermore, the elderly population accounts for the maximum number of cancer cases and chronic cardiovascular, respiratory, spinal, and neurological diseases. The economic impact of the geriatric population is much higher in developed nations than in emerging nations. The surging elderly population is expected to boost the demand for various endoscopic procedures such as gastrointestinal, stomach, esophagus, cervical, orthopedic, and pulmonary endoscopy, fueling the market growth.

Growing Prevalence of Gastrointestinal Cancer

The increasing prevalence of gastrointestinal cancers, including esophageal, gastric, liver, colon, and pancreatic cancer, is anticipated to drive revenue growth for the gastrointestinal endoscopy devices market. As per the American Society of Clinical Oncology (ASCO), in 2020, an estimated 57,600 adults, including 27,200 women and 30,400 men, in the U.S. were diagnosed with pancreatic cancer. In addition, the rising incidence of cancer is expected to increase the demand for biopsies for cancer diagnosis. Endoscopy for biopsies and endoscopic ultrasound are preferred for cancer diagnosis. Therefore, increased demand for diagnostic endoscopic procedures is expected to propel the market growth.

Market Restraint

Capital Intensive Market

Gastrointestinal endoscopy devices are expensive, and hospitals must bear high costs to purchase, install, and train their resources. Although high capital cost is generally offset throughout 3 to 5 years based on the average number of procedures performed, the overhead expenses associated with procurement, installation, and training further add to the equipment cost. Few institutions can regularly upgrade their systems due to budgetary restrictions and slow economic growth, particularly in developing nations. The market growth is also anticipated to be constrained by hospital mergers and vertical acquisitions, in which hospitals partner with independent physician practices and outpatient clinics.

Market Opportunities

Rapid Product Innovation in GI Endoscopy

Recent technological advancements in gastrointestinal endoscopy devices, such as imaging enhancement, which enabled the detection of gastrointestinal lesions without requiring dye injection, have increased demand for these devices in hospitals, diagnostic centers, and clinics, which is expected to drive market growth. For instance, in August 2020, Olympus launched EVIS X1 to improve diagnostic and imaging outcomes in stomach, colon, esophageal, and bronchial disorders through accurate screening and efficient results. It is developed with features like red dichromatic imaging and texture and color enhancement lighting.

In order to compete with disposable endoscopes, manufacturers are working to improve the quality of their gastrointestinal endoscope product lines. Moreover, many players are implementing strategies, such as strategic partnerships and acquisitions, to expand their product reach. For instance, in June 2019, Medtronic announced its 4-year partnership with Karl Storz. The two companies have collaborated to integrate Karl Storz's 3D vision systems into Medtronic's robotic surgical platform. This acquisition would enable Medtronic to expand its business in international markets. Thus, such technological advancements are expected to create opportunities for market growth.

Regional Analysis

North America Dominates the Global Market

Based on region, the global market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

North America is the most significant global gastrointestinal (GI) endoscopy devices market shareholder and is anticipated to exhibit a CAGR of 6.11% during the forecast period. Consistent product innovations and increasing incidence of complex diseases drive the growth of North America's gastrointestinal endoscopy devices market. The regional market is driven by rapid technological advancements in new endoscopes and an increase in their adoption on a wide scale. For instance, in October 2018, Pentax Medical introduced C.A.P. HD Duodenoscope (ED34-i10T), which Premier Inc gave the Technology Breakthrough Award. The device provides a sharp and clear display of mucosa to quickly identify papillae in cannulation when combined with Optical Enhancement and i-SCAN. Its design and high-quality visualization allow easy access to critical components during reprocessing and cleaning.

In addition to launching new products, government initiatives also play a prominent role in accelerating the growth of the gastrointestinal endoscopy devices market. Developing a national cancer screening program is expected to drive market growth, boosting the demand for endoscopies.

Asia-Pacific is estimated to exhibit a CAGR of 7.3% over the forecast period. Asia-Pacific is still in the emerging market phase and is anticipated to be the fastest-growing region, owing to improving healthcare infrastructure, lesser stringent regulatory framework, and economic development that has attracted foreign investments. Key global market players are developing strategies for expanding their businesses in this region. It is expected to be driven by favorable initiatives undertaken by private players, such as the training of healthcare professionals and an increase in R&D investments to develop advanced endoscopes. In July 2016, Olympus Corporation announced the opening a Thai Training and Education Centre to increase awareness about surgical and gastrointestinal endoscopes and provide training to healthcare professionals in Southeast Asia. Moreover, increasing awareness about the advantages of minimally invasive surgeries over open surgeries and a rise in chronic disease burden is expected to provide growth opportunities in this region.

In Europe, constant technological advancements in endoscopy, an increase in the elderly population, and a rise in demand for minimally invasive procedures are among the factors propelling the market growth. In May 2018, GI Supply, Inc. received CE Mark approval for marketing its product, Spot Ex Endoscopic Tattoo, in Europe. It is used for endoscopic marking of suspicious lesions and cancerous tissues to identify them easily during follow-up colonoscopy procedures. In addition, it is the only endoscopic tattoo device with long-term clinical surveillance indications, prompting gastroenterologists to set new ESGE guidelines for its acceptance and use.

Moreover, government guidelines regarding endoscopy procedures help promote market growth. For instance, in June 2019, ESGE and United European Gastroenterology (UEG) developed performance measures for small-bowel endoscopy to provide improved endoscopy services in Europe. European players include Karl Storz GmbH, Boston Scientific Corporation, Stryker Corporation, Olympus Corporation, and Fujifilm Holding Corporation.

The Latin American gastrointestinal endoscopy devices market is driven by the presence of players such as Endoscopy Solution Corp., Karl Storz Endoscopia Latino-America, Inc., Olympus Corporation, PENTAX Medical, and Vimex Endoscopy, along with increasing investments by hospitals in endoscopes. Moreover, a growing preference for minimally invasive surgeries over open surgeries and rising awareness about the use of endoscopy for various diagnostic and therapeutic procedures are expected to drive regional market growth. This region offers tremendous growth opportunities for the medical device industry. The distribution network of the medical devices industry in Latin America is highly fragmented, with multiple small distributing companies providing easy accessibility to gastrointestinal endoscopy devices.

In the Middle East and Africa, the increasing geriatric population and prevalence of cancer, and growing demand for early disease diagnosis are among the key factors boosting the market. The Middle East and Africa is a key economic and technologically advanced regions with high per capita disposable income. Government initiatives to increase reimbursement coverage are expected to expedite market growth during the forecast period.

Segmental Analysis

The global gastrointestinal (GI) endoscopy devices market is segmented by product, end-user, and distribution channel.

Based on product, the global market is bifurcated into GI endoscopes, GI endoscopy visualization systems, GI endoscopy visualization components, and GI operative devices. 

The GI endoscopy visualization systems segment dominates the market and is projected to develop a CAGR of 5.7% over the forecast period. The growth of the GI endoscopy visualization systems segment can be attributed to medical professionals' rising preference for high-definition (HD) visualization systems. This is due to the new HD imagery capabilities of high definition (HD) visualization systems which helps diagnose and treat complex diseases like cancers, GI disorders, lung disorders, and urinary disorders by minimally invasive surgical procedures. Moreover, the rising focus of the manufacturers to offer enhanced HD visualization systems capable of switching images from 2D to 3D to medical professionals is also anticipated to expedite the market growth.

Technological advancements in visualization components, such as camera heads, light sources, and HD monitors, are among the key factors boosting the usage of endoscopy devices in surgeries, thereby fueling market growth. Moreover, with an increase in the geriatric population and the surge in demand for minimally invasive procedures, the usage of endoscopy visualization components is expected to grow over the forecast period. The launch of new products and rising investments by market players in R&D to develop next-generation visualization systems are major factors propelling the market expansion over the forecast period. Moreover, key players are also adopting various strategies, such as mergers & acquisitions and business integration, to increase their market shares in the endoscopy devices market, which is further expected to augment market expansion.

Based on end-user, the global market is divided into hospitals, ambulatory surgical centers, and other end-users. 

The hospital segment is the most significant contributor to the market and is estimated to exhibit a CAGR of 5.6% over the forecast period. Favorable reimbursement policies for patients who visit hospitals compared to those seeking treatment at ambulatory centers and the presence of a large number of hospitals and primary care centers in both developed and developing economies are the prominent factors that can be attributed to the high demand for endoscopes. However, the rise in preference for minimally invasive surgeries has increased the number of endoscopies performed in ambulatory surgical centers.

Endoscopic procedures are more popular in ambulatory surgical centers due to their shorter recovery times, reduced time needed for endoscopy, and minimal discomfort brought on by the development of keyhole surgery. Low cost due to fewer hospital stays is also expected to increase the demand for endoscopes in ambulatory centers.

Based on distribution channels, the global market is divided into direct channels and distributors. 

The distributor segment is the largest revenue contributor and is expected to exhibit a CAGR of 5.4% over the forecast period. Since endoscopes and endoscopic products are highly complex and technical, manufacturers and subsidiaries opt for direct distribution channels, with the end users being hospitals, ambulatory surgical centers, diagnostic centers, specialty clinics, and nursing homes. The direct channel usually binds the manufacturer and customer in a contractual agreement that includes procurement, presales, post-sales, training, and aftersales maintenance and repair. Key players in the market employ salesforce to conduct their direct selling to organizations and healthcare professionals. Opening subsidiaries in emerging geographies allows easy and efficient procurement and establishing local customer relations.

Indirect channels could include intermediaries like distributors, importers, wholesalers, and large retailers. Distributors are the key link between producers and consumers; they overlook procurement, exporting/importing, licensing, and quality check and assurance. Distributors develop communication and cooperation among institutes, user groups, healthcare professionals, and technicians. Wholesalers and large retailers fall under the consumables and accessories segment, which purchases the product from distributors before it reaches the market. In addition, key players in the market, utilizing direct distribution channels, also depend on indirect channels in unexplored territories to increase their sales and revenue. For instance, Pentax Medical collaborated with numerous distributors in Asian countries to expand its business offerings and gain a higher market share.

Recent Developments

• January 2023- Fujifilm announced the addition of ClutchCutter and FushKnife to its portfolio of endoscopy solutions for gastrointestinal applications. These devices, designed for use with compatible endoscopes, aid clinicians in executing effective endoscopic submucosal dissection (ESD) interventions in the digestive tract.
• May 2023- Olympus received FDA clearance for its new EVIS X1 endoscopy system and two compatible gastrointestinal endoscopes: the GIF-1100 gastrointestinal videoscope indicated for use within the upper digestive tract and the CF-HQ1100DL/I colonovideoscope indicated for use within the lower digestive tract.