The teleradiology market is projected to register a CAGR of 16.8% during the forecast period.
The COVID-19 pandemic has been continuing to transform the growth of various markets, the immediate impact of the outbreak is varied. While a few industries registered a drop in demand, numerous other markets may continue to remain unscathed and show promising growth opportunities. In the COVID-19 pandemic situation, the teleradiology systems are widely adopted for sharing study observations and details information that was gathered during the treatment of COVID-19 patients. This has helped in preventing the exchange of hard copies of imaging results as well as avoid in-person contacts. Moreover, several international teleradiology alliances of radiologists are expected to fuel the speed of clinical trials and studies on preventive measures.
Furthermore, initially due to lockdown and hold on elective imaging services, there was decrease in teleradiology services being observed. However, as restrictions ease, the rate of elective imaging services will gradually rise.
The major factors responsible for the growth of the teleradiology market include the rising number of imaging procedures, development of IT infrastructure and rise in healthcare expenditure along with the increasing prevalence of osteoarthritis and chronic diseases.
According to the GLOBOCAN, 2020, about 19.3 million new cases of cancer were reported worldwide and this number is expected to reach 30.2 million new cases in the year 2040. Globally, about 1 out 6 deaths are due to cancer, as per the World Health Organization factsheet. Further, about 70% of deaths from cancer occur in low- and middle-income countries. The rising prevalence of chronic conditions such as cancer are increasing the diagnostic imaging procedural rate. Hence, the rising number of imaging procedures will boost the demand for reliable and efficient teleradiology solutions resulting in high growth of the market. The teleradiology is the transmission of images such as X-rays, CTs and MRIs for the purpose of sharing information with radiologists or physicians from one location to another.
As per National Health Expenditure Projections 2018-2027, national health spending is projected to grow at an average rate of 5.5 percent per year for 2018-27 and to reach nearly USD 6.0 trillion by 2027 in the United States. The increasing healthcare expenditure is positively influencing the overall market growth.
Teleradiology solutions have demonstrated the ability to enhance health outcomes and reduce costs. Telemedicine has been decreasing the cost of healthcare, while increasing efficiency through improved management of chronic diseases, reduced travel times, and fewer and shorter hospital stays.
Moreover, Teleradiology allows trained professionals 24/7 service and is also easily accessible to the rural population. Specific software enables patients to transmit images, and thus, allows the radiologist to effectively analyze the case study. Thus, there are many benefits with the usage of teleradiology services, like reduced cost, increased coverage, and timely interpretations, which, in turn, are the driving factors for this market.
Key Market Trends
Software is the Segment by Component which is expected to register fastest growth over the forecast period
COVID-19 pandemic has high affected teleradiology services. However, as the fight against coronavirus continues, there is an increasing need to make teleradiology solutions more common among radiologists. These services give radiologists the opportunities to interpret images and communicate with physicians electronically while working remotely.
Teleradiology can be used either for scanning a patient and storing the image to show it to the doctor later (when the doctor is not available), or it can be used for sending the images, generated from mobile imaging systems in remote areas, to the doctors in hospitals. Furthermore, most of the software makes use of technologies like data compression, as most of the radiologists need to be able to share detailed, high-resolution images.
The company Direct Radiology is offering automation intelligence software to enhance its teleradiology offering. The technology developments include Automated Query Retrieve, Monitoring and Automated Uptime, and Reverse DICOM Report Delivery. In addition in March 2019 the company Royal Philips had announced the expansion of advanced teleradiology services. The new teleradiology sevices are built on its cloud-based radiology informatics portfolio of Picture Archiving and Communication Systems (PACS) and Vendor Neutral Archive (VNA) solutions.
Similarly in November 2019, Nines, a teleradiology, and AI startup unveiled its software platform and has raised USD 16.5 million funding from Series A. The funding was led by Accel and 8VC. Hence, the rising technological advancements and interoperability are expected to boost the growth of the market over the forecast period. Moreover, the rising demand for radiology procedures around the world is also expected to positively impact the growth of the market.
North America is Expected to Hold Largest Market Share over the Forecast Period
The United States is the most COVID-affected country across the world. Initially, there is increasing in demand for teleradiology services which has positively impacted the overall market growth. In addition, according to the 1135 waiver authority and Coronavirus Preparedness and Response Supplemental Appropriations Act, the Centers for Medicare & Medicaid Services (CMS) has broadened access to Medicare telehealth services which led to the access of a wider range of services among beneficiaries. Moreover, medicare can also pay for office, hospital, and other visits furnished via telehealth across the country, including in patient's places of residence starting March 6, 2020. Hence these government initiatives will also boost market growth.
Moreover, the major factor driving the growth of the teleradiology market in the North American region is the rising prevalence of chronic conditions and the presence of better healthcare infrastructure, as compared to most of the developed countries. The emergence of novel technologies, along with their adoption, is helping the United States to grow in the healthcare sector. Rising healthcare expenditure is the prime factor responsible for the growth of this sector. According to the American College of Cardiology by 2035, around 130 million adults in the United States population are projected to have some form of cardiovascular disease. Stroke prevalence in adults is 2.7% in the United States. In addition, the rising number of diagnostic procedures are increasing in the country resulting in high growth of the market. Furthermore, owing to the benefits associated with the teleradiology most of the hospitals are adopting this solution. Therefore, it is believed that due to the higher adaptability to the healthcare technology solutions, the United States will witness the largest share of the market studied.
Additionally, the high concentration of major players in the United States and increasing product launches and other strategic alliances are expected to boost the studied market. In September 2020 the company MEDNAX, Inc had announced the definitive agreement for selling its radiology solutions to radiology partners in United States. Thus, given the aforementioned factors, the teleradiology market is expected to grow significantly in North America over the forecast period.
The market studied is a fragmented market owing to the presence of various market players. The market players are involved in launching of the new products and expanding their product portfolio to strengthen their market position. In March 2019, Royal Philips has expanded its radiology solutions portfolio with innovative teleradiology services, aimed at addressing the increasing shortage of radiologists, as well as the pressing need to improve access to precision diagnoses.
Some of the market players are Agfa-Gevaert Group, Everlight Radiology, GE Healthcare, Koninklijke Philips N.V., MEDNAX, INC., Onrad, Inc., RamSoft, Inc., Teleradiology Solutions, and USARAD Holdings, Inc.
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TABLE OF CONTENTS
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Market Drivers
- 4.2.1 Rising Number of Imaging Procedures
- 4.2.2 Development of IT Infrastructure and Rise in Healthcare Expenditure
- 4.2.3 Increasing Prevalence of Osteoarthritis and Chronic Diseases
- 4.3 Market Restraints
- 4.3.1 Lack of Skilled Professionals
- 4.3.2 Security Concerns Associated with Tele-radiology
- 4.4 Porter's Five Force Analysis
- 4.4.1 Threat of New Entrants
- 4.4.2 Bargaining Power of Buyers/Consumers
- 4.4.3 Bargaining Power of Suppliers
- 4.4.4 Threat of Substitute Products
- 4.4.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
- 5.1 By Imaging Technique
- 5.1.1 X-rays
- 5.1.2 Computed tomography (CT)
- 5.1.3 Ultrasound
- 5.1.4 Magnetic resonance imaging (MRI)
- 5.1.5 Nuclear Imaging
- 5.1.6 Others
- 5.2 By Component
- 5.2.1 Hardware
- 5.2.2 Software
- 5.3 By End User
- 5.3.1 Hospitals
- 5.3.2 Diagnostic centers
- 5.3.3 Others
- 5.4 Geography
- 5.4.1 North America
- 220.127.116.11 United States
- 18.104.22.168 Canada
- 22.214.171.124 Mexico
- 5.4.2 Europe
- 126.96.36.199 Germany
- 188.8.131.52 United Kingdom
- 184.108.40.206 France
- 220.127.116.11 Italy
- 18.104.22.168 Spain
- 22.214.171.124 Rest of Europe
- 5.4.3 Asia-Pacific
- 126.96.36.199 China
- 188.8.131.52 Japan
- 184.108.40.206 India
- 220.127.116.11 Australia
- 18.104.22.168 South Korea
- 22.214.171.124 Rest of Asia-Pacific
- 5.4.4 Middle East and Africa
- 126.96.36.199 GCC
- 188.8.131.52 South Africa
- 184.108.40.206 Rest of Middle East and Africa
- 5.4.5 South America
- 220.127.116.11 Brazil
- 18.104.22.168 Argentina
- 22.214.171.124 Rest of South America
6 COMPETITIVE LANDSCAPE
- 6.1 Company Profiles
- 6.1.1 Agfa-Gevaert Group
- 6.1.2 Everlight Radiology
- 6.1.3 GE Healthcare
- 6.1.4 Koninklijke Philips N.V.
- 6.1.5 MEDNAX, INC.
- 6.1.6 Onrad, Inc.
- 6.1.7 RamSoft, Inc.
- 6.1.8 Teleradiology Solutions
- 6.1.9 USARAD Holdings, Inc.
- 6.1.10 Cybernet Medical Corporation
- 6.1.11 4ways Healthcare Ltd.
- 6.1.12 HealthWatch TeleDiagnostics Private Limited
- 6.1.13 CARESTREAM HEALTH, INC
7 MARKET OPPORTUNITIES AND FUTURE TRENDS