Analysis of the U.S. Medical Computed Tomography Imaging Systems Market

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1 MEDICAL DEVICES PHARMACEUTICALS CHEMICALS FOOD & BEVERAGE ELECTRONICS Analysis of the U.S. Medical Computed Tomography Imaging Systems Market VPG Publications, Consulting, Clients VPG Market Research Reports VPG Partner Reports VENTURE PLANNING GROUP 545 Eighth Avenue, Suite 401 New York, NY Phone Fax

2 Analysis of the U.S. Medical Computed Tomography (CT) Imaging Systems Market Growth to be Driven by Sales of High-end Systems March 2012

3 Contents Section Slide Numbers Executive Summary 4 9 Market Overview Total U.S. Medical CT Imaging Systems Market Technology Background and Trends External Challenges: Drivers and Restraints Forecasts and Trends Demand Analysis Market Share and Competitive Analysis U.S. Medical CT Imaging Systems Market: Analysis by Market Segment The Last Word (Conclusions and Implications) Appendix List of Competitors Evaluated 88 Competitor Product List Table of Abbreviations Used

4 Executive Summary Total revenue * generated by new, medical CT imaging system shipments to customers in the United States was $x million, representing a x.x percent decline for revenue generated within this market in Selling at an average price ** of $xxx,xxx, a total of xxx CT imaging systems were shipped * to customers in the United States in New imaging systems accounted for percent of total revenue generated by sales of all major CT products and services (i.e., new imaging systems, new equipment upgrades, remarketed equipment, and equipment services) in the United States in The U.S. market accounted for percent of revenue * generated by worldwide sales of new medical CT imaging systems in A total of million CT imaging procedures were performed in the United States in 2010, representing an increase by more than a factor of four since 1995, when only million CT imaging procedures were performed in the United States. With an installed base * of xx,xxx units, the number of medical CT imaging systems currently in operation in the United States are estimated to represent only percent of potential market installations. *Excludes equipment upgrades, remarketed equipment, and equipment services. **Weighted average selling price (WASP).. Note: All figures are rounded. The base year is

5 Executive Summary (continued) GE Healthcare, Siemens Healthcare, Toshiba America Medical Systems, and Philips Healthcare contributed percent of total revenue generated in the U.S. medical CT imaging systems market * in More than xx percent of total U.S. medical CT imaging systems market * revenue was generated by sales of imaging systems with slice capacities of 64 or higher in Key drivers of growth in this market from 2012 to 2016 include: o Increasing use of CT in emergency department (ED) settings o Growing acceptance of CT applications that require slice capacities of xx or higher o Replacement of the large existing installed base of xx-slice CT systems Frost & Sullivan expects revenue * from shipments of medical CT imaging systems to customers in the United States to grow at a CAGR of x.x percent from 2011 to 2016, reaching $x million in At a CAGR of percent, revenue * from sales of greater than xx-slice systems is projected to grow faster than that of any other segment of the U.S. medical CT imaging systems market from 2011 to *Excludes equipment upgrades, remarketed equipment, and equipment services. Note: All figures are rounded. The base year is

6 Research Scope Product Inclusion The forecast and estimates in this study consider sales of only new, whole-body medical computed tomography (CT) imaging systems that are approved for human clinical use and are commercially available within the United States. While accounted for in some base year estimates, sales associated with services, equipment upgrades, hybrid (e.g., PET/CT) or partial body (i.e., dedicated extremity) scanners, remarketed (i.e., pre-owned) equipment, contrast media or injectors, dedicated veterinary or animal imaging equipment, and therapeutic devices are not accounted for in this study s forecast or estimates. Regional Coverage Unless otherwise indicated, the forecast and estimates provided in this study only consider sales of products that are shipped to buyers within the United States. Time Period Study Period: Base Year: 2011 Forecast Period: CAGR Period:

7 Market Overview Key Questions This Study Will Answer What proportion of U.S. medical CT market revenue was generated by sales of new imaging systems, new equipment upgrades, remarketed equipment, and equipment services in 2011? What proportion of global revenue from sales of new medical CT imaging systems was generated by each geographic region in 2011? How much revenue has been generated each year in the U.S. medical CT imaging systems market since 2008, and how much is annual revenue in this market expected to grow from 2011 to 2016? What was the market penetration rate (i.e., proportion of actual to potential system installations) of the U.S. medical CT imaging systems market in 2011? Which competitors generated the highest proportion of revenue in the total U.S. medical CT imaging systems market and in the 16, 20 40, 64, and greater than 64-slice market segments in 2011? What proportion of total revenue in the U.S. medical CT imaging systems market has been generated by sales of high-end systems (i.e., systems with slice capacities of 64 or higher) since 2008, and how much is this proportion expected to change from 2011 to 2016? Which segments of the U.S. medical CT imaging systems market are expected to grow the fastest from 2011 to 2016? 13

8 Market Background CT is a noninvasive medical imaging technique that uses x-ray radiation and computer processing to generate tomographic and volumetric images of the human body for diagnostic or interventional use. CT imaging equipment has been commercially available in the United States since the early 1970s. The use of CT in the United States has increased substantially, as indicated by the more than quadrupled annual procedure volumes from 1995 to Growth of the U.S. CT market is largely driven by new technology development, which is improving the performance of CT and is, therefore, justifying its use in an expanding range of clinical areas. For example, new technologies that reduce image noise and, thus, the necessary radiation-dose exposure are further demonstrating the effectiveness of CT in pediatric imaging applications. Naturally, with the range of applications in CT broadening, CT is becoming more of an enterprise asset in healthcare institutions, where nonradiology sources are making increasingly significant financial contributions toward purchases of CT imaging systems. Procedures (Million) x x.x Medical CT Imaging Systems Market: Procedure Volumes, United States, Year Note: All figures are rounded. The base year is Source: Frost & Sullivan analysis. 14

9 Market Background (continued) Historically, CT has been used most for imaging of the pelvic, abdominal, head (including brain), neck, and chest regions. CT is also widely used for vascular and spinal imaging, as well as for interventional applications, such as radiotherapy planning, guidance, and monitoring in the field of oncology. The relatively fast exam times and level of detailed anatomical information that can be obtained using CT make it particularly well-suited for use in emergency environments, where time is critical. Medical CT Imaging Systems Market: CT Procedure Mix, North America, 2008 Chest % Spinal Pelvic and Abdominal % Vascular Cardiac Extremity Others * Head and Neck % Interventional Source: Frost & Sullivan Research Service N5BE The dynamic imaging capabilities of higher-end systems are also making CT more heavily relied upon in applications that require visualization of physiological processes. CT perfusion (CTP) has become a powerful tool for looking at cerebral blood flow to assess stroke and evaluating blood flow through cardiac tissue for the detection of myocardial defects. While the long-term risks of increased exposure to ionizing radiation remain unclear, the discovery of several cases of overexposure in 2009 brought national attention to this issue. Despite manufacturers long-standing efforts on technologies that work to reduce dose requirements in CT, this issue is currently perceived by the public as one of the major drawbacks of CT. Note: *Others include CT Colonoscopy. 15

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