Report: OEM manufacturers lose market share, replaced by ISOs
Independent service organizations (ISO) will increase their U.S. market share over the next few years, while original equipment manufacturers (OEM), which currently hold a dominant share in the market, may witness a drop-off due to tight budgets for radiology departments, according to a report from Millennium Research Group (MRG).
The report--which offers information on annual service contracts and parts revenues for CT, MRI, ultrasound and general radiography systems, as well as a five-year growth forecast for each market--found that as imaging facilities are under pressure to cut costs and as reimbursement cuts impact profits, facilities are moving away from large-scale OEM vendors in favor of ISOs which can be up to 30 percent less expensive than OEM vendors.
Although large-scale vendors are able to service equipment they manufacture as well as products made by other companies, ISOs are marketing themselves as more flexible for customers, according to MRG.
In addition to projected growth, this market will also witness further consolidation as bigger ISOs will complete acquisitions and achieve more rationalized parts inventories to minimize the downtime of imaging scanners and achieve economies of scale, stated the Toronto-based firm.
The report--which offers information on annual service contracts and parts revenues for CT, MRI, ultrasound and general radiography systems, as well as a five-year growth forecast for each market--found that as imaging facilities are under pressure to cut costs and as reimbursement cuts impact profits, facilities are moving away from large-scale OEM vendors in favor of ISOs which can be up to 30 percent less expensive than OEM vendors.
Although large-scale vendors are able to service equipment they manufacture as well as products made by other companies, ISOs are marketing themselves as more flexible for customers, according to MRG.
In addition to projected growth, this market will also witness further consolidation as bigger ISOs will complete acquisitions and achieve more rationalized parts inventories to minimize the downtime of imaging scanners and achieve economies of scale, stated the Toronto-based firm.