Frost: Replacements, New Clinical Applications Boost Growth of MRI Systems
August 21, 2007 // Published as a news service by IHS
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Magnetic resonance imaging (MRI) is one of the most powerful and widely employed diagnostic tools by physicians today, despite increasing pricing pressures, regulatory issues and competition from computed tomography (CT) that need to be overcome in the European MRI systems market.
Despite these challenges, the market is expected to witness growth. According to Frost & Sullivan, the scope for growth is related to the introduction of new applications.
The market is not yet saturated and there are a few unexplored niche segments, which offer huge growth potential.
Recent analysis from Frost & Sullivan found that the European MRI market earned revenues of $806.5 million in 2006, with estimates to reach $1.03 billion in 2013.
"The European MRI systems market is primarily driven by the current wide variety of applications and constant development of new ones," said Frost & Sullivan research analyst Divya B. "With continued upgrades in Tesla strength, the number of applications using MRI is increasing from the research point of view and is also becoming increasingly commercially viable."
With advancements in neurological, cardiac, vascular and breast MRI, the market is seeing growth fundamentally due to the application potential. Each new clinical application increases the use of MRI systems. Analysts said high field systems are expected to continue demonstrating strong growth, thereby replacing low field systems.
However, analysts said the current state of the European health care system is restraining market growth, with differing reimbursement policies in various geographical regions throughout the European Union (EU) are yet another challenge. Additionally, there is the inherent challenge arising due to competition with CT.
"The European health care industry is experiencing severe financial constraints from having to support an aging population, with contributions from a small portion of working population," said Divya.
"Consequently, the governments of various nations are wary of the fact that health care spending is exceedingly high and one of the interesting ways in which nations are reducing health care costs is by simply not buying additional equipment."
As the market is heading toward saturation, market participants need to concentrate on niche segments. Analysts said targeting niche markets can be either through the acquisition of existing small local participants or through the introduction of new products.
Source: Frost & Sullivan.