Upload
frost-sullivan
View
4.739
Download
3
Tags:
Embed Size (px)
DESCRIPTION
The European Market for Refurbished Medical Imaging Equipment is in a high growth stage. The market is growing vigorously, and if tapped properly, it is poised to become a strong market in most of the countries. After-sales service, coupled with providing warranty, plays a crucial role in attracting customers. View the presentation to find out more.
Citation preview
Refurbished Medical Imaging Equipment – Growing Business During Lean Economy
Gideon Praveen Kumar, Senior Research Analyst
Healthcare
June 6, 2010
2
Market OverviewA
Segmentation and Scope1.
2.
Focus Points
Market Drivers
1.
3.
2.
Major Industry Challenges
B Analysis of the Industry
C
5.
2.
3.
Strategic Recommendations
2.
2. Market Overview
List of Major Market Participants
4.
Key Takeaways6.
Market Restraints
3
Modality Scope
X-Ray Mammography
X-Ray Radiography
X-Ray Angiography
MRI
CT
PET
Ultrasound
Geographic Scope
WESTERNGermanyFrance ItalySpain The United Kingdom BeneluxScandinavia
EASTERNCzech RepublicPolandHungaryRomaniaBulgaria
EUROPE
Segmentation and Scope
OTHERSSlovakiaGreeceRussiaUkraineKazakhstanTurkey
4
Introduction and Overview
The market for the European refurbished medical imaging equipment is at high growth stage.
After-sales service, coupled with providing warranty, plays a crucial role in attracting customers. Thus, the OEM refurbishers who provide such services, have an edge over
the third-party vendors in this market.
Devices that are commonly refurbished have generally been
designed to have extended longevity, many operating for thousands of
cycles.
Examples include medical imaging equipment such as X-ray
equipment, CT, PET, MRI and
ultrasound scanners.
Refurbishment is done by OEMs, such as Philips Healthcare, Siemens Healthcare, GE
Healthcare and Toshiba Medical Systems Europe and some stand-alone third-party refurbishers and
used systems sellers.
There are two types of refurbishing - cosmetic and
electromechanical.
There are many equipment that are sold in "as-is" form with or without cosmetic refurbishing,
without providing warranty.
The refurbished medical imaging equipment marketin Europe is growing vigorously, and if tapped
properly, it is poised to become a strong market inmost of the countries, with a CAGR of 7.1 percent
from 2009 to 2016.
The refurbished medical imaging equipment marketin Europe is growing vigorously, and if tapped
properly, it is poised to become a strong market inmost of the countries, with a CAGR of 7.1 percent
from 2009 to 2016.
Very few third-party vendors perform complete
electromechanical refurbishing.
5
Industry Industry
Challenges Challenges
Complex business interests of the OEM refurbishers *
Industry Challenges
Lack of awareness on the advantages of refurbished systems *
Need for consistent maintenance of the quality of products*
Regulatory challenges in different countries*
Difficulty faced by third-party refurbishers in finding suitable
dealer/distribution network*
Possible threat from low cost Asian manufacturers *
Private sector and small-sized hospitals being the major buyer*
Source: Frost & Sullivan
6
Increasing number of procedures
Market Drivers
Increasing number of old
systems
Government -funded cancer
programs
Financial recession
providing a conduciveplatform
Increase in the number of
private healthcare institutions
Source: Frost & SullivanNote: Size of the bubble represents the driver’s level of impact during the forecast period
7
Market Restraints
Lack of availability of
spare parts of the outdated
equipment
Governmenttenders acting as
a barrier to the purchase of
used systems
Source: Frost & Sullivan
Note: Size of the bubble represents the restraint’s level of impact during the forecast period
Lack of proper reimbursement
for used systems
8
Demand Analysis
Note: All figures are rounded; the base year is 2009. Source: Frost & Sullivan
MRI, mammography and PET are the modalities that are hugely sought after by small- and medium-sized hospitals and private clinics in Europe.
Growth of the X-ray angiography and mammography modalities is due to increasing incidence of cardiovascular ailments and breast cancer.
Ultrasound modality’s short life cycle making replacement optional, coupled with competition from the lost cost Chinese manufacturers, keeps the growth of this segment at bay.
Germany has traditionally been a strong market and accounts for nearly half of the total refurbished market in Europe.
Note: All figures are rounded; the base year is 2009. Source: Frost & Sullivan Note: All figures are rounded; the base year is 2009. Source: Frost & Sullivan
8%
12%
6%
11%
12%
26%
25%
Mammography
MRI
CT
US
PET
Angiography
Radiography
42%
8%18%
12%
3%
5%
4%3% 1%1%1% 2%
Germany
France
Italy
Spain
UK
Benelux
Scandinavia
Poland
Hungary
Czech Rep
Bulgaria
Romania
50%
30%
5%
15%
Small & medium sized hospitals
Private practitioners
Universities
Large hospitals
Customers of Refurbished Medical Imaging Modalities
Percentage Composition of Demand in Europe European Share for Refurbished Medical Imaging Modalities
9
Revenue Forecasts
• The total European refurbished medical imaging equipment market generated a revenue of $358.5 million in
2009.
• This market grew at a healthy rate of 7.5 percent in 2009 and is expected to grow at a compound annual growth
rate of 7.1 percent from 2009 to 2016.
• This healthy growth is attributed to increasing demand for refurbished systems in countries where private
practice is profound.
0.0
100.0
200.0
300.0
400.0
500.0
600.0
700.0
2009 2010 2011 2012 2013 2014 2015 2016
Revenues ($ Million)
6.8
7.0
7.2
7.4
7.6
7.8
8.0
8.2
8.4
8.6
8.8
Growth Rate (%)
$ Million %
Note: All figures are rounded. Source: Frost & Sullivan
Refurbished
medical imaging
equipment market
is a high growth
market.
10
Geographic Analysis
Country Growth Rate [%] Future Market Potential
Germany 8.5 Increasing
France 7.9 Increasing
Spain 7.7 Increasing
Italy 7.6 Increasing
The United Kingdom 4.0 Decreasing
Benelux 8.1 Increasing
Scandinavia 8.2 Increasing
Poland 8.5 Increasing
The Czech Republic 5.1 Decreasing
Bulgaria 7.5 Increasing
Romania 7.6 Increasing
Hungary 8.4 Increasing
Turkey Increasing
Greece Increasing
Khazakhstan Increasing
Russia Increasing
Slovakia Increasing
Ukraine Increasing
11
Key Takeaways
• The refurbished market in Europe is a growth market, and if tapped properly, it is poised to become a
strong market in most of the countries with a CAGR of 7.1 from 2009 to 2016.
• Refurbishment is done by OEMs such as, Philips, Siemens and GE and some stand-alone third-party
refurbishers and used systems sellers.
• After-sales service, coupled with warranty, plays a crucial role in attracting customers. This way, the
OEM refurbishers have an edge over the 3rd party vendors.
• Very few third-party vendors perform complete electromechanical refurbishing. Incidentally, these
vendors have collaborative alliances with the OEM refurbishers.
• As-is sales is done with or without cosmetic refurbishing without providing warranty.
• The Average Selling Price of OEM-refurbished equipment is 30 to 40 percent less than that of a
respective new equipment. The ASP of a third-party refurbished equipment varies from 2.5 to 8 times
lesser than that of OEM’s price.
• The ASP is expected to depreciate at the rate of 8 percent per annum to maintain competitive pricing
and check the entry of low-cost Asian manufacturers.
• There is always more demand for cosmetic refurbishment over electromechanical refurbishment
because of the cost involved. This trend is stable across all modalities and stands at 70:30. However,
there is likely to be a shift towards electromechanical refurbishment at affordable cost.
12
Strategic Recommendations
Market Market
GrowthGrowth
BB
EE
CC
DD
AATarget countries
having more private practice
Carry out complete electromechanical refurbishing
End-user education
Collaborative alliances between third-party
refurbishers
Establish recognised refurbishing divisions
Source: Frost & Sullivan
13
Next Steps
� Request a strategic approach document for a Growth Partnership Service or Growth Consulting Service to support you and your team to accelerate the growth of your company.
([email protected]) +44 (0)20 7343 8383
� Join us at our annual Growth, Innovation and Leadership 2011: A Frost & Sullivan Global Congress on Corporate Growth London, United Kingdom (www.gil-global.com)
� Register for the next Chairman’s Series on Growth: Accelerating Growth Through Vertical Market Expansion: A How-To Primer16 June 2010 10:00 AM BST (www.frost.com/growthEU)
� Register for Frost & Sullivan’s Growth Opportunity Newsletter and keepabreast of innovative growth opportunities (www.frost.com/news)
14
Your Feedback is Important to Us
Growth Forecasts?
Competitive Structure?
Emerging Trends?
Strategic Recommendations?
Other?
Please inform us by taking our survey.
What would you like to see from Frost & Sullivan?
15
Find us @Frost_Sullivan on Twitter
Frost & Sullivan on Twitter and Facebook
Become a fan of Frost & Sullivan on Facebook
16
For Additional Information
Katja Feick
Corporate Communications
Healthcare
0049 (0) 69 7703343
Noel Anderson
European Vice President
New Business Development
+44 (0)207 343 8389
Siddharth Saha
Director of Research
Healthcare
+ 44 (0) 207 343 8374