Summary of Key Points
The surgical robotics industry is currently going through a “rough winter”: Companies are shifting from being “large and comprehensive” to focusing on niche segments (such as striving to become the “number one in their respective segments”) or selling non-core assets. Even after obtaining product approvals, the path to commercial success is not smooth; instead, they enter a “commercialization death valley” where transitioning from trials to actual purchases is difficult, hospitals are reluctant to buy, and patients bear a heavy financial burden. The domestic market is insufficient to support company growth, making overseas markets crucial for expansion (where cost-effectiveness opens up price-sensitive markets). Companies are rushing to go public (IPO) not to simply “make it onto the stock market” but to ensure they don’t exit the competition until a turning point for large-scale overseas sales occurs.
1. The industry’s tough times force companies to streamline: From trying to do everything to focusing on what they do best
In the past, many surgical robotics companies aimed to cover multiple segments (for example, Minimally Invasive Surgery once planned to enter five major areas including laparoscopy and orthopedics), but now they are scaling back. Why? The technical requirements and production processes for each segment are vastly different. For instance, laparoscopic robots require precise manipulation of soft tissues, while orthopedic robots need accurate bone positioning; there is almost no synergistic effect between the two. Spending billions on developing a laparoscopic robot offers little benefit to orthopedic operations. Additionally, the industry is highly capital-intensive with slow returns, and dispersing resources only delays progress or may even lead to failure.
Therefore, companies are now “focusing in”: Minimally Invasive Surgery has sold its overseas orthopedic business to Tianzhihang (getting rid of non-core assets), which in turn addresses its commercialization shortcomings. Jingfeng aims to become the first domestic company listed on the Hong Kong Stock Exchange, and Zhenjian Health aims to be the leader in puncture-related technologies—everyone wants to establish a strong presence in niche areas to avoid wasting resources.
2. The commercialization “death valley”: Obtaining a license is just the beginning of the challenges
Surgical robots are different from other products; getting a national registration certificate does not mean success but marks the start of the most difficult phase: selling them.
- Low conversion rate from trials to purchases: Jianjia Medical offered prototypes to 75 hospitals, but only three bought them. Rui Chu’s products were introduced to 39 top-tier hospitals, and none were sold in half a year. Some companies (like Shanghai Longhui) went bankrupt after obtaining the certificate, as they could no longer raise funds based on future prospects.
- Hospitals are hesitant to buy: Public hospitals cannot afford to borrow money for large equipment, and financing options are limited. The high costs of depreciation and maintenance, along with minimal initial use, make hospital purchases unattractive.
- Patients can’t afford it: Equipment prices are unclear, and commercial insurance coverage is limited, so patients have to pay thousands out of pocket, making them reluctant to use the devices.
3. The domestic market is not enough; overseas markets are a lifeline
Domestic sales growth is too slow: Minimally Invasive Surgery’s Tumai robot was launched in 2022, and by March 2026, only 46 units had been installed domestically; Jingfeng’s robots had 46 domestic installations compared to 54 global installations (with overseas sales exceeding domestic ones). Minimally Invasive Surgery’s overseas orders have already exceeded 240 units, with the third batch of 100 units being sold in just 120 days (the first batch took nearly a year).
Why can overseas markets sell more? Firstly, there are large price-sensitive markets in Central and South America, Southeast Asia, and the Middle East where private hospitals cannot afford the expensive Da Vinci robots from industry leaders like Intuitive Surgical. Secondly, the barriers to entering these markets for medical devices are lower than for innovative drugs.
Despite Da Vinci’s dominance, the trend is that overseas hospitals either choose Da Vinci or Chinese companies—there are few other options, creating opportunities for domestic manufacturers.
4. The rush to go public: Not for success, but to stay in the game
Many surgical robotics companies are seeking to list this year due to a lack of funds. The industry is highly capital-intensive: research and development, market expansion, and overseas efforts all require significant investment. The bubble burst in 2023 (some companies with unapproved products were still valued at billions), and many IPO attempts failed, leaving them relying on previous funding. Now, with a new window for IPOs, companies are looking to raise money to survive.
However, going public is not the end goal; the funds may not be enough to sustain growth until overseas sales take off. The purpose of listing is to “temporarily relieve survival pressures”—as long as they don’t get eliminated, there’s a chance to wait for the industry to turn around.
5. The industry’s future: Focusing on niche segments and expanding overseas is key
Experts believe that companies will no longer pursue a “large and comprehensive” approach but will specialize in their areas of expertise (e.g., only making puncture robots or laparoscopic robots). They must operate both domestically and internationally: using the domestic market for clinical validation and case accumulation, and the international market to increase revenue. Only by doing so can they survive the tough times and wait for the industry’s true breakthrough.
In short, the surgical robotics industry is facing a challenging period, but with focus, expansion into overseas markets, and perseverance, there is hope for the future. After all, there is a real clinical need for these robots to perform surgeries that doctors cannot perform manually.
(The entire analysis is written in plain language, without technical jargon, making it easy for non-financial professionals to understand.)