Company Ranking Analysis
Globally various players are operating in this market. The Americas and Europe are hubs for major companies, generating maximum market share, which has turned these regions into well-established markets. These companies have expanded their operating units in various other regions as well. Moreover, there are numerous small and medium scale players that generate maximum revenue from local markets.
The above table displays the ranking of major companies operating in the global medical image management market. The global medical image management market is led by GE Healthcare (US) followed by Koninklijke Philips N.V. (Netherlands), McKesson Corporation (US), Fujifilm Holding Corporation (Japan), and Novarad (US).
GE Healthcare (US) is one of the leading players in the field of medical image management. The firm held the largest position in the market. Across its product portfolio, the company uses a combination of software and hardware to develop its services and help utilities extend the life of their equipment. This strategy of integrating its product lines with self-developed software, along with a diverse product portfolio has enabled the company to hold the largest position in the global medical image management market.
Koninklijke Philips N.V. (Netherlands) holds the second largest position in the global medical image management market. The company has maintained its position by carrying out its organic growth. Koninklijke Philips N.V. has maintained a high amount of investment in its research and development activities, specifically targeting data science and software, and by expanding its solutions offering which comprises of software and services and smart devices and systems.
McKesson Corporation (US) claimed the third largest position in the market. McKesson Corporation established a separate healthcare information technology company named Change Healthcare in 2016, which leverages network solutions, technology-enabled services, and software and analytics to enable better patient care. Also, the company has maintained a diverse product portfolio which has enabled it to maintain a stable market position.
Fujifilm Holding Corporation (Japan) accounted for the fourth largest position in the market. The company offers products in the picture archiving and communication system (PACS) and enterprise viewers/universal viewers categories. It focuses on its organic growth for strengthening its market position. For instance, in August 2017, the company launched its product Synapse PACS version 5, which includes zero-download viewer with browser flexibility and server-based image rendering providing significant benefits to users.
Novarad (US) holds the fifth largest position in the global medical image management market. The company offers products in diverse categories such as enterprise viewers/universal viewers, vendor neutral archive (VNA), and picture archiving and communication system to strengthen its market position. Also, it focuses on its organic growth via the launch of new products. For instance, in November 2019, the company launched a mammography software NovaMG-Pro which provides high throughput and reduces the overall cost.
Threat of New Entrants
The threat of new entrants is moderate in the global medical image management market. Any company trying to develop medical image management systems is required to accept or abide by the mandatory regulatory standards. However, the budget required for the development of the medical image management platform is high as compared to other industries. Medical image management is specialized and developed to be used for the collection and sharing of patient data with ease. Moreover, the majority of the customers are using technology platforms developed by trusted providers, and they are likely to prefer established brands over new market player due to quality concerns and to maintain the quality of the final product, which does not comfort the new entrants to enter the market easily.
Bargaining Power of Suppliers
The suppliers in the global medical image management market are medical image management software and technology platform developers. There are various suppliers present in the global medical image management market. Switching cost of these suppliers is high due to the high level of differentiation in intense competition. Additionally, research and development cost required for the development of software is quite high. Moreover, suppliers are likely to enter into long term partnerships with the healthcare providers and involved in more than one projects with the same client. Due to the increasing demand for cost-effective and efficient medical image management systems, major companies are focusing on the emerging markets, due to the availability of a large number of customers.
Moreover, several suppliers are there to cater to the needs of the customers, which lead to intense competition between the existing suppliers. However, the development of easy to use the software is a tough task, and software should provide accurate information regarding diagnosis. Hence, healthcare providers are selective about suppliers. Due to this, the overall bargaining power of suppliers in the global medical image management market is moderate.
Bargaining Power of Buyers
The bargaining power of buyers is moderate to high in the global medical image management market. The market has many buyers and a limited number of medical image management providers to cater to the need of the buyers. However, medical image management is specialized and play an important role in healthcare services management, and the buyers of the medical image management are moderately inclined towards quality platforms developed by trusted companies. As the technology platforms and software are used for diagnosis purpose and highly specialized; hence, limited client substitutes are available in the market. Also, most of the buyers are healthcare providers, and they are likely to enter into the long-term agreements with the medical image management system developers for uninterrupted service. Moreover, they can exert pressure on the developers due to the intense rivalry in the market, which is responsible for the increased bargaining power of buyers.
Threat of Substitutes
The threat of substitutes in the global medical image management market is moderate to high. Medical image management systems play an important role in the systematic gathering of data from different sources. There are several options available in the market to serve the need of the customers and which are responsible for increasing the threat of substitute. Many companies are developing systems which are compatible with different modalities and applications.
Additionally, the increasing research and development activities and demand for efficient technology platforms are likely to provide new substitutes to the medical image management.Also, the high degree of customization decreases the threat of substitutes. The overall threat of substitutes in the global medical image management is moderate to high.
Intensity of Rivalry
The rivalry in the global medical image management market is moderate to high. The limited number of customers and product launches by major players increases the intensity of rivalry in the market. The market is growing with a prominent growth rate and likely to provide opportunities for major players to expand their geographical boundaries which will initiate cutthroat competition between major players to capture maximum market share in the emerging markets. Players are engaged in developing a process to lower their development cost to increase profitability and to overcome the competition. Moreover, they are also developing advanced platforms for differentiating their brand from their competitors.
