Reduced Healthcare Expenditure Creates Strong Growth Potential for Medical Imaging Services

The European medical imaging services market is very fragmented, highly competitive, and overwhelmed with pricing pressures. The expansion of service portfolios to include new, customized service structures will be crucial for keeping up with evolving consumer needs. The most significant challenge for market participants will be to conflate a global view with a local approach that addresses specific country market requirements, according to a recent market report.

New analysis from Frost & Sullivan (Mountain View, CA, USA), an international growth consultancy company, found that the market earned revenues of USD 6.13 billion in 2010 and estimates this to hit USD 10.1 billion in 2017. “The entire value chain offered by MES providers proves itself economically viable by reducing the capital outflow when distributed over a number of years,” noted Frost & Sullivan research analyst Kaavya Karunanithi. “There has been tremendous improvement in the spectrum of services offered in the last few years.”

Expanded service ranges offering competitive, customized systems designed for the demands of all user groups have benefited market growth. Services have been extended to cover all aspects related to medical equipment such as procurement, installation, maintenance, user training, insurance, upgrades, financial planning, performance monitoring, and asset management. The resultant reduction in equipment downtime and distribution of capital asset investment over a period of time has enabled capital savings of 15%-20%.

“There has been an increase in the range of services offered by service providers including fixed contract deals by third-party providers, asset management and financial planning, managed services, training and upgrades, managed equipment servicing and exhaustive mobile service options across all modalities,” added Ms. Karunanithi. “This reduces the costs incurred on the maintenance of hospital equipment for larger hospitals and trusts as well as saves capital investment on equipment in smaller hospitals and clinics.”

However, cost containment policies of healthcare institutions are narrowing the profit margins for maintenance and MES service providers. This is being exacerbated by the rising numbers of global and local service providers across all segments, resulting in intensified competition and price wars. Another challenge is the very fragmented nature of the European market, with each country having its own set of regulations and monetary directives.

Service providers should modify their services product range to offer best-in-class value propositions that meet the needs of various end-user groups. This will help service providers increase their market penetration. A robust marketing strategy will also support growth. “To succeed in the medical imaging services markets of Europe, it is crucial for market participants to understand local dynamics in addition to having a global vision,” concluded Ms. Karunanithi. “Minimal response times, maximum downtime reduction, alongside equipment upgrades at minimal cost, will ensure competitive success.”

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