Frost & Sullivan: Industry Push toward Quantitative Imaging Positions Computer Aided Detection and Diagnosis Adequately for Renewed Clinical Expansion
MOUNTAIN VIEW, California, April 4, 2012 /PRNewswire/ --
- Notwithstanding recessionary trends, participants continue spirited R&D efforts to expand product portfolios
Since the inception of the market in 1998 and until 2008, revenue from the North American computer aided detection and diagnosis (CAD) market continued to grow rapidly year over year. It surpassed the $100 million mark for the first time in 2007. However, this upward trend was reversed in 2009 due to several factors affecting global healthcare. Once confined to image analysis and pattern recognition algorithms, CAD solutions have expanded dramatically in recent years to provide more workflow management functions for the diseases and conditions they cover.
New analysis from Frost & Sullivan's (http://www.medicalimaging.frost.com) North American Market for Computer-aided Detection and Diagnosis research finds that the market earned revenue of $103.5 million in 2010 and estimates this to reach $181.7 million in 2017.
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"From CAD solutions used on the spot, some have evolved into computer-assisted decision-making solutions or computer-assisted pre-surgical assessment solutions, whereby they provide more of an end-to-end solution used prior, during and after treatment or surgery and for accessing databases for clinical decision support," said Frost & Sullivan Principal Analyst Nadim Daher. "Applications such as prostate treatment or liver transplantation will drive CAD from a mere detection and diagnosis tool to a more complete solution providing image based analytics, disease quantification, treatment assessment, and workflow management."
Regardless of the unfavorable market conditions prevailing in North America since 2008, CAD industry participants have continued to fuel their R&D efforts and expand their product portfolio. As a result, the market is slowly starting to move towards multi-modality solutions, a trend that is poised to broaden market appeal of CAD through numerous sales channels.
Reimbursement is a key element in the business model for CAD purchases. The profitability of medical imaging service lines is being challenged as reimbursement rates for procedures continue to fall at the rate of a few percentage points annually due to various Medicare reimbursement cuts and healthcare reforms. In this tough economic landscape, it becomes difficult for clinicians to justify the extra cost that CAD adds to imaging procedures, without a clear financial return.
The business case for CAD becomes more challenging within, as well as outside, mammography. As for its clinical case, it is balanced by greater clinical acceptance on one hand, and slowing technology innovation on the other.
In light of the U.S. Food and Drug Administration (FDA) draft guidance documents for CAD technology issued in October 2009, CAD vendors are facing a toughening regulatory environment and, as a result, will be slower in bringing CAD innovation to the marketplace.
"Despite imaging providers' budgets starting to free up during the latter part of 2010, CAD has not been in the best position to return to its historical double-digit growth rates," said Daher. "Current market dynamics suggest that the market will continue upon a steady, but not explosive, growth path."
A careful analysis of the clinical benefits, the impact on workflow, and the return on investment (ROI) of CAD solutions will be crucial for CAD vendors to drive more favorable purchasing decisions within a widening addressable marketplace. This market reality calls for greater customer education efforts from the vendors about CAD, as well as more effective communication and collaboration with existing and prospective customers.
North American Market for Computer-aided Detection and Diagnosis is part of the Advanced Medical Technologies Growth Partnership Service program, which also includes research in the following markets: Cloud Computing in Medical Imaging (Vital Signs); Molecular Imaging Equipment (PET, SPECT, and Hybrid Systems); Computer Aided Detection and Diagnosis; Healthcare Reform and Medical Imaging (Vital Signs); Cardiovascular Image and Information Management Systems; U.S. Core Modality Market Update: CT, MRI, DR/CR, Fusion Imaging (Vital Signs); Digital Pathology Image Management Systems; Personalized Medicine (Vital Signs); and Medical Ultrasound Imaging Equipment. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com.
North American Market for Computer-aided Detection and Diagnosis
SOURCE Frost & Sullivan
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