implementation of pacs driving the demand for digital radiography
DESCRIPTION
Web conference presentation on the implementation of PACS is driving the demand for digital radiography in European markets. Market overview, key challenges, revenues and trends.TRANSCRIPT
Implementation of PACS Driving the Demand for Digital Radiography
Simone Carron, Research Associate
Healthcare
August 11, 2010
2
Focus Points
� Market Overview
� Key Challenges faced by DR and CR vendors
� Factors influencing and retarding growth
� PESTLE Analysis
� Importance of Product attributes to End-users
� Market Revenues
� Market Trends
� Technology Trends
3
Market Overview
Radiology has witnessed a technological evolution in the past few decades with the
development of newer imaging modality. The emergence of digital and computed
radiography has altered the face of conventional radiography.
There is a transition from film based systems to film-less systems and this is being
fuelled by a need for improved work flow, productivity, efficiency and accurate
diagnoses.
Capital spending freezes and financial shortcomings delayed purchases of equipment
in 2008-2009. However the DR/CR market has been more resilient than other imaging
modalities largely because an estimated 70 percent of all imaging procedures are
general radiography.
The European digital radiography (DR) markets amounted to $68.0 million in 2009 and
is expected to reach $111.2 million in 2016 growing at CAGR of 7.2 percent.
The European computed radiography (CR) markets amounted to $228.0 million in 2009 and is expected to reach $237.4 million in 2016 growing at a CAGR of 0.6 percent.
Source: Frost & Sullivan
4
Key Challenges Faced by Vendors
Industry
Challenges
1
Financial short comings and capital expenditure freezes are delaying purchase
of equipment.
2Intense competition among vendors leading to market concentration and
reducing scope of profitability.
3High initial investments and lack of awareness among buyers about the
available options to make the transition from analogue to digital technology.
5Growth of CR and DR technology is hindered due to the
low adoption rate of PACS in some regions of Europe..
4 Anticipation of Legislations and Healthcare Reforms causing purchase hesitation.
Digital and Computed Radiography Market: Key Industry Challenges (Europe), 2010-2016
Source: Frost & Sullivan
5
European Digital Radiography Market - Factors Influencing and Retarding Growth
Driv
ers
Restra
ints
Increased Patient Throughput and optimized work flow
Superior image quality of DR allows accurate diagnosis
DR enables greater productivity at lower dosage
Implementation of PACS drivingthe demand for DR
Initial investment of DR is significantly higher
CR sales encroaching upon DR growth Low adoption rate by
physicians and radiologists
Without patient volume DR is not so beneficial
Source: Frost & Sullivan
6
European Computed Radiography Market - Factors Influencing and Retarding Growth
Driv
ers
Restra
ints
CR is a smooth and cost effective solution
Source: Frost & Sullivan.
CR can be easily integrated into existing analogue systems
CR technology is apt for low-volume imaging
environments.
CR requires the least amount of retraining for
medical staff.
Poorer image quality in some CR results in retakes CR procedures are similar in
workflow to conventional radiography
The European CR market is saturated as opposed to
DR.
7
SocietyLegislation
Political
Economic
Technology
Environment
0
2.5
5
7.5
10
PESTLE Analysis
Rating indicates level of impact of PESTLE factors on growth.
Scale = 0 to 10, where 0 is low impact & 10 is high impact.Source: Frost & Sullivan
End users are looking to invest in Integrated CR and DR Technology solutions in order to have the best of both worlds.
Film less technology and the use of photographic plates eliminates the need for hazardous processing chemicals used in conventional radiography, that may have harmful effects on the environment.
Many countries in Europe have made plans to implement digital imaging mandates or have already done so, providing opportunities for digital imaging vendors.
European countries such as France are adopting measures to outsource imaging. The French Ministry of Health is planning to adopt a strategy which would involve extensive outsourcing to private outpatient centers owing to shortage of Radiologists in the public sector.
Certain vendors are resorting to Asian countries as low cost production centers in the future that would enable them to keep their cost base low.
With the benefits of digital solutions such as Patient comfort, ease of use, and work–flow optimisation becoming more widely known, digital solutions have become more appealing and acceptable among radiologists and end users.
Decline in PACS prices and affordability of digital solutions have encouraged vendors to lure customers with comprehensive packages of PACS and digital solutions.
Digital and Computed Radiography Market: PESTLE Analysis (Europe), 2010-2016
8
Importance of Product Attributes to End-users
Purchase Price
Detector Type
High Throughput
Maintenance Costs
Reliability and
Ease of Use
High throughput is one of the key attributes considered during a purchase. End-users are looking to invest in systems that have a throughput capacity at least double that of an analogous system that can provide improved workflow.
0
0
End users are not only keen about low purchase prices but are also interested in the type of technology they are investing into. They are aware of the fact that a premium price needs to be paid for these advanced features and superior technology.
0
Price is the most important factor considered during a purchase as buyers are looking to make the transition to digital at affordable prices that are in line with their budgets.
Source: Frost & Sullivan
Maintenance costs are a major concern among end users who look at Return On investment (ROI) as an essential factor to help them determine the profitability of their practice in the long run.
End users, in particular radiologists are looking for digital solutions that can optimise work flow and provide enhanced diagnostic image quality, therefore reliability and ease of use are important attributes considered during a purchase.
Low High
1 52 3 4
Low High
1 52 3 4
Low High
1 52 3 4
Low High
1 52 3 4
Low High
1 52 3 4
Low HighKey :
Level of Importance
Digital and Computed Radiography Market: Importance of Product Attributes to End Users (Europe), 2010-2016
9
European DR and CR Market Revenues
68.0111.2
228.0
237.4
0
100
200
300
400
500
ComputedRadiography
228.0 237.4
Digital
Radiography
68.0 111.2
2009 2016
Revenues ($ Million) • The European digital radiography market
amounted to $68.0 million in 2009 and is
expected to reach $111.2 million in 2016 . The
market is expected to grow at a compound
annual growth rate (CAGR) of 7.2 per cent.
The growth rate is expected in the range from
6.4 per cent to 7.2 per cent if economic
factors are favourable.
• The European computed radiography
market amounted to $228.0 million in 2009
and is expected to reach $237.4 million in
2016. The market is expected to grow at a
compound annual growth rate (CAGR) of 0.6
per cent. The CR market has reached a
saturation phase in most of the European
countries and therefore decline in revenues
is expected to be seen during the forecast
period (2010-2016).
Source: Frost & Sullivan
10
Market Trends and Opportunities
Mobile and retrofit DR
Improved workflow and throughput
Cost effective solutions and quick ROI
Broader Portfolio and in line withthe end-user’s budget
Vendors offering a broader
range of products that can feed
the end-user’s budget have an
edge over others in the DR
market.
End-users are looking to invest in cost effective
solutions that can provide quick Return on
investment (ROI) to ensure the profitability of
their practice in the long run.
DR systems that can improve work flow and
throughput thereby allowing enhanced
diagnostic image quality are the order of the day.
Mobile and retro fit DR are likely to be a growing trend
owing to their easy integration into existing conventional
and CR systems providing digital technology at lesser effort and inconvenience
Digital Radiography Market: Market Trends and Opportunities (Europe), 2010-2016
Source: Frost & Sullivan.
11
Market Trends and Opportunities
With CR becoming more of a
commodity the future of CR is expected
to be integrated systems. Although CR has been an initial step towards
digitisation the integration of CR with DR
offers much scope.
Broader Portfolio
CR in the use of Mammography CR is expected to find its use more in
women’s health in imaging dense breast
tissue or implants. This would offer an added benefit of using existing x-ray and yet
provide digital images.
The European CR market is a saturated one and
therefore the focus is more on price, End-users are
looking at what is necessary to make the transition from analog to digital therefore vendors with a
broader portfolio are at a better position in the
market.
Integrated CR and DRIntegrated CR
and DR
Use of CR in Mammography
Broader Portfolio
Portable and
Automated CR
The viability of CR is apparent and hence new
systems that offer portability and automated
manual process will ensure competitiveness in
this segment.
Computed Radiography Market: Market Trends (Europe), 2010-2016
Source: Frost & Sullivan
12
Digital Radiography - Technology Trends
Source: Frost & Sullivan.
Mobile and retrofit DRCost effective and
economic DR for developing and price conscious
marketsDual DR/Fluoroscopy
2009 20102008
Digital Radiography Market: Technology Trends (Europe), 2008-2010
These trends are the technological advancements in DR
technology that have taken place recently and those that are
expected to be launched in the market in the near future.
Dual – EnergyImaging
Digital Tomosynthesis
Computer aided
detection
Three major technical developments that have potential to increase sensitivity of DR making it more competitive than CT for chest imaging.
13
Major Industry Participants
Source: Frost & Sullivan.
14
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For Additional Information
Katja Feick
Corporate Communications
Healthcare
0049 (0) 69 7703343
Noel Anderson
European Vice President
New Business Development
+44 (0)207 343 8389
Siddharth Saha
Director of Research
Healthcare
+ 44 (0) 207 343 8374