Global Computed Tomography Market to Reach $5.9 Billion by 2019

Tuesday 5 November 2013, Amsterdam

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%, forecasts new study on ASDReports.com.

The new report states that, combined, only four companies accounted for more than 75% of the CT market in 2012. These were GE Healthcare, Siemens Healthcare, Toshiba Medical Systems Corporation and Philips Healthcare, with a share of 22.5%, 22.1%, 17.9% and 13%, respectively.

According to the study, these top firms are focusing on expanding their manufacturing facilities into developing countries such as India and China in order to increase revenue.

Rashmi Nishtala, analyst covering Medical Devices, says: “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.”

Technological advances, such as lower imaging time and radiation dose, are also expected to drive future CT market growth.

“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%,” Nishtala says.

However, cost-cutting measures and limited reimbursement rates will hinder the CT market. Currently, the American Medicare has seen frequent cuts in imaging modalities, which could discourage its usage by patients. 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,” concludes the analyst.