IMS Research

Mobile X-ray and Retrofit Upgrade Kits to Drive Global X-ray Market

Wed, 24 Apr 2013 00:00:00 +0100

Demand for mobile X-ray and retrofit upgrade kits is driving strong growth in the global X-ray market, according to a new report, entitled “The World Market for General Radiography and Fluoroscopy X-ray Equipment – 2013” from IMS Research, now part of IHS Inc. (NYSE: IHS).

Revenue in the worldwide market for general radiography X-ray is projected to rise to $3.8 billion in 2017, up 5 percent from $2.9 billion in 2012. Meanwhile, mobile and retrofit X-ray retrofit upgrade kits are forecast to grow by 13 percent and 15 percent respectively during the same timeframe. Flat-panel detector equipment is showing modest growth, while computed radiography and analogue X-rays are projected to experience a sharp decline.

“With increasing global economic pressure, hospitals worldwide are looking for solutions to improve staff workflow and improve patient care,” said Sarah Jones, medical imaging analyst for IHS. “The cost of new digital X-ray equipment is much higher than for a retrofit upgrade kit, driving many hospitals to purchase this cheaper option. Hospitals also are purchasing mobile equipment to help patients who are critically ill to receive faster treatment.”

Retrofit is increasingly used as an interim solution in countries with limited budgets for new digital X-ray equipment. The retrofit X-ray market is therefore projected to peak in 2014 as the market transitions back to purchasing new equipment due to economic stabilisation. Mobile equipment sales are forecast strong growth, as portable equipment can reach immobile patients in the ICU and ER. In particular, there is strong demand due to the instant imaging capabilities of digital mobile equipment, allowing users to re-scan very quickly. This improves workflow and eliminates the need to lengthy processing, allowing them to diagnose patients quickly while also saving money for analogue film printing costs.

In addition, compatibility with electronic medical records (EMR) and healthcare IT such as PACS systems in hospitals means X-ray images can be transferred wirelessly from mobile or retrofit system directly to the healthcare IT system. This speeds up diagnosis, as images can be sent to specialists for second opinions.

Despite the strong outlook, the retrofit market is experiencing some limitations, with some countries still opting for new equipment rather than retrofit, as a longer term investment. Liability is also a concern, as the retrofit kit manufacturer may be different to the original equipment manufacturer, providing confusion as to responsibility for the safety of equipment.

US Advanced Medical Imaging Market Set for Challenging Future

Mon, 25 Feb 2013 00:00:00 +0000

New legislation and changing user preferences are predicted to provide a challenging five-year outlook for the magnetic resonance imaging (MRI) and computerized tomography (CT) imaging markets in the U.S., according to a new report from IMS Research – now part of IHS Inc. (NYSE: IHS). Revenue growth for these advanced modalities is forecast to be suppressed by changing reimbursement, radiation dose concerns and weak economic conditions. Consequently, annual market growth is forecast to remain below 5% until at least 2016.

The most notable challenge for this $1.4 billion equipment market is new reimbursement legislation recently passed in the United States Congress. The change effectively increases the perceived utilization of advanced equipment, the largest factor of the Medicare ‘technical component’ reimbursement calculation. By increasing this rate from 25% to 75% in a bid to move toward the 2014 target of 90% as part of the 2012 Affordable Care Act (ACA), reimbursement for many CT and MRI scans is set to decline significantly.

“While the real cost of this change is not clear, industry consensus suggests reimbursement for CT and MRI imaging may be cut by as much as 15-20%,” said Stephen Holloway, senior analyst, clinic care devices at IHS. “Considering the private imaging centre market is still reeling from the impact of the economic downturn and market uncertainty, the market outlook is weak.”

Strongest revenue growth in the next five years is predicted in the 2013, the result of pent-up demand following uncertainty produced by the ACA and U.S. fiscal cliff in 2011 and 2012. While conditions are still challenging for most providers, they do now have greater visibility of the mid-term outlook at the start of 2013. Combined with an ageing installed base and credit markets improving, IHS predicts many will re-invest in the near future.

User demands have also changed significantly in the last 5 years, providing further opportunities for new system installation. Integrated radiation dose management solutions have now become essential for CT users, with most also scrutinizing the lifetime-cost of CT and MRI systems far more than previously.

“Recent economic, legislative and safety concerns have certainly restricted market growth and demand in the U.S. market,” continued Holloway. “Yet, this shift in focus towards more affordable, safer advanced imaging solutions should be interpreted as an opportunity for suppliers. CT and MRI solutions that best exhibit safety, efficiency and return-on-investment, provided with strong service and clinical support options, will be most successful.”

The golden era of double-digit growth for CT and MRI in the U.S. may well be in the past, strangled by reimbursement changes, the economic crisis and widespread awareness of overuse. Yet the new age of austerity offers some positives too: spiraling health costs are being controlled; more patients will have access to advance imaging services; CT imaging is safer. So while the next five years will provide lean times for many industry suppliers’ balance sheets, the long-term sustainability of the U.S. advance imaging market is in far better shape.

EMR Vendors to Encroach on Best-of-breed CIS Market

Wed, 20 Feb 2013 00:00:00 +0000

As global economic uncertainty continues and healthcare budgets remain stretched, many hospitals are seeking new ways to reduce expenditure and increase profitability. This is resulting in growing demand for healthcare IT solutions, including clinical information systems (CIS). CIS can improve operational efficiency, reduce errors and save time for physicians and nurses. This is already evident in the critical care information systems (CCIS) market, where the need to improve workflow in the intensive care unit (ICU) has already caused widespread adoption. Consequently, InMedica, a division of IMS Research (now part of IHS Inc. (NYSE: IHS) forecasts that revenues for CIS used in the ICU are forecast to grow by 46 percent over the next five years.

This strong growth and demand in the CCIS market is creating an increasingly competitive marketplace, particularly between the best-of-breed vendors (such as Draeger, GE and Philips ) and electronic medical record (EMR) vendors (such as Epic, Cener and Allscripts) . Best-of-breed solutions are tailored to meet the demands and functionality needed for a specific clinical department, whereas EMR vendors are better positioned to provide a fully integrated system across the hospital.

In the U.S., EMR stimulus payments for hospitals that meet “meaningful use” requirements are driving more hospitals to move to enterprise wide solutions. “This is giving EMR vendors in the CIS market as their systems cover all clinical departments”, commented Carly Reed, market analyst at InMedica. “However, outside of the U.S., EMR vendors are less dominant in the CIS market, as many physicians still prefer to use a solution offering specific clinical functionality and workflow.”

It is forecast that EMR vendors will continue to increase their share in the CIS market worldwide as demand for integration of hospital wide IT solutions increases. However, longer term, opportunities could arise again for best-of-breed vendors if physicians decide that a specialised solution with specific clinical functionality better meets their needs than the EMR.

Healthcare Reform to Boost Growth in Telehealth Market by 55 Percent in 2013

Wed, 19 Dec 2012 05:00:00 +0000

From 2010 to 2011 usage of remote patient monitoring, or telehealth, increased by 22.2 percent as the number of patients enrolled worldwide reached 241,200. However, telehealth device revenues only grew by 5.0 percent from 2010 to 2011; and 18.0 percent from 2011 to 2012. InMedica, a division of IMS Research (now part of IHS Inc. (NYSE: IHS)) attributes slow revenue growth over the last year to poor economic conditions leading to restrictions in healthcare funding particularly in Europe, and ambiguity on the impact of healthcare reform and readmission penalties on telehealth in the U.S.

In the U.S., there remained considerable uncertainty on the future of the US healthcare market and the role of telehealth in this market throughout 2012. As the Center for Medicare and Medicaid Services (CMS) began penalizing U.S. hospitals for readmissions in October 2012, many healthcare providers remained unclear on the potential impacts on their institutions and are yet to implement a post-acute care plan. A common sentiment among the providers recently interviewed by InMedica was that, if they are being paid fee-for-service, it will be difficult to justify telehealth. The more pre-paid dollars they can receive (internally and from payers), and the more focus on quality and outcome, the more they can look at implementation. Essentially, if providers can receive payment regardless of whether a patient receives services in or out of the practice, then they have an incentive to move forward. That said, many still have not found the right mix of tools and software applications.

Telehealth is projected to be increasingly incorporated into post-acute care strategies from 2013; it is listed by CMS as one of 13 possible models to reduce readmissions. In addition, as a larger number of patients enter the insurance pool, healthcare payers are projected to adopt telehealth as a population management tool to reduce in-patient costs. Consequently, InMedica forecasts that in 2013, the telehealth market will grow by 55 percent worldwide, in terms of device and service revenues. Theo Ahadome, senior analyst with InMedica remarked that, “Telehealth vendors and other stakeholders have an opportunity to help healthcare providers to develop an effective post-acute care strategy. For telehealth to succeed in reaching a wider audience, it needs to break out of being a niche market and become part of a comprehensive patient-care model. This is even more important in the post-acute care market where healthcare providers are more willing to pay for telehealth if it is part of a total post-acute care model. In such a situation, healthcare provider reimbursed or allocated pre-paid funds for patient outcomes irrespective of the chosen method. In some cases and for some diseases, telehealth will be part of that model.”

Of particular concern to the U.S. government is the rise chronic conditions such as heart failure, chronic obstructive pulmonary disease and obesity in a rapidly aging population. Recent data from the Centers for Disease Control & Prevention (CDC) indicate that 30 percent of adults 20 years of age and older (or 60 million people) are clinically obese. It is possible that such high rates of obesity could lead to a further explosion in cardiovascular diseases, back pain and diabetes prevalence, providing additional impetus for healthcare cost growth as a result.

Shane Walker, co-author of the recently released InMedica study titled Telehealth – An Analysis of Demand Dynamics – 2012 Edition further stated that, “Despite criticism of health care reform, it is clear that the long-term goals of the CMS are to move toward greater continuity of care while reducing costs through the avoidance of unnecessary duplication of services. Of course, this will require a period of transition, which the country is in currently. The beginning of this transition is the voluntary creation of accountable care organizations (ACOs), and the implementation of appropriate incentives to foster their adoption. Behavioral change can take time, as seen over the last fifty years with anti-smoking and Physical Fitness Council campaigns, but InMedica believes that telehealth is a tool that can significantly improve clinical outcomes while also achieving the ends of government initiatives. That said, it is clear from the provider and payer interviews conducted during this research that there is still much work to be done in advancing the state of telehealth in the U.S.”

Global FPD Mobile C-arm X-ray to Grow by 54 Percent by 2016

Mon, 19 Nov 2012 05:00:00 +0000

With increasing awareness of X-ray dose and image quality, the market for mobile C-arm X-ray equipment has potential to transition to flat panel detector (FPD) technology. FPD systems have been proven to provide comparable if not better image quality than Image Intensifier (II), with a much lower X-ray dose. Consequently, unit shipments of FPD mobile C-arm X-ray are forecast to grow by 54 percent worldwide from 2011 to 2016, according to a new report The World Market for Mobile C-arm X-ray Equipment – 2012 Edition, by InMedica, part of IHS Inc. (NYSE: IHS).

Demand for FPD systems continues to rise, despite challenging economic conditions. With healthcare spending being cut in many countries to help reduce public debt, mobile C-arm X-ray is being used across multiple applications; such as orthopaedic, vascular, cardiac and gastrointestinal. Due to the manoeuvrability of mobile C-arm X-ray systems, many are being used in several departments as a way to save money. Some countries such as Spain and Portugal are using higher specification FPD systems to perform complex procedures, rather than installing fixed cath labs.

“FPD mobile C-arm will continue to drive growth in the global market, as improving physician workflow and image quality remains at the forefront of buyer’s minds. Demand will be sustained as more complex procedures are being performed on mobile C-arm, such as transcatheter aortic-valve implantations,” commented Sarah Jones, analyst at InMedica.

However, economic conditions are also a limiting factor in some regions. The higher price of FPD compared to II means many healthcare providers are still opting for II equipment, despite the known advantages of FPD. Furthermore, fewer tenders is causing suppliers to cut system prices, further sustaining demand for II. Clinically, legislation is also impacting FPD adoption. While some countries such as Germany use mobile C-arm for advanced cardiac and vascular procedures, other regions are preventing such procedures from being completed on mobile systems. This is due to concerns regarding image quality and generator over-heating.

The growth of FPD also varies significantly by geographic region. In Asia Pacific, FPD revenues are forecast to increase as hospital development and infrastructure improvement is set to continue, with a focus on higher specification technology. The American market was the largest FPD market in 2011. Out-of-hospital clinics are projected to drive growth in the orthopaedic and pain management section. In EMEA, transition to FPD will continue as many countries are changing their purchasing patterns from image intensifier to FPD.

In the next five years, InMedica predicts FPD unit shipments to increase by 54 percent from 2011 to 2016 worldwide. “Assuming price erosion continues as forecast, FPD will become more affordable, widening the availability of FPD technology to both mature and emerging markets,” continued Jones. Yet, restrictions in hospital spending and the transition to fixed cath labs in some countries are forecast to limit growth of FPD in the short and mid-term outlook.

Competition Intensifies in the Vendor-Neutral Archives Market

Mon, 19 Nov 2012 05:00:00 +0000

Vendor-neutral archives (VNAs) have finally moved to the forefront of healthcare IT spending after years of debate of the value of keeping image data separate from picture archiving and communications (PACS) applications. As demand for VNA grows, the market is attracting a host of suppliers with a range of product types and strategies. This is according to new VNA thought leadership paper from InMedica and media website plus, recently acquired by IHS, Inc (NYSE: IHS) and is based on InMedica’s report, World Market for Medical Enterprise Data Storage – 2012.

PACS Vendors

A challenge for PACS suppliers in the VNA market is to prove the ability to deliver a non-proprietary, standards-based approach to archiving that gives healthcare providers control of their data without being locked in to their PACS.

Figure 1. From PACS to Departmental VNA - North American Installed Base by Vendor. Note- Size of bubble represents PACS Installed Base in North America.

Agfa Healthcare, Carestream Health, GE Healthcare and Merge Healthcare have all developed VNA products, either in-house, or through acquisitions. These suppliers were earlier-to-market with their VNA products, driving market leadership. Of these, GE Healthcare has the largest share of departmental archives in North America, while Merge, Carestream and Agfa have established a stronger position in cross-departmental, multi-PACS enterprise archives.

Other PACS vendors tend to partner with VNA providers: Fujifilm and Philips Healthcare have partnered Acuo Technologies; Siemens Healthcare has partnered with Dell.

Independent Software Vendors (ISV)

Independent software vendors (ISV) are who those that have a proprietary VNA product, but not a proprietary PACS. These suppliers have emerged from outside of the PACS market to meet the some of the challenges created by departmentalized data silos.

The leading ISV’s in the VNA market are Acuo Technologies, Dell, Dejarnette Research Systems and Teramedica. These tend to focus on cross-departmental access to data rather than on the storage of specific departmental data.

Over 80 percent of VNA studies in North America in 2011 were from managing DICOM images in multiple departments or at multiple hospital sites, reflecting that current demand is driven by the need to consolidate images and reduce image migration costs. However, as VNA penetration increases, so too will demand for larger integration of non-DICOM and non-image data.

By 2016, XDS-based VNA is projected to account for 30 percent of VNA studies; VNA suppliers, who currently provide full XDS document registry and XDS repository features in their VNA, are well positioned to benefit from this shift in demand.

Figure 2. From Departmental to Enterprise VNA - North American Installed Base by Vendor. Note - Size of bubble represents Enterprise VNA Installed Base in North America. Arrow indicates projected direction of growth in installed base.

Future Direction

As demand for VNA grows and healthcare providers seek better control of their data, PACS suppliers are well positioned to increase their departmental VNA installed base by providing VNA to their radiology PACS customers. The bigger challenge for them is to meet the needs of healthcare providers across departments.

Agfa Healthcare’s IMPAX Data Centre VNA provides hospital wide access to images and is combined with its Imaging Clinical Information System to integrate images into a cross-enterprise workflow to support access to images from the Electronic Health Record (EHR). Agfa is hence expected to increase its presence both in terms of departmental archives and enterprise VNA installations.
GE Healthcare has the largest departmental archive installed base in North America through Centricity Enterprise Archive. It has also recently launched Centricity Clinical Archive to provide a wider non-departmental approach to an XDS-enabled archiving and workflow environment. Centricity Clinical Archive is classed as an InMedica VNA Level 3.1 and is projected to drive GE’s presence in the Enterprise VNA market.
Merge Healthcare has the largest VNA Enterprise installed base in North America. With the introduction of Merge Honeycomb Archive as a cloud-based platform to further enhance image sharing, Merge seeks to solidify its position as a provider of non-proprietary imaging IT platforms.
Carestream Health, with the second largest enterprise VNA installed base in North America, also focuses heavily on cross-departmental synchorinization of patient data through Vue Connect. Growth in the VNA installed base is projected from Carestream’s PACS installed base, from a departmental viewpoint, as well as from non-Carestream PACS customers, to consolidate DICOM and non-DICOM data.

Independent VNA vendors have a greater presence in enterprise than departmental VNAs as they focus more on cross-departmental access to images and other forms of data. As VNAs are increasingly used for this purpose, they are projected to increase their presence further.

Acuo Technologies is the leading ISV in North America in terms of VNA installed base, a position it has achieved as an early entrant in the VNA market with a focus on PACS interoperability, XDS and zero footprint viewing. It has also successfully partnered with the largest number of third-party vendors including Philips, EMC and AT&T.
Dell Healthcare, through its acquisition of Insite One, has established its unique position as one of the only storage providers with a proprietary VNA solution. Dell primarily provides a cloud-based VNA solution, which combined with its experience in data storage, addresses the demand for reduced costs and consolidated medical data storage.
Teramedica is also one of the earliest providers of VNA solutions and its Evercore product has been deployed in departmental and enterprise models. It is, however, the cross-departmental approach to PACS data access with analytical tools that is projected to continue to drive its presence in the enteprise VNA market.
Dejarnette, arguably the earliest provider of inter-legacy PACS integration tools, developed systems to enhance data migration and connectivity of PACS systems. Out of these, the VNA concept was formed and it has since continued to provide a standards-based approach to data storage and workflow integration across departments.

For healthcare providers, it is encouraging that VNAs are an increasing priority for PACS vendors; the availability of ISVs also increases the options available. As the issue swiftly moves from “whether or not to adopt a VNA” to “which VNA to adopt,” it is up to vendors to prove their ability to meet the most important VNA adoption requirements: reduced storage costs, reduced migration costs, enhanced image sharing, synchronized cross-departmental workflow, enhanced business continuity and enhanced non-image data sharing.

Colour Ultrasound Market in India to Reach $180 million by 2016

Mon, 12 Nov 2012 05:00:00 +0000

The growing middle-class population in India is increasing demand for higher quality healthcare services and treatment. Increasing awareness of the latest medical advances is driving demand for higher specification ultrasound equipment that can be used for specialist diagnosis and procedures. Consequently, strong growth is projected in the colour ultrasound market over the next five years, with revenues forecast to increase by 49 percent over this time. This is according to a new report by InMedica, part of IHS Inc. (NYSE: IHS), The Indian Market for Ultrasound Imaging Equipment – 2012.

Due to the rising demand for improved healthcare services there is a growing trend in India for hospitals and clinics to replace black and white ultrasound systems with colour systems that offer better image quality. The increasing functionality and technology found in low-end and mid-range ultrasound systems is driving strong growth in these markets, as many first generation users upgrade to higher specification equipment. As a result, colour ultrasound equipment is forecast to account for 87 percent of unit shipments by 2016, compared to 73 percent in 2011.

“Colour equipment is essential to improve ultrasound imaging techniques, such as for improved visualisation of blood flow in arteries using colour-doppler. This is forecast to drive strong growth in the colour market over the next 5 years,” commented Carly Reed, market analyst at InMedica. “As healthcare services continue to expand, the clinical expertise of physicians will diversify. This will increase demand for equipment with advanced imaging features that are commonly used in mature markets, such as 3D/4D imaging, elastography and fusion imaging.”

Growth in the colour ultrasound market is being further driven by colour systems becoming more readily available at a much lower price. There is a growing number of Chinese manufacturers entering the Indian market with low-cost colour ultrasound equipment, forcing international suppliers to decrease the price of low-end and mid-range systems in order to compete. The refurbished market is also making colour systems available at similar prices to black-and-white equipment. Consequently, the black-and-white ultrasound market is forecast a rapid decline over the next five years.

Low-cost black-and-white ultrasound systems will still be necessary to improve access to basic diagnostic imaging services in many rural regions of India. However, as colour equipment is becoming more affordable for smaller-sized hospitals and demand in large and medium-sized hospitals is increasing for advanced ultrasound technology, colour ultrasound systems will continue to dominate the Indian ultrasound market.

The Worst May Be Ahead For European Medical Device Markets

Wed, 24 Oct 2012 05:00:00 +0100

While the European economic outlook may be showing the first signs of positivity after three years of gloom, the outlook for medical device markets remains bleak. In fact, the period 2012 to 2014 is predicted to be the most challenging period for device suppliers since the Eurozone spiraled into recession in early 2009.

Until the economic collapse, business had been strong for medical device suppliers in Europe. Healthcare spending continued to broadly rise across the European regions from 2005 to 2008, a response to ageing population, a proliferation of chronic disease states and European Union (EU) subsidised healthcare funding for new member states in Eastern and Southern Europe. Advances in device technology further spurred demand for top-end devices, particularly in advanced medical imaging and healthcare IT infrastructure programs.

However, the economic crisis quickly exposed that rises in healthcare costs were unsustainable, prompting action from both public and private healthcare providers. Based on rigorous primary research with medical device suppliers, we have provided an overview of past, current and future economic impact on medical device markets in Europe.

Phase 1 – The Reactionary Freeze (2009-2010)

The initial economic crisis had moderate impact for medical device suppliers. While some public and private providers froze funding plans for future purchasing of medical equipment, the majority of medical device markets performed robustly. Revenue growth remained positive for the vast majority of device markets, albeit down on the “boom” period of 2005 to 2008”. Existing equipment procurement contracts were also unaffected, leaving long-term equipment purchasing and lease deals in place. Private sector medical purchasing was observed to slow, a consequence of tightened credit from lenders.

Regionally the Western Europe cluster of mature healthcare markets fared well, buoyed by large, long-term Group Purchasing Organisation (GPO) contracts and pre-planned public funding. In contrast, the more volatile and risky emerging markets of Eastern Europe were hit harder, as lending ceased and private investment dwindled. Initially, there were some extreme cases of market impact, mostly in low-volume, high cost medical device markets. For example, sales of advanced imaging (MRI, CT and interventional X-ray) few by more than 10% in many mature markets, while large scale healthcare IT projects also suffered in pockets, declining by as much as 50% in Italy, Spain and Portugal.

Phase 2 – Austerity Implementation and Reform (2010-2012)

Despite pockets of the European market being immediately impacted, the medical device outlook in late 2010 still remained relatively positive. Annual sales in 2010 in many device markets had shown some bounce-back and growth on 2009, prompting cautious optimism for 2011 and beyond. However, as the economic situation worsened again in early 2011, in response to the Greek debt crisis and subsequent bail-outs, medical device markets were more heavily impacted.

Government austerity initiatives were widely implemented in 2011 and 2012 in response to the worsening economic outlook. Example such as Austria’s 1.7B Euro healthcare budget cut, Italy’s 5% blanket reduction on all medical device reimbursement, and France’s significant health insurance deficit quashed growth across the Western European medical device markets. Furthermore, widespread healthcare reform was discussed, debated and implemented, further complicating and slowing procurement of medical devices. Few device markets experienced significant growth in 2011, with many suppliers hoping to sustain market revenues in 2012 “at best”.

More importantly, the healthcare reform and austerity measures implemented during this period will have wide-ranging consequences for the short and mid-term future of the European market

Phase 3 – Austerity Impact and Cost-Saving (2012-2014)

While current economic forecasts suggest recovery should continue in Europe throughout this period, for medical device suppliers the outlook could be far worse. We predict that austerity measures and healthcare reform will have most impact on healthcare procurement in 2013 and 2014. In Western Europe, a market dominated by long-term contracting, new business and tenders will be few and far between. Moreover, many existing or renewal contracts have been reviewed, down-sized, negotiated or cancelled, as part of government measures to curb spending.

Reimbursement costs have also been widely reviewed and reduced for core services, increasing competition between health insurers, hospital groups and providers and driving down equipment pricing across the European region. Continued economic strife in Greece, Spain, Portugal and Italy will further add unease to lenders and creditors and reduce the ability of the private sector to invest in new devices. Across medical device markets, forecast market development looks weak. Growth in recently strong markets such as compact ultrasound imaging equipment are predicted to be subdued, while investment in new medical technology and devices like telehealth will be delayed or shelved until funding is more widely available.

Phase 4 – Pent-up Demand and Recovery (post 2014)

In the mid-term, we predict a gradual yet solid recovery for the medical device markets of Europe from 2015. With economic stability, austerity measures will be loosened and investment in updating and improving healthcare public services will drive spending. In addition, pent-up demand for replacement of equipment deemed “non-essential” during Phases 2 and 3 will drive stronger equipment purchasing. Lending restrictions will also ease, allowing greater opportunity for private healthcare investment in medical equipment.

However, a return to pre-recession spending levels and healthcare procurement structure is unlikely. Instead, approval for equipment purchasing will be more heavily based on cost-efficiency and long-term investment benefits, as well as the improvements in care provided by using such devices. Furthermore, investment in new and advanced medical device technology will return to mature markets. We also predict significant investment in new technology and infrastructure projects will re-start from 2015. This will be most notable in markets such as telehealth, Clinical Information Systems (CIS) and Electronic Health Records (EHR).

Every Cloud…..

Despite the relatively bleak outlook for medical device markets in Europe, there remain pockets of opportunity. Russia for example, is already in progress of five year plan to update and improve nationwide public healthcare services, and in the UK the largest telehealth trial to date is on the cusp of starting. More importantly, the economic downturn has changed the attitude of the medical device market. Cost-efficiency and “lifetime” equipment cost were rarely considered pre-recession for many capital medical device purchases, despite the spiraling costs of healthcare. Now, in the new age of austerity, more responsible healthcare spending is being advocated and enforced. While this may impact the bottom-line and profit sheet for many medical device suppliers, it should also ensure the long-term future of medical device markets in Europe. The challenge for suppliers is to developing medical device products that are not innovative in their features and technology, but also in developing products that are affordable, efficient and accessible.

InMedica At MEDICA 2012: Complimentary Analyst Briefings

Fri, 19 Oct 2012 05:00:00 +0100

The InMedica team will be attending the MEDICA 2012 tradeshow in Düsseldorf on the 14^th and 15^th of November. Each analyst has expertise within their specified medical research area and will be available to present relevant findings from their latest research to industry professionals and the press.

Areas Covered:

Consumer Medical Devices – Wearable Technologies, Sport and Fitness Monitors & Blood Pressure Monitors

Clinical Care Devices – Ventilators, Patient Monitors, Oxygen Therapy, Infusion Pumps, Nebulisers, Diagnostic Cardiology & Incubators and Warmers

Digital Health – Telehealth and mHealth

Healthcare IT – PACS, RIS & CVIS, Medical Enterprise Data Storage, Electronic medical Record & Clinical Information Systems

Medical Imaging – Ultrasound, X-ray, Mammography, MRI & CT

If you would like to request a meeting with an analyst responsible for your business area, then please contact Sarah Jones contact for more information.

Global PACS, RIS & CVIS Markets to Exceed $4.5 billion by 2016

Wed, 10 Oct 2012 05:00:00 +0100

With decreasing budgets, healthcare providers are under increasing pressure to develop effective means of improving efficiency and reducing costs, whilst maintaining high levels of patient care. InMedica, a division of IMS Research (recently acquired by IHS Inc. (NYSE: IHS)), forecasts the world market for picture archiving and communication systems (PACS), radiology information systems (RIS) and cardiovascular information systems (CVIS) to grow by more than $1 billion over the next 5 years, according to a new database, The World Market for PACS, RIS and CVIS- 2012 Edition.

Enterprise-wide integration is of increasing importance across healthcare IT and there is rising demand for PACS, RIS and CVIS to be incorporated into hospital IT systems. In addition, growing hospital consolidation, demand for advanced reporting analytics and managed service business models are all driving growth in the PACS, RIS and CVIS markets worldwide.

“With growing demand for collaboration across the care-continuum, healthcare IT systems are increasingly being utilised to achieve enterprise integration and multi-disciplinary patient care. The requirement for enhanced workflow efficiency, integration and data accessibility will continue to drive growth in the global PACS, RIS and CVIS markets,” commented Rhian Thorburn, analyst at IMS Research.

In 2010, the installed base for radiology PACS was estimated to be 23 percent of the total available market; and InMedica forecasts this to reach 42 percent by 2016. The radiology IT market is reaching maturity in several developed countries, with the large-scale market in North America projected to reach saturation by 2015. Healthcare providers in the more developed regions are turning their focus to cardiology IT; for large-scale hospitals, there is strong demand for integration of cardiology within the hospital enterprise to improve workflow efficiency, data access and ultimately, enhance patient care.

“An emerging trend in the cardiology PACS market is the consolidation of multiple modality-specific cardiology systems into one holistic solution. This is driving growth of cardiology PACS revenues and is consistent with demand for hospital-wide PACS integration,” continued Thorburn.

In developing regions, the focus is to improve healthcare infrastructure and provision, to align with more developed markets. Furthermore, increased acceptance of PACS and RIS to improve workflow and productivity should drive strong growth in many of these countries, including Brazil and India.

New Directive Set to Boost $400M Medical Device Market Opportunity in South East Asia

Fri, 21 Sep 2012 00:00:00 +0100

A new co-operation agreement between 10 South East Asia countries to standardize medical device registration will allow suppliers to take advantage of more than $400M of new emerging business in four key areas (medical imaging, clinical care, healthcare IT and consumer medical devices), according to InMedica, part of IHS.Inc (NYSE: IHS).

The syndicate of Association of South East Asian Nations (ASEAN) represents an addressable population of over 600 million (twice the population of the U.S.). With penetration of medical devices in this area is low compared to rapidly developing markets China and India, the potential for market development here is significant.

“Economic conditions and market saturation in mature healthcare markets are forcing major suppliers to explore new markets” commented Stephen Holloway, senior analyst at InMedica. “Complicated and varied device registration in such regions is one of the greatest barriers to market entry for international suppliers.”

Brazil is one such example of a market with great potential slowed by lengthy legislation processes. The stringent controls in Brazil often mean suppliers must extend ageing product lines or wait up to 18 months to market a new product. Simplification of this process if the AMDD is passed will allow quicker product introduction and investment in the ASEAN region’s developing medical device markets.

Supplier focus on developing markets has recently been evident with large-scale investment in manufacturing and sales force operations in regions such as China and India. Here, suppliers are manufacturing specific “value” products designed to address the needs of users in developing healthcare markets, in the country.

However, investment in operations and product development is just an initial step; long term barriers to growth in these regions still remain. The diverse range of culture, purchasing channels and languages makes it harder for suppliers from providing a direct “local” sales and operations force. Often, suppliers must partner with local distributors and suppliers, thereby losing control of how products are sold and gaining feedback from gaining direct customer feedback. Combined with public healthcare spending and investment levels below the global average, market development is not predicted to rival the explosive volume and scale of China.

“Initiatives such as the AMDD offer medical device suppliers one less barrier to market entry in the South East Asian region,” continued Holloway. “We project revenue growth of between 7 to 10 percent annually for the region based on current market conditions. If the AMDD is quickly implemented, the market has potential to double our forecast in the coming years.”

Emerging Markets Offer Long-Term Opportunity for Mammography

Fri, 31 Aug 2012 05:00:00 +0100

Emerging healthcare markets will shortly account for over half of mammography unit shipments, according to a new report “World Market for Mammography X-ray Equipment – 2012” by InMedica, part of IHS. Inc (NYSE: IHS). Strong investment in healthcare services, the product of long-term economic growth in regions such as China, Latin America and South East Asia, is driving demand for mammography, with shipments forecast to increase by almost 60 percent in 2016.

Until recently, investment and coverage of specific equipment for women’s healthcare in emerging regions has been poor. Lower incidence rates of breast cancer, cultural perception and stretched healthcare resource led to many providers focusing only on “essential” equipment, overlooking mammography equipment. However, increased awareness and education of breast cancer in the last ten years, paired with economic prosperity, is increasing demand.

“We have observed positive signs form a number of emerging regions in the development of women’s healthcare and mammography services” commented Stephen Holloway, senior analyst at InMedica. “Yet, there remains a huge opportunity for future growth”. While public investment accounts some market development, the majority of demand has been in the private market. Here, greater awareness of the population is driving women to request mammograms; to answer demand private providers are investing in mammography X-ray equipment.

Wider access to mammography services will not however, occur overnight. “Despite our growth forecast of 8-10 percent annually in emerging regions for the period 2012 to 2016, full access to mammography service penetration will take far longer” continued Holloway. “In many regions, resources and investment in healthcare remains far below the global average. Unfortunately in these regions, mammography is not seen as essential to warrant investment”.

In comparison, the market in mature healthcare markets is reaching saturation, with a large proportion of sites using digital flat panel mammography equipment. Yet, use and awareness of these services is dogged by confusing contradictory clinical studies and the lack of one clear advance in mammography technology. Tomosynthesis, “Compound-View” and contrast-enhancement have all been developed and mooted in the past few years, yet no technology has emerged as a clear industry standard. A lack of clarity on the importance and implication of breast density is also clouding much of the evidence and adding to the confusion.

These factors, combined with challenging economic conditions, are preventing healthcare providers from taking risks investing in new high-technology equipment. Longer-term, the future of mammography X-ray may also be numbered, with use of other modalities such as MRI and ultrasound increasing and concern regarding radiation dose intensifying. “Emerging markets offer the greatest short and long-term opportunities for mammography market growth” concludes Holloway. “Fundamental to this development will be supplier investment in educational and clinical training for healthcare providers’. Changing the traditional view of mammography as an essential service rather than accessory service is fundamental.”

For more information please contact:

InMedica:

Stephen Holloway - Senior Analyst, Medical Imaging, InMedica

Stephen.holloway@ihs.com Tel: +44 01933 402255

China to Account for One Fifth of Global Ultrasound Revenue by 2016

Tue, 14 Aug 2012 05:00:00 +0100

Following a period of vast investment in healthcare, the outlook for China’s ultrasound imaging equipment market remains very positive. A new report from InMedica, part of IHS Inc. (NYSE: IHS), The Chinese Ultrasound Equipment Market – 2012 cites recent public health investment from 2009 to 2011 as merely a stepping stone in China’s healthcare revolution. Consequently, revenues generated from Chinese sales of ultrasound are forecast to represent close to 20 percent of global revenues by 2016.

The three-year Chinese government healthcare reform drove rapid growth in unit shipments of ultrasound between 2009 and 2011. Growth was most evident in simple value and low-end ultrasound systems (average selling price less than $30,000), a combination of government targets to provide low-cost healthcare for rural regions, and increasing competition and influence of local Chinese suppliers. Combined with further growth in premium and high-end equipment in the top Tier 3 hospitals, China experienced revenue growth of 8-10 percent annually.

In 2012, there seems to be little evidence of the market hitting saturation; in fact, revenue growth is forecast to increase to a compound annual growth rate (CAGR) of 11 percent over the next five years. “While the volume of lower-value ultrasound equipment is forecast to decline significantly, a dramatic shift in demand for higher value colour equipment in Tier 1 and 2 hospitals will drive strong revenue growth,” commented Stephen Holloway, senior analyst at InMedica. “Public investment in Tier 2 county-based hospitals, to produce regional centres of excellence, will also increase demand for mid-range ultrasound equipment. Intriguingly, this market should experience stiff competition between local Chinese suppliers now producing higher specification systems, and multinational suppliers looking to expand into new markets.”

In contrast, growth of the ultrasound market in the rest of the world is forecast to remain below 5 percent over the next 5 years. One of the key factors curbing this growth is the on-going financial crisis in the Eurozone. This is particularly evident in Southern European countries such as Italy, Greece, Spain and Portugal, where the ultrasound market has been heavily impacted. “As economic instability continues and tight public austerity measures implemented, the replacement of ultrasound equipment is being cancelled or postponed,” added Carly Reed, analyst at InMedica.

However, new emerging ultrasound markets are counteracting the low growth seen in Europe. In countries such as India, Thailand and Indonesia, demand for increased access to healthcare services is driving strong growth in low-cost ultrasound equipment. Long-term, these emerging markets are predicted to experience similar development as China, albeit at a slower rate. “Many of the newer emerging markets remain in infancy,” continued Reed. “These regions have huge potential for further growth, yet currently do not have the economic or public firepower to implement wide-ranging healthcare initiatives in the short-term.”

In the next five years, InMedica predicts China to emerge as a dominant and insatiable consumer of ultrasound equipment, driving rapid growth. “The value of future market growth here is best reflected in the movements of the global market-leading suppliers; almost all have invested heavily in specific Chinese centres for research, manufacturing and sales,” concluded Holloway. “The future of the ultrasound in China looks to be very assured.”

Telehealth & Pharma: Creating Opportunities for Remote Drug Delivery and Clinical Trials

Mon, 13 Aug 2012 05:00:00 +0100

As we wrote about in March, telehealth provides the ability to extend healthcare delivery to patients’ homes by monitoring vital signs and managing disease progression via continuous health-risk assessments. As such, the telehealth landscape and stakeholders involved should fundamentally be no different from the stakeholders in other aspects of healthcare delivery. Clinicians, nurses, patients, medical device companies, healthcare IT suppliers, and payers all currently form part of this ecosystem.

Within a patient’s home, the device and IT suppliers provide the core infrastructure to connect patients to care providers. In 2010, this industry was estimated to be worth $163 million, with over 134 thousand vital signs monitors and 62 thousand gateways shipped worldwide, according to World Market for Telehealth – An Analysis of Demand Dynamics – 2012 (new research we recently conducted).

The Missing Pharma Link
One part of the healthcare delivery ecosystem that is noticeably missing from telehealth is pharmaceuticals. As the telehealth market has developed, it has focused on monitoring devices and diagnosis, data collection and transmission. In many ways, it has missed the actual point of a healthcare system—to deliver healthcare. Rather, it has primarily served as a data collection system. Additional research we conducted, however, reveals that providers and payers want to move past data collection and use telehealth to deliver care; data collection in isolation has not worked in driving clinical outcomes.

The initial concept of telehealth was that data collection would lead to earlier risk awareness and alert providers of patients who need to visit their clinician before an adverse event occurs. In essence, telehealth in this way would not necessarily prevent readmission, so much as to expedite it to a lower level of urgency: the patient will still need to visit their clinician or a nurse would need to visit them for advance treatment. This model of telehealth, one based primarily on early diagnosis, has understandably not suited pharmaceutical suppliers whose focus is on therapeutics.

Transformation to Healthcare Delivery
There is however, rapid transformation occurring in the telehealth market leading to greater focus on healthcare delivery. One such system focuses on a user engagement by delivery immediate video messages and other feedback to patients based on vital signs data received. For example, if a weight scale shows that a congestive heart failure (CHF) patient has consistently lost weight over the past two days, it immediately triggers questionnaires to assess causes and delivers an appropriate message on how the patient should adjust behaviour. Other systems focus on embedding video conferencing capabilities in the telehealth system so that clinicians and patients–armed with remote physiological–data can promptly schedule video consultations.

Remote Drug Delivery
Another potential application of telehealth in providing care is in the remote delivery of therapeutic products. In diabetes monitoring, there is already a convergence of monitoring and drug delivery. Continuous Glucose Monitors (CGM) provide real-time data on insulin levels of diabetes patients. In 2011, 350 thousand of these monitors were shipped worldwide. These monitors already have the capability to communicate with separate wearable insulin pumps so that the frequency and dose of insulin delivered is dependent on data from the CGM.

Recently, insulin pumps with embedded CGM have also been introduced, creating a market for wearable drug delivery products that incorporate both sensors and delivery mechanisms. Consequently, InMedica projects that revenues in the wearable drug delivery market will grow at a compound annual growth rate (CAGR) of 125% from 2011 to 2016, as devices for analgesia, chemotherapy and other therapies are developed.

Wearable drug delivery in isolation is not classed as telehealth by InMedica since it lacks the ability to communicate with a remote healthcare provider or other third-party. However future models could incorporate data collection and interaction with care providers. Remote clinical trials such as Pfizer’s Research on Electronic Monitoring of OAB Treatment Experience (REMOTE) program and AMP Othopedics’s knee osteoarthritis program also indicate the potential for telehealth in clinical trials.

In the future, such clinical trials and subsequent healthcare delivery are projected to involve remote patient monitoring, drug delivery and user interaction, to reach wider patient populations, and ultimately drive better clinical and economic outcomes in telehealth.

Retrofit Digital X-ray Rapid Growth Signals Advent of Modular Era

Fri, 22 Jun 2012 00:00:00 +0100

Rapid growth in the retrofit flat panel detector (FPD) market is predicted to signal the start of a new era in “modular” X-ray for general radiography, according to a new report from InMedica (www.in-medica.com), part of IMS Research, recently acquired by IHS Inc. (NYSE: IHS).

The recent release of new “retrofit” solutions has re-invigorated the market, with revenues for retrofit flat panel detectors forecast to grow more than 250 percent by 2016. While digital FPD technology is not new, the introduction of wireless flat panel detectors in 2008 demonstrated the potential for more flexible general radiography X-ray solutions. However, concerns regarding panel damage and security, paired with global economic challenges, slowed uptake.

The recent surge in demand for retrofit and wireless flat panel detector X-ray solutions demonstrates users concerns have been satisfied. Furthermore, continued penetration will usher in the start of a new era in general radiography X-ray: the “modular” approach.

The recently released second generation systems provide purchasers far greater flexibility and choice of rad-room X-ray configuration. Retrofit digital flat panel detector solutions also provide the added advantage to healthcare providers of lengthening the life-span of existing analogue X-ray equipment, while still maximizing the workflow and efficiency benefits of digital technology.

“The impact of wireless digital flat panel detectors so far is relatively low, with the majority installed in mature healthcare markets already well equipped with digital X-ray equipment” commented Stephen Holloway, senior analyst at InMedica. “However, strong competition in the flat panel market is driving price erosion of 7-10 percent annually, so these products will soon be more accessible to healthcare providers in emerging regions as well.”

It is in regions such as Latin America, Africa and Southeast Asia where modular general radiography X-ray systems also make most sense. Sharing of wireless panels between rooms or systems can have significant cost benefits for healthcare providers with limited budgets. Retrofitting also limits the need to purchase brand new systems, allowing use of digital X-ray at a third of the cost of a new digital system.

“Shipments of retrofit flat panel detector systems in emerging regions are forecast to grow tenfold in the next five years,” continued Holloway. “Assuming price erosion continues at the projected rate, the cost difference between computed radiography and wireless FPD will narrow. This will make flat panel systems even more attractive for healthcare providers, sustaining long-term demand.

Surge in Demand for Colour Ultrasound in China

Thu, 21 Jun 2012 05:00:00 +0100

Extensive reform to healthcare services and improved local supplier offerings is driving demand for colour ultrasound equipment to new heights, according to a new report from InMedica, a division of IMS Research (recently acquired by IHS Inc. (NYSE: IHS)), The Chinese Market for Ultrasound Equipment – World – 2012.

The report observed colour ultrasound equipment revenues increasing by 10 percent from 2010 to 2011; by 2015, market revenues for colour are forecast to grow by more than 80 percent. While some growth is attributable to increased uptake of compact ultrasound equipment, most demand is being recorded in the low-end and mid-range cart segments (products less than $60,000).

Current demand for colour ultrasound equipment is being driven mostly by large metropolitan (Tier 3) and county based (Tier 2) hospitals. “Use of colour equipment provides higher fees of reimbursement for healthcare providers”, commented Owen Tang, market analyst at InMedica. “This offers a better return on investment for colour equipment compared to black and white.”

Black and white systems are predominantly installed and used in Tier 1 health centres and family clinics in China. These institutions benefitted from strong investment in 2009 and 2010 as part of the Chinese healthcare reform. Now, reflecting rapid changes in demand, many low-end Chinese suppliers are entering the colour market.

“Government support of Chinese black and white ultrasound suppliers prevented multinational suppliers competing on price in the entry level and low-end market,” commented Stephen Holloway, senior analyst at InMedica. “Yet rising demand for higher specification colour systems in Tier 2 hospitals is causing a convergence of interest for local and multinational suppliers, increasing the intensity of competition.”

Consequently, a dramatic shift is forecast for the China market, with colour ultrasound equipment set to dominate. “Cost will remain a significant factor in tender bidding” added Tang, “although brand and feature sets of ultrasound products are becoming increasingly important”. Furthermore, with more than 3,000 Tier 2 hospitals and 28,000 Tier 1 healthcare centres and clinics in China, the potential for growth remains high. “The market in China is far from saturated”, continued Holloway. “We project double-digit revenue growth from 2013, as the bulk of investment in equipment replacement is implemented. Longer-term, the potential of the Tier 1 market could drive even stronger growth.”

Vendor-Neutral Archives Still Require Better Definition

Thu, 21 Jun 2012 05:00:00 +0100

Vendor-neutral archives (VNAs) have become central to the management of medical images, and demand for them is clearly growing, as indicated by the increasing number of installations worldwide. As this market develops, there is a need for clearer guidance and dialogue on the requirements that should lead to a decision to implement VNAs. Identifying the benefits that VNAs may provide over alternative systems also will play a fundamental role in their wider adoption. This is according to a recent article in AuntMinnieEurope written by InMedica, a division of IMS Research (recently acquired by IHS Inc. (NYSE: IHS)).

The article is based on InMedica’s latest report, The World Market for Medical Enterprise Data Storage – VNA – 2012.

For successful implementation of VNAs, InMedica makes five key recommendations for suppliers and healthcare providers, as follows:

Define and map the needs of hospitals for VNAs
Define the types of VNA architecture and delivery models
Map the needs of hospitals to specific types of VNAs
Map the needs of hospitals to specific VNA delivery models
Prove the return on investment of VNA with regard to the identified needs

The article focuses on the first recommendation of defining and mapping needs. For the full article please visit AuntMinnieEurope.

Storage of Medical Images to Become More Centralized

Fri, 18 May 2012 05:00:00 +0100

As the Picture Archiving and Communication Systems (PACS) market has developed over the last decade, so too has the variety of images, formats and procedures available in digital form in departmental silos proliferated. Increasingly, healthcare providers are implementing central platforms to consolidate storage, thereby reducing PACS data migration costs and enabing better data mining and data sharing across departments. These so-called “vendor-neutral archives” (VNA) collate, manage and store data from disparate PACS and other sources across the hospital site. Subsequently, out of the 1.4 billion new radiology studies captured by PACS in 2011 worldwide, 75 million were stored by VNA, representing a 5.4 percent VNA to PACS attach rate. In 2016, this is forecast to grow to 31.0 percent worldwide, according to The World Market for Medical Enterprise Data Storage – 2012, a new report from InMedica, a division of IMS Research (recently acquired by IHS (NYSE: IHS)).

Fig.1 World – VNA Study Volumes by Type of Architecture – 2011 to 2016. Source: InMedica

InMedica defines a VNA as a medical image archiving platform, providing an open, standards-based architecture for database management, long-term storage, disaster recovery and secure lifecycle management of data from multiple imaging and non-imaging applications and modalities. It should support Digital Imaging and Communications in Medicine (DICOM) and non-DICOM data irrespective of data source or storage medium, making it application-neutral, as well as vendor-neutral.

There are different reasons why a hospital would implement a VNA and these are represented in the types of VNA architecture (Fig.1). A hospital may want to simply minimize storage costs and reduce PACS switching costs in one radiology department; InMedica defines this as a Level 1 - Single Department DICOM VNA. It may want to share images across departments in a single site: Level 2.0 - Multi-Department DICOM VNA. In a community or hospital group, it may share images across multiple locations: Level 2.1 - Multi-Site DICOM VNA. In order to implement a cross-enterprise strategy, some hospitals may go a step further and seek to integrate image and non-image clinical data across departments using Cross-Document Sharing (XDS) or similar protocols: Level 3.0 - Multi-Department XDS-based VNA; or use such protocols across multiple locations: Level 3.1 - Multi-Site XDS-based VNA.

“More than 65 percent of VNA studies worldwide in 2011 were either Level 2.0 or 2.1, showing that current demand is driven by the need to consolidate, centralize and share data across imaging departments” commented Theo Ahadome, healthcare IT market analyst at InMedica. “Increasingly, the integration of non-image data to create a full enterprise-strategy is being implemented. As this occurs, and VNA storage volumes increase, they are projected to erode the share of storage volumes held by PACS”. Reflecting this, incremental storage capacity from VNA is projected to reach 114 petabytes worldwide in 2016, compared to 140 petabytes for PACS.

These trends and more are discussed further in InMedica’s report, The World Market for Medical Enterprise Data Storage - 2012. For more details, please visit www.in-medica.com.

Emerging Markets Vital to Future Success of the Global Ultrasound Market

Tue, 15 May 2012 05:00:00 +0100

Global revenues for ultrasound equipment are forecast to grow by 29% over the next five years, according to a new study by InMedica, a division of IMS Research (recently acquired by IHS Inc. (NYSE:IHS)), The World Market for Ultrasound Imaging Equipment – 2012. Particularly strong growth is forecast in the Asia Pacific region over this time, with revenues projected to increase by 43 percent; compared to only 15 percent and 26 percent for the Europe, Middle East and Africa (EMEA) and American regions.

The drivers of growth in the Asia Pacific ultrasound market vary significantly throughout the region. In emerging markets, such as India, China and some areas of Southeast Asia, there is still great need to improve both the standard and access of healthcare services. This is consequently encouraging strong demand for medical devices, including ultrasound equipment. In contrast, growth in many mature ultrasound markets in this region, such as Oceania, Taiwan and Korea, is being driven by demand for advanced imaging technology and the growing use of ultrasound for procedural guidance. Improvements in image quality, application specific technology and transducer design is diversifying the clinical use of ultrasound in these countries.

As a result of these factors, the share of global revenues held by the Asia Pacific ultrasound market is forecast to increase over the next five years, despite the fact that unit shipments are forecast to decrease. The decline in unit shipments is largely influenced by a shift in demand and product mix; from low-cost black-and-white systems to higher quality colour equipment in emerging markets. This trend is already evident in the Chinese ultrasound market, and many more emerging markets are projected to follow.

Despite a strong outlook in the Asia Pacific region, significant challenges have impacted some regions recently. Most notable was the natural disaster of 2011 in Japan. Here, the economy was seriously affected, triggering a decline of revenues in the second largest ultrasound market in this region. “Economic recovery is vital for the future of the ultrasound market in Japan,” commented Carly Reed, market analyst at InMedica. “Pent-up demand for ultrasound equipment, from both the global economic downturn in 2009, and the natural disaster in 2011, will be a major factor driving growth in Japan and many other mature markets in Asia Pacific in the long-term future.”

A similar trend has also been observed in the European ultrasound market. “Challenging economic conditions in many Western European countries, such as Greece, Italy and Spain, had a negative impact on the ultrasound market in 2011,” continued Reed. “In comparison, the European ultrasound market is projected a far slower recovery, due to further expected healthcare spending cuts to control spiraling economic debt in many regions.”

Despite slower growth forecast for the global ultrasound market in 2012, the longer term outlook for the market is bright, with annual growth above 5% projected. Each of the major global regions (EMEA, Americas and Asia Pacific) were estimated to account for approximately a third of global ultrasound revenues in 2011. Whilst the performance of each region is important to the overall success of the global market, the Asia Pacific region is forecast to be the strongest driving force of the global ultrasound market over the next five years.

About “The World Market for Ultrasound Imaging Equipment – 2012” report

This is the sixth edition of InMedica’s highly acclaimed report on the global market for ultrasound imaging equipment. This report provides detailed revenue, unit shipment and ASP analysis of 4 price segments for both compact and cart-based ultrasound equipment, highlighting important market trends and challenges for future market development.

Economic Woe Could Breathe Life into European MRI

Fri, 02 Mar 2012 05:00:00 +0000

Following a decade of market expansion and technological development, the future of the European MRI market might be seen as assured. Yet, rising healthcare expenditure, uncertain economics and ongoing confusion surrounding new E.U legislation on electromagnetic field (EMF) radiation look set to threaten this security.

The current market outlook does not make comfortable reading for MRI manufacturers still reeling from a sharp market decline in late 2008. Eurozone economies are consistently down-grading economic performance forecasts, prompting further austerity measures and limited credit. While many governments’ profess healthcare budgets will be protected, the reality is that healthcare credit for non-essential purchasing will remain strictly limited until at least 2014.

Encouragingly, when systems have been purchased, there has been a clear transition towards more expensive, ultra high frequency systems (UHF) MRI in the last two years. Unit shipments increased by over 25% in the last two years (see figure). This trend looks set to continue for the mid-term future too, within a range of 10-15% growth annually, according to InMedica. Demand for higher resolution imaging paired with falling prices, a product of the increasingly consolidated and competitive market, are driving this trend. Furthermore, adoption of niche “extremity” MRI is increasing annually, as healthcare providers look to provide more cost-effective services.

Lacklustre market performance can also change the focus of innovation, removing impetus from advanced research into next generation technology. Instead, optimisation of current technology becomes the priority. While this may result in slightly faster and more efficient MRI machines, with a lower price tag, the longer term lack of development can lead to market stagnation and falling clinical use.

Some recent research advances in the MRI field may buck this trend. Investigating the potential applications of 7 Tesla MRI, and probing further into the use of MRI with contrast agents, are both important to keep MRI at the cutting-edge of imaging technology. Yet, the current economic climate will prevent widespread use of such technology; many radiologists feel such technology will be out of reach for the many years. So what is the solution?

In the short- and mid-term, optimization and differentiation of current MRI technology is the smart plan, and could lead to significant benefits in patient accessibility and lowering hospital expenditure. Improving magnet technology can assist in speeding efficiency of exams, reducing cost and increasing scan volumes. The recent growth of the niche “extremity” MRI market is a successful example of how to increase MRI use, while reducing cost.

MRI can also benefit from concern surrounding high radiation dose administered by modalities such as Computed Tomography (CT), Fluoroscopy and Angiography X-ray. Low-dose alternatives for many procedures and scans are already being sought, with some in advanced stages of clinical trial or already cleared for use. MRI can play a major role here, such as being used in “fusion” with ultrasound for interventional procedures. The greater challenge will be convincing radiologists to adapt and use these new procedures over old practices.

The Eurozone economic crisis may have taken its toll on the European MRI market, but it has also brought a refreshing, and much needed, change in attitude to advanced imaging use. Limited budgets and tightening reimbursement has led to stringent questioning of over-use, and highlighted where other less-expensive and safer procedures would suffice. Continual development of next-generation MRI, optimisation and differentiation of current MRI technology, and greater physician education in new, safer procedures, are the three biggest needs of today’s MRI field. Overcoming these could lead to safer and more accessible patient care, and reduce the burden of healthcare expenditure. The resources to overcoming these challenges, both for healthcare providers and manufacturers may be significant, but a long-term future without an evolving MRI market could be far more costly.

Retrofit Wireless FPD Boosts European Mobile X-ray

Thu, 01 Mar 2012 05:00:00 +0000

The newest generation of wireless flat panel X-ray boasts stronger casing, faster processing and longer battery life. Yet, their greatest benefit is not their internal components, but their method of application. The most notable beneficiary: mobile X-ray systems.

The technology of wireless FPD for X-ray usage has been available for the last few years. A higher price tag and risk of drop damage or theft damaged market confidence initially. Yet, the first generation of wireless panels combined the unique features and benefits of digital FPD: near instant processing in a cassette format. Now, the newest generation of wireless panels has been deployed in new mobile X-ray systems, providing a recipe for market success.

Uptake of wireless FPD X-ray systems has also been facilitated by the development of retrofit solutions, allowing the upgrade of existing analogue mobile X-ray systems. More recently, retrofit solutions have overcome initial teething problems and are compatible with a variety of branded systems and models. In the current economic climate, the popularity of retrofitting is rapidly increasing, offering digital capability to users who would be unable to purchase full-DR mobile systems.

The market for mobile X-ray in Western Europe has previously been experienced a slow transition to digital. Many hospitals and clinics commonly upgraded to digital for room-based X-ray systems, as the relative return on investment (ROI) from increased scan efficiency and patient throughput justify the initial outlay. For mobile X-ray, this was rarely the case. The emergence of wireless and retrofit FPD has already changed this view. Now hospitals can upgrade well-maintained analogue mobile X-ray systems at limited cost. In small clinics with small budgets, panels can also be shared between room and mobile systems, providing far greater flexibility.

Consequently, the future outlook for the EMEA mobile X-ray market looks very positive (see figure). While accounting for less than 10% of total revenues in 2011, market growth is forecast to exceed 10% annually over the next three years. Driving this trend is a raft of new systems released in the last year from major X-ray manufacturers looking to maximize growth in order to counter poorer market performance in other X-ray segments. Increased competition between suppliers will also prompt aggressive pricing; ongoing decline in flat panel detector component pricing will further exacerbate this trend.

The impact of these new systems in clinical settings is clearly positive; radiographers will no longer have to shuttle between patient bedsides and processing rooms, increasing exam efficiency. Wireless panels simplify patient positioning during exams, as panels are not tethered. Digital FPD solutions also boast dose reduction benefits, especially important in clinical settings outside the radiography suite. Combined, these features not only improve the workflow, but improve standards and safety for the patient and radiographer.

The revolution taking hold of the mobile X-ray market is not founded on groundbreaking and expensive new technology. Instead, significant change and improvement is being achieved by utilising existing technology and adapting it for use in novel new ways. Manufacturers of mobile X-ray systems have taken notice of the current challenges affecting the modern hospital and radiographer, and produced solutions that address these challenges. As a reward, strong demand for these new solutions will provide welcome respite in troubled times.

Next Generation Ultrasound Fusion: Optimise and Automate

Thu, 01 Mar 2012 05:00:00 +0000

Fusion imaging is not a new concept; the most well-known example is PET/CT, which has been in use for over a decade. The fusion of real-time ultrasound with MRI or CT is far less established in the radiology sector. Ultrasound may not always be the modality of choice for many radiologists, due to a long standing preference for advanced imaging modalities, such as MRI and CT. However, recent advances in image quality, improved workflow, and rising concerns over radiation exposure, are re-igniting radiologist’s interest in ultrasound.

Fusion Imaging is used to integrate two images from different diagnostic imaging modalities. In the use of ultrasound fusion, radiologists are able to superimpose (or fuse) real-time ultrasound images with pre-taken MRI or CT images. This allows radiologists to utilise the clarity of detail produced by MRI and CT, yet manipulate and explore anatomical bodies using real-time ultrasound.

Initially, image guided navigation software was used in conjunction with ultrasound systems to provide multi-modal fusion capabilities. This was proceeded by the first generation of ultrasound systems that performed this procedure independently. This concept attracted the attention of radiologists; however, the limitations of these first generation systems prevented widespread use. The main issue was workflow. The technology was complicated and difficult to use, which made the use a long and challenging process. In many cases, ultrasound fusion was less cost effective for the radiologist and more inconvenient for the patient. This was further hindered by image resolution below today’s improved standards.

For many manufacturers, advancing ultrasound use in radiology has been a challenge. While the introduction of new technologies has driven ultrasound use in other applications, such as heart wall motion diagnostics in cardiology and 3D/4D volume imaging in OB/GYN, many radiologists continue to only use ultrasound for basic examinations.

The market for ultrasound in radiology was estimated to account for 31% of total revenues in the European, Middle East and Africa (EMEA) market in 2011. The current market outlook for high-end radiology ultrasound systems in developed regions is poor, with economic pressures limiting investment. The growth of this market is also still dependent on changing the general opinion held by many professionals in this field. A new generation of fusion technology could be the first step in changing this trend, and driving new market growth.

There have been a number of significant improvements recently. “Smart Fusion”, a new function in the Aplio 500 by Toshiba Medical Systems, and “eSie Fusion” imaging, in the Acuson S3000 system by Siemens Healthcare, both highlight this development. One of the key improvements is in transducer technology, with the incorporation of new advanced GPS positioning. This enables real-time feedback of needle position during interventional procedures, allowing highly accurate guidance. This improves both the efficiency and quality of the procedure. New software and visualisation packages allow automatic alignment between the ultrasound and CT or MRI image. This decreases the time taken to produce the fusion image, significantly improving workflow and convenience for the radiologist.

Real-time clinical procedures will benefit from this new ultrasound fusion technology; for example, biopsies detecting bone and soft tissue cancers can be performed to a high level of diagnostic confidence. This should also limit call-backs, increase efficiency, reduce expenditure and improve the treatment process.

Radiology is forecast to remain the largest application market for ultrasound throughout the forecast period in EMEA. The advancements of ultrasound fusion imaging may help to drive further growth of this modality, as radiologists see the potential of new ultrasound technology. It is essential to provide further education to demonstrate the clinical benefits and efficiency of using ultrasound in this segment, and to create technology that can provide cost-effective and time-saving solutions for radiologists. The key factor in driving this growth will not be brand new technology, but optimising current technology. Automation and simplification of complex ultrasound examinations can significantly improve workflow for the clinician, driving increased ultrasound use in radiology. The newest generation of ultrasound fusion looks to be the first step in this process.

Economic Pressure Drives Evolution of Imaging IT

Thu, 01 Mar 2012 05:00:00 +0000

The Eurozone economic crisis is having pervasive impacts on a wide range of industries. As budget deficits and the need to reduce costs come to the forefront, healthcare is also feeling the pinch, with reduced healthcare spending in most European countries. Healthcare IT is however, in a unique position in that it can be implemented as a cost-saver by improving workflow and operation efficiencies. This potential benefit is being balanced against the initial investment that needs to be made in IT, as well as raising questions on the optimal implementation models needed to achieve cost-savings. Picture Archiving and Communication Systems (PACS) in a range of departments, Radiology Information Systems (RIS) and Cardiovascular Information Systems (CVIS) are all playing important roles in this debate. InMedica’s research reveals that the growing economic uncertainty in Europe is driving an evolution of the imaging IT market.

Market Growth

Overall market growth for PACS, RIS and CVIS is forecast to remain relatively restricted in the short-term as economic pressures reduce total spend on imaging IT across Europe. Strong market growth is projected in 2013 as the UK renews its national PACS program. However, the market experiences rapid decline thereafter.

Despite slow to negative market growth over the next five years, there are pockets of growth available. These will occur in countries where the markets are adapting to match economic requirements. For example, despite slow growth in the total European market, strong growth is projected in France, the Nordics and Poland with the Compound Annual Growth Rate (CAGR) from 2010 – 2015, here remaining above 10% in these countries.

Overcoming Economic Pressures

To help overcome economic pressures, a number of key trends are evolving in the imaging IT market. These involve a change in the implementation models for PACS, RIS and CVIS, as well as changed to the business and financial models. Table 1 shows some of the trends emerging being driven by increasing economic pressures on healthcare providers. They are further discussed below.

Table 1: Trends in Imaging IT being Driven by Economic Pressures Source: InMedica

Enterprise Integration

There is an increasing shift in implementation models towards a hospital-wide focus by integrating departmental systems to a centralized platform. This may be led by a desire to make images accessible from the Electronic Health Record (EHR) or to allow a complete view of patient’s progress throughout the care continuum. The underlying model is one of patient data being centred around the patient, rather than on any one department. This allows smoother workflow and information sharing between specialists across healthcare providers. Better information flow can then reduce overall costs by reducing the costs associated with wrong decisions caused by a lack of sufficient and appropriate information.

Regional/Community Integration

Regional imaging IT projects, where groups of hospitals collectively share a datacentre for image access and management are also gaining momentum within Europe. In 2011, regional projects were estimated to account for 14% of PACS market revenues in Western Europe; by 2015, they are projected to grow to 28%. Regional integration allows for cost sharing between providers, as well as improving patient flow between providers and increasing patient choice. This trend is most notable in France, the Nordics, Benelux and the United Kingdom.

Business Models

Another trend driven by the underlying economic crisis is the emergence of managed service business models. These involve outsourcing of the management of IT infrastructure to a third-party or vendor. A major influence in the growth of this model is that it allows for a flexible payment model based on an operational expenditure, calculated based on a monthly or annual examination volumes. These models can also involve third-party hosting of patient images or third-party hosting of PACS application. Importantly, managed service models remove much of the risk of IT investment from the hospital to the vendor, a factor that is driving some providers towards its adoption. Subsequently, managed services accounted for 26% of Western European PACS revenues in 2011.

Cardiology Integration

The specialized workflow needs of cardiology have traditionally been managed by non-digital formats or by disparate systems within the department. However, as the amount of cardiology procedural volumes and data increases, there is a need for more accessible flow of cardiology and non-cardiology data. Due to the complexities and variations in types of procedures and data generated, cardiology departments usually use a best-of-breed approach, selecting products from different vendors. Subsequently, there is a greater need to tightly integrate these systems to enhance patient flow. Cardiovascular Information Systems (CVIS) provide a central platform to assist in such integration and are increasing moving to the forefront of cardiology purchases. Subsequently, in the imaging IT market, CVIS is forecast with the highest Compound Annual Growth Rate (CAGR) by 2015.

These factors are projected to remain post-economic crisis as they are seen to offer improved management of patient data, improve workflow and importantly, reduce costs. What will be left is an evolved market with a focus around enterprise models, regional integration, and flexible business models.

Digital X-ray Set to Penetrate Deeper into Chinese Market

Tue, 27 Dec 2011 05:00:00 +0000

The Chinese market for digital radiography X-ray equipment is set to increase significantly in the next five years in China, highlighted by a new report from InMedica (www.in-medica.com). Shipments of analogue general radiography equipment will be impacted by this transition, and are set to decline at a CAGR of -14.2%. Consequently, it is predicted that the overall X-ray market in China will reach $ 1.32 billion by 2016, representing a CAGR of 9.5%.

In China, analogue general radiography X-ray equipment is mainly purchased by the government to support rural healthcare, particularly following its Healthcare Reform announced in early 2009. The main users and benefactors were health centres in rural areas. Now many of these centres are trying to digitalize their X-ray equipment, either by upgrading analogue systems with computed radiography (CR) equipment, or by purchasing digital radiography (DR) X-ray equipment. This has led to many local suppliers attempting to shift their business to digital radiography in response.

County based hospitals, especially those in rural areas, will also drive this trend. These hospitals will be strongly supported by the Chinese government in the next few years, as a further step of the Chinese healthcare reform. These hospitals are a link between rural health centres and large metropolitan hospitals. Therefore, the Chinese government wants county based hospitals to take more responsibility for providing basic medical services to a large proportion of the Chinese population. In order to answer this demand and improve efficiency, they now require digital radiography X-ray equipment.

Level 3 hospitals and big level 2 hospitals also have strong demands for new digital radiography equipment. “This type of hospital already uses digital radiography X-ray equipment; almost all new systems purchased by these hospitals will be high specification flat panel detector based DR X-ray”, commented Owen Tang, a Shanghai based Analyst at InMedica. These hospitals closely monitor the daily patient scan volume; once a hospital reaches 100 patient scans per DR X-ray system, they have reached maximum efficiency, and it is necessary for the hospital to purchase a new system.

“Unlike other kinds of X-ray equipment, such as mammography and fluoroscopy X-ray, DR equipment can help hospitals increase their revenue stream based on their more frequent use”, added Owen. “In fact, return on investment (ROI) is a critical factor for hospitals making a purchase decision, as current investment from the government is not enough.”

Multinational companies still dominate the high-end DR X-ray equipment market segment, with most level 3 hospitals and big level 2 hospitals only willing to purchase the equipment from non-domestic suppliers. This is driving local suppliers to focus on the county based hospital market, also a key growth target for many multinational companies who are already trying to expand their business into rural areas. The convergence of business interest from both local and multinational X-ray suppliers, suggests an increasingly competitive Chinese market. For those that succeed, the rewards will be long-term and profitable.

Fujifilm Pips Samsung To Acquisition Of Sonosite

Mon, 19 Dec 2011 05:00:00 +0000

Fujifilms’s acquisition today of Sonosite Inc, the Seattle based compact ultrasound provider for $1 billion, signals an increasingly competitive battle for global ultrasound market share. The deal means that another major force has entered the ultrasound arena, following the entry of Samsung Electronics in mid-2011, and may signal Fujifilm’s intent to move deeper into medical imaging.

This move is the latest in a flurry of mergers and acquisitions in the global ultrasound market. Hitachi’s merger with Aloka Co. Ltd in late 2010, producing the third largest ultrasound supplier globally, was followed by Samsung’s entry with the acquisition of Korean supplier Medison Co. Ltd, in early 2011. Many in the industry saw Samsung as frontrunner for the acquisition of Sonsosite, following plans outlined by Samsung to generate almost $10 billion of medical device revenue by 2020, driven by an aggressive M&A strategy.

The timing of Fujifilm’s move is also telling. Despite challenging conditions in some mature markets, such as North America and Europe, strong growth in the last five years in emerging regions points to a bright market outlook. For instance, according to InMedica, the Asia Pacific region, driven by China, India and South East Asia, is projected to become the largest market for ultrasound equipment by 2014. Fujifilm’s proven track record and extensive operations network here could drive a strong future performance for Sonosite.

Medical imaging technology continues to evolve, with wireless, cellular and display technologies becoming increasingly important. Fujifilm is fully aware of this, having undertaken a significant transition in its well established X-ray business unit, from a traditional film-based analogue company, to a fully-fledged digital X-ray and Healthcare IT provider. There is also synergy with Fujifilm’s existing sales organization, by leveraging existing Fujifilm X-ray purchasing contracts in hospital deals.

Success in the wider medical imaging industry is dependent on three key factors; development of innovative new technology, demonstration of clinical effectiveness, and provision of training and service support. Fujifilm has already demonstrated capability to adapt to these challenges in X-ray and Healthcare IT, where it has a strong global presence. Keeping Sonosite as a wholly-owned subsidiary and retaining the leadership team is a smart move. Sonosite have pioneered and established the compact ultrasound market, particularly in new clinical applications. Clever re-invention and application of existing ultrasound technology, paired with a widespread physician education program, has led to strong growth in the last five years. Upsetting the leadership balance and integrating the business could have been a costly mistake, with the market for hand-carried ultrasound systems forecast to reach $1.1 billion by 2015 (InMedica, 2011).

Fujifilm’s acquisition may also signal intent to become a multi-modality imaging provider, competing in other major markets such as Magnetic Resonance Imaging (MRI) and Computed Tomography (CT). While these are well consolidated markets, the reward and benefits for such a bold move are clear. In the last 8 years, the established multi-modality giants, GE Healthcare, Philips Healthcare and Siemens Healthcare have all posted 50-60% revenue gains, despite recent economic turmoil. Whether the next 8 years remain as profitable for these giants, will partly depend on how they respond to this new challenger.

Stephen Holloway is lead analyst for Medical Imaging research at InMedica, and author of InMedica’s global reports on ultrasound and X-ray equipment. For more details, please visit www.in-medica.com.

A Small Step for Wireless, A Giant Leap for Mobile X-Ray

Fri, 09 Dec 2011 05:00:00 +0000

The newest generation of wireless flat panel X-ray detectors (FPD) are clearly an improvement on previous models. Boasting stronger casing, faster processing and longer battery life, these panels can clearly improve daily radiography workflow. Yet, their greatest benefit is not in their internal components, but in their method of application. The most notable beneficiary: mobile X-ray system users. Nowhere has this been more obviously displayed than at the recent Radiological Society of North America (RSNA) 2011 technical exhibition.

The technology of wireless FPD for X-ray usage has been available for the last few years. A higher price tag and risk of drop damage or theft, damaged market confidence initially. Yet, the first generation of wireless panels combined unique features for digital FPD: near instant processing in a cassette format. Now, the newest generation of wireless panels has been deployed in new mobile X-ray systems, providing a recipe for market success.

Most notable at the exhibition were mobile systems from traditional CR providers, who have evolved to become major forces in the digital X-ray industry. Carestream Health, one of the first “pioneers” of wireless FPD panels, showcased the “DRX-Revolution Mobile” system, utilising Carestreams second generation DRX panel. AGFA Healthcare released the “DX-100 wireless” platform, using the AGFA DX D 30C wireless panel. Dominant market suppliers Philips Healthcare exhibited the “Mobile Diagnost wDR, while GE Healthcare displayed the OptimaXR220, using the new “Flashpad” wireless panel.

The impact of these new systems in clinical settings are clear; radiographers will no longer have to shuttle between patient bedsides and processing rooms, increasing exam time efficiency. Wireless panels also simplify patient positioning, as panels are not tethered. Digital FPD solutions also boast dose reduction benefits, especially important in clinical settings outside the radiography suite.

A further step has also been made in the mechanics of these new systems. Assisted mobility, collapsible columns, touchscreen capability, minimal start up time in smaller packages will also benefit every-day users. This will aid use of mobile X-ray systems in emergency rooms and intensive care units, providing a strong argument for healthcare providers to upgrade.

“Revenues for mobile X-ray equipment only account for around 10% of the global general radiography market in 2011 ” commented Stephen Holloway, Market Analyst at InMedica. “This new breed of wireless digital systems is projected to drive strong market growth, between 10-15% over the next 3 years - a just reward for suppliers who listened to end-user needs and produced innovative products to aid everyday exams”.

Bright Future for Ultrasound in Radiology

Fri, 09 Dec 2011 05:00:00 +0000

Radiology has long been dominated by MRI and CT imaging, while ultrasound is overlooked except for established traditional ultrasound procedures. However, new advances in premium ultrasound technology suggest a brighter future for ultrasound in radiology. Ultrasound providers are pushing new innovations, widening the clinical scope and possibility. These developments were showcased at the recent Radiological Society of North America (RSNA) 2011 exhibition in Chicago, and are discussed by leading market research firm InMedica.

Exhibition Highlights

One such innovation that is generating interest in the radiology community is fusion imaging; combining real-time ultrasound scans with pre-taken MRI or CT images. This concept is not brand new. A number of the top ultrasound providers have systems offering this technology, for example GE Healthcare’s Logiq E9 and the iU22 system from Philips Healthcare.

At this year’s exhibition, a new generation of fusion technology was showcased. The latest premium ultrasound platform from Siemens Healthcare, the ACUSON S3000, uses “eSie Fusion Imaging” to automatically fuse together real-time ultrasound images with 3D CT volumes. The new Aplio 500 from Toshiba Medical Systems also uses “Smart Fusion”, displaying real-time 3D data sets from all imaging modalities beside the corresponding ultrasound image. A unique guidance system also simplifies navigation. The greatest improvements of these new systems are simplification, improving workflow and decreasing exam times.

A brand new technology also on show was “Fly Thru”, a feature also offered with Toshiba’s Aplio 500. This allows manual or automatic volume navigation through physiological cavities and vessels. The images provide greater anatomical detail of the internal features of the vessel, similar to virtual-reality endoscopy. A number of applications for this technology have already been highlighted. Yet, there could be greater potential for this technology in a number of other diagnostic radiological exams.

Market Impact

In 2010, InMedica estimated radiology to account for 33% of revenues in the Americas ultrasound market; projected to grow by 13% between 2010 and 2015. However, improved image quality, new innovations such as next generation fusion imaging and “Fly Thru”, and increased confidence in ultrasound technology, is stirring radiologist interest. Consequently, this growth rate could be even greater. Concerns regarding radiation dosage and the cost of MRI and CT will drive further interest in ultrasound technology.

“The challenge for ultrasound providers is ensuring clinical benefits are recognised by users”, commented Carly Reed, Market Analyst with InMedica. “Radiologists’ are still looking for a breakthrough in ultrasound technology that will limit their reliance on CT and MRI. Yet the next breakthrough may be subtler than many expect, such as workflow and automation software.”

Advanced ultrasound applications must be adapted for everyday use, with increased automated measurement and user friendly software. The newest generation of ultrasound system may be the first step in this process. If this trend continues, the future of ultrasound in radiology will be bright.

Government Mandate will put UK at the Forefront of World in Telehealth

Thu, 08 Dec 2011 05:00:00 +0000

Plans by the United Kingdom Government to provide telehealth services to 3 Million patients over the next five years, will have a profound impact on the world telehealth market, catapulting the UK to pole position. More importantly, it should improve UK patients’ clinical outcomes and quality of life.

According to InMedica forecasts, should the 3 Million Lives (3ML) campaign be fully implemented as planned by 2016, the UK will grow to account for 74% of worldwide telehealth patient numbers; an increase from the 4% in 2010. This is in line with the Prime Minister David Cameron’s vision for the project to “ensure that the UK stays ahead.”

However, the front-running UK programme should also be an impetus to other countries to catch up. A major hindrance in the telehealth market to date has been the lack of a clear evidence-base on the clinical and economic outcomes of monitoring patients’ vital signs from their homes. The basis of the 3ML campaign has been the successful Whole System Demonstrator trial of 6,191 patients which has shown some encouraging results: 15% reduction in A&E visits; 20% reduction in emergency admissions; 14% reduction in elective admissions; 14% reduction in bed days; 8% reduction in tariff costs; and 45% reduction in mortality rates. This may provide strong evidence for payers in other countries, particularly in the US, who are hesitant to provide reimbursement for telehealth application.

In taking this step towards telehealth, the UK has shown much needed leadership in the global telehealth market. Indeed this implementation may serve as a tipping point towards the widespread adoption of telehealth and cause even stronger market growth. It will be crucial that outcomes can be shown true on a wider scale over the next five years. Only then will this serve as a reference point for other health systems looking to implement their own programs. As such, the benefits to patients should spread beyond UK borders.

By Theo Ahadome, Market Analyst InMedica

Multinational Medical Device Companies Shift Focus to Rural Healthcare in China

Mon, 07 Nov 2011 05:00:00 +0000

The Chinese healthcare reform was initiated several years ago, with the aim to provide more government support for county based hospitals and health centers. After stabilizing their shares in the high end medical device market, most multinational medical device companies are now shifting their focus to the Chinese rural healthcare market as the future.

In July of 2011, GE Healthcare moved its X-ray business headquarters to China, believed to be in an effort to focus on the Chinese rural healthcare market. Ms. Duan, CEO of GE Healthcare China, announced that in the next 5 years China would be the most important market of them. GE Healthcare is aiming for 20% to 25% GE Healthcare’s of all products to be developed and manufactured in China; with some of these products shipped to global markets. Furthermore, in 2010 GE Healthcare set up a sales team of 500 employees specifically to focus on the rural healthcare market.

In September 2011, Hitachi Medical invested 230 million RMB to expand its facility in Suzhou city in Jiangsu province. Low-end medical equipment, which is mainly sold to emerging markets is now manufactured in the new facility. A research and development department is also planned to design specific products for the Chinese rural healthcare market.

Siemens Healthcare is also moving to expand its rural healthcare business. In July 2011, it donated a package of medical equipment, worth 1.9 million RMB, to 18 health centers in Jingangshan city, Jiangxi province. Siemens Healthcare also declared that in the next 5 years, it will choose one county each year to donate more medical equipment. This was its first step to expand into rural healthcare. Siemens Healthcare also expects to improve rural healthcare sales from 33% of total revenues now, to 50% of total revenues in the next 5 years.

Philips Healthcare has partnered with China’s Ministry of Health (MOH) to provide breast cancer screening to women in rural areas. It has provided 4 million RMB and 8 ultrasound systems in addition to other training documents for this 2-year collaboration. While learning about the rural healthcare market, Philips Healthcare is also hoping that more medical professionals in rural areas will familiarize themselves with Philips’ products.

The strategies of these multinational companies may be different, but their ultimate goal is the same; expanding business into the rural healthcare market in China. “In the Chinese medical device market, multinational companies dominate the high-end segments”, comments Owen Tang, a Shanghai based analyst from InMedica. “Local suppliers can only cover county and town-based hospitals. However, as these top multinational companies are now shifting their focus to rural healthcare, there will be much more competition in the middle and low-end medical device segments. Sales channel, brand awareness, price and the relationship with a hospital are all key factors in gaining market share” continued Tang.

Latin American Compact Ultrasound Market to reach $75 million

Mon, 07 Nov 2011 05:00:00 +0000

Compact imaging systems are essential for the development and provision of basic healthcare services in remote parts of Latin America. In rural areas, such as Northern Brazil, poor availability of hospitals and physicians means doctors must travel between different regions daily. Consequently, demand for lightweight, portable systems is increasing, allowing doctors to easily transport systems between community healthcare centres. Subsequently, revenues for compact ultrasound equipment are forecast to reach approximately $75 million by 2015. This is according to a new study by InMedica, “The Latin American Market for Ultrasound Imaging Equipment – 2011”.

A wider variety of low-end and mid-range products is making compact ultrasound accessible to an increasing end-user market in Latin America. In many cases, compact ultrasound rivals low-end cart-based systems for functionality and image quality, while providing additional flexibility and portability.

“A wider product range, improved technology and declining prices are driving end-users to purchase compact ultrasound systems”, commented Carly Reed, Market Analyst at InMedica. “The benefit of flexibility provided by compact ultrasound often outweighs the need for higher-specification features, normally only available in cart-based systems”.

The use of compact ultrasound equipment in Latin America is almost exclusively confined to traditional applications, such as radiology, OB/GYN and cardiology. However, growth of the compact ultrasound market is also contributing to growth in the point-of-care market in Latin America. Revenues for point-of-care ultrasound are projected to increase by 75% between 2010 and 2015.

“However, a number of factors continue to hinder greater market penetration of compact ultrasound”, continued Reed. “Firstly, many doctors are unwilling to sacrifice the advanced features available in cart-based systems. Secondly, strong growth in the point-of-care market in Latin America is still very dependent on improving physician education”. Despite these barriers, InMedica projects that by 2015, compact ultrasound will account for approximately 20% of total market revenues.

Cost, Not Technology, Will Drive Cloud PACS Market

Mon, 07 Nov 2011 05:00:00 +0000

With decreasing healthcare reimbursement and increasing economic uncertainty, there is a growing trend for hospitals to opt for a zero capital expenditure, managed service approach to PACS purchasing. Managed service business models accounted for 16.9% of global PACS revenues in 2010 and are forecast to grow to as much 31.4% in 2014. This is according to a new series of reports from InMedica, “The World Market for PACS, RIS and CVIS – 2011“

Managed services refer to a model where the vendor owns the IT infrastructure, with the hospital paying a fixed fee per month based on projected examination volumes. The vendor is also fully responsible for maintaining PACS infrastructure, providing the storage and software as a service. Cloud PACS refers to a managed service model where the software and storage are hosted at the vendor’. “For hospitals, managed services remove the need for heavy capital investment in PACS and reduces the need for in-house support staff and investments in IT infrastructure. It also provides access to the latest software upgrades. In the current financial climate, an increasing number of hospitals are finding this an attractive option” explained Theo Ahadome, Market Analyst at InMedica.

Figure 1. World PACS Revenues by Business Model Source: InMedica

“The major attraction of managed service models are its cost saving benefits and at the moment that is enough” continued Ahadome. “Only when the return on investment (RoI) is established and penetration of this model increases, will there be strong demand for further technological advances”. This phenomenon is already taking place in the UK and Netherlands for example, where on-site managed service models currently account for most managed service installations. With on-site managed services, the software and storage, while provided as a service, are still based locally on the client server. Now that the cost savings from vendor ownership and management of PACS have been realized in these countries, the next wave of demand is for further cost savings; these can be obtained by completely moving storage and/or software to the vendor’s site.

Indeed as the UK renews its national PACS program in 2013, InMedica forecasts that up to 20.0% of revenues will be from vendor-hosted PACS.

“Essentially you are seeing remote management and subsequently cloud PACS emerging, not on the merits of the technology, as many initially thought it would, but on the merits of cost savings. Moreover, this is happening only after the notion of vendor ownership and management have been established via other managed service models” explained Ahadome. “What is interesting, and as we saw at RSNA 2010, is that many vendors are still looking at cloud PACS for the technological innovation – and it is easy to get lost in the technology. However, hospitals are looking at it first and foremost as a business model and what they need to see is the enhanced return on investment (RoI)”.

Evolution of Ultrasound One Step Further with Smartphone System

Mon, 07 Nov 2011 05:00:00 +0000

The recent FDA approval of a “smartphone” ultrasound system has re-ignited industry debate into the long term future of ultrasound technology. InMedica, a leading independent market intelligence provider of global ultrasound research, has closely monitored the evolution of these products, and assesses their potential impact on the $5.2 billion ultrasound industry.

“Mobile” ultrasound systems are not a new concept, with similar “pocket” ultrasound products previously released by GE Healthcare, Siemens Healthcare-Acuson and Signostics. The key difference of the new Mobisante’s “smartphone” system is that it allows remote sharing of data and images direct from the device via standard cellular networks.

“The development of a cellular ultrasound device will certainly benefit healthcare providers in remote locations” commented Stephen Holloway, Market Analyst with InMedica. “The ability to transmit images via standard cellular networks opens up the possibility of teleradiology consulting in situations where specialists cannot be present at the scan”.

Despite this, there remain many limitations to this approach. Most clinicians and radiologists would argue that scans performed by untrained healthcare workers remotely do not provide viable images for anything but very basic diagnoses. The limited features, screen size and image quality in such a small “smartphone” system are also not suitable for many standard and advanced scans. Currently, this restricts adoption by users in most hospitals and clinics, who compare such devices to more expensive systems. Despite this, second or third generation smartphone or tablet systems could yet have a place in the market. The key to success here is not competing with currently available systems, but providing low-cost, accessible ultrasound, specific to certain procedures at the point-of-care. The use of pre-defined consumer electronic platforms may provide such an opportunity to dramatically lower cost, and increase volume.

More importantly, this new system may also be the first step towards the future of ultrasound technology. The advance of teleradiology, imaging sharing and healthcare IT integration, and recent strong market penetration of new compact ultrasound solutions, provides a compelling argument that future ultrasound devices will need to be compact, mobile and flexible. They will also combine cellular, wireless or Bluetooth connectivity.

“The challenge for suppliers over the next decade is to bring all these features together into one adaptable platform” continues Holloway. “A small, tablet based system with cellular capabilities, comprehensive diagnostic features and excellent image quality - without a hefty price tag - may be the next step. The manufacturer that succeeds in doing so, and can manage adaptability between specialist applications and features, will have the best chance across all healthcare sectors and applications”.

InMedica At MEDICA 2011: Complimentary Analyst Briefings

Wed, 26 Oct 2011 05:00:00 +0100

A number of InMedica will be attending the MEDICA 2011 tradeshow in Dusseldorf this November. Each analyst has expertise within their specified medical research area and will be available to present relevant findings from their latest research to industry professionals and the press.

Areas to be represented include:

Clinical Care – Patient Monitor Devices; Infusion Pumps; Ventilators; Anaesthesia; Oxygen Therapy; Nebulisers; and Sleep.

Medical Imaging – Ultrasound; X-Ray; MRI; and CT.

Consumer Medical – Telehealth; Sports & Fitness Monitors; Consumer Medical Devices.

If you would like to request a meeting with an analyst responsible for your business area, then please contact Kelly Barritt for more information.

Next generation ultrasound – simpler, smarter and more efficient

Fri, 02 Sep 2011 05:00:00 +0100

Innovative compact systems and new clinical applications have broadened the spectrum of ultrasound use and topped industry headlines recently. Yet in 2010, more than 76% of ultrasound systems were sold into three core applications; radiology, obstetrics and gynecology (OB/GYN) and cardiology, according to InMedica’s most recent world market report. So are manufacturers focusing enough on development and innovation for the majority of users?

A brace of new product releases, exhibited at the recent WFUMB 2011 congress in Vienna last weekend, suggests improvements in “core” ultrasound technology will have significant benefit for the majority of users. New systems on show were clearly based on three principles; image quality, ease of use and flexibility.

Exhibition Highlights

Most obvious in demonstrating this trend was Philips Healthcare’s “Clearvue” series. To look at, the “slimmer” system may appear very basic; in fact, technology and innovation has been used in a subtler way. “Active Array” technology integrates key beam-forming circuitry into the transducer itself, resulting in lighter weight cabling and less cumbersome scanning. Furthermore, the modular design of the system allows easier part replacement for servicing and maintaining the system.

GE Healthcare announced the release of the “Signature” series at the exhibition, for both the Voluson S8 and S6 platforms. The “signature” series boast a number of innovations, intended to provide improvements in work-flow, ease of use, image quality and automated measurement.

Toshiba Medical Systems showcased three new systems at the exhibition, the Aplio 300, 400 and 500. The new Aplio range provides a number of features with intriguing potential for advanced imaging applications. Most striking is the “FlyThru” feature, enabling visualisation of volume data sets from within, like a “virtual endoscopy”. Also of note, Toshiba has joined an increasing number of providers offering image fusion technology. The “Smart Fusion” feature allows real-time “fusion” of CT, MRI and 3D ultrasound images, utilising an integrated positioning sensor within the transducer.

End-user benefits

For routine “every-day” imaging, small innovations such as transducer size reduction, lighter cabling, automated measurements and simpler user interface can dramatically reduce exam time. Less bulky systems and a wider range of features also increase flexibility, allowing systems to be shared between clinics, increasing utilization and cost-efficiency. These positives, combined with the relative low-cost of ultrasound compared to other modalities, provide a compelling argument for hospitals and clinics to invest in new systems.

For advanced imaging studies, improvements in beam forming, signal processing and matrix transducer technology allow faster and higher-resolution imaging. Paired with new visualization and image rendering software, the limits of what is diagnostically possible with ultrasound are being rapidly advanced.

Furthermore, this is having a positive impact on the clinical reputation of ultrasound, particularly in radiology. In the past decade, many radiologists have dismissed ultrasound for advanced diagnostic studies, preferring instead the greater anatomical detail provided by MRI and CT. However, concerns regarding cost, radiation dosage and inflexibility of MRI and CT, paired with improvements in ultrasound technology, are rapidly altering this view.

A subtle transition to next-generation ultrasound

The impact of these new releases may not grab the headlines as with the advent of compact ultrasound, or drive rapid penetration into new markets in the same way. However, it does signal a subtler transition to a new generation of more intelligent, user-friendly ultrasound systems.

Simplification of ultrasound remains the key challenge for providers, and will promote greater use of ultrasound in clinical diagnosis. It is also essential for more regular use of advanced features such as image fusion, elastography and contrast enhanced ultrasound (CEUS).

User education and training is also vital. Investment in promoting the benefits of ultrasound in new point of care markets has been key to its success so far. Unless users are made aware of the clinical benefits of ultrasound for diagnosis, they will continue to undervalue its potential.

The new generation of smarter, simpler, cost-effective ultrasound technology, operated by well-trained and educated users, can have wide-ranging economic and clinical benefits for healthcare providers. Most importantly, it will undoubtedly improve the quality of patient care and clinical diagnosis.

Battle Lines Drawn in the CT Dose Reduction Arena

Wed, 15 Jun 2011 05:00:00 +0100

Over the past ten years, Computed Tomography (CT) vendors have been in a fierce race to capitalise on the trend for multi-slice CT equipment. However, in the last three years, increasing concerns over radiation exposure from CT examinations have driven a focus on dose-reduction, and CT product development has followed suit. As battle lines are drawn in the dose-reduction arena, InMedica analyses the competition for CT slices in its new report “The World Market for CT and PET-CT Equipment.” Importantly, what will this mean for dose-reduction?

“Globally, no one vendor dominates all CT equipment slice markets. Moreover, the supplier rankings in any one segment changes by geographic region,” reported Theo Ahadome, market analyst at InMedica. “Market leaders in the higher-slice segments, who may have proven superior image quality, are faced with the pressure of proving that they can incorporate effective dose-reduction techniques, without offsetting image quality.”

This is evident in the market share estimates presented by InMedica. “In 2010, the global CT equipment market was estimated to be worth $3.3 billion. While Siemens Healthcare was ranked first in the global CT equipment market in 2010, by segment, it was ranked as market leader only in the 20-40-slice and 64-slice segments. Conversely, Toshiba Medical Systems, which was positioned fourth in terms of the global market, was estimated as market leader for above 64-slice systems,” continued Ahadome.

As the proportion of higher-slice systems in the CT market is projected to increase over the next five years (Figure 1.0), so too is the pressure on manufacturers to simultaneously enhance images and improve clinical applications, at a lower dose. An important trend will be the introduction of dose-reduction techniques as standard features in higher-slice systems. Toshiba Medical Systems has already done this; it recently installed its first Aquilion One 320-slice CT system with dose-reduction software as standard, signaling increasing competition in the dose-reduction market.

“Ultimately, the responsibility for ensuring dose reduction however, must fall on the purchasing hospital and how much reduced dose they will consider sufficient to choose a particular system. Although many manufacturers claim at least a 75% dose reduction from different techniques, one must question what this means in real-terms to the patient. Is it enough that the dose is reduced by 75% of what it otherwise would have been? Moreover, it is unclear what role the Medical Imaging and Technology Alliance (MITA) will play. MITA certainly needs to be clearer on what its principle of dose reduction means in real terms. What does ‘as low as reasonably achievable’ actually mean?” questioned Ahadome. These issues will influence the success of dose-reduction and shape the role CT will play in medical imaging over the next ten years.

Middle East PACS & RIS Market Heats Up

Tue, 14 Jun 2011 05:00:00 +0100

As the healthcare IT market matures in Western countries, rapid hospital digitisation in the Middle East is providing novel opportunities for vendors of healthcare IT products.

In the last five years, there has been a sharp increase in the installed base of Picture Archiving and Communication Systems (PACS) and Radiology Information Systems (RIS) in the Middle East, influenced by a strong desire by many governments to improve healthcare provision, and to attain Western standards of care. According to InMedica (www.in-medica.com), the number of hospitals with PACS or RIS in the Middle East stood at 984 at the end of 2010. By 2014, this is forecast to increase to 1680, an increase of 71% in only four years.

In its report “The Middle East Market for PACS, RIS and CVIS – 2011 Edition,” InMedica estimated that this regional market was worth $86.1 million in 2009. Further, its is projected to reach $140.6 million by 2014. However, the penetration of these products in the region is divergent by country. “Kuwait and Israel were amongst the earliest adopters of digitised radiology departments and have fully developed markets for PACS and RIS. However, in recent years, Saudi Arabia has also shown great progression in the development of modern healthcare systems. In 2009, PACS installations in Saudi Arabia alone accounted for nearly a third of the regional total; this is projected to increase over the next three years,” commented Theo Ahadome, market analyst at InMedica.

A host of multinational suppliers have already taken advantage of the prospects in the region, including GE Healthcare, Agfa Healthcare, Philips Healthcare, Carestream Health and Siemens Healthcare, each with a direct market presence. More recently, new entrants include Novarad, Sectra and Infinitt. However, supply of PACS and RIS is split evenly between these multinationals, and local IT companies: InMedica reported that almost half of all installations in 2009 went to local IT vendors.

“Middle Eastern countries are quickly achieving highly developed hospital systems. As in the rest of the world, the cost-saving role of informatics within healthcare provision is widely accepted in the Middle East. Over the next three years, changes in reimbursement are projected to reduce vendor revenues in Europe and North America. In response, suppliers are beginning to look east” continued Ahadome.

Eastern Europe Leads Global Ultrasound Market to Recovery

Tue, 14 Jun 2011 05:00:00 +0100

Wellingborough, UK – 14^th June - Market growth of over 12% in the Eastern Europe, Middle East & Africa region was one of the key factors driving global ultrasound market recovery in 2010, according to a new study by InMedica, “The World Market for Ultrasound Imaging Equipment – 2011 Edition”.

Following significant capital healthcare spending cuts, political turmoil and severe currency devaluation, some regional market revenues dropped by over 30% in 2009. Consequently market expectations for 2010 sales were very low. Surprisingly, the market rapidly recovered in 2010, driven by strong growth in Russia, Romania, Hungary and the Middle East.

“Strong public investment focused on improving the quality of healthcare services in these areas suffered due to the challenging economic and political conditions of 2009”, commented Stephen Holloway, Market Analyst at InMedica.”In 2010, this investment quickly resumed, with the ultrasound market one of the first benefactors.”

However, a number of challenges remain. “Complicated and irregular government tender systems mean international suppliers are relying on local third-party distribution networks”. added Holloway. “This limits suppliers’ market visibility and direct feedback to end-users, while increasing market pricing pressure” added Holloway.

Accounting for almost 10% of global revenues in 2010, the Eastern European, Middle East & Africa ultrasound market still holds significant potential for future growth. The flexibility and interoperability of ultrasound makes it a cost-effective option solution for small and mid-size hospitals where resources are limited. With the addition of new compact systems in applications such as Cardiology, Emergency Medicine and Anaesthesiology, future adoption of ultrasound should be strong. Reflecting this, unit shipment growth of above 10% is projected until 2015; in comparison, growth of around 6% is forecast in Western Europe.

Keep It Simple Sonography

Tue, 14 Jun 2011 05:00:00 +0100

Wellingborough, UK – 14^th June - A new survey of radiology professionals by InMedica found that ‘image quality’ and the ‘right balance of price versus performance’ were the most important factors when choosing a new ultrasound system. Advanced features and brand name were ranked least important, according to the results from the report “Western European Customer Insights: Ultrasound in Cardiology, OB/GYN and Radiology – 2011 Edition”.

Working in partnership with a number of leading equipment manufacturers, InMedica designed a questionnaire to gather feedback from Western European radiologists using ultrasound imaging equipment.

“These results highlight the increasing pressure radiologists are under due to declining reimbursement rates in Western Europe” commented Kelly Barritt, Senior Market Analyst at InMedica. “Radiologists are looking for “cost-effective” ultrasound systems that can perform multiple examination types, but without paying premium prices”. Other trends highlighted in the reports included the positive impact of improved visualisation software for safer and more efficient ultrasound guided procedures.

Despite these positive results, almost a third of radiologists called for further improvements in workflow efficiency. The majority added that less complex analysis tools, more intelligent and “intuitive” user interfaces and improved software and control panels would make ultrasound easier to use. Additional system “features, settings and operation” was also ranked highest in the “most desired” additional training sought by radiologists.

Doctor’s opinions were gathered on the equipment they were using and the examinations performed. Views on system improvements and effect on work-flow, future expectations for portable and hand-carried systems, training and after sales service were also sought, as well as factors influencing purchasing decisions.

Transition to UHF Drives MRI Market Recovery

Tue, 14 Jun 2011 05:00:00 +0100

Wellingborough, UK – 14^th June - Global unit sales of ultra-high field MRI (UHF) equipment are forecast to almost double from 2009 to 2015, representing a CAGR of over 8%.

Post-recession, global revenues of MRI equipment are forecast to exceed $3.6 million by 2015, according to a new report from InMedica, “The World Market for MRI Equipment – 2011 Edition”. A key driver of this market is the transition to higher-field strengths. “The global UHF MRI market (defined by InMedica as cylindrical systems of 3.0 Tesla and above) is undoubtedly assisting total market recovery from 2011. Moreover, it was the only market segment to grow year-on-year throughout the recession” commented Diane Wilkinson, Research Manager at InMedica and report author.

This growth was despite the fact that UHF systems are currently concentrated in the developed regions of the world, the areas most affected by the economic downturn. However, high-field cylindrical (HFC) systems (1.5T) are still considered to be the “bread and butter” of the MRI world. 1.5T is the current industry standard and this segment is the largest market globally. HFC systems are important for emerging markets: most growth for the total MRI market comes from countries such as China and India. Where there is a low density of MRI, there is a real necessity for HFC equipment. Consequently, there is little, if no requirement for advanced 3.0T imaging until the fundamental HFC market has been developed.

“Yet the UHF market is gaining traction; they fit the need for advancing technology in healthcare. The MRI market is seeing an increase in the demand for new applications of MRI and the functionality of 3.0T systems will undoubtedly aid this transition. As the acceptance of UHF grows and its average selling price declines, so more countries globally will adopt this technology. Moreover in time, the industry standard is anticipated to shift to 3.0T” continued Miss Wilkinson.

By far the biggest challenge to the global MRI market, and in particular to UHF MRI, remains to be reimbursement legislation and government restrictions on licensing medical equipment. While the economic recession limited healthcare spending in the short-term, until the density of MRI increases significantly in the developing world regions, the full transition to UHF will take many years.

ECR 2011 – “No frills” imaging technology takes centre stage

Mon, 14 Mar 2011 07:00:00 +0000

Wellingborough, UK - 14th March 2011 - Advanced visualisation technologies have long been the driving force in radiology, pushing the boundaries of imaging technology further. Yet, the majority of this innovation remains only in expensive, high specification equipment; few advanced features actually penetrate into imaging equipment used in high volume. The recent 2011 European Congress of Radiology (Vienna, 3-5^th March) reflected a clear change of direction for the European medical imaging community; it’s time to address the majority.

Firstly, the advancement in medical imaging technology is absolutely necessary for the continuing improvement in healthcare services and general health of the population. However, renewed focus and innovation of mid-range “every-day” imaging equipment, driven by the harsh economic climate, could have far greater impact. Two modalities on show at ECR are already addressing this change.

X-Ray – the rising star of radiology?

Complex and expensive MRI and CT systems have clearly been the core focus for radiology in recent years. Despite this, X-ray took centre stage at ECR this year, based on three core principles: image quality, dose-reduction and work-flow efficiency.

Driven by economic constraints, manufacturers of X-ray systems are clearly focused on innovative solutions for low-end and mid-range X-ray platforms. A wide variety of customisable digital systems were showcased, from analogue flat panel detector upgrades to full digital wireless systems. The decline in price of digital X-ray technology has certainly aided this trend, and could lead to significant benefits for radiology.

Investment in innovative and cost-efficient digital X-ray systems has wide-ranging benefits. Firstly, digital X-ray has benefits for imaging providers: improved workflow increases patient throughput, reduces operating expense and provides long-term efficiency savings. Patients benefit also: reduced dose and improved access to digital X-ray service raises the standard of care. Furthermore, higher image quality and resolution provided by digital systems increases diagnostic confidence for radiologists. With interoperability between Healthcare IT solutions (such as PACS and RIS) and digital X-ray systems improving daily, general X-ray is fast becoming the star performer in radiology.

Ultrasound – the clinical “chameleon”?

If X-ray is being re-established as the core modality of radiology, ultrasound is currently headed in the opposite direction. Advances in image quality, user education and application specific features are driving ultrasound to re-invent itself in new clinical areas. Pioneered by compact systems, ultrasound has become a true multi-application modality.

Systems specifically designed for use in musculoskeletal, women’s healthcare and emergency medicine applications were all on show at ECR. The penetration of ultrasound in “point-of-care” imaging has clearly shifted focus away from radiology. Yet within these new platforms, the same clear goals of improving efficiency, image quality and standards of care are apparent, just in a non-radiological context.

So does this shift signal the end of ultrasound in radiology?

The current modality of choice for radiology remains MRI and CT. Despite this, advances in ultrasound technology are being noted in radiology. Elastography, fusion imaging and contrast enhanced ultrasound are overcoming the radiologists’ perception of ultrasound as a “basic” imaging tool. While the challenge remains for manufacturers to clearly demonstrate the every-day clinical benefit of ultrasound in radiology, it’s definitely back on the agenda.

PACS at ECR 2011: Back to the bottom line.

Tue, 08 Mar 2011 08:00:00 +0000

Wellingborough, UK - 8th March 2011 - If RSNA 2010 and HIMSS 2011 were overflowing with the promotion of desired technological advances in imaging IT, the European Congress of Radiology (ECR) 2011 in Vienna (March 3-7) was all about business as usual.

PACS vendors are unified on the need for greater advancements in technology: tighter integration with RIS and Electronic Health Records (EHRs); enabling access to images in the EHR; vendor-neutral archiving; and web-based access to PACS images. However, at ECR, suppliers seemed focused on capitalising on available solutions rather than on the innovations of the future. Consequently, the atmosphere was highly competitive, with an increased choice of vendors reacting to the growing demand for PACS projects, especially those of an enterprise nature, across Europe.

This is not to say exciting platforms were not presented: Merge showcased iConnect and introduced itself as an enabler of central hospital information sharing; Agfa Healthcare launched its Integrated Regional Imaging Program for hospital networks; Carestream positioned itself as a web-based radiology services provider via eHealth PACS; Sectra emphasised that PACS solutions and image distribution should be workflow oriented; and Philips sought to attract a more cost-conscious audience with its new MDC PACS. These solutions all address important radiology needs. Behind all of this was a sheer drive for new business and regional projects. North American and Asian PACS providers, including Ramsoft, Novarad and Infinitt were also in attendance, exploring advances into the European market.

This points to an important situation in the PACS market: tightening competition in mature markets, increased hospital awareness of PACS benefits and suppliers, the willingness of radiologists to try new vendors, and vendors to try new markets. As price sensitivity in healthcare also increases worldwide, the realisation is that it is ‘crunch time’ for suppliers. It is certainly time for vendors to explore new regions or tighten their grip on current projects / markets. An essential part of this is will be to achieve a greater understanding of changing regional and country-specific trends in the PACS market. No one vendor can sit too comfortably.

IMS Research launches new Consulting approach to identify better business growth opportunities

Thu, 24 Feb 2011 08:00:00 +0000

IMS Research today announced the launch of its new Strategic Market Assessment (SMA) service, which will form the cornerstone of the company’s continued expansion into strategic consulting. SMA will provide clients with objective, detailed and clear recommendations for the best markets to focus on to achieve profitable business growth.

When asked what benefits a Strategic Market Assessment offers over other strategic consulting approaches, IMS Research President, Ian Weightman, said “Each SMA we conduct for a client can draw upon the expertise of over 100 IMS analysts located around the world, plus over 250 reports and databases covering virtually every electronics and industrial automation product. We are uniquely placed to explore all possible opportunities that fit with our client’s core objectives, and to consider multiple criteria in order to make very specific strategic recommendations. Feedback from clients has been that most of the engagements they have undertaken with firms that use a more traditional strategic consulting approach have tended to result in generic recommendations that lack clarity in how they were arrived at - so crucial in allowing businesses to judge the value of a recommendation.”

The Strategic Market Assessment service is so effective at delivering actionable recommendations because it relies on a proven methodology developed from IMS’s own consultancy projects. It uses a five stage process, with detailed feedback being given to the client after each stage to ensure that the process is transparent and flexible. Each SMA project is managed by one of IMS Research’s experienced Research Directors who coordinates the analyst teams that work on the project.

IMS Research has already begun offering the SMA service to its key clients, and the very positive response it is receiving has led it to extend the offering to all sizes of company that are involved in any electronics or industrial automation market.

Will 2011 Be the Turning Point for the MRI Market?

Fri, 11 Feb 2011 08:00:00 +0000

Wellingborough, UK – 11^th February 2011 – Unlike ultrasound and X-ray markets, the “big-iron” imaging markets, CT and MRI, have suffered significantly due to the global economic recession. In the gloom of the current economic environment however, MRI is finding a way to fight back. A new report from InMedica (www.in-medica.com), “The World Market for MRI Equipment – 2011 Edition” highlights small pockets of growth; with manufacturers focusing on technology developments that will not only increase the workflow efficiencies, but importantly, also better the patient experience of being scanned.

After further decline of the global MRI market in 2010, InMedica projects market recovery from 2011; post-recession, global unit shipments are forecast to increase to almost 4,000 by 2014, a CAGR of 6.0%. “The latest technological developments for MRI focus on higher resolution and higher contrast images, enhanced workflow, faster scan-times and increased patient throughput. Bore-size is also a consideration; all aim to maximise productivity and improve patient comfort” commented Diane Wilkinson, Research Manager at InMedica. “In addition, the MRI market is also seeing demand in an increasing number of applications such as interventional and functional MRI, as well as its continued integration with other modalities such as ultrasound. New non-contrast agent techniques (spin-labelling), for example in angiography, are also now available; an exciting development after the issues that have surrounded contrast imaging over the last few years and of further benefit to the patient” continued Wilkinson.

The recurring theme through all of this however, is cost-efficiency. Ensuring adequate return on investment (ROI) is one of the most important considerations for any MRI purchase. Combined with global restructuring of healthcare investment and continuing restrictions on reimbursement (particularly in the US), suppliers must look for new innovations to help renew growth in the industry, while maintaining ROI for the customer.

Growth in the global MRI market is additionally driven by the continuing trend to higher-field strengths in both open and cylindrical MRI; in fact, the global ultra-high field market (defined by InMedica as cylindrical systems of 3.0 Tesla (T) and above) grew year-on-year throughout the recession. Moreover, it is one of only two market segments forecast with revenue and unit growth in 2011 and 2012. Additionally, extremity MRI is presenting itself as a growing niche market.

But will the current financial-climate allow MRI to reach its potential? InMedica predicts that 2011 will be the turning point for MRI: orders previously postponed or cancelled are starting to be placed, the demand for new applications of MRI is increasing and enhanced patient work-flow is continuing to maximise profitability. 2010 was still a tough year for some MRI manufacturers; while 2011 will remain challenging, far more promise can be seen.

PACS is Not Enough: Vendors look beyond PACS, and then beyond RIS

Fri, 11 Feb 2011 08:00:00 +0000

Wellingborough, UK – 11^th February 2011 - Currently there is much debate on whether PACS and RIS usage qualifies under the ‘meaningful use’ criteria dictated by the Health Information Technology and Clinical Health Act (HITECH) in the United States. This debate however, points at a much wider issue: the future of PACS and RIS.

Over the past ten years radiology departments have become increasingly stand-alone; so much so that a radiology department can now be operated by one company while its encompassing hospital is run by another. ‘Meaningful use’ suggests a need for change to bring radiology back into the hospitals with a centrally coordinated and multi-centric healthcare IT system; one that focuses on both end-user and patient, while providing easier access to PACS images within electronic medical records (EMR).

This is not just an issue in the United States. In Europe, cross-border healthcare provision with interoperable healthcare IT is central to the EU health strategy. In January 2011, the European Commission passed the directive on cross-border healthcare provision, allowing European citizens to receive care in any of the 27 member countries. eHealth, EMR and interoperability are central to this aim; the ability of hospitals to access electronic patient data anywhere in the European Union will be irrespective of healthcare systems, PACS or EMR vendor, and information will be accessed via a central platform.

Demand for these systems is clearly growing: In December 2010, the U.S and EU agreed to promote a common approach to interoperable eHealth; the Eleventh Annual European Interoperability Testing Event (IHE Connectathon) is being held in April 2011; and epSOS, the pilot program setting the framework of European interoperability is due to be completed in July 2011.

According to two InMedica reports, “The Middle East Market for PACS, RIS & CVIS,” and “The Eastern European Market for PACS, RIS & CVIS,” eHealth projects, starting at a national level, are forecast from 2011. These will lead to greater focus by PACS vendors on the hospital and not just radiology. Some vendors are already expanding their portfolio to include health information exchange (HIE) systems. Others will need to ensure PACS product development is geared towards vendor-neutral interoperability.

Flat Panel Detector Technology Key to Growth in Mobile X-Ray Market

Wed, 09 Feb 2011 08:00:00 +0000

Wellingborough, UK - 9th February - Integration of digital flat panel technology into mobile X-ray systems is forecast to drive a 55% increase in global mobile X-ray system revenues by 2014, according to a new report “The World Market for General Radiography and Fluoroscopy X-Ray Equipment – 2010” from InMedica (www.in-medica.com).

In the last ten years, room based X-ray system technology has shifted from basic analogue to a variety of “digital” solutions, such as computed radiography (CR), charged couple device (CCD) and flat panel detector (FPD). Of these, FPD has led to significant improvements in dose-reduction, image quality, and processing speed, with FPD X-ray systems now viewed as the industry “gold-standard”.

“The benefits of FPD technology in radiography applications has been proven in the room-based X-ray systems market, and has spurred demand for FPD technology in mobile X-ray systems” commented Stephen Holloway, Market Analyst at InMedica. “Manufacturers have been fast to act on this demand, with a multitude of mobile systems and retrofit FPD solution released in the past three years.”

According to the most recent InMedica report, unit shipments of digital mobile X-ray systems are forecast to increase by more than 20% each year over the next 5 years. “Strongest uptake is projected in emergency and intensive care departments and large hospitals with shared mobile X-ray services. In these scenarios, the benefits of reduced image processing time and dose reduction are particularly relevant”, continued Holloway.

While the benefits of FPD technology have been proven, external factors have prevented a faster shift to digital technology. The high price of FPD systems paired with recent capital expenditure freezes and hospital cuts have prevented greater penetration in the mobile segment. Hospital administrators and radiographers have had to assess whether the benefits of FPD mobile X-ray system outweigh the initial purchasing cost; in many cases, the higher efficiency of using FPD technology actually leads to long-term savings for the hospital or department.

Despite recent economic barriers, the future remains bright for the FPD mobile X-ray market. The recent release and development of the next generation of wireless FPD panel technology is providing further system flexibility, while FPD panel prices continue to fall, making the technology available to a wider customer base. “Success in this segment is certain to continue if manufacturers can pair the most recent FPD technology with user-friendly ergonomics, interface and power efficiency, at a cost-effective price point,” added Holloway.

InMedica Highlights Potential of Interventional X-Ray Market

Wed, 09 Feb 2011 08:00:00 +0000

Wellingborough, UK – 9th February 2011 –With global revenues estimated at just over $2.5 billion in 2009, interventional X-ray imaging equipment is an established and mature market. However, recent reports of falling procedural volume and capital expenditure freezes have threatened demand for interventional X-ray equipment. A new report from InMedica (www.in-medica.com) “The World Market for Angiography, Cardiology & Mobile C-Arm X-Ray Equipment – 2010 edition” has evaluated this trend, and highlighted the future potential drivers of market resurgence.

Recent economic conditions, healthcare reform and severe spending cuts have provided challenging conditions for interventional X-ray suppliers in the past three years, with many hospitals delaying or cancelling orders of new interventional X-ray systems. While the ongoing shift to digital flat panel detector technology (FPD) has prevented significant market decline, it has not stimulated strong double-digit growth either. Despite this, opportunities for market growth still remain.

“Hybrid” Interventional Solutions

The ongoing battle to reduce healthcare expenditure in developed healthcare markets is driving demand for “cost-effective” equipment, with physicians and administrators struggling to find the balance of price vs. performance. In response, manufacturers are exploiting digital inter-operability, offering combined “hybrid” suites in a variety of customisable solutions. “Catheter labs, surgical suites and an array of imaging technology is now being combined by the larger imaging manufacturers, in a bid to help hospital administrators improve equipment ultilisation and lower costs.” explains Stephen Holloway, Market Analyst at InMedica. “While the initial cost of “hybrid” room solutions may be higher, the long-term efficiency savings for many institutions and clinics often outweigh the initial investment”.

Digital Mobile C-Arm X-Ray

Digital FPD systems are now viewed as the “industry standard” for room-based angiography and cardiology X-ray, with the vast majority of new and replacement sales in the digital segment. Despite this, the digital FPD mobile C-arm X-ray market is less established. “In the past, the high cost of FPD panels meant production of digital mobile C-arm systems was not viable for manufacturers” continued Holloway. “However, falling panel prices and the continued digitalisation of imaging systems has driven demand for digital C-arms in the past three years”. In addition, improvement in navigational software, user-interface and system ergonomics has fuelled demand, with two manufacturers now producing FPD mobile C-arm systems for a variety of clinical applications. Consequently, InMedica forecasts that the world market for digital mobile C-arm equipment will almost double by 2014. “Mobile C-arm X-ray systems also provide a flexible interventional solution for many smaller clinics and hospitals. Often in these scenarios, digital room-based interventional X-ray equipment is too expensive, so mobile digital systems offer a lower-cost alternative, but with the majority of necessary features” added Holloway.

Long Term Opportunities in Developing Regions

Spiraling healthcare expenditure, capital freezes and health reform in developed global healthcare markets is driving X-ray manufacturers to invest in new and developing healthcare systems. Brazil, China, India and the South East Asian (ASEAN) region have all shown explosive economic growth and rapid infrastructure development over the past 10 years, and are investing heavily in improving healthcare services. The majority of investment in these regions is dedicated to the provision of basic healthcare services, but the potential market for advanced interventional systems is yet to be fulfilled. Holloway added, “Many of the larger imaging manufacturers are currently fighting hard to win customers and installed base by investing in lower-cost modalities such as ultrasound and X-ray. In the long-term, these manufacturers plan to develop these markets to realize the market potential for high-value advanced interventional X-ray equipment.”

IMS Research expands in 2011

Thu, 03 Feb 2011 05:00:00 +0000

IMS Research, global electronics industry analysts, is delighted to announce a number of key strategic developments that will help the company continue to expand in the coming year:

Seoul office opens in Asia

As part of the company’s expansion into Asia, IMS Research has just opened an office in Seoul, Korea under the expert leadership of Harry (Sung Dong) Cho. This local team will support IMS Research’s growing client base in Korea, as well as developing the business through an enhanced locally based sales operation. Korea is a powerhouse in the global electronics industry, and the analyst team there will ensure IMS Research has a deep understanding of the industry dynamics.

25 analysts join the team

In response to growing client demand for their research in sectors including Consumer Electronics, LED and Displays, Power, Energy, Security, Medical and Industrial, IMS Research has added 25 new analysts to the team based in a number of markets including the UK, US, Taiwan, China and Korea.

A renewed focus on marketing for 2011

As part of the company’s expansion plans for 2011, IMS Research has a fresh new corporate identity. Analyst blogs with the latest insight, data and commentary have been added to newly created sections for each of the 54 sectors of the electronics industry that the company covers. The new site can be seen at www.imsresearch.com. The company has hired Greenfields Communications to manage PR globally.

Matthew Towers, CEO says “The investment that we have made in this expansion into new geographical markets demonstrates IMS Research’s commitment to delivering first class market intelligence to our clients in these challenging times. Recruiting and retaining the best analysts in three continents ensures that we are well positioned to provide global insight, identify threats and spot opportunities that our clients rely on for their strategic business decisions.”

Battle Lines Drawn In The Global Ultrasound Market

Wed, 15 Dec 2010 08:00:00 +0000

Wellingborough, UK – 15^thDecember 2010 – The recent shake-up of the global ultrasound market following the merger of Aloka and Hitachi Medical, and the recently announced acquisition of Medison by Samsung Electronics, points to an intriguing future. Research Analyst Stephen Holloway, author of InMedica’s acclaimed “World Market for Ultrasound Imaging Equipment – 2010 edition” assesses the repercussions.

The world ultrasound market has long been dominated by four major suppliers, (GE Healthcare, Philips Healthcare, Toshiba Medical Solutions and Siemens Healthcare), with a combined market share of almost 65% in 2009. However, the merger in November this year between Hitachi Medical Systems and Aloka may upset such dominance, particularly in the rapidly expanding Asia Pacific market.

“The merger of these two mid-tier vendors is clearly a strategic move to compete with the top-tier suppliers” comments Holloway. Statistics from InMedica’s most recent report shows that combined revenues from Aloka and Hitachi would place them third behind GE and Philips globally, and second in the Asia Pacific market behind GE. “This deal could have significant consequences for the top-tier suppliers” continues Holloway. “Hitachi and Aloka are both significant players in the Asia Pacific market, forecast as the fastest growing market in the world. Combined, they have the resource and sales network to challenge for customers in the rapidly growing ASEAN region and China. However, strongest growth is forecast in the immediate years ahead, so rapid integration of the two companies is vital, in order for the newly merged company to capitalise.”

Further complicating matters is the entrance of Korean electronics giant Samsung Electronics, with the recently announced acquisition 43.5% stake of Medison. While less surprising than the Aloka-Hitachi merger, following Samsung’s announced plans earlier this year to invest part of $20 billion into a Healthcare business, it suggests future market competition will be fierce. “Medison’s reputation for quality technology has allowed it to compete with mid-tier suppliers for some time,” adds Holloway, “but lack of major financial backing and resource has prevented Medison from challenging the top five suppliers; Samsung may well drive Medison to that next level. Samsungs’ greater resources combined with Medisons’ technological expertise could prove a strong collaboration”.

So what does the future hold for the global ultrasound market following these developments? “Competition will be fiercer than ever before, particularly in Asia” suggests Holloway. “The recent economic downturn has increased end-user demand for quality systems at lower prices. The key to success will be to provide a flexible portfolio of quality ultrasound systems, software, services and education, for a number of clinical applications, at a variety of price points. In Asia, strongest growth is forecast for the low-end and compact segments; providing quality and functional equipment here will be vital. However, much greater investment and research will be required to compete with the top-tier suppliers in the established North American and Western European markets”

Disparities in Wealth and Knowledge Inhibits PACS Market in South Africa

Fri, 03 Dec 2010 08:00:00 +0000

Wellingborough, UK – 3^rd December 2010 – A new report from InMedica (www.in-medica.com), “The South African, Eastern European and Middle East Market for PACS, RIS & CVIS” has identified disparities in the implementation of PACS in the public and private healthcare industry.

South Africa is classed as a middle income country but extreme differences in wealth exist. In particular, the South African healthcare system is characterised by the difference between the public and private sectors. While the public sector provides basic healthcare services to over 80% of the population, the majority of funding (around 60% of total healthcare expenditure) and service provision is made to the private sector. As such, the quality of healthcare provision privately, is far superior to that of the public sector.

Over the last few years, the PACS market has seen steady growth in South Africa, particularly in the private market; the need to provide radiology services to out-lying clinics in remote areas, as well as the need to maximise the efficiencies by which radiology departments operate, have driven this market. However, compared to Western Europe or North America, South Africa has made a slower transition to healthcare IT. Diane Wilkinson, Research Manager at InMedica explains. “Previously, the lack of infrastructure, insufficient bandwidth and a shortage of radiologists have been the biggest barriers to PACS and RIS adoption here. The recent FIFA world cup has made significant improvements to infrastructure; improvements are currently being made to the cost and provision of bandwidth; and programmes are now in place to encourage radiologists to stay in South Africa, particularly in the public market. Combined, these factors will help drive the market for PACS and RIS”.

At present the installed base of PACS is concentrated in private hospitals in South Africa’s economic centres: only 20% of large and medium-sized PACS installations across South Africa were in the public sector at the end of 2009. Most development in the public market has been in the larger hospitals; as this market saturates, so PACS will be installed into tier 2 hospitals, creating networks between the referral and central hospitals of a cluster.

“Individual hospitals in South Africa are responsible for devising their own PACS strategy; funding is applied for from regional government and once awarded, a tender is issued. While many public hospitals are showing interest in PACS, the process to budget and implement a new tender is extremely slow. Only a certain number of hospitals will be awarded funding in any one year and this will ultimately restrict the future growth of the market. A lack of knowledge surrounding PACS has also caused difficulties in the tender process” continued Miss Wilkinson. While the specificity has improved more recently, many tenders have been ill-prepared and unreflective of the actual needs of the hospital, further slowing the installation and complicating the process for suppliers. However, the tender process is extremely valuable for vendors. This process has increased competition in the market place, but corruption in South Africa is apparent; tenders have been awarded unjustly and previously assigned funding, ‘reallocated’.

Knowledge is one of the biggest influences in the PACS market; understanding the clinical advantages of PACS rather than those simply for patient administration, will ultimately drive this market.

Versatility Sustains Demand in General Radiography X-ray Market Despite Poor Economy

Fri, 15 Oct 2010 08:00:00 +0100

Wellingborough, UK – 15^th October 2010 – The economic downturn in 2008 and 2009 has resulted in the re-evaluation of global healthcare expenditure; the medical imaging equipment market is an obvious casualty. A new report by InMedica (www.in-medica.com), “The World Market for General Radiography & Fluoroscopy X-Ray Equipment – 2010 edition” assesses how the general radiography X-ray market avoided significant decline, with global revenues falling by only 3% from 2008 to 2009. InMedica estimated that the global market totalled $2.7 billion in 2009. So why was this market less affected than other imaging modalities? Stephen Holloway, Research Analyst at InMedica and author of the new report explains.

“Healthcare administrators are under increasing pressure to purchase “cost-effective” imaging equipment. The variety and versatility of general radiography X-ray systems, means there is an X-ray solution that fits most budgets and individual requirements.” explains Holloway.

For example, in high patient volume scenarios, new automated digital flat panel detector (FPD) systems provide clear and measurable advantages over analogue equipment, both clinically and financially. These systems can also be integrated into pre-existing healthcare IT infrastructure, facilitating improved clinical workflow. However, in many regions, investment in this equipment is currently prevented by the high-cost of FPD technology. Therefore, strong growth of digital FPD equipment is forecast from 2011, as healthcare spending restrictions are lifted and equipment prices fall.

Flexible X-ray solutions are also available for small hospitals and imaging centres, particularly in developing global regions. In these situations, purchasing of quality, cost-effective equipment is essential, and the high-end features are less important.

“Although there is a global trend towards high end FPD digital X-ray equipment, Computed Radiography (CR) equipment remains a viable X-ray solution for many buyers” added Holloway. “CR is an attractive digital “stop-gap” solution during the economic downturn, providing improved image quality and workflow at a relatively low-cost. As a result, CR market decline has been prevented, and global shipments are forecast to grow until 2012.”

InMedica forecasts a bright future for the general radiography X-ray market. Improved technology, lower digital equipment prices and the verstility of X-ray solutions will continue to drive demand, while in the short-term, other imaging modality markets will struggle as a result of economic instability.

Global Ultrasound Market Weathers Economic Storm

Fri, 28 May 2010 08:00:00 +0100

Wellingborough, UK – 28^th May 2010 – With many medical imaging device manufacturers still reeling from the effect of the economic downturn, a new report published by InMedica, “The World Market for Ultrasound Imaging Equipment – 2010 Edition”, has assessed the extent of the recession on the world market for ultrasound imaging equipment.

In 2009, the global market for ultrasound imaging equipment was estimated to be worth $4.9 billion; 6% less than in 2008. Impeded by factors such as healthcare spending cuts and postponed equipment purchasing in Western Europe and North America, market recovery in these developed regions will be slow. Continued economic uncertainty in Europe and further expected public health cuts will continue to hinder equipment purchasing, preventing a return to growth until 2011.

In contrast, strong growth in the developing markets of the Asia Pacific region has offset decline in other developed regions. Stephen Holloway, Research Analyst at InMedica commented “these markets have bounced straight back from the economic downturn, with increasing demand for ultrasound systems in 2009 a result of greater investment in healthcare services. Demand for ultrasound systems in China, India and South East Asia cushioned the blow dealt by the economic crisis to the world market, and will continue to drive future market growth. Consequently, the Asia Pacific region is forecast to become the largest major world market by 2011.”

Worldwide, the economic downturn has caused severe decline in some imaging modality markets, yet ultrasound has been less affected. Spiralling healthcare costs have placed greater focus on the purchase of cost-effective medical devices by healthcare providers; the relative low-cost of ultrasound equipment has made this modality an attractive option. “Ultrasound is now seen by physicians as an efficient, lower-cost diagnostic alternative to more expensive MRI and CT examinations, a consequence of advancements in ultrasound technology and image quality. Ultrasound’s flexibility and clinical effectiveness often outweighs the benefits of using other modalities” explained Holloway.

As a result, the world ultrasound market has weathered the effects of the economic downturn, and recovery to growth is projected for 2010. With continued uncertainty surrounding the safety and cost-effectiveness of CT and MRI, advances in ultrasound technology, and the increasing use of ultrasound in new clinical applications, ultrasound is well positioned as a fundamental modality in the future of medical imaging.

China’s Ultrasound Market to Exceed $1bn by 2014

Fri, 28 May 2010 08:00:00 +0100

Shanghai, China – 28^th May 2010 – While the dramatic effects of the economic recession have been seen in the Western European and North American markets for ultrasound imaging equipment, the Chinese market has seen tremendous growth over the last two years. Driven by China’s ongoing healthcare reform, strong economic growth and the Chinese population’s increasing awareness of healthcare issues, the second edition of InMedica’s study “The China Market for Ultrasound Imaging Equipment – 2010 Edition” predicts that the Chinese market for ultrasound imaging equipment will exceed $1 billion by 2014, growing at a CAGR of 9.3%.

Short-term, the Chinese market for ultrasound equipment has benefitted from the government’s focus on upgrading medical devices in the thousands of township and county hospitals across China; this has prevented the previously anticipated dramatic decline of the black and white equipment market. The increasing number of government tenders has also attracted multinational companies to refocus on the low-end of the market by setting up local joint ventures, expanding their product lines and rebuilding sales channels.

“Long-term, the market will be fuelled by the replacement of black and white ultrasound units by higher-price colour systems. In addition, more local manufacturers have entered the colour market segment which has increased competition in the market place” commented Owen Tang, a Shanghai-based Analyst at InMedica. “There are now far more local suppliers of colour equipment than when we initially looked at this market in 2008. As a consequence, colour equipment has become much more affordable to many more customers. Multinational companies still play a key role in the colour systems market, but more so at the high-end”, continued Tang.

While the Healthcare Reform in China stimulated demand for ultrasound equipment over the last two years, the government support provided previously will not continue at the same level. Hospitals and health centres themselves are now driving future demand; many are updating existing equipment or expanding to accommodate larger patient volumes. In addition, clinical departments outside of traditional ultrasound departments in large hospitals are beginning to purchase their own ultrasound systems. This is fuelling a new wave of demand and is a trend that InMedica believes will continue into many of the smaller hospitals.

Growing Acceptance of Medical Grade Displays Drives Global Growth

Wed, 28 Apr 2010 08:00:00 +0100

Wellingborough, UK – 28^th April 2010 – While the lasting effects of the economic recession will restrict the market in the short-term, growth in the world market for medical grade displays is forecast to accelerate from 2012 as the global economy improves and previously postponed hospital projects are initiated. A new study from InMedica “The World Market for Medical Grade Displays – 2010 Edition” predicts that global unit shipments of medical grade radiology, surgical and patient monitoring displays will exceed 460,000 by 2014, growing at a CAGR of 9.5%.

Medical-grade displays differ from consumer-grade displays in a number of ways; they are designed to optimise high-resolution and high-contrast images for accurate and efficient patient diagnosis. Moreover they ensure that images viewed in diagnosis are exactly the same as when they were first taken, despite being viewed on different workstations and at different times. Diane Wilkinson, Senior Market Analyst at InMedica commented “in some countries, government legislation also states that extra certification is required for electronic equipment used in close proximity of a patient. This all adds to the cost; medical grade displays are considerably more expensive that consumer-grade displays but importantly, they are growing in acceptance globally, and in all applications”.

The increasing use of medical-grade (instead of standard consumer-grade) displays in clinical-review settings and in departments outside of traditional radiology, the transition to colour and the continuing implementation of picture archiving and communication systems (PACS) worldwide is driving growth in the radiology market segment. Greatest percentage growth is forecast for the surgical displays market, fuelled by the trend to HDTV in endoscopy and the need to increase visualisation in operating rooms.

The greatest barriers to growth in this market are cost and legislation. “While strong market growth is forecast for developing global regions due to the improving nature of their healthcare systems, a much higher proportion of consumer-grade displays are used in medical applications here. The high price of medical-grade displays and the lack of specific legislation on their use in these regions prevent greater adoption” explained Wilkinson.

China’s Healthcare Reform One Year Later – What’s Changed?

Wed, 31 Mar 2010 08:00:00 +0100

Shanghai, China – 31^st March 2010 – In April 2009, the Chinese government announced the guidelines for healthcare reform, with the core principle of providing universal healthcare services to the country’s 1.3 billion population. China will invest 850 billion RMB ($124 billion) on healthcare from 2009 to 2011, further stimulating demand for medical devices, in what is already one of the world’s fastest growing markets for medical technology. One year later, a number of new regulations and guidelines are in place, which are beginning to reshape the structure of the Chinese healthcare industry.

Whilst the government has not released details of how the investment will be distributed, InMedica (www.in-medica.com) believes that around 50% will be used to expand the coverage of medical insurance, 30% will be used for the construction of rural healthcare systems, and the remaining 20% will be used to fund public hospitals. It is the first time that basic healthcare will be provided as a public service for all people in China, and the Chinese government aims to solve the problems that have caused strong complaints from the public about high medical costs. The overall aim is to provide basic medical services to the population by 2011, with the long-term goal of rolling out universal coverage by 2020. The healthcare reform relies on joint funding by central and local governments. The central government will contribute around 40% of the total 850 billion RMB investment.

Pubic, non-profit hospitals will remain the major provider of healthcare services, but more priority will be given to the development of grassroots-level hospitals and clinics. The central government will fund the construction of 2,000 county-level hospitals, 29,000 township hospitals and the upgrading of 5,000 township hospitals. Furthermore, about 3,700 community health centers and 11,000 community health stations will be established or upgraded by 2011.

Since the reform was announced last April, a series of regulations and guidelines have been released. In June 2009, the guideline on the construction of county hospitals, health centres, community health service centres, and village clinics was released; in October 2009, the guideline on the price of essential drugs was released; and in January 2010, a guideline on training and development of village physicians was released. Most recently, in February 2010, the guideline on the reform of public hospitals in 16 pilot cities was released.

Public hospital reform was one of the key issues of the guideline. Currently, public hospital revenues are derived from drug sales, medical services and government funds. In 2007, the total revenues of public hospitals in China was 375.4 billion RMB, including 200 billion RMB from the sales of drugs. In the same year, funds from the government were 28.5 billion RMB, which was only 7.6% of total revenues. Currently, public hospitals are permitted to make a 15% profit from drug sales. Whilst this market-oriented approach has greatly improved medical services in recent years, it has also resulted in soaring medical costs for the Chinese public.

According to the guideline, the 15% profit from drug sales will no longer be permitted. However, it is thought that government funding alone can not fully meet the financial gap, especially in the Western regions. According to Owen Tang, market analyst at InMedica, “with limited government funding available, it is unknown if the public hospitals can maintain standards of care without the revenues from drug sales. This is why the government has chosen 16 cities to pilot the reform. The cities, including six in central China, six in the east and four in the west, were asked to start the reform from this year. The government will need time to evaluate the success of these early trials, and possibly conduct more trials with refined guidelines, before the healthcare reform can be rolled-out on a national level. Despite the impressive headline investment figures, China’s healthcare reform is likely to be a lengthy process.”

InMedica predicts that the main winners in the medical devices market will be suppliers of basic equipment, such as general purpose ultrasound machines, analogue X-ray equipment and patient monitors, which are all funded by the healthcare reform. Chinese companies such as Mindray, Beijing Wandong and Yuyue Medical will benefit the most, as local suppliers are preferred by the government due to the “Buy China” initiative.

These topics and more are discussed in a new report from InMedica called “Analysis of the Chinese Healthcare Industry: A Guide for Medical Device Manufacturers”.

Survey Reveals Lack of Sonography Training in Eastern Europe

Fri, 12 Feb 2010 08:00:00 +0000

Wellingborough, UK – 12^th February 2010 – A new survey from InMedica (www.in-medica.com) revealed over half of cardiologists surveyed across Russia and Eastern Europe had not received training on how to get the best use of their ultrasound imaging equipment. The situation was only slightly better for those working in general imaging, where approximately 40% had not received training on how to get the best use of their equipment. By contrast, this figure was only 25% in a similar survey conducted across Western Europe.

There is clearly an overwhelming need for training in Eastern Europe, with over 90% of medical professionals using ultrasound feeling they need more training to use their equipment effectively. This requirement was not just for advanced techniques, but in many instances there is a general lack of training in the standard features and operation of their ultrasound systems. A major part of the problem seems to be lack of funding for training from the health service providers. In addition, the low wages of medical professionals in many Eastern European countries are insufficient to allow individuals to pay for training themselves.

Equipment training is not the only service lacking for ultrasound in Eastern Europe. Service contracts with ultrasound equipment manufacturers are also much less common in Eastern Europe than Western Europe. The Eastern European survey showed less than one third of general radiologists reported having a service contract with the equipment manufacturers, compared with almost 90% in the previous survey of Western Europe.

Working in partnership with a number of leading equipment manufacturers, InMedica designed a questionnaire to gather direct feedback from doctors using ultrasound imaging equipment specialising in cardiology, OB/GYN and general radiography. Doctor’s opinions were gathered on the equipment they were using and the examinations performed; views on system improvements and affect on work-flow, future expectations for portable and hand-carried ultrasound, training and after sales requirements, and factors influencing purchase decisions sought. The results from the surveys are presented by InMedica in the reports “Eastern European Customer Insights: Ultrasound in Cardiology, OB/GYN and General Radiology”.

Digital Radiography: China Drives Growth

Mon, 03 Aug 2009 08:00:00 +0100

Wellingborough, UK – 3^rd August 2009 – Despite the current economic situation, the transition to digital systems in general radiography continues. A new study from InMedica, “The World Market for General Radiography & Fluoroscopy X-ray Equipment – 2009 Edition”, predicts that the world market for direct digital radiography (DDR) will exceed $1.5 billion by 2013, increasing its market share of global general radiography X-ray equipment revenues by 12% over a five year period.
“Current restrictions in healthcare expenditure are affecting sales at the high-end of the market, particularly sales of flat panel detector (FPD) equipment. As this is the largest market segment, this affects total revenue growth” reported Diane Wilkinson, Senior Market Analyst at InMedica. “FPD systems are favoured by developed markets such as Western Europe and North America where the recession has had most impact, so it’s no surprise that sales will be worse hit in 2009 and 2010” commented Wilkinson.

Despite restrictions in developed markets however, strong growth continues to be seen in the developing areas of the world. Revenues from developing countries are forecast to increase from 37% of the global total in 2008 to 49% by 2013. In particular China, which accounted for 10% of global general radiography revenues in 2008, is alone forecast to account for a quarter of DDR global revenues in 2013.

While purchasing decisions are being postponed in developed countries at present, importantly they are not being cancelled. X-ray is a fundamental imaging modality globally; factors such as the ageing population, which increases procedural volume, and the need to maximise efficiencies of patient volume and cost, will ensure the X-ray market’s resilience long-term.

Global Increase in Breast Imaging Drives Growth in Mammography Market

Mon, 03 Aug 2009 08:00:00 +0100

Wellingborough, UK – 3^rd August 2009 – The implementation of screening programs globally remains the single largest driver of growth in the mammography market. Coupled with the increasing awareness and education of women, a new report from InMedica "The World Market for Mammography X-ray Equipment – 2009 Edition", predicts that the global mammography market will continue to grow strongly despite current restrictions in healthcare expenditure and the current economic crisis that are so heavily affecting other segments of the market for X-ray equipment.

"There is marked geographical variation in breast cancer incidence; developed countries such as Western Europe or the US have significantly higher incidence than developing countries in Asia Pacific, South America and Africa. In addition, breast cancer screening programs are far more established in developed countries" reported Diane Wilkinson, Senior Market Analyst at InMedica. "For example, breast cancer has now become one of the most common cancers amongst women in Asia and numbers of screening programs in this region are increasing. In fact, from 2008 to 2013 the global market for mammography is forecast to increase outside of traditional markets. Revenues in Western Europe and the US are forecast to fall from 73% of the global total in 2008, to 66% in 2013" continued Wilkinson.
While the global market for mammography X-ray equipment has stalled in 2009 due to the saturation of the US market and the down-turn in the economy, the continued transition to digital mammography systems is forecast to drive additional growth in this market, particularly outside of the US. Further, digital mammography has led to the development of new applications in beast imaging such as digital tomosynthesis, contrast enhanced mammography and ‘fusion’ techniques with other imaging modalities such as ultrasound.

Emerging Economies Offer Potential for Growth for Fetal Dopplers

Tue, 28 Jul 2009 08:00:00 +0100

Wellingborough, UK – 28^th July 2009 – The fetal doppler markets in the developed regions of the world are at a stage of saturation, with sales being mainly replacement in nature. However, investment in new hospitals and healthcare facilities in the developing regions like Eastern Europe, Middle East, China, Indonesia, India, etc. is driving growth in the world market. A new report from InMedica titled “World Market for Fetal Monitors and Fetal Dopplers – 2009 Edition” predicts that the fetal dopplers market in the developing countries is likely to grow at a CAGR of 4.5% (between 2008 and 2013), compared to the developed countries of the world where the market is forecast to decline at a CAGR OF 1.5% over the same period.

Neha Khandelwal, Market Analyst highlights that “The potential number of target customers given the huge population and high birth rates in the developing countries across the world is attracting the attention of a number of the major manufacturers. Accordingly, the leading manufacturers in the industry like Huntleigh Healthcare, Summit Doppler, Ultrasound Technologies, etc. are investing in establishing and strengthening their distribution networks in the developing markets. Market penetration of foreign players in the developing region is therefore likely to increase.”

It is important to note that the multinational companies are not only developing marketing strategies for their existing doppler range for these markets but are also investing in the design and production of dopplers that are suitable to the social and economic environment of these regions. A case in point is the investigation into the production of battery free dopplers. As many countries in the least developed regions of the world still have limited access to power sources, some manufacturers are investigating fetal dopplers that are battery free. It is thought that a winding mechanism is most appropriate, although there is potential for development of other forms of energy harvesting also.

According to the World Health Organisation, more than half a million women die due to pregnancy related complications worldwide every year. A total of 99% of all these maternal deaths occur in developing countries. This technology can, therefore, provide considerable benefits in the rural areas of the developing markets. However, Neha continues “…it is important to note that this technology is unlikely to have any significant uptake in the developed countries.”

80% of X-Ray Specialists Feel that Workflow Has Improved

Mon, 27 Jul 2009 08:00:00 +0100

Wellingborough, UK – 27^th August 2009 – An extensive survey by InMedica on the use of X-ray equipment in European hospitals and imaging centres found that 85% of general radiography specialists felt that improvements in X-ray over the past 3 years had changed the way they work.

When asked to rate the most improved features of X-ray equipment in the last 3 years, nearly 80% of respondents felt that work-flow had improved the most, closely followed by ‘ease of use’ (67%) and archiving (66%). However, 46% of respondents requested further improvement to the ‘ease of use’ of equipment to help improve work-flow. In addition, almost 35% of respondents stated that improvements in IT integration and communications with PACS/RIS packages would simplify processes and aid work-flow.

Growing awareness for the requirement to reduce the radiation dose to patients whilst continuing to improve image quality resulted in high image quality and low dose/ high DQE (detective quantum efficiency) being rated as the most important features of a general radiography system. Tomosynthesis was perceived to be much less important, with very few respondents rating it as a ‘very important’ feature.

Working in partnership with a number of leading equipment manufacturers, InMedica designed a series of questionnaires to gather direct feedback from doctors specialising in general radiography & fluoroscopy. Doctor’s opinions were gathered on the equipment they were using, the examinations they were performing and views on system improvement and affect on work-flow. The results from the survey are presented by InMedica in the report, ‘European Customer Insights – X-Ray in General Radiography & Fluoroscopy’.

Digital X-Ray - Mammography Following General Radiography's Lead

Mon, 27 Jul 2009 08:00:00 +0100

Wellingborough, UK – 27^th July 2009 – An extensive survey by InMedica on the use of X-ray equipment in European hospitals and imaging centres revealed that the majority of the general radiography equipment currently being used is digital, with over 95% of respondents using a digital radiography system. The trend to digital in mammography is following suit, with 60% of the mammography specialists surveyed currently using a digital mammography system.

Digital mammography is fast becoming the preferred choice of equipment with an increasing number of hospitals and imaging centres upgrading existing equipment to digital or purchasing a new digital system. Respondents highlighted a preference for flat panel detectors (used by 40% of respondents) over computed radiography detectors (used by 20% of respondents) for use with their full field digital mammography systems. Price was cited as the most common reason why CR was purchased instead of FPD.

InMedica’s survey also found that 30% of mammography specialists felt that by progressing to digital mammography, their work-flow would be greatly improved, with improved image quality and faster development times being cited as the main reasons for improvement.

Working in partnership with a number of leading equipment manufacturers, InMedica designed a series of questionnaires to gather direct feedback from doctors specialising in general radiography, fluoroscopy and mammography. Doctor’s opinions were gathered on the equipment they were using, the examinations they were performing and views on system improvement and affect on work-flow. The results from the surveys are presented by InMedica in the reports, ‘European Customer Insights –X-Ray in General Radiography & Fluoroscopy, and Mammography’.

X-ray Insights Survey Raises Nearly £1000 for Charity

Wed, 06 May 2009 08:00:00 +0100

Wellingborough, UK – 6^th May 2009 – InMedica recently carried out an extensive survey of radiographers and mammography specialists at European hospitals to evaluate their current and planned use of x-ray equipment. As an incentive to take part in the research, InMedica offered a donation to charity for every completed survey. Over 300 people took part in the research, raising £921 for a selection of charities; including Breast Cancer Care, Cancer Research and UNICEF.
InMedica would like to thank all those who participated in the research. The results are now being used by manufacturers of X-ray equipment to help guide their future development of new products.

Pockets of Growth Forecast for Medical Imaging Equipment Market Amid Recession

Fri, 03 Apr 2009 08:00:00 +0100

Wellingborough, UK – 3^rd April 2009 – Despite the current downturn in the global economy, opportunities for growth in the medical imaging equipment market have been highlighted in the first edition of InMedica’s report, “Medical Imaging Production Yearbook”. Forecast to exceed $22 billion by 2012, the combined market for ultrasound, X-ray, MRI and CT imaging equipment is forecast to continue to expand in an environment where restrictions in healthcare spending and reductions in reimbursement are ever-increasing.

While the dynamics of this market vary significantly between modalities, greatest opportunities for growth exist at the lower-end of the imaging equipment market. The markets for ultrasound and X-ray equipment are both forecast to grow during the recession, while the outlook for the MRI and CT markets is less promising and these markets are likely to contract. The high price of these scanners is the greatest barrier to growth, although some manufacturers are reacting to the current market climate by introducing lower priced models. Ongoing developments at the high-end of these markets, such as 64-slice CT scanners and ultra high field MRI scanners, will ensure that these markets return to growth as the economy start to recovery.The adoption of digital technologies has fuelled growth in all areas of the global X-ray equipment market, and continues to do so. “Healthcare informatics and the increasing use of PACS and RIS in both clinic and hospital environments has also added weight to the transition from analogue to digital”, commented Diane Wilkinson, Market Research Analyst at InMedica. For ultrasound, by far the strongest growing segment of the market is hand-carried equipment. This market is forecast to grow at a revenue CAGR of 18.4%, over the period 2007 to 2012. “The flexibility, ease of use and relatively low cost of ultrasound has ensured continued growth in the market despite the current economic conditions” continued Wilkinson. “Hand-carried ultrasound equipment is evolving to adapt to any given environment. The need to maximise on space, time and efficiency is driving an increase in sales of application-specific hand-carried ultrasound units”.

Technologies that will have the greatest impact in the medical imaging equipment market over the next few years are those which allow changes to clinical pathways that will eliminate unnecessary diagnostic procedures, dramatically reduce the cost of healthcare and increase diagnostic accuracy for patients, while at the same time limiting the radiation and contrast dose received by patients.

Strong Growth Forecast for Chinese Medical X-Ray Equipment Market

Mon, 30 Mar 2009 08:00:00 +0100

Shanghai, China – 30^th March 2009 – A new report from InMedica, “The Chinese Market for X-Ray Equipment” predicts that the Chinese market for X-ray equipment will reach $873.0 million by 2012, representing a forecast CAGR of 9.3%. China’s strong economic growth and increased expenditure on public healthcare, coupled with the transition from analogue to digital systems, are the two main driving forces.

“The demand for low-end X-ray equipment, such as analogue general radiography, will remain fairly stable over the next few years because the Chinese government will keep investing in rural healthcare, which often lacks basic medical equipment. However, there is tremendous demand for high-end X-ray equipment, especially mobile C-arms and digital radiography”, said Owen Tang, a Shanghai based analyst of InMedica. “In fact, shipments of digital radiography systems (FPD and CCD) in China are forecast to almost triple over the period 2007 to 2012”.

Multinational companies play a key role in China’s high-end X-ray equipment market, including cardiovascular, fluoroscopy, mobile C-arm and digital radiography. For example, more than 80% of the digital radiography market is served by multinational suppliers. The third level hospitals have strict requirements for X-ray equipment and the local manufacturers find it hard to compete. The local manufacturers of digital radiography systems, such as Beijing Wandong and Beijing Zhongke Meilun, mainly compete in the low-end of the market with systems priced under $100,000. These are well suited to China’s many second level hospitals.

Distributors play a key role in the Chinese X-ray equipment market, as Chinese style customer relationships are extremely important. It is estimated that more than 85% of equipment sales are through distributors.

Opportunities Prevail in the Chinese Medical Electronic Industry

Thu, 05 Mar 2009 08:00:00 +0000

Shanghai, China – 5^th March 2009 - Despite the negative effects of the world’s financial crisis, the medical electronic equipment market will grow steadily in China, according to latest data from IMS Research. The total medical electronic equipment market, including X-ray, ultrasound imaging, magnetic resonance imaging (MRI), and computed tomography (CT) equipment will is forecast to grow to 16.4 billion CNY by 2012, with a five-year CAGR of over 11%.

Market analyst Wilmer Zhou commented “in order to prevent large declines in the economy, the Chinese government continues to introduce policies and stimulus plans to help maintain demand. Several policies are directly targeted at the medical equipment industry including China's Rural Cooperative Medical System Plan to renovate hospital buildings and upgrade equipment in rural area; the New Medical Reform Plan that promised to spend 850 billion RMB by 2011 to provide universal medical service to Chinese people; additionally, in the Ten Measures to Stimulate Domestic Demand, the government indicates it will beef up the health and medical service by improving the grass roots medical system. All of these initiatives will help contribute to continued positive growth for medical electronics in China.”

In the rural area, the government plans to spend 8.3 billion RMB to purchase new medical equipment including x-ray, ultrasound imaging, patient monitor, and biochemical analyzers from 2008 to 2010. There are about 5,500 hospitals and small health centres in China, and 70% of the x-ray and ultrasound equipment used in these small health centres was made before the mid-80s. Due to this equipment replacement and also the continuance of the region’s birth peak, the ultrasound equipment market is forecast to grow to 4.7 billion CNY by 2012. Further, in the cities more and more people are increasingly caring about their health, and as a result the demand for high-end medical equipment (i.e. CT and MRI equipment) is expected to increase rapidly as their prices decrease.

Top medical electronic companies in global market such as GE, Siemens, Philips, Toshiba and Carestream have already set up factories and R&D departments in China to support this demand. Over the last several years, these companies continuously increased production capacity in China. Chinese local companies Mindray, Wandong and Neusoft also have the strong capability to develop and produce medical electronic equipments, and are well positioned to benefit from these favourable government-led investments.

The “Chinese Yearbook of Electronics- 2009 edition” examines the Chinese market and production for over 55 selected electronic end-equipment types in the fields of Automotive, Consumer Electronics, Communications, Computer & Office Equipment, Industrial Electronics and Medical Electronics. Forecasts for the next five years are also provided in the report. The report also includes detail suppliers profiles, big industry events in 2008 and government policy & stimulus plan by different industry.

Ultrasound Market Presents Opportunities for Growth Despite Recession

Wed, 04 Feb 2009 08:00:00 +0000

Wellingborough, UK – 4^th February 2009 – Despite the current economic downturn, the third edition of InMedica’s report on the global ultrasound market predicts that worldwide revenues will continue to experience robust growth and exceed $6 billion by 2012. The flexibility, ease of use and relatively low cost of ultrasound equipment has ensured continued growth in the market despite the current economic conditions. Moreover, the trend to miniaturisation and the quick adoption of hand-carried ultrasound equipment is fuelling growth.

“There is an increasing confidence in hand-carried systems globally. Previously the adoption of these systems was much quicker in North America and Western Europe but other regions of the world such as Eastern Europe, Latin America and parts of the Asia Pacific, are beginning to show significant interest in this equipment. The demand is coming from traditional applications, such as OB / GYN, and increasingly from point-of-care applications” reported Diane Wilkinson, Market Research Analyst at InMedica. “The global ultrasound market is being driven by the need to maximise space, time and efficiency and hand-carried systems are evolving to adapt to any given environment. This can be seen by an increase in the number of hand-carried products designed for specific applications, such as nerve blocking, musculoskeletal and breast imaging”, continued Wilkinson.

The down-turn in the economy is also favouring the lower-end of the cart-based ultrasound equipment market with greatest growth found in the mid-range segment, and higher than usual growth forecast for the low-end segment, particularly in 2009. There is a step wise movement away from very high-end systems due to the increasing functionality and picture quality of systems at the lower end of the market. The improving quality and functionality of lower-end systems is helping to stabilise prices in an otherwise price competitive market.

Colour Ultrasound Imaging Equipment Rapid Growth in China

Thu, 30 Oct 2008 07:00:00 +0000

Shanghai, China – 30^th October 2008 – China’s market for ultrasound equipment is set to grow by over a third to $620 million in the four years to 2012, although unit shipments will remain static. This is a key prediction from a new report from InMedica, “the Chinese Market for Ultrasound Imaging Equipment”.

China’s strong economic growth is funding increased expenditure on healthcare. “As the price of colour ultrasound equipment falls, there will be a wave of replacement of black and white systems“, predicted Owen Tang, market research analyst. “Colour equipment is forecast to increase from 14.5% of the total ultrasound equipment shipments in China in 2007, to 43% in 2012. Shared service is the main application for most ultrasound imaging equipment in China; this is determined by the structure of the healthcare institutions.”

As economic development is uneven across China, so too will be the demand for ultrasound imaging equipment. “Big cities, such as Beijing and Shanghai, and some economic strong provinces, such as Zhejiang, Jiangsu, Shandong and Guangdong, have a strong demand for high-end and premium colour equipment,” commented Tang. “These regions contribute more than half of the total revenues in China of many manufacturers”.

Multinational companies play a key role in the colour ultrasound equipment market in China, especially in the high-end segment. Although local manufacturers are now active in colour equipment, they focus only at the low end of the market. At present, less than 10% of market revenues from local suppliers comes from colour equipment. With their cost advantage, better understanding of the competitive environment, and government policy to support domestic companies, local manufacturers are poised to achieve a much greater market share in the next five years.

Refurbished MRI Equipment Presents Greatest Challenge to New Systems MRI Market

Fri, 01 Aug 2008 08:00:00 +0100

Wellingborough, UK – 1^st August 2008 – Highlighting the growing need for cost-effective MRI systems for use in routine imaging, a new report from InMedica, the ‘World Market for MRI Equipment’ predicts that the global market for MRI equipment will reach $3,474.8 billion by 2012, representing a forecast CAGR of 0.8%. While there is evidence of a trend towards higher-field strength systems, the dominant driver of market growth lies in the need to minimise costs while increasing patient throughput and this had led to growth in the ‘economy’ segments of the market.

“As 1.5T systems have replaced lower field strengths as ‘standard’ in today’s MRI market, so the market is expected to see the greater use of higher-field strength systems” reports Diane Wilkinson, market research analyst. “It is expected that 3.0T systems will eventually become an industry standard”. However, the uptake of 3.0T systems is restricted by reimbursement legislation. “The return on investment (ROI) is still much greater for 1.5T systems than compared to 3.0T systems. In the current cost-conscious healthcare environment, improved functionality is balanced with ROI” commented Miss Wilkinson.

Cost containment pressures and reductions in reimbursement rates have fuelled the need for cost-effective systems for use in routine imaging. While there is a developing ‘economy’ segment of the new equipment market, it is the market for refurbished MRI equipment that has seen tremendous growth in the last few years. Its impact on the new systems market is evident in the low growth forecast for the new systems market, with a CAGR of just 0.8%. In addition, while the refurbished MRI equipment market is strategically important in regions with developing healthcare systems such as Eastern Europe or Latin America, the market is also growing in the more established markets. In fact in 2007 the largest market for refurbished MRI equipment was found to be the US. The market for refurbished systems presents one of the greatest challenges to the global new systems MRI market.

75% of doctors would like additional training on how to use ultrasound.

Wed, 28 May 2008 08:00:00 +0100

Wellingborough, UK – 28^th May 2008 – An extensive survey by InMedica on the use of ultrasound equipment in Western European hospitals and imaging centres has shown that 75% of doctors specialising in general radiology would like more training in how to get the best use out of their equipment.

The prevalence of obesity is making it very difficult for doctors to obtain high quality ultrasound images with an increasing number of patients. The survey showed that doctors felt that further training in image optimisation would help improve the quality of care for difficult patients. Training in advanced imaging techniques such as Doppler Imaging was commonly requested. Surprisingly, the survey showed that the majority of doctors did not know about many features of their equipment and would like to know more about basic system functionality. Doctors would like thorough training courses on the capabilities of their systems to be provided by the manufacturers as part of their purchases, with regular refresher courses offered to cover new techniques, tips and tricks.

Working in partnership with a number of leading equipment manufacturers, InMedica designed a questionnaire to gather direct feedback from doctors specialising in general radiology on the equipment they are using, the examinations they are performing, ways in which their systems could be improved and how their work is changing. The results of the survey are presented by InMedica in the report, “European Customer Insights – Ultrasound in General Radiology.”

73% of cardiologists expect to be using hand-carried ultrasound within 5 years.

Wed, 28 May 2008 08:00:00 +0100

Wellingborough, UK – 28^th May 2008 – An extensive survey by InMedica on the use of ultrasound equipment in Western European hospitals and imaging centres has shown that 73% of cardiologists expect to be using a hand-carried system within the next 5 years.

Cardiologists expect portable and hand-carried ultrasound systems to be increasingly used in emergency situations and intensive care units, which are growing applications for ultrasound. The minuturisation of ultrasound systems has fuelled their use in new areas such as emergency care, where speed and accuracy of diagnosis is crucial.

The survey also showed that cardiologists expect their work to become more mobile in future, with bedside examinations expected to become common practice. Out-patient examinations were also expected to become much more regular. By taking ultrasound to the patient, waiting times will be reduced as all scans will not have to be referred to overstretched imaging departments. Screening and minor scans will be performed using portable equipment, often by non-imaging specialists, only referring patients to the imaging departments for in-depth scans for serious conditions. The increased use of ultrasound, particularly in new applications, will raise the overall quality of care.

Working in partnership with a number of leading equipment manufacturers, InMedica designed a questionnaire to gather direct feedback from cardiologists on the equipment they are using, the examinations they are perfoming, ways in which their systems could be improved and how their work is changing. The results of the survey are presented by InMedica in the report, “European Customer Insights – Ultrasound in Cardiology.”