Capsule Endoscopy System Market Outlook:
Capsule Endoscopy System Market size was over USD 1.5 billion in 2024 and is estimated to reach USD 4.1 billion by the end of 2037, expanding at a CAGR of 8.8% during the forecast timeline, i.e., 2025-2037. In 2025, the industry size of the capsule endoscopy system is estimated at USD 1.6 billion.
The amplifying burden of gastrointestinal (GI) ailments around the globe is the primary driver behind robust growth in the capsule endoscopy system market. Testifying the same, the WHO reported that more than 1.9 billion people worldwide were suffering from chronic GI disorders in 2023. Among this demography, colorectal cancer and Crohn’s disease collectively accounted for 25.3% of the net diagnostic demand. In 2025, Germany consisted of a 4.3 million population of patients with small bowel illnesses, who were eligible for capsule endoscopy, which marked a 9.3% rise in count from 2018, as per the Robert Koch Institute. This ongoing trend in epidemiology underscores the growing need for advanced, non-invasive detection solutions, creating a sustainable consumer base.
Besides demand, the inflation in payers' pricing in the capsule endoscopy systems market is also growing, which is creating financial pressure on both manufacturers and consumers. As evidence, the key economic indicators have experienced a gradual rise in recent years, where the producer price index (PPI) for medical diagnostic equipment increased by 4.3% year-over-year (YoY) during the 1st quarter of 2024. This was majorly attributable to the heightening costs of raw materials, according to the U.S. Bureau of Labor Statistics. Subsequently, the upward trajectory also followed the consumer price index (CPI) for outpatient diagnostic services, showcasing a 3.2% hike. These shifts in dynamics are reflecting the need for more subsidiary policies and reimbursement coverage to mitigate the disparity and broaden adoption in this field.
Capsule Endoscopy System Market Growth Drivers and Challenges:
Growth Drivers
-
Proven clinical and financial benefits: The validation gained by the capsule endoscopy system market from several clinical trials is translating into a significant boost. Testifying the same, the Agency for Healthcare Research and Quality (AHRQ) published a study in 2023, demonstrating a 15.2% reduction in readmission rates in hospitals for obscure GI bleeding due to using capsule endoscopy, in comparison to the traditional diagnostic methods. This escalated large-scale procurement from various medical settings, strengthening the value proposition of this merchandise. This also encourages adoption among patients with greater outcomes. Moreover, the shifting preference for cost-effective solutions driving further market growth.
- Ongoing R&D participation and findings: The acceleration in the capsule endoscopy system market is highly attributable to the increased investments and engagements in gastrointestinal R&D. According to the National Institute of Health (NIH), in 2024, the net funding for GI-related device innovation totaled $420.3 million, marking a 7.2% YoY increase from 2023. This surge in research, development, and deployment (RDD) spending highlights strong institutional support for advancements in capsule endoscopy technologies. Moreover, with a greater capital influx for next-generation upgrades, such as AI integration, the pipeline in this sector is expanding, which is ultimately widening the field of applications, and fostering diverse business opportunities.
Historical Patient Growth Analysis: Shaping the Future of Capsule Endoscopy Demand
The dramatic transition of the patient pool volume throughout the period from 2010 to 2020 shaped the foundation of the capsule endoscopy system market. Particularly, the growing awareness of the severity and characteristics of Crohn’s disease and GI bleeding pushed high-risk patients to undergo advanced diagnostic assessments. This highlighted the emergence of this sector with a rapid demographic shift. As evidence of this surge, by 2020, this sector secured an installed base of USD 2.9 billion in diagnostic-capable facilities, stimulating the trend of infrastructural development to secure future penetration of this merchandise.
Historical Patient Growth (2010-2020) in Key Markets
|
Country |
2010 Patients (Million) |
2020 Patients (Million) |
CAGR |
Key Driver |
|
U.S. |
0.43 |
1.16 |
10.7% |
Medicare Coverage (FDA 510(k) approvals) |
|
Germany |
0.19 |
0.53 |
11.3% |
Statutory Health Insurance Reimbursement |
|
France |
0.10 |
0.28 |
11.7% |
Hospital-Outpatient Integration |
|
Spain |
0.06 |
0.10 |
6.1% |
Budget Constraints in Public Healthcare |
|
Australia |
0.05 |
0.14 |
12.6% |
Private Insurance Uptake |
|
Japan |
0.22 |
0.99 |
16.8% |
Aging Population + GI Cancer Screening |
|
India |
0.03 |
0.13 |
19.7% |
Tier-2 Hospital Expansion |
|
China |
0.08 |
0.46 |
20.5% |
National Digestive Disease Initiative |
Feasible Expansion Models Driving Capsule Endoscopy Market Growth
The evolution of the capsule endoscopy system market is majorly followed by the strategic commercial operations of key players. Their pathways of global expansion curated innovative business models, guiding new entrants and inspiring existing competitors. For instance, in 2023, leaders in India utilized the advantages of public-private partnerships to boost adoption by cutting diagnostic costs by 35.2%. Simultaneously, in 2024, MedTech producers in developed landscapes, such as the U.S. and Europe, introduced the clinical benefits of AI integration in assessments, which resulted in a 22.3% rise in detection rates. Similarly, the application of region-specific strategies brought greater profit for this sector, opening new scopes of investment.
Revenue Feasibility Models (2022-2024)
|
Model |
Region |
Revenue Impact |
Key Driver |
|
PPPs with Local Hospitals |
India |
+12,3% Revenue (2022-2024) |
Reduced import tariffs (MoH India) |
|
AI-Leasing Programs |
U.S. |
+18.2% Adoption (2023) |
Medicare CPT code updates (CMS) |
|
Disposable Capsules |
France |
+€25.1 million Sales (2023) |
HA-reimbursement (HAS 2023) |
Challenges
-
Concerns about long-term efficacy and sustainability: The considerable contribution of medical waste to environmental damage often raises questions about the liability of single-use products from the capsule endoscopy system market. This is also impacting the process of compliance which translates into financial losses. For instance, in 2023, the European Commission revealed that acquiring compliance for disposable capsules, built with plastic directives, imposed a 15.2% higher cost. However, with rigorous R&D activities, companies are developing biodegradable components, which minimize waste and accelerate regulatory approvals.
Capsule Endoscopy System Market Size and Forecast:
| Report Attribute | Details |
|---|---|
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
8.8% |
|
Base Year Market Size (2024) |
USD 1.5 billion |
|
Forecast Year Market Size (2037) |
USD 4.1 billion |
|
Regional Scope |
|
Capsule Endoscopy System Market Segmentation:
Product Segment Analysis
The small bowel capsule segment is predicted to gain the highest share of 45.3% in the capsule endoscopy system market by the end of 2037. Its non-invasiveness and comprehensive visualization make the subtype the most preferred diagnostic for both healthcare service providers and afflicted patients. Thus, the increasing prevalence of associated ailments is also a major driving factor behind the leadership. Moreover, being the gold standard for efficient and patient-friendly assessments, small bowel endoscopic capsules received international recognition from several clinical authorities. In this regard, in 2023, the NIH established this tool's reinforcement in mainstream medical practices.
End User Segment Analysis
The hospitals segment is anticipated to dominate the capsule endoscopy system market with a share of 38.2% throughout the assessed timeframe. The growing trend of infrastructural development and provincial investments in medical settings are driving this segment's proprietorship in this sector. In addition, the compliance of hospitals with reimbursement policies supports maximum patient enrollment with financial backing, which makes it ideal for endoscopy deployment and assessment. Furthermore, the concept of centralization and bulk procurement to increase public access to advanced diagnostic and interventional commodities is placing hospitals at the forefront of revenue generation from this merchandise.
Our in-depth analysis of the capsule endoscopy system market includes the following segments:
|
Product |
|
|
Application |
|
|
End user |
|
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Customize this ReportCapsule Endoscopy System Market Regional Analysis:
North America Market Insights
North America is expected to lead the global capsule endoscopy system market by capturing a share of 32.5% over the discussed timeline. The region is pledged to favorable regulatory updates and frequent GI disease occurrence. Testifying the same, between 2022 and 2024, the FDA gave clearance to 14 new capsule endoscopy devices, fostering a progressive landscape and inspiring more MedTeh companies to participate. This is subsequently driving innovation in this sector. Besides, the 18.2% increase in Crohn’s disease diagnoses from 2015 to 2025 drove adoption in this field. Additionally, hospital admissions due to GI bleeding also witnessed a 12.4% rise from 2019 to 2023, which underscored the presence of a sustainable demand in this category.
The U.S. is consolidating its dominance over the regional capsule endoscopy systems market on account of expanded Medicare & Medicaid coverage and cutting-edge innovations. In this regard, the Centers for Medicare & Medicaid Services (CMS) reported that Medicare spending on capsule endoscopy in the U.S. reached $780.4 million in 2023, where its allocations grew by 15.1% from 2020 to 2024. This provided financial backing for more than 2.4 million eligible patients across the nation every year for related procedures. The acceptance of AI integration is also fueling growth in this landscape, with the FDA clearing 3 new AI diagnostic systems in 2024.
Canada is also demonstrating consistent progress in the capsule endoscopy system market, backed by $3.3 billion in federal health funding in 2023. Additionally, provincial investment from the governing body of Ontario, with an 18.3% spending increase from 2021 to 2024, is securing a steady capital influx in this sector. Furthermore, the deepening penetration of telemedicine services is making access to advanced screening more convenient, where it enabled remote capsule reading facilities for 40.3% of rural assessments. On the other hand, the Canadian GI Society recorded a 12.5% annual increase in the count of associated endoscopic procedures performed nationwide from 2022 to 2025, reflecting a liable consumer base in Canada.
APAC Market Insights
Asia Pacific is estimated to register the fastest rate of augmentation in the global capsule endoscopy system market between 2025 and 2037. Its accelerated propagation is the result of an enlarging patient pool of GI disease, increasing healthcare expenditure, and government initiatives. The trend of integrating next-generation technologies in mainstream diagnostic practices is also a remarkable growth factor in this region. This is further supported by rapid healthcare modernization in emerging economies, such as China and India. Furthermore, the penetration of telemedicine and the formation of affordability-focused partnerships are amplifying the commercial success of APAC in this category.
Having the largest patient pool of 1.6 million (2023) and 500.3 thousand procedures performed each year through bridging the access gap in rural areas, China is solidifying its leadership in the APAC capsule endoscopy system market. This is achieved by the implementation of government initiatives, such as Healthy China 2030. Furthermore, with the trend of targeted healthcare investments and centralizing medical systems, China is becoming the epicenter of revenue generation for this merchandise. Currently, the country is focusing on strengthening its emphasis on localized surgical instrument production, which is ultimately bringing enhanced accessibility to this category.
India is emerging as a lucrative landscape, filled with diverse investment opportunities, for global leaders in the capsule endoscopy system market. As per the Ministry of Health, this scenario primarily originated from an 18.4% healthcare budget allocation increase from 2015 to 2023, totaling an annual $1.9 billion. Additionally, this technology was used to detect more than 2.5 million patients in 2023, which was supported by PM-JAY's expanded coverage to 100 million beneficiaries. This combination of rising public investment and large-scale insurance access is accelerating adoption in this sector, positioning India as a key driver in the regional expansion.
Country-wise Government Allocations
|
Country |
Government Policy/Initiative |
Budget/Funding (USD, Million) |
Launch Year |
|
Japan |
AI-Integrated Capsule Endoscopy Fund (AMED) |
$500.4 (2024–2030) |
2024 |
|
South Korea |
Digital Health Innovation Initiative (MFDS) |
$320.3 (2022–2026) |
2022 |
|
Australia |
Medicare Reimbursement Expansion (MBS Item 11820) |
$180.1 (2021–2024) |
2021 |
|
Malaysia |
Medical Device Sector Blueprint (MOH) |
$120.2 (2022–2025) |
2022 |
Europe Market Insights
Europe is exhibiting steady growth in the global capsule endoscopy system market, which is primarily fueled by rising GI disease occurrence rates, technological innovation, and robust regulatory support. To combat the widespread epidemiology, the European Health Data Space (EHDS) committed €2.6 million to medical device advancement, including capsule endoscopy. Furthermore, with the support of increasing healthcare spending, AI-assisted diagnostics and disposable capsules are gaining traction in this landscape. This is also supported by the tightening of MDR quality standards across Europe. The growing reimbursement coverage is also propelling adoption and innovation in this sector.
The UK capsule endoscopy system market is experiencing strong progress on account of an 8.2% healthcare budget allocation by the National Health Service (NHS) in 2023. In addition, a 15.4% surge in demand in this sector was also observed across the country from 2021 to 2025 due to expanded colorectal cancer screening programs (ABPI). Moreover, the accelerated approval process in acquiring compliance with the Medicines and Healthcare Products Regulatory Agency (MHRA) for AI-integrated capsules underscores the country’s strong emphasis on innovative diagnostics. Moreover, the streamlined regulatory pathways, coupled with a sustainable consumer base enlargement, are positioning the UK as a key landscape in regional augmentation.
Germany is propagating the regional capsule endoscopy system market with dominance, which is backed by substantial government investments to improve accessibility in modern healthcare. For instance, in 2024, a €4.2 billion fund was allocated to this category, as per the Federal Ministry of Health in this country. Surge in this sector also experienced a 12.3% rise during the timeline from 2021 to 2025. Additionally, in 2023, the Federal Joint Committee (G-BA) extended reimbursement for up to 500,010 procedures every year, reflecting an escalation in adoption. Moreover, strong financial backing and broad patient access are accumulatively solidifying the country’s position as the continent’s most advanced marketplace in this field.
Key Capsule Endoscopy System Market Players
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
The current dynamics of the capsule endoscopy system market are controlled by the strategic commercial operations of key players. For instance, Medtronic and Olympus outstretched the reach of this sector's pipelines by excelling in AI-powered diagnostics and global supply chains. On the other hand, Jinshan and ANKON stimulated traction in China market with the introduction of low-cost disposable capsules, guiding other companies from price-sensitive landscapes in securing greater profit margins by adopting this pathway. Simultaneously, IntroMedic is concurring niche segments with innovative wireless imaging technologies.
This cohort of pioneers include:
|
Company Name |
Market Share (2024) |
Industry Focus |
|
Medtronic |
22.1% |
Leader in wireless capsule endoscopy (PillCam) |
|
Jinshan Science & Technology |
12.4% |
Disposable capsule endoscopy systems |
|
IntroMedic |
9.3% |
MiroCam capsule endoscopy |
|
CapsoVision |
6.1% |
360° imaging capsules (CapsoCam) |
|
Check-Cap |
5.4% |
X-ray-based capsule endoscopy |
|
Siemens Healthineers |
xx% |
AI-integrated diagnostic solutions |
|
Boston Scientific |
xx% |
GI diagnostics & capsule endoscopy |
|
ANKON Technologies |
xx% |
Low-cost capsule endoscopy systems |
|
Proteus Digital Health |
xx% |
Smart pill technology |
|
MiroCam |
xx% |
Wireless capsule endoscopy |
|
Chongqing Jinshan |
xx% |
Disposable capsule endoscopes |
|
CapsoVision |
xx% |
Next-gen capsule endoscopy |
|
BodyCap |
xx% |
Miniaturized capsule endoscopy |
|
SmartPill Corporation |
xx% |
Motility-testing capsules |
Below are the areas covered for each company in the wood flooring market:
Recent Developments
- In May 2024, IntroMedic launched the world’s smallest capsule endoscope (8mm), MiroCam Nano, designed for pediatric and GI bleeding cases. Within three months of its release, the device drove a 10.4% sales growth in the Asia Pacific market, as reported in IntroMedic’s investor briefing.
- In March 2024, Medtronic introduced its AI-powered PillCam, featuring real-time lesion detection and FDA clearance for colorectal screening. The innovation drove a 15.2% revenue boost in the 2nd quarter of 2024, helping Medtronic capture 25.1% of the U.S. capsule endoscopy system market.
Author Credits: Radhika Pawar
- Report ID: 7759
- Published Date: Jun 16, 2025
- Report Format: PDF, PPT
