LONDON, August 7 /PRNewswire/ -- Amidst challenges such as price erosion, reduced hospital beds, lack of radiologists and a trend towards multi-modality deals, novel picture archiving and communication systems (PACS) and digitisation initiatives are spurring growth in the European medical imaging market. As this scenario sets the stage for greater consolidation, uncertainty remains over whether traditionally strong participants will continue to dominate their smaller competitors.
“Consolidation in the medical imaging industry in Europe will be driven by a continued movement towards complete digitisation of the radiology department and workflow integration through PACS,” explains Frost & Sullivan (http://www.medicalimaging.frost.com) Research Analyst Karthik Arun B. “The need to reduce costs and, at the same time, maintain the high standards of quality expected from medical imaging equipment will further influence the trend towards consolidation.”
Alliances and acquisitions by various industry participants over the past three years indicate a definite trend towards vertical integration. Most participants are looking to integrate or align themselves with independent PACS developers as well as sub-system producers. Based on the current scenario, this trend is set to continue for the next three to four years.
Given the prevalence of strict legislation and the presence of strong Tier 1 participants, however, consolidation is unlikely to be an easy task. Moreover, issues such as cultural integration, change management as well as certain reimbursement rules could hamper potential consolidation in the medical imaging industry in Europe.
“The increasing trends towards price reduction is minimising the bottom lines for companies,” observes Mr. Karthik. “In addition, regulatory policies such as reimbursement rules that restrict the use of certain modalities in favour of others also have a strong impact on consolidation.”
The challenge for market participants, therefore, will be to enter into mutually beneficial partnerships with other participants. Companies should look to acquire or form alliances with others that can help them broaden their product portfolio rather than increase their market share.
“By expanding their product portfolio, smaller companies can hope to actively compete with the larger multi-modality vendors,” elaborates Mr. Karthik. “With the growing trend towards institutions offering large multi-modality tenders, vertical integration will also help to reduce costs and provide a more efficient deliverable.”
If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the latest analysis of the Company Profiles and Consolidation in the European Imaging Industry (H028- 50) then send an e-mail to Radhika Menon Theodore- Corporate Communications at rmtheodore@frost.com with the following information: your full name, company name, title, telephone number, e-mail address, city, state, and country. We will send you the information via email upon receipt of the above information.
Company Profiles and Consolidation in the European Imaging Industry is part of the Medical Imaging Subscription, which also includes research in the following markets: European Markets for Key Medical Imaging Modalities and Emerging Geographic Markets for Medical Imaging Equipment in Europe. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.
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Contact: Radhika Menon Theodore Corporate Communications - Europe P: +91-44-42044541 F: +91-44-24314264 E: rmtheodore@frost.com Melina Trevino Corporate Communications - Americas P: +1-210-247-2440 F: +1-210-348-1003 E: melina.trevino@frost.com Surbhi Dedhia Corporate Communications - India P: +91-22-5001-3431 E: sdedhia@frost.com Jasminder Kaur Corporate Communications - Asia Pacific P: +65-68900937 E: jkaur@frost.com Sharmin Jassal Corporate Communications - Australia P: +61-2-8247-8900 F: +61-2-9252-8066 E: sjassal@frost.comwww.frost.com
Keywords in this release: picture archiving and communication systems, PACS, digitisation initiatives, medical imaging, European medical imaging markets, Europe, markets, radiology, workflow integration, medical imaging equipment, independent PACS developers, vertical integration
Frost & Sullivan
CONTACT: Contact: Radhika Menon Theodore, Corporate Communications -Europe, P: +91-44-42044541, F: +91-44-24314264, E: rmtheodore@frost.com.Melina Trevino, Corporate Communications - Americas, P: +1-210-247-2440, F:+1-210-348-1003, E: melina.trevino@frost.com. Surbhi Dedhia, CorporateCommunications - India, P: +91-22-5001-3431, E: sdedhia@frost.com.Jasminder Kaur, Corporate Communications - Asia Pacific, P: +65-68900937,E: jkaur@frost.com. Sharmin Jassal, Corporate Communications - Australia,P: +61-2-8247-8900, F: +61-2-9252-8066, E: sjassal@frost.com
