20 Jan 2021
Posted in Medical Devices
Gastric bands and balloons market set to decline at 5.2% CAGR due to COVID-19
The global gastric bands and balloons market was valued at $31m in 2020, and is set to decline at a compound annual growth rate (CAGR) of 5.2%, due to the rise in popularity of surgeries such as Roux-en-Y Gastric Bypass (RYGB) and Sleeve Gastrectomy, according to GlobalData, a leading data and analytics company.
GlobalData’s market value includes the negative impact of COVID-19, as year-over-year (YOY) sales for gastric bands and balloons declined in 2020. 23.5% of revenue was lost in 2020 due to COVID-19 as elective surgical procedures were postponed during Q2 2020. In 2021, GlobalData anticipates the start of a ‘surge period’ in procedures and gastric bands and balloons sales to make up for surgeries that were postponed in 2020. However, the surge will not offset revenue losses until 2022.
The company’s recent report, ‘Gastric Bands & Balloons, Global Outlook, 2015-2030’ indicates that the market was more severely impacted than other markets sales as these devices rely solely on elective procedures to generate revenue.
Eric Chapman, Senior Medical Devices Analyst at GlobalData, comments: “In Q1 2020, elective procedures were postponed from around mid-March (two out of 12 weeks) and this two-week period impacted the overall sales of gastric bands and balloons. By Q2 2020, as the number of new COVID-19 cases had reached a peak and many procedures had been cancelled or postponed, the market was down 50%.”
Apollo Endosurgery is the market leader for gastric balloon sales, followed by Obalon Therapeutics, Districlass Medical, Spatz FGIA, and Allurion Technologies. ReShape Lifesciences is the market leader for gastric band sales, followed by Cousin Biotech, Agency for Medical Innovations, and Bariatric Solutions. As such, these companies lost the most revenue due to the impact of COVID-19.
Chapman continues: “GlobalData expects these players to retain their market position after the market recovers from the pandemic. Smaller manufacturers will continue to have a difficult time winning market share from market leaders Apollo Endosurgery and ReShape Lifesciences, especially in the US.”
Information based on GlobalData’s report: ‘Gastric Bands & Balloons, Global Outlook, 2015-2030’