Medical Imaging Outsourcing Market Expands with Increased Demand from Geriatric Population

Trishita Deb
Trishita Deb

Updated · May 16, 2024

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Introduction

The global medical imaging outsourcing market is projected to reach USD 13.1 billion by 2033, growing from USD 8.6 billion in 2023, with a CAGR of 4.3% from 2024 to 2033. This growth is driven by several key factors, including the increasing prevalence of chronic diseases such as cancer and cardiovascular conditions, which necessitate frequent and advanced diagnostic imaging services. The rising geriatric population, particularly in developed regions, also contributes to the demand for outsourcing medical imaging, allowing healthcare providers to access specialized expertise and advanced technologies without significant capital investment.

The Medical Imaging Outsourcing Market is experiencing notable expansion, driven primarily by the increasing demand from the geriatric population. As the global population ages, the prevalence of age-related health conditions requiring diagnostic imaging, such as cardiovascular diseases and cancer, rises. This surge in demand prompts healthcare facilities to outsource medical imaging services to manage the high volume and ensure timely diagnosis. Additionally, outsourcing offers cost-efficiency, access to advanced imaging technologies, and expert radiologists, further fueling market growth. Consequently, the market is poised for sustained development, addressing the growing healthcare needs of the elderly.

Recent advancements in digital technology and artificial intelligence (AI) have further enhanced the efficiency and accuracy of medical imaging services, making outsourcing an attractive option for many healthcare facilities. The integration of AI and machine learning in imaging has improved diagnostic precision and reduced turnaround times, thereby improving patient outcomes. Additionally, the high costs associated with purchasing and maintaining advanced imaging equipment have made outsourcing a cost-effective solution for many healthcare providers.

However, the market faces challenges such as data security concerns and the need for compliance with stringent regulatory standards. Despite these challenges, the trend of outsourcing is expected to continue, driven by the need for cost reduction and operational efficiency in healthcare delivery. The North American region holds the largest market share due to its advanced healthcare infrastructure and high healthcare expenditure, while the Asia Pacific region is expected to witness significant growth due to rising healthcare investments and increasing demand for diagnostic services​.

Key Takeaways

  • The global medical imaging outsourcing market is expected to grow from USD 8.6 billion in 2023 to USD 13.1 billion by 2033.
  • The market is projected to grow at a compound annual growth rate (CAGR) of 4.3% during the forecast period from 2024 to 2033.
  • Computed tomography leads the market with a 65.3% revenue share in 2023, driven by high imaging quality and cost-effectiveness.
  • Magnetic resonance imaging (MRI) is anticipated to grow at a CAGR of 5.6%, due to its effectiveness in cancer diagnosis.
  • Hospitals dominate the end-user segment with a 63.4% market share in 2023, due to advanced technology adoption and skilled professionals.
  • Diagnostic centers are the fastest-growing end-user segment, with a projected CAGR of 6.3%, owing to technological availability.
  • North America holds the largest market share of 43.6% in 2023, driven by high healthcare expenditure and established infrastructure.
  • The rising prevalence of chronic diseases is a significant driver, with 157 million people in the US suffering from chronic conditions.
  • Cost efficiency is a key benefit, as outsourcing converts fixed costs to variable costs, aiding in budget optimization for healthcare providers.
  • Regulatory and compliance issues, particularly data privacy and security, pose challenges to market expansion and patient confidentiality.
Medical Imaging Outsourcing Market Size
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Medical Imaging Outsourcing Statistics

General Statistics

  • Outsourcing medical imaging tasks can save up to 40% in operational costs.
  • Typically, outsourcing reduces expenses by 25% compared to in-house operations.
  • Medical imaging outsourcing can increase efficiency by 30% due to streamlined processes.
  • Faster turnaround times are achieved, with reports delivered within 24-48 hours.
  • Outsourcing provides access to a pool of skilled professionals with specialized knowledge.
  • Expert radiologists ensure accurate interpretations and diagnoses, improving patient care.
  • Scalable services allow for flexible capacity adjustments based on demand.
  • Easily expand or reduce imaging services as patient volumes fluctuate.
  • In the year 2023, till December 2023, Medical Device Outsourcing has raised $102M in equity funding across 16 rounds
  • In the same period last year (i.e. till December 2022), Medical Device Outsourcing companies had raised $761M across 22 rounds
  • So, 2023 has seen a 86.55% drop in funding in Medical Device Outsourcing companies as compared to 2022
  • In the year 2024, till January 2024, 1 acquisition happened in Medical Device Outsourcing sector.
  • Last year, in 2023, a total of 40 acquisitions happened in Medical Device Outsourcing sector.

Development Statistics

  • In early 2024, Flatworld Solutions received a significant platform investment from Boyne Capital. This partnership aims to accelerate Flatworld’s growth through both organic investments and strategic mergers and acquisitions (M&A). The investment is part of Boyne Capital’s BCM Fund II, targeting companies with revenues under $100 million and EBITDA between $3 million and $15 million.
  • As part of their ongoing collaboration with GE Healthcare, Alliance Medical committed to a $55.6 million (£45 million) agreement to supply over 70 advanced medical imaging systems. This investment aims to enhance the diagnostic capabilities of their imaging centers and support rapid diagnostics, particularly in cancer detection​.
  • RadNet, Inc. has strengthened its market position through the acquisition of DeepHealth, Inc., enabling advanced AI-powered mammography assessments. This expansion enhances RadNet’s diagnostic capabilities across its 331 centers in the U.S.
  • Ultrasound devices are gaining popularity due to their portability, cost-efficiency, and non-radiation nature. They now account for 12% of all diagnostic imaging devices in development, with significant improvements driven by AI and contrast agent advancements​.
  • Kayi Healthcare secured a substantial funding round of $10 million from prominent venture capital firms, enabling it to accelerate its growth trajectory in the medical imaging outsourcing market.
  • RadNet secured $50 million in funding through a Series C round in April 2024, demonstrating investor confidence in its growth trajectory within the medical imaging outsourcing sector. This infusion of capital will be utilized to further expand operations, invest in research and development, and explore strategic partnerships.
  • NASA secured $20 million in funding from venture capital firms to support its expansion initiatives in the medical imaging outsourcing market. This infusion of capital will enable NASA to invest in research and development, infrastructure, and talent acquisition, further strengthening its position as a market leader.

Emerging Trends

  • Increased Adoption of AI and Machine Learning: Artificial intelligence (AI) and machine learning are revolutionizing the field of medical imaging by significantly enhancing the efficiency and accuracy of image interpretation. These technologies are being increasingly integrated into radiology reporting and medical image analysis, facilitating faster and more precise diagnoses. AI and machine learning algorithms can analyze vast amounts of imaging data quickly, identifying patterns and anomalies that might be missed by the human eye. This integration not only accelerates the diagnostic process but also improves the overall quality of patient care by enabling early detection and treatment of medical conditions.
  • Growth in Teleradiology Services: The demand for teleradiology services is on the rise, driven by the need for remote access to expert radiologists, particularly in underserved and rural areas. Teleradiology allows healthcare providers to transmit medical images, such as X-rays, CT scans, and MRIs, to radiologists at different locations for interpretation. This capability ensures timely and accurate diagnostic services, regardless of geographic barriers. The increasing reliance on teleradiology supports better healthcare delivery across diverse regions, enabling patients to receive expert radiological consultations and diagnoses even in areas lacking specialized medical professionals.
  • Expansion of Diagnostic Centers: Diagnostic centers are becoming a rapidly growing segment within the medical imaging outsourcing market. These centers, which specialize in providing comprehensive imaging services, are gaining preference due to their focus on delivering convenient and timely diagnostic tests. Patients and healthcare providers are increasingly turning to diagnostic centers for their advanced imaging capabilities and efficient service delivery. The expansion of these centers contributes to the accessibility and availability of high-quality diagnostic imaging, helping to meet the growing demand for precise and rapid diagnostic evaluations in the healthcare sector.
  • Technological Advancements: Continuous innovations in imaging technologies, such as advancements in MRI and CT scan techniques, are driving the medical imaging outsourcing market forward. These technological advancements enhance the quality of medical images, improving diagnostic accuracy and patient outcomes. Advanced imaging techniques allow for clearer, more detailed visualizations of internal structures, aiding in the early detection and diagnosis of medical conditions. The ongoing development and adoption of cutting-edge imaging technologies ensure that healthcare providers can offer the best possible diagnostic services, ultimately leading to better patient care and treatment planning.
  • Regional Market Dynamics: North America continues to dominate the medical imaging outsourcing market due to its advanced healthcare infrastructure and high adoption of new technologies. The region’s well-established medical facilities and emphasis on innovation support the widespread use of sophisticated imaging solutions. Conversely, the Asia-Pacific region is expected to experience the fastest growth, driven by a rising prevalence of chronic diseases and significant improvements in healthcare infrastructure. As countries in the Asia-Pacific region invest in enhancing their healthcare systems, the demand for advanced medical imaging services is increasing, contributing to the rapid market expansion in this area.

Use Cases

  • Hospitals: Hospitals increasingly outsource medical imaging services to leverage advanced technologies and specialized expertise without the need for substantial capital investments. This practice allows them to offer high-quality imaging services, enhancing patient care and operational efficiency. As a result, hospitals represent the largest segment in the medical imaging outsourcing market, driven by the need for cost-effective solutions and the demand for advanced diagnostic capabilities​.
  • Diagnostic Centers: Diagnostic centers focus on providing comprehensive imaging services such as X-rays, CT scans, MRIs, and ultrasounds. Outsourcing enables these centers to manage high patient volumes efficiently and maintain access to the latest imaging technologies. This approach contributes to rapid market growth by ensuring high service quality and keeping up with technological advancements, thus meeting the increasing demand for specialized imaging procedures.
  • Teleradiology: Teleradiology services are essential for remote and rural healthcare facilities that lack in-house radiologists. By outsourcing radiology services, these facilities can ensure timely and accurate diagnostics, thereby enhancing patient care across various locations. Teleradiology helps alleviate the burden on radiologists and provides continuous interpretation services, crucial for maintaining efficient operations in underserved areas​.
  • Chronic Disease Management: The rising prevalence of chronic diseases like cancer and cardiovascular conditions has escalated the demand for diagnostic imaging. Outsourcing helps healthcare providers manage this demand by offering access to advanced imaging technologies and expert interpretations. This facilitates early detection and treatment planning, which is vital for effective chronic disease management and improving patient outcomes.
  • Aging Population: An aging population requires more frequent diagnostic tests, increasing the demand for medical imaging services. Outsourcing allows healthcare providers to meet this growing demand efficiently, ensuring that elderly patients receive timely and accurate diagnoses. This practice helps healthcare systems manage resources effectively while providing high-quality care to an expanding elderly population.

Conclusion

In conclusion, the medical imaging outsourcing market is poised for significant growth, driven by factors such as the increasing prevalence of chronic diseases, advancements in digital technology and AI, and the need for cost-effective solutions. Despite challenges like data security concerns and regulatory compliance, outsourcing offers benefits such as cost savings, enhanced efficiency, and access to specialized expertise. North America leads in market share, while the Asia-Pacific region shows promising growth potential. Emerging trends like AI integration and teleradiology services further propel market expansion. As hospitals, diagnostic centers, and teleradiology services increasingly embrace outsourcing, the industry is set to meet the rising demand for high-quality diagnostic imaging services worldwide.

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Trishita Deb

Trishita Deb

Trishita has more than 7 years of experience in market research and consulting industry. She has worked in various domains including healthcare, consumer goods, and materials. Her expertise lies majorly in healthcare and has worked on more than 400 healthcare reports throughout her career.