Teleradiology Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

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 (2022-2027).

The COVID-19 pandemic has been continuing to transform the growth of various markets, and the immediate impact of the outbreak was varied. While a few industries registered a drop in demand, numerous other markets may continue to remain unscathed and show promising growth opportunities. During the pandemic, teleradiology systems were 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 contact. For instance, as per the article published in 2021 under the title “Teleradiology as a relevant indicator of the impact of COVID-19 pandemic management on emergency room activities: a nationwide worrisome survey”, the use of teleradiology to evaluate the effects of lockdown on a particular number of emergency sectors appeared beneficial and the teleradiology platform can manage numerous emergency departments (ER) across the territory. Furthermore, initially due to the lockdown and hold on elective imaging services, there was a decrease in teleradiology services being observed. But post-pandemic, teleradiology has been accepted widely since it bridges the gap in imaging services between rural and non-rural areas. Patients in areas that lack local radiologists can still get diagnostic radiology services through radiologists working remotely through the services provided by teleradiology. Thus as per the facts mentioned above, COVID-19 had a significant impact on the teleradiology market.

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 GLOBOCAN, 2020, about 19.3 million new cases of cancer were reported worldwide, and this number is expected to reach 28.9 million new cases by 2040. 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. Additionally, the increasing healthcare expenditure is positively influencing the overall market growth. For instance, as per the National Health Expenditure Projections 2023-2024, rates of growth in national health expenditures are projected to be 5% and 5.1% throughout 2023 and 2024, respectively, as patient care patterns are assumed to revert to pre-pandemic levels. 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.

Thus, as per the factors mentioned above, the teleradiology market is anticipated to witness growth over the forecast period. However, the lack of skilled professionals restrains the market growth.

Key Market TrendsSoftware Segment is Expected to Register Fastest Growth Over the Forecast Period

The COVID-19 pandemic has highly 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 allow radiologists to interpret images and communicate with physicians electronically while working remotely. For instance, as per the article published in 2020, under the title "How teleradiology can help public health COVID-19 management", teleradiology used uniform IT tools within the partner structures. These IT tools enabled a real-time audit of sectorized activities, through which, many businesses organized themselves to monitor chest CT scans performed as part of the initial or follow-up care of patients suspected or confirmed to have COVID-19, to develop useful models to facilitate COVID-19 diagnosis and to monitor the impact of lockdown on the management of emergencies outside COVID-19. Hence, COVID-19 had a significant impact on the software segment of the teleradiology market during the forecast period.

Teleradiology can be used to send the images generated from mobile imaging systems in remote areas, to 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.

The presence of competitors, mergers, acquisitions, product launches, and government initiatives are boosting market growth over the forecast period. For instance, over 1,000 patients have availed services of teleradiology in Jammu and Kashmir, India in the first week after its launch on 24th June 2020 by Lieutenant Governor, Girish Chandra Murmu. The services for teleradiology were provided under the National Free Diagnostics Initiative of the National Health Mission at identified Healthcare Facilities in the Union Territory of Jammu and Kashmir focusing on rural and far-flung areas in the initial phase.

Hence, based on the aforementioned factors software segment is likely to grow over the forecast period.

North America is Expected to Hold Largest Market Share over the Forecast Period

COVID-19 had a notable impact on the healthcare sector of North America. Initially, there was 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 and Medicaid Services (CMS) had broadened access to Medicare telehealth services which led to the access to a wider range of services among beneficiaries in 2020. Moreover, medicare also paid for office, hospital, and other visits furnished via telehealth across the country, including in patients’ places of residence in 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 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. For instance, as per the 2020 data from the United States Centers for Medicare & Medicaid Services, the healthcare spending of the country in 2020, was USD 4.1 trillion or USD 12,530 per person. Furthermore, 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. This is likely to create demand for diagnostic procedures in the country, thereby contributing to market growth. 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 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. For instance, 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.

Competitive Landscape

The market studied is a fragmented market owing to the presence of various market players. The market players are involved in launching new products and expanding their product portfolio to strengthen their market position. Some market players are Agfa-Gevaert Group, Everlight Radiology, GE Healthcare, Koninklijke Philips NV, Onrad Inc., RamSoft Inc., Teleradiology Solutions, and Nanox Imaging LTD (USARAD.COM).

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