Market Dynamics Drivers Resistors of Ultrasound Market

Market Dynamics Drivers Resistors of Ultrasound Market

Market Dynamics

Challenges

Profit margins affected by the proliferation of manufacturers

Low cost manufacturers from Asian markets, such as Mindray and Sonoscape, have resulted in an influx of many new entrants into this space. Products from these markets also meet the strict safety regulations imposed by FDA and CE certification and the companies are authorized to sell their equipment globally at competitive rates that are 25–30% less than ultrasound equipment manufactured by the Tier I companies such as GE, Philips and Siemens. In addition to radiology equipment, these companies also have a significant presence in portable and hand-held ultrasound systems. Other major participants who deal in high-end or mid-range equipment are facing a huge threat from these participants and are forced to lower their prices.

High demand for qualified ultrasound technicians

High user dependency levels in diagnostic ultrasound procedures mandate the presence of highly skilled technicians because globally there is a lack of established standards for effective ultrasound operation. It takes an extended period of time for an ultrasound technician to become sufficiently adept to exploit the full potential of an instrument. Globally, the regulatory standards for ultrasound image acquisition are underdeveloped in comparison with other imaging modalities like CT and MRI. Factors such as the inability to obtain an accurate acoustic window, and the advent of elastography and contrast-enhanced ultrasound further necessitate the need for skilled technicians. The lack of such skilled operators is likely to pose a serious challenge for the market growth globally.

Falling prices despite introduction of new technology in ultrasound

Since the 1990s, ultrasound equipment prices have fallen over 25% despite technological advances. Although cutting-edge technological introduction such as elastography, CEUS, and 3D/4D features justify increased prices, cost concerns in hospitals coupled with fierce competition from the other market participants have exacerbated the price sensitivity in this market, preventing hospitals from purchasing high-priced equipment. It has become hard for manufacturers to achieve a balance between R&D investments and cost-cutting. Adding to this problem is the threat from other imaging modalities and together these factors are forcing companies to focus more on new product development that creates specific-function ultrasound equipment that is unique in the market. The biggest challenge that is faced by the companies is to strike an appropriate balance between technological advances and price competitiveness to have the lead in the market.

Drivers

Rise in the number of private hospitals and diagnostic clinics

Demand from private healthcare practitioners especially in the areas of OB/GYN as well as in cardiology ultrasound has given a huge impetus to the market. There is specific equipment being increasingly used in the detection of hepatic fibrosis. Endoscopic ultrasound has been another area which has gained significant acceptance among practitioners across the globe. Ultrasound demand, especially for the mid-range and low-end ultrasound systems, is expected to be very lucrative owing to easy affordability.

Advances in organ-specific imaging

Organ-specific imaging gained popularity owing to the inherent risks associated with various pathologies and also the possibility of an early detection of malignant tissues, which could avert further complications. This has served as a major boost to the ultrasound market. Advances in 3D/4D imaging and elastography, coupled with developments in CEUS, have led to further strengthening in demand for ultrasound equipment across the globe. Advances in high intensity focused ultrasound, facilitating better diagnosis and treatment of breast cancer, are expected to be a strong driver for the global ultrasound market.

Strict radiation guidelines imposed by regulatory authorities favor ultrasound sales

One of the current priorities in imaging is to reduce radiation, a goal that is amply facilitated by the use of ultrasound techniques. Organ-specific ultrasound is widely used as a secondary evaluative technique after CT and MRI scanning is done. Regulatory bodies that validate medical equipment are making it obligatory to have strict safety standards on imaging equipment, especially with modalities like CT and MRI, because of the dangers of ionizing radiation. A few imaging procedures used in trauma and neurodegenerative disorders mandate the use of CT and MRI techniques. However, ultrasound techniques are continuing to evolve owing to the versatile technologies that are used in modern ultrasound machines.

Ultrasound accessories for specific applications increase revenues

There is an increasing demand for specialized ultrasound software that helps in better interpretation of the acquired image. Such software is currently being offered by conglomerates like Philips, GE, and Siemens. Manufacturers like SonoScape are offering greater than 50 specialized probes for all their ultrasound products. In addition to specialized probes being available to cater to differences in patient physiology, silicon ultrasound transducers are also available as options for use in transesophageal and transthoracic scans. All these factors are leading to dedicated probe designs and ultrasound software for post-processing images for enhanced analysis becoming crucial accessories in the ultrasound market.

Advances in volumetric and elastography technology enhance ultrasound adoption rates

3D/4D volumetric imaging features are facilitating sonologists to asses organs in real time. Some of the branches that are receiving attention include gynecology, abdominal, fetal, and urology ultrasound applications. Technological advances have reduced diagnosis time, aiding faster analysis and thereby resulting in productivity increases. Elastography images are clinically proven to be more effective than B-Mode (i.e. conventional) imaging and elastography is increasingly being used in the detection of cancer. The 3D visualization and elastography capability of next-generation ultrasound will drive the market globally.

Aging populations boost primary and secondary diagnostic ultrasound sales

The aging population has been the concern of many healthcare experts across the globe. The OECD estimates that approximately 15% of the global population is over 65 years of age. The aging male population is associated with prostrate-related disorders, which require prostate ultrasound and prostate biopsies for diagnosis. The elderly population experience several cardiac disorders and circulatory diseases across the globe. Combined with the need to reduce ionizing radiation, the deployment of ultrasound techniques to detect cardiac disorders has resulted in an increase of 18–25% in the number of cardiology studies. Business Insights is of the view that demographic factors are likely to result in a significant boost to the volume sales of ultrasound equipment across the globe.

Resistors

Most modern ultrasound procedures lack reimbursement

Endoscopic and urology-related ultrasound procedures and other organ-specific imaging procedures employing ultrasound are still not favored for reimbursement in the US and most European countries, thus making it a huge restraint in this market. Although other standard ultrasound procedures involving organs still fit into some form of fundamental reimbursement bracket, there is no reimbursement for therapeutic ultrasound procedures anywhere globally. This has hampered the growth of various clinical segments over the years and is expected to contribute to the strengthening of other imaging modalities.

Lack of standardization of modern ultrasound features

The lack of standards for terminologies in the display and other functions in the ultrasound equipment market has been a significant limiting factor in the growth of equipment featuring 3D/4D and elastography technology. Although the diagnostic ultrasound market has been greatly boosted by 3D/4D and elastography advances, the absence of a uniform standard in this market has led to vendors using their own terminologies that normally cannot be generalized in the global ultrasound market. Additionally, the prevailing guidelines for safe usage and operation of instruments based on new technology are not uniform. Hospitals and other general practitioners are hence skeptical about acquiring qualified staff to operate this advanced equipment.

Refurbished ultrasound systems in emerging markets hinder new equipment sales

An increase in the number of private practitioners in emerging markets such as India, Brazil, and China has resulted in a very high demand for ultrasound equipment. On the other hand, smaller budgets are increasingly seeing private practitioners prefer refurbished ultrasound systems that possess all the necessary features and come at a lower cost. Small hospitals in these regions also have a strong demand for such equipment. This trend is expected to affect market growth especially for the radiology and cardiology ultrasound segments that are mostly concerned with primary diagnosis.