This imperative has increased the costs for clinics and presented an opportunity for new manufacturers offering near-current technology at lower prices. It has also allowed new types of customers to emerge who would always have wanted such devices but could not afford them in the past.
“Over the short term, this situation will result in a fragmentation of the current medical imaging device market: top-tier purchasers will concentrate resources on preferred suppliers to reduce risk, mid-tier consumers will diversify between existing and emerging device producers and new market entrants will be attracted by low-priced devices,” says Chait. “Over the long term, new market entrants will seek out higher-end devices and become potential customers to established brands.”
The primary tier of familiar brands (GE, Philips, Siemens, Toshiba) often utilise the services of original equipment manufacturers (OEMs) to build to their specifications in low-cost hubs in Asia and Eastern Europe. Many of these OEM companies are now also releasing products under their own brands based on design and manufacturing experience gained while performing such work.
These companies are part of a small, but rapidly expanding, secondary tier of devices. Some, like Shimadzu (in X-ray devices) and Medison (in ultrasound), have already gained substantial market trust and are now part of the mainstream.
“Devices which have a functional lifespan of eight to 15 years are becoming technically obsolete within five, having an impact on both manufacturers and consumers,” cautions Chait. “Manufacturers find that, for a year or two after a critical innovation, they are able to dominate their market sector, before being squeezed out by a competitor who leapfrogs them.”
For instance, medical practitioners are finding that 3D imaging has become the de facto standard. Patients are demanding better imaging (especially in ultrasound), and the improving level of patient care possible with better products is boosting sales.
