While significant growth is expected for medical imaging, risk lies in a lack of funds for diagnostic equipment.
The medical imaging equipment market is expected to reach $5.7 billion by 2027, according to a Research and Markets report released Wednesday morning.
The report projects a compounded annual growth rate of 3.9% from 2019 to 2027, supported by an increasing number of hospitals, the boon of technological developments in the U.S., and the "rising prevalence" of chronic diseases.
Yet while significant growth is expected for the medical imaging market over the coming, Research and Markets indicated that risk lies in a lack of funds for diagnostic equipment.
Last year, the largest medical imaging market share segment was held by equipment repair and maintenance at nearly 55%, which is only expected to grow during the forecast period.
Similarly, original equipment manufacturers and the X-ray segment are projected to accrue considerable market share over the coming decade, thanks in large part to forthcoming inventions, developments, and surgical treatment planning.
The hospitals segment will likely dominate its portion of the medical imaging market going forward as a result of more hospitals constructed and more surgical procedures conducted.
Meanwhile, Research and Markets believes diagnostic centers will benefit from more private service providers and "the growing preference" among patients for outpatient care settings.
The report highlights the increasingly important role medical imaging has taken on in the healthcare industry as a result of technological innovation, specifically relating to diagnostic processor examinations carried out through MRIs, CT scans, and ultrasounds.
"In the past twenty years, there have been tremendous developments done in medical technologies and imaging devices," the report stated.
The current wave of innovation is expected to drive future growth, according to Research and Markets, with an added boost from M&A activity among sizable medical imaging players.
The report did not delve into the potential effects of the ongoing trade war between the U.S. and China, which is expected to have a significant impact on medical equipment costs, at least in the short-term.
In June, the U.S. announced plans to levy 25% tariffs on certain Chinese goods, including sterilization items and medical imaging equipment.
A July report from the American Action Forum, a self-described "center-right policy institute," projected domestic medical equipment costs rising by $400 million as a result of the imposition of retaliatory tariffs between the U.S. and China.
Jack O'Brien is the finance editor at HealthLeaders, a Simplify Compliance brand.