global trends and transitions shaping the future of medical imaging equipment
TRANSCRIPT
Global Trends and Transitions Shaping the Global Trends and Transitions Shaping the Future of Medical Imaging EquipmentFuture of Medical Imaging Equipment
Revenue sustainability: a function of portfolio mix Revenue sustainability: a function of portfolio mix and geographic targetingand geographic targeting
Roberto G. Aranibar, Sr. Industry Analyst
© 2013 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of
Frost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.
Roberto G. Aranibar, Sr. Industry Analyst
Healthcare – Medical Imaging
April 25, 2013
Today’s Presenter
Industry Expertise
• Experience in technical and business roles within the medical
industry, leveraging broad perspectives on medical imaging and
device markets with clients and industry stakeholders
• Coverage of clinical and preclinical imaging equipment markets,
including general and mammographic X-ray, CT, ultrasound, MR,
nuclear medicine, PET, and preclinical animal imaging
Functional ExpertiseRoberto G. Aranibar
2
Functional Expertise
• 9 years of experience with medical technologies, including
technical and clinical support of medical device sales and
graduate studies in biomedical engineering
• Particular expertise in:
− Ophthalmological applications of optical coherence tomography
− Implantable cardiac rhythm & disease management devices
Education
• MSE, Electrical Engineering, University of Texas at Austin, 2006
• BS, Engineering Science, Trinity University, 2004
Roberto G. Aranibar
Sr. Industry Analyst,
Medical Imaging
Frost & Sullivan
North America
San Antonio, TX
Occasion for Briefing
• Global perspective is becoming more
critical to success and continued growth in technology-driven markets
− Market participants can no longer
rely solely on revenue streams from former ‘cash cow’ markets
• Briefing based on research for 2013 Global Medical Imaging Equipment
3
− Puts pieces of the puzzle together, providing a ‘big picture’ analysis that facilitates strategic business decisions
• Objectives of this briefing:
− Present key findings and conclusions gathered through research
− Inform industry stakeholders of important trends and transitions that are
currently underway in the global medical imaging equipment market
Frost & Sullivan leverages a global network of 1,800+ analysts across
40+ offices on six continents, providing broad and global perspectives
in its market coverage.
Global Medical Imaging Equipment Market Outlook study
− Collaborative, multi-regional effort
Source: Frost & Sullivan analysis.
I. Market Splits
II. Market Trends
III. Market Outlook
Focus Points / Agenda
Global Market Perspective
Geographic regions accounting for the largest proportions of global medical imaging equipment market revenue in 2012 were North America, Europe, and Japan.
North AmericaAustralia
3%
Rest of Asia6%
Global Medical Imaging Equipment Market*: Revenue by Geographic Region, World, 2012
Total Revenue = $24.1 Billion
5
North America25%
Latin America7%
Europe19%
Middle East & Africa3%
Russia5%
India3%
China12%
Japan17%
3%
*excludes services, contrast agents, and pre-owned equipment.Note: All figures are rounded. Source: Frost & Sullivan analysis.
Emerging Markets
Global Medical Imaging Equipment Market*: Developed vs. Emerging
Market Revenue, World, 2012
Emerging Markets are very Significant!
Regional segments were classified as developed or emerging markets. Emerging market regions represented more than one-third of the global medical imaging equipment market in 2012.
Classification Region
Developed Markets
North America
Europe
Japan
Australia
6
Developed Markets
64%
Markets36%
Australia
Emerging Markets
Latin America (LATAM)
Middle East & Africa (ME&A)
Russia
India
China
Rest of Asia
*excludes services, contrast agents, and pre-owned equipment.Note: All figures are rounded. Source: Frost & Sullivan analysis.
Advanced Modalities
Total Medical Imaging Equipment Market*: Basic vs. Advanced
Modality Revenue, World, 2012
Classification Technology
Basic Modalities
General X-ray
Mammographic X-ray
Ultrasound
Basic vs. Advanced Market Size is Nearly Equal
Diagnostic imaging technologies were classified as basic or advanced modalities. Total revenue generated in basic versus advanced modality sectors was nearly equal in 2012.
7
Basic Modalities
51%
Modalities49%
Advanced Modalities
Computed Tomography (CT)
Magnetic Resonance (MR)
Molecular Imaging*
Unclassified Interventional X-ray
*Nuclear Medicine and Positron Emission Tomography (PET)
*excludes interventional X-ray, services, contrast agents, and pre-owned equipment.Note: All figures are rounded. Source: Frost & Sullivan analysis.
I. Market Splits
II. Market Trends
III. Market Outlook
Focus Points / Agenda
Opportunities and Challenges—Which Outweigh Which?
Developed Markets Emerging Markets
Op
po
rtu
nit
ies
• Formation of Accountable Care Organizations (ACOs) in US
• Remaining penetration potential in central and eastern European countries with relatively healthy economies
• Replacement market potential
• Growing importance of patient experience
• Substantial public and private investments in healthcare infrastructure development and modernization
• Expanding middle-class and growing # of insured patients and MDs per inhabitant
• Increasing disease incidence/prevalence
• Key destinations for medical tourism
9
Source: Frost & Sullivan analysis.
• Ongoing economic challenges and limited provider budgets
• New excise tax and other drastic changes in US healthcare policy
• Reduced imaging procedure reimbursement levels for providers
• Increasingly stringent regulations/oversight on use of advanced imaging equipment
Ch
all
en
ge
s
• Competition from local and pre-owned medical imaging equipment vendors
• Shortages of radiologists, physicians, radiological technicians, and medical professionals
• Substantial populations of uninsured patients
Trending Clinical Areas—Emergency Use is a Focal Point
Breast Imaging
Growing awareness of shortcomings of mammography spurring
development of newer breast imaging technologies (e.g., breast
tomosynthesis, ABUS, MBI) and driving breast imaging procedure
volumes within some modalities (e.g., ultrasound and MR)
Chest CTCT use for chest pain assessment in EDs, for cardiac angiography,
and for lung cancer screening
Point-of-care Increasing adoption of hand-carried ultrasound by non-traditional
10
Source: Frost & Sullivan analysis.
Point-of-care
Ultrasound
Increasing adoption of hand-carried ultrasound by non-traditional
clinical segments (e.g., anesthesia, critical care, pain management)
Emergency
Medicine
Hospital and FS EDs and urgent care centers showing growing
interest in ownership of X-ray, ultrasound, and CT equipment
Robotic-assisted
surgical ultrasound
Robotically-controlled intraoperative transducers being used during
laparoscopic surgeries (e.g., RAPN).
Neuro-molecular
Imaging
Introductions of novel radiotracers designed to aid in early diagnosis
of neurodegenerative conditions (e.g., Parkinson’s disease)
Tier 2/3
Others11%
Global Medical Imaging Equipment Market*: Revenue by Competitor
Type, World, 2012Market Leaders
GE Healthcare
Philips Healthcare
Siemens Healthcare
Tier 2−3 Competitors
Fujifilm Medical Systems
Hitachi Medical Systems
Competitive Dynamics
The ‘Big 3’ – GE Healthcare, Philips Healthcare, and Siemens Healthcare – generated more than three-quarters of global medical imaging equipment market revenue in 2012.
11
Market Leaders
78%
Tier 2/3 Compet-
itors11%
Tier 2−3 Competitors Hitachi Medical Systems
Toshiba Medical Systems
*excludes services, contrast agents, and pre-owned equipment.Note: All figures are rounded. Source: Frost & Sullivan analysis.
I. Market Splits
II. Market Trends
III. Market Outlook
Focus Points / Agenda
Frost & Sullivan expects global medical imaging equipment market revenue to grow at a CAGR of 4.4 percent from 2012 to 2017, reaching $29.9 billion in 2017 .
Global Market to Reach Nearly $30 Billion by 2017
25,000
30,000
Global Medical Imaging Equipment Market*: Revenue Forecast , World, 2012−2017
Total Market CAGR = 4.4%
$24.1 B
$29.9 B
13
0
5,000
10,000
15,000
20,000
25,000
2012 2017
Re
ve
nu
e (
$ M
illi
on
)
Year
$24.1 B
*excludes services, contrast agents, and pre-owned equipment.Note: All figures are rounded. Source: Frost & Sullivan analysis.
Growth to be Driven Largely by Emerging Markets
Latin AmericaRussia
India
China
12.0
CA
GR
Global Medical Imaging Equipment Market*: Revenue Outlook by Geographic Region, World, 2012−2017
Lower Revenue, Higher Growth Higher Revenue, Higher Growth
14
*excludes services, contrast agents, and pre-owned equipment.Note: All figures are rounded. Source: Frost & Sullivan analysis.
North America
Europe
Middle East & Africa
Japan
Australia
Rest of Asia
0.0
0.0 7,000.0
Re
ve
nu
e C
AG
R
Revenue
Lower Revenue, Lower Growth Higher Revenue, Lower Growth
Frost & Sullivan expects the proportion of global medical imaging equipment market revenue contributed by emerging markets to increase considerably from 2012 to 2017.
Emerging Markets to become Increasingly Significant
80%
90%
100%
Global Medical Imaging Equipment Market*: Percent Developed vs. Emerging Market Revenue, World, 2012−2017
15
0%
10%
20%
30%
40%
50%
60%
70%
2012 2017
% R
eve
nu
e
Year
Developed Markets
Emerging Markets
*excludes services, contrast agents, and pre-owned equipment.Note: All figures are rounded. Source: Frost & Sullivan analysis.
Basic vs Advanced Markets Trend Inversely in DM vs EMs
50
% A
dva
nc
ed
Mo
da
lity
Re
ve
nu
e
Global Medical Imaging Equipment Market*: Percent Advanced Modality Revenue in Developed and Emerging Market Regions, World, 2012−2017
The proportion of global market revenue represented by advanced modalities will increase in emerging markets from 2012 to 2017 but decrease in developed markets during the same period.
16
47
2012 2017
% A
dva
nc
ed
Mo
da
lity
Re
ve
nu
e
Year
Developed Markets
Emerging Markets
Global Market
*excludes services, contrast agents, and pre-owned equipment.Note: All figures are rounded. Source: Frost & Sullivan analysis.
Conclusions
Frost & Sullivan expects the proportion of medical imaging
1
Frost & Sullivan expects the proportion of global market revenue generated in emerging markets, including Latin America, Russia,
India, China, and the Middle East & Africa, to grow considerably
from 2012 to 2017.
17
+“Revenue sustainability will continue to increasingly become a
function of portfolio mix and geographic targeting”
Source: Frost & Sullivan analysis.
2
Frost & Sullivan expects the proportion of medical imaging equipment market revenue represented by advanced modalities
to increase in emerging markets from 2012 to 2017 while
decreasing in developed markets during the same period.
=
Next Steps
Develop Your Visionary and Innovative SkillsGrowth Partnership Service Share your growth thought leadership and ideas or
join our GIL Global Community
18
Join our GIL Community NewsletterKeep abreast of innovative growth opportunities
Your Feedback is Important to Us
Growth Forecasts?
Competitive Structure?
What would you like to see from Frost & Sullivan?
19
Emerging Trends?
Strategic Recommendations?
Other?
Please inform us by “Rating” this presentation.
Follow Frost & Sullivan on Facebook, LinkedIn, SlideShare, and Twitter
http://www.facebook.com/FrostandSullivan
http://www.linkedin.com/companies/4506
20
http://twitter.com/frost_sullivan
http://www.linkedin.com/companies/4506
http://www.slideshare.net/FrostandSullivan
For Additional Information
Britni Myers
Corporate Communications
Healthcare
Roberto G. Aranibar
Sr. Industry Analyst
Healthcare—Medical Imaging
21
Daniel Ruppar
Research Manager
Healthcare
Joe Stoken
Sales Manager
Healthcare