Global Computed Tomography Market to Reach $5.9 Billion by 2019
“Computed tomography (CT), sometimes called ‘computerized tomography’ or ‘computed axial tomography’ (CAT), is a noninvasive medical examination or procedure that uses specialized X-ray equipment to produce cross-sectional images of the body,” according to the U.S. Food and Drug Administration. “Each cross-sectional image represents a ‘slice’ of the person being imaged, like the slices in a loaf of bread. These cross-sectional images are used for a variety of diagnostic and therapeutic purposes.”
“CT scans can be performed on every region of the body for a variety of reasons (e.g., diagnostic, treatment planning, interventional, or screening). Most CT scans are performed as outpatient procedures,” according to the FDA.
CT can be used to treat cancer and other diseases.
“In addition to its use in cancer, CT is widely used to help diagnose circulatory (blood) system diseases and conditions, such as coronary artery disease (atherosclerosis), blood vessel aneurysms, and blood clots; spinal conditions; kidney and bladder stones; abscesses; inflammatory diseases, such as ulcerative colitis and sinusitis; and injuries to the head, skeletal system, and internal organs,” according to the National Cancer Institute. “CT can be a life-saving tool for diagnosing illness and injury in both children and adults.”
The global Computed Tomography (CT) market is forecast to reach $5.9 billion by 2019, according to a report from GBI Research.
“Driven by supply-side initiatives to improve workflow, enhance image quality and reduce patient discomfort, the global computed tomography (CT) market is expected to increase from $3.8 billion in 2012 to $5.9 billion by 2019, at a Compound Annual Growth Rate (CAGR) of 7 percent,” according to business intelligence provider GBI Research.
The report states that four companies combined to account for more than 75 percent of the CT market in 2012. The four Original Equipment Manufacturers (OEMs) that shared the majority of the market were GE Healthcare (22.5 percent share), Siemens Healthcare (22.1 percent), Toshiba Medical Systems Corp. (17.9 percent) and Philips Healthcare (13 percent).
The market leaders are poised to advance their offerings and business operations in developing countries, especially in Asia.
“These top firms are focusing on expanding their manufacturing facilities into developing countries such as India and China in order to increase revenue,” according to GBI Research.
“Companies such as Siemens Healthcare and GE Healthcare have set up manufacturing facilities not only to meet domestic demand, but also to export CT equipment to developed countries. This move is expected to significantly reduce the operating costs of these firms, which will have a cascading effect on improving profit margins,” says Rashmi Nishtala, GBI Resarch’s Analyst covering Medical Devices,.
Another factor expected to impact the CT market are new advances in technology.
Features dealing with reduced imaging time and radiation dose are also expected to increase growth in the CT market.
“New technology, such as dynamic volume CT, significantly reduces image acquisition time, which enables imaging centers to handle higher volumes of procedures, as well as reducing radiation doses by up to 80 percent,” Nishtala says.
However, cost-cutting measures and limited reimbursement rates are expected to create some difficulty for the CT market. Health care reforms in the U.S. are impacting reimbursement rates and thus affecting the CT market. Reimbursement is also substantially lower across Europe, with varying rules applying to different countries in the region.
“This situation is not limited to the developed countries, but is also characteristic of developing nations, where the lack of adequate reimbursement is a major market deterrent, as patient access to compensation or health insurance is limited. Sadly, the majority of high-end screening techniques, including CT scanning, have to be paid for out-of-pocket,” Nishtala concludes.
M.I.T. earned the Preferred Vendor status for Computed Tomography in April’s Medical Dealer magazine. You can view all of the Preferred Vendors by visiting by pages 29-31 of Medical Dealer’s digital issue.
Article originally appeared in Medical Dealer on April 1, 2015.
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