Adoption of Service-based Model Spurs Growth in the Global Medical Imaging Industry

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With healthcare systems around the world gradually transitioning to value-based care, the $250 billion global medical imaging industry is shifting from its traditional product-selling focus to the provision of solutions and services to adapt to the new market scenario. The ‘as-a-service’ business strategy currently being adopted by the industry, which exhibits a CAGR of 11.3%, offers market participants manifold growth opportunities.

“Traditional business models centred on selling products based on specification superiority or product USP will slow down the growth of the imaging vendors,” said Dr. Suresh Kuppuswamy, Industry Principal at Frost & Sullivan. “Business models offering the product/solution-as-a-service with guaranteed performance will gain traction in the future as hospitals look to focus on achieving clinical excellence and explore partnerships to achieve operational and financial excellence.”

Frost & Sullivan’s recent analysis, Growth Opportunities in Radiology-as-a-Service Market, Forecast to 2023, explores the factors and trends that have shaped the global medical imaging landscape, the challenges that lie ahead, and the opportunities that can be exploited. The study provides a detailed analysis of the growth opportunities for key players in the Radiology-as-a-Service (RaaS) space.

“As-a-service business models in radiology are prevalent across North America and Europe. While the European market has been witnessing the provision of offerings ‘as-a-service’ for a number of years, the North American market will grow in size as the industry matures,” noted Kuppuswamy. “Apart from these two regions, service models are also seeing increasing interest in Asia-Pacific, Australia, New Zealand, and Gulf countries.”

Companies operating in the RaaS industry can potentially foster growth by:

• Entering into long-term, service-based partnerships, which will promise business continuity for clients while ensuring recurring, stable revenues for vendors.
• Utilizing teleradiology services to offset the shortage of radiologists worldwide.
• Employing pay-as-you-use cloud-based IT services, thereby drastically reducing infrastructure investments and maintenance costs.
• Entering risk-sharing contracts with imaging equipment vendors, which enables cash-strapped healthcare providers to afford the latest equipment at a fraction of the cost.

Growth Opportunities in Radiology-as-a-Service Market, Forecast to 2023 is part of Frost & Sullivan’s Transformational Health research and analyses available through the Frost & Sullivan Leadership Council, which helps organisations identify a continuous flow of growth opportunities to succeed in an unpredictable future. 

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