Interventional X-Ray Market Threatened by Lower Procedural Volumes and Budget Freezes

With global revenues estimated at just over US$2.5 billion in 2009, interventional X-ray imaging equipment is an established and mature market. However, recent reports of decreasing procedural volume and capital expenditure freezes have threatened demand for interventional X-ray equipment, according to new market research.

A new report from InMedica (Wellingborough, UK), a market research company, has evaluates this trend, and highlights the future potential drivers of market recovery. 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. In spite of this, opportunities for market growth remain.

The ongoing fight to reduce healthcare expenditure in developed healthcare markets is driving demand for "cost-effective" equipment, with physicians and administrators reaching to find the balance of price vs. performance. In response, manufacturers are exploiting digital interoperability, offering combined hybrid suites in a variety of customizable 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 utilization and lower costs," explained 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 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 Mr. Holloway. "However, falling panel prices and the continued digitalization 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. Subsequently, 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."

Escalating healthcare expenditure, cost 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. Most of the investment in these regions is dedicated to the provision of fundamental healthcare services, but the potential market for advanced interventional systems is yet to be fulfilled.

Mr. 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."

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