Report: DR market hampered by recession

Image source: Professional Radiology, Inc.

Due to recent declines in medical imaging reimbursements, which have led to cutbacks in healthcare expenditures, budgetary constraints and postponement of equipment replacement decisions, the digital radiography (DR) market has declined, according to a report released by market research publisher Global Industry Analysts (GIA) Sept. 13.

“The prolonged world economic recession has taken its toll on the DR market,” stated the report.

Despite the downward trend, however, the report noted that the ability to electronically store, archive, retrieve and transmit images in today’s diagnostic environments requires DR technologies.

By 2012, the San Jose, Calif.-based GIA has predicted that the U.S. DR market, which represents the largest DR market, will reach 1,126 units sold, and the world market will reach $742.8 million by 2015. 

Rising awareness of the importance of quality healthcare, as well as governmental support, greater emphasis on developing healthcare infrastructure and the ability of the patient population to increasingly afford quality health services are factors the report credits with the “cushioned fall” of DR growth in developing markets. 

High-end flat panel detector-based DR systems sales are currently experiencing the greatest setback, due to reduced federal funding and declines in philanthropic donations to hospitals used toward investments in medical equipment, offered the report. 

But not all markets have exhibited declines in the DR market, said GIA, noting that China “emerges tall over the horizon with strong growth forecasted in the field of radiography.”

In order for DR providers to ensure sustainability during the current business environment, the report suggested a shifted focus toward product life cycle management and the provision of easy financing options. As a result of these DR trends, DR retrofits existing alongside analog x-ray systems and older computed radiography (CR) rooms have resulted in several conventional CR vendors adding thin-film transistor flat panel based DR products to their offerings, said the report.

“Even though the growth variables remain temporarily suspended, a quick resurgence is forecasted in the post recession period with recovery in equipment utilization rates, rebound of replacement demand and favorable healthcare reforms that push patient throughput volumes,” the report concluded.