European PACS Market Expected to Remain Stable

The European picture archiving and communication systems (PACS) market, valued at US$568.7 million in 2008, is forecast to grow by 5.9% over the next seven years to reach $848 million in 2015. The radiology PACS market in Europe was valued at $384 million in 2008 and is projected to grow at 5.5% for the next seven years to reach $557 million in 2015, according to a market research report.

The Europe radiology market was the largest segment with 67% contribution to the total PACS market, while cardio PACS market contributed 9% in 2008, according to the market research company, Global Data (London, UK). The cardio PACS market will be the fastest growing segment in Europe at nearly 9% compound annual growth rate (CAGR) in 2008-2015 to reach $93 million in 2015. Other PACS, which include mammography PACS and orthopedics PACS, are also expected to grow slightly faster as compared to radiology PACS at 6%, to reach $198 million in 2015. The market will be driven by the late adoption of PACS in countries such as Spain, Italy, Wales, and Northern Ireland due to regional government initiatives, increased adoption amongst private practitioners, and the replacement market. Nonradiology PACS segments such as cardio PACS are expected to be driven by integration of computer-aided diagnosis/detection (CAD) with PACS.

Advancements in technology for clinical applications such as oncology PACS and surgical PACS is going to lead to greater adoption of PACS outside the radiology department over the next seven years, according to global Data.. A number of technologic advancements, in both clinical applications and workflow management tools, are being introduced that have transformed the functionality of PACS from a viewing and storage solution for images, to a crucial decision support system, according to a market report.

The need for integrated advanced diagnostic and visualization tools for nonradiology departments such as orthopedics, cardiology, oncology, and mammography will drive technologic innovation in the PACS market in Europe, according to Global Data. Moreover, a wide array of automation solutions ranging from advanced hanging protocols, intuitive work list management, and advanced volume rendering solutions for positron emission tomography (PET)/magnetic resonance imaging (MRI) scans will considerably improve efficiency and thus save time and costs in a digital environment. New products featuring reporting applications are additionally going to enhance the functionality of PACS.

Agfa-Gaevert N.V (Mortsel, Begium), Siemens Healthcare (Erlangen, Germany), and Philips Healthcare (Best, The Netherlands) remain the leading competitors in Europe's PACS market. Together, these companies accounted for 46% of the market share in 2008. Other significant market players were Carestream Health (Rochester, NY, USA), Detonator (Vsetin, Czech Republic), and GE Healthcare (Chalfont St. Giles, UK). Agfa and Philips were the market leaders and each accounted for approximately 16% of the market share in 2008. The market for PACS in Europe is quite fragmented due to the presence of local players such as Ferrania (Ferrania, Italy) and Esaote (Geneova, Italy), Vepro (Pfungstadt, Germany), and GWI (Dusseldorf, Germany), Sectra (Linköping, Sweden), and the United Kingdom. The leading players have been offering competitively priced, feature-rich products to lure more customers in a saturated market. Innovative solutions such as integrated CAD applications and reporting solutions provide effective ways for clinicians and radiologists to improve their workflow.

There is growing evidence of workflow efficiencies, improved quality of care, and cost savings being realized in a number of hospitals, which in turn, has generated interest in the adoption of PACS among general physicians and private practitioners. PACS has almost become indispensable in a digital radiology environment today, in spite of the many hurdles one may face during implementation. A number of regional PACS projects such as Hospital District of Helsinki and Uusimaa regional PACS project (HUSpacs) in Finland have shown that PACS when implemented correctly can be instrumental in not only providing superior quality of care, but also reduce costs and improve efficiency. Thus, the European healthcare provider's attitude is finally changing towards acceptance of PACS. The challenge of convincing private practitioners to invest in a good PACS is being met by vendors through customization, innovative pricing models, and providing technical support for maintenance. This is increasingly eliminating the cultural, technical, and economic difficulties faced by these healthcare providers in the past.

The Europe PACS market is expected to witness stable growth in 2008-2015 as a result of an increased focus on the use of information technology (IT) in overall healthcare, according to Global Data.

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