Teleradiology Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)
The teleradiology market is projected to register a CAGR of 16.8% during the forecast period.
The COVID-19 pandemic has been continuing to transform the growth of various markets, the immediate impact of the outbreak is varied. While a few industries registered a drop in demand, numerous other markets may continue to remain unscathed and show promising growth opportunities. In the COVID-19 pandemic situation, the teleradiology systems are widely adopted to share study observations and details information gathered during the treatment of COVID-19 patients. This has helped prevent the exchange of hard copies of imaging results and avoid in-person contacts. Moreover, several international teleradiology alliances of radiologists are expected to fuel the speed of clinical trials and studies on preventive measures.
Furthermore, initially due to lockdown and hold on elective imaging services, there was a decrease in teleradiology services being observed. However, as restrictions ease, the rate of elective imaging services may gradually rise.
The major factors responsible for the growth of the teleradiology market include the rising number of imaging procedures, development of IT infrastructure, rise in healthcare expenditure, and the increasing prevalence of osteoarthritis and chronic diseases.
According to the GLOBOCAN, 2020, about 19.3 million new cases of cancer were reported worldwide, and this number is expected to reach 30.2 million new cases in the year 2040. Globally, about one out six deaths are due to cancer, as per the World Health Organization factsheet. Further, about 70% of deaths from cancer occur in low- and middle-income countries. The rising prevalence of chronic conditions, such as cancer, is increasing the diagnostic imaging procedural rate. Hence, the rising number of imaging procedures may boost the demand for reliable and efficient teleradiology solutions resulting in high growth of the market. Teleradiology is the transmission of images, such as X-rays, CTs, and MRIs, for the purpose of sharing information with radiologists or physicians from one location to another.
As per the National Health Expenditure Projections 2018-2027, national health spending is projected to witness an average rate of 5.5% per year for 2018-2027 and reach nearly USD 6.0 trillion by 2027 in the United States. The increasing healthcare expenditure is positively influencing the overall market growth.
Teleradiology solutions have demonstrated the ability to enhance health outcomes and reduce costs. Telemedicine has been decreasing the cost of healthcare while increasing efficiency through improved management of chronic diseases, reduced travel times, and fewer and shorter hospital stays.
Moreover, teleradiology allows trained professionals 24/7 service and is easily accessible to the rural population. Specific software enables patients to transmit images, thus, allowing the radiologist to analyze the case study effectively. Thus, there are many benefits of using teleradiology services, like reduced cost, increased coverage, and timely interpretations, which, in turn, are the driving factors for this market.
The COVID-19 pandemic has high affected teleradiology services. However, as the fight against COVID-19 continues, there is an increasing need to make teleradiology solutions more common among radiologists. These services give radiologists the opportunities to interpret images and communicate with physicians electronically while working remotely.
Teleradiology can be used to scan a patient and store the image to show it to the doctor later (when the doctor is not available), or it can be used to send the images generated from mobile imaging systems in remote areas, to the doctors in hospitals. Furthermore, most of the software makes use of technologies like data compression, as most radiologists need to be able to share detailed, high-resolution images.
Direct Radiology is offering automation intelligence software to enhance its teleradiology offering. The technology developments include Automated Query Retrieve, Monitoring and Automated Uptime, and Reverse DICOM Report Delivery. Additionally, in March 2019, the company Royal Philips announced the expansion of advanced teleradiology services. The new teleradiology services are built on its cloud-based radiology informatics portfolio of Picture Archiving and Communication Systems (PACS) and Vendor Neutral Archive (VNA) solutions.
Similarly, in November 2019, Nines, a teleradiology and AI startup, unveiled its software platform and raised USD 16.5 million in funding from Series A. The funding was led by Accel and 8VC. Hence, the rising technological advancements and interoperability are expected to boost the growth of the market over the forecast period. Moreover, the rising demand for radiology procedures around the world is expected to positively impact the growth of the market.
The United States is the most COVID-affected country across the world. Initially, there is an increase in demand for teleradiology services which has positively impacted the overall market growth. In addition, according to the 1135 waiver authority and Coronavirus Preparedness and Response Supplemental Appropriations Act, the Centers for Medicare & Medicaid Services (CMS) has broadened access to Medicare telehealth services which led to the access of a wider range of services among beneficiaries. Moreover, medicare can also pay for office, hospital, and other visits furnished via telehealth across the country, including in patient's places of residence starting March 6, 2020. Hence, these government initiatives may also boost market growth.
Moreover, the major factor driving the growth of the teleradiology market in the North American region is the rising prevalence of chronic conditions and the presence of better healthcare infrastructure, as compared to most of the developed countries. The emergence of novel technologies and their adoption is helping the United States grow in the healthcare sector. Rising healthcare expenditure is the prime factor responsible for the growth of this sector. According to the American College of Cardiology, by 2035, around 130 million adults in the United States population are projected to have some form of cardiovascular disease. Stroke prevalence in adults is 2.7% in the United States. Additionally, the rising number of diagnostic procedures is increasing in the country, resulting in the high growth of the market. Furthermore, owing to the benefits associated with teleradiology, most hospitals are adopting this solution. Therefore, it is believed that due to the higher adaptability to the healthcare technology solutions, the United States may witness the largest share of the market studied.
Additionally, the high concentration of major players in the United States and increasing product launches and other strategic alliances are expected to boost the market studied. In September 2020, MEDNAX INC. announced the definitive agreement for selling its radiology solutions to radiology partners in the United States. Thus, given the factors mentioned above, the teleradiology market is expected to grow significantly in North America over the forecast period.
The market studied is a fragmented market owing to the presence of various market players. The market players are involved in launching the new products and expanding their product portfolio to strengthen their market position. In March 2019, Royal Philips expanded its radiology solutions portfolio with innovative teleradiology services to address the increasing shortage of radiologists and the pressing need to improve access to precision diagnoses.
Some market players are Agfa-Gevaert Group, Everlight Radiology, GE Healthcare, Koninklijke Philips NV, MEDNAX INC., Onrad Inc., RamSoft Inc., Teleradiology Solutions, and USARAD Holdings Inc.