Enhanced Imaging Potential Of PET-CT Technology Boosts Uptake In The U.S. Healthcare Markets

The enhanced capabilities of fused positron emission tomography - computed tomography (PET-CT) technology offers is driving demand in the diagnostic imaging market. Dual PET-CT's superior imaging capabilities enable detection of hard-to-localize cancers including neck and ovarian cancers. PET-CT's demonstrated benefits in disease management and therapy planning are also fueling the market.

As a result, stand-alone PET is experiencing a downswing in demand as hybrid PET-CT scanners gain in popularity.

New analysis from Frost & Sullivan (http://www.medicaldevices.frost.com), U.S. PET and PET-CT Markets, reveals that revenue in the market totaled $496.5 million in 2004 and projects to reach $725.1 million in 2011.

If you are interested in a virtual brochure, which provides manufacturers, end-users and other industry participants an overview of the latest analysis of the U.S. PET and PET-CT Markets - then send an email to Danielle White - Corporate Communications at dwhite@frost.com with the following information: your full name, company name, title, telephone number, fax number and email. We will send you the information via email upon receipt of the above information.

The availability of lower-cost stand-alone PET systems sold on the used equipment market is further deteriorating the market for new stand-alone PET systems.

"Such stand-alone systems are sold for as little as 60 percent of the cost of a new PET scanner," explains Frost & Sullivan Industry Manager Antonio Garcia. "As a result, used and refurbished systems are eating into an already debilitated stand-alone PET market."

The decline in demand for stand-alone scanners, compounded by the cannibalization from used systems and the transition to PET-CT scanners, is driving fierce competition, especially among established companies. This compels all competitors who wish to remain relevant in the PET market to feature a PET-CT product offering.

"Devising and implementing a successful strategy to maintain survivability during the rapid transition from PET to PET-CT, is an essential challenge facing smaller market participants that may not have a PET-CT product," observes Garcia.

Somewhat paradoxically, PET-CT is still facing lower-than-optimal procedure volumes, which are beginning to restrain new purchases.

"Although the PET-CT installed base grew very rapidly, procedure volumes grew much more slowly, leading to over-capacity," says Garcia. "The PET-CT systems that are currently in the installed base are underutilized and unless the excess capacity can be absorbed quickly, which is unlikely, market growth is expected to remain relatively flat."

To overcome the expenses involved in the purchase of PET-CT scanners, healthcare facilities are sharing service arrangements. This allows payment for utilization of the scanning facilities for a fixed period every month. Until healthcare facilities accomplish enough procedure volume, shared service agreements are an economical option.