Company Profiles

Market Overview

Innovation Critical to Competitive Success

The market for most medical imaging devices is at a mature phase. Most unit shipment sales are geared towards the replacement of older systems. The market is dominated by global conglomerates that have a combined market share of around 80 per cent. However, many small regional vendors have carved out a significant presence in the medical imaging industry in Europe. Innovation will be critical for success in this market. The European medical imaging industry is the second largest in the world after the U.S. It is estimated that the value of the total medical imaging industry in Europe is nearly $5.35 billion.

"Investment in R&D is directly proportionate with the number of new and innovative products being launched and will be the key to a company's success in the medical imaging modality market," notes the analyst of this research. "Companies should forge professional collaborations with major hospitals and research institutions to impart training to medical personnel who are likely to operate the equipment."

Niche and regional participants should try to establish collaborative alliances with leaders in medical imaging modalities. The aim of such alliances should be that of mutual gain. Servicing of imaging devices and after-sales support should be extremely strong. This will optimise client satisfaction and enable companies to broaden their customer base.

Typically, most medical imaging modalities have long replacement periods. These range from seven to nine years. This makes it more difficult for vendors to market new modalities, as this is principally a replacement market. Moreover, the lack of reimbursement for cardiology imaging procedures is hampering the uptake rates. One of the key industry challenges faced by the medical imaging industry in Europe currently is the intensifying price pressures. With healthcare regulators increasingly looking to curb costs, vendors are being forced to reduce their prices.

"Participants in the medical imaging market need to fully capitalise on favourable macro-economic conditions," advises the analyst. "These include the rising requirement for imaging procedures due to an increasingly ageing population."

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:

• Computed tomography (CT)
• Magnetic resonance imaging (MRI)
• Radiography