Skin Imaging Systems Market Size, Share & Trends Analysis Report By Type (Ultrasound, Optical), By Applications (Pigmented Lesions, Psoriasis, Skin Cancer, Plastic and Reconstructive Surgery, Other Applications), By End-User (Hospital, Specialty Clinics, Skin Rejuvenation Centers, Telemedicine Centers, Others), By Sales Channel (Direct, Distribution Channel) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global skin imaging systems market size was valued at USD 163.99 million in 2023. It is estimated to reach USD 322.39 million by 2032, growing at a CAGR of 7.8% during the forecast period (2024–2032). In recent years, there has been an enormous surge in cases of skin diseases. Skin imaging systems offer healthcare providers the ability to visualize and assess abnormalities in the skin with high precision, enabling timely intervention and improved patient outcomes for treating these diseases, thereby driving global skin imaging systems market growth. Moreover, several institutes have increased their research efforts to create technologically sophisticated skin imaging systems, which is estimated to create opportunities for the vendors operating in the market.

Skin imaging systems are specialized devices used in dermatology and skincare to analyze various aspects of the skin. These systems typically employ advanced imaging technologies such as high-resolution cameras, UV light, polarized light, and sometimes even fluorescence to capture detailed images of the skin's surface and underlying layers. The captured images can then be analyzed to assess various skin conditions, including pigmentation, texture, hydration levels, presence of lesions or abnormalities, and signs of aging or sun damage.

Skin imaging systems serve educational purposes, enabling professionals to educate clients about their skin conditions and treatment options. Therefore, these systems play a vital role in providing objective data for diagnosis, treatment planning, and patient education in dermatology and skincare, enhancing clinical outcomes and patient satisfaction.

Highlights

• Optical imaging dominates the type segment
• Skin cancer dominates the application segment
• Hospitals dominate the end-user segment
• North America is estimated to be the largest skin imaging systems market shareholder

Market Dynamics

Global Skin Imaging Systems Market Drivers:

Increasing Prevalence of Skin Diseases

The surging prevalence of skin diseases, including skin cancer, melanoma, psoriasis, and acne, is a significant driver of growth in the skin imaging systems market. For instance, the prevalence of skin cancer has been surging globally. According to WHO, approximately 2 to 3 million cases of non-melanoma skin cancers and 132,000 cases of melanoma skin cancers occur worldwide annually. The incidence of melanoma is increasing at a quicker rate than any other type of cancer. From 2005 to 2020, melanoma rates rose by 44%, establishing it as one of the fastest-growing cancers in terms of incidence.

According to World Cancer Research Fund International, melanoma of the skin ranks as the 17th most prevalent cancer globally. As these conditions become more widespread globally, there is a growing need for accurate and efficient diagnostic tools to aid in their early detection and management. Moreover, the rising awareness among patients about the importance of regular skin examinations further fuels the demand for these advanced imaging technologies. Consequently, healthcare facilities and dermatology practices are increasingly investing in skin imaging systems to meet the growing diagnostic needs associated with the rising prevalence of skin diseases.

Global Skin Imaging Systems Market Restraint:

Limited Reimbursement

Limited reimbursement presents a significant restraint for the skin imaging systems market, as it impacts the financial viability of healthcare providers adopting these technologies. Reimbursement policies vary across different healthcare systems and regions, with some offering inadequate coverage or none for skin imaging procedures.

Without proper reimbursement, healthcare facilities may struggle to justify the investment in skin imaging systems, as they may not see a clear return on investment. This can particularly affect smaller clinics or those in resource-constrained settings, where budgetary constraints may already be a concern. Limited reimbursement can deter manufacturers from investing in research and development for new skin imaging technologies, further impeding innovation and market growth.

Global Skin Imaging Systems Market Opportunities:

Increasing Research and Development

There has been a rise in the research initiatives undertaken by several institutes to develop technologically advanced skin imaging systems. For instance, in November 2021, A novel "virtual histology" technology was developed by researchers affiliated with the David Geffen School of Medicine at UCLA and the UCLA Samueli School of Engineering. Instead of surgically removing a skin sample, sending it to a laboratory, and waiting several days for results, the dermatologist uses this technology to rapidly generate a detailed, microscopic image of a suspicious-looking lesion through photographs.

Furthermore, in April 2021, MIT researchers developed a novel artificial intelligence pipeline by employing deep convolutional neural networks (DCNNs) to detect suspicious pigmented lesions (SPLs) via the wide-field photography feature prevalent on most smartphones and personal cameras. However, further research is necessary to develop an SPL analysis system that utilizes DCNNs to rapidly and effectively identify skin lesions. Thus, this is anticipated to create opportunities for market growth as it will open new avenues for the researchers to explore.

Regional Analysis

Based on region, the global skin imaging systems market share is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

North America Dominates the Global Market

North America is the most significant global skin imaging systems market shareholder and is expected to expand substantially during the forecast period. North America dominates the global skin image systems market due to well-structured and well-functioning healthcare infrastructure. The availability of many hospitals and specialty clinics deploying new skin imaging systems in their facilities is the crucial factor driving the North American skin image systems market. For instance, in November 2023, the Allegheny Health Network Cancer Institute launched its state-of-the-art Skin Cancer Center at West Penn Hospital. The facility showcases an innovative full-body 3D imaging system, which is the first in the region and offers individualized digital monitoring for skin abnormalities. Dermatology and cancer patients now have one-stop access to the network's comprehensive clinical and surgical expertise and cutting-edge therapies and technologies at the newly constructed 9,000-square-foot facility.

Furthermore, the rising incidence of skin diseases throughout North America can be a significant catalyst for expanding the skin image systems market. For instance, the Skin Cancer Foundation emphasizes that the annual incidence of skin cancer diagnoses in the United States surpasses that of all other cancer types combined. Moreover, by the age of 70, an estimated one in every five Americans will have developed skin cancer. Skin cancer imposes an immense economic burden in addition to its human cost. It is estimated that the yearly cost of treating skin cancers in the United States is USD 8.1 billion, of which USD 3.3 billion is related to melanoma and USD 4.8 billion to non-melanoma skin cancers. Consequently, all these factors drive the regional market growth.

Europe is one of the technologically developed regions. People in Europe are highly aware of their body health and skin health, which has increased demand for skin image systems across Europe, especially in Germany, the U.K., and other developed countries. Countries in Europe are the world's fashion capitals, which has eventually increased aesthetic value for skin and body across Europe, ultimately boosting the overall skin image systems market growth. Moreover, there has been a surge in the geriatric population, who are more prone to skin disorders in this region. For instance, as per the European Commission, The median age in the EU-27 is expected to rise by 4.5 years from 2019 to 2050, reaching 48.2 years. This is anticipated to regional propel market growth.

Segmental Analysis

The global skin imaging systems market is segmented by type, application, end-user, and sales channel.

Based on type, the global skin imaging systems market is divided into ultrasound and optical imaging. 

The optical imaging segment dominates the global market. Optical-based skin imaging systems utilize various light wavelengths to capture detailed images of the skin for diagnostic or cosmetic purposes. Techniques such as dermoscopy, reflectance confocal microscopy (RCM), optical coherence tomography (OCT), and fluorescence imaging offer non-invasive ways to examine the skin at different levels of resolution, from surface features to cellular structures.

Dermoscopy enhances contrast and reduces reflections to detect abnormalities in pigmented lesions, while RCM provides cellular-level images for diagnosing skin conditions. OCT visualizes skin layers and identifies tumors or inflammation. Fluorescence imaging uses contrast agents to highlight specific skin components. These systems are valuable tools for dermatologists and cosmetic surgeons in diagnosing conditions, monitoring treatments, and assessing skin health.

Based on application, the global skin imaging systems market is segmented into pigmented lesions, psoriasis, skin cancer, plastic and reconstructive surgery, and other applications. 

The skin cancer segment owns the highest market share. Skin cancer is a type of cancer that starts in the skin cells. It occurs when skin cells grow abnormally and uncontrollably, forming a malignant tumor. There are several types of skin cancer, but the most prevalent ones are basal cell carcinoma, squamous cell carcinoma, and melanoma. The cases of skin cancers have been rising globally, which is primarily attributed to the depletion of ozone layers.

The atmosphere gradually loses its protective filter function as ozone levels deplete, increasing solar ultraviolet radiation penetration into the Earth's surface. A 10% reduction in ozone levels is anticipated to cause an additional 300,000 cases of non-melanoma skin cancer and 4,500+ cases of melanoma skin cancer. Thus, the expected surge in skin cancer cases is estimated to increase the demand for skin imaging systems to diagnose the disease better.

Based on end-users, the global skin imaging systems industry is bifurcated into hospitals, specialty clinics, skin rejuvenation centers, telemedicine centers, and others. 

The hospital segment dominates the global market. Skin imaging systems play a vital role in hospitals for diagnosing various dermatological conditions and monitoring treatment progress. There's a growing emphasis on early detection and diagnosis of skin conditions, including skin cancer, which has increased demand for advanced imaging technologies. Skin imaging systems also offer non-invasive methods for examining skin lesions, providing patients with a more comfortable experience than traditional biopsy procedures.

Moreover, technological advancements in imaging systems, such as high-resolution imaging and artificial intelligence algorithms for analysis, enhance diagnostic accuracy and efficiency. The rising prevalence of skin diseases globally has prompted healthcare facilities to invest in these systems to improve patient care and outcomes. Thus, these factors contribute to the growing utilization of hospital skin imaging systems.

Based on sales channels, the global market for skin imaging systems is divided into direct and distribution channels.

Selling skin imaging systems through a direct sales channel means that the manufacturer or distributor sells them directly to healthcare facilities, such as dermatology clinics, hospitals, and aesthetic centers, without involving intermediaries like retailers or wholesalers. This approach allows for a more personalized sales experience, as sales representatives can directly engage with potential customers, understand their specific needs, and provide tailored solutions. It also enables the company to build strong relationships with healthcare professionals, offer comprehensive training and support, and gather valuable feedback for product improvement. Overall, leveraging a direct sales channel can result in higher sales efficiency, better customer relationships, and increased market penetration for skin imaging systems.

Impact of covid-19

The COVID-19 pandemic has forced governments to close down inter-nation, inter-state, and even inter-city borders to promote social distancing as a measure to stop the spread of the disease. The WHO warns cash and bank cards may also aid disease transmission, and at present, digital payments offer the safest option. Hence, many are opting for online transactions, especially as retailers are refusing hard cash.

The pandemic has redirected authorities’ attention toward the expansion of online payment systems and contactless cards. Countries such as the U.S. and China are planning to promote electronic cash to fight against the spread of the deadly pathogen. Businesses and governments in the regions are significantly investing in digital currency because it cannot be misplaced and is widely accepted by business officials. The robust infrastructure of the U.S. financial market for electronic money facilitated through Visa and MasterCard, and China’s recent announcement of electronic Renminbi (e-RMB) are a couple of the best examples in the current scenario.

• Trade globalization
• Economic globalization
• Military and geostrategic globalization

The below chart represents the historical exchange rate of the U.S. Dollar to the Chinese Yuan.

China’s Digital Currency Market Post-COVID-19

• With PBoC’s support, the digital Yuan will be ‘tokenised’, and e-RMB will grow at a rapid pace, intensely competing with Alipay and WeChat pay
• In Shenzhen, Suzhou, Chengdu, Xiong'an, and certain 2022 Beijing Winter Olympics host cities, the digital money will be tested. Global brands including McDonalds, Starbucks, and Subway will test.
• The country targets a nationwide rollout in two or three years with an aim to reduce the amount of hard cash printing.
• The e-currency will disrupt traditional banking, replacing some part of physical cash owing to the ubiquitous presence of Chinese QR code-based digital wallets.
• Since May 2020, several provinces' civil officials will get half their monthly pay in e-RMB.

Rest of the World (RoW)

• Factors such as declining cash use and the rise of privately owned ‘stablecoins’ has compelled governments across the world to prioritize Central Bank Digital Currencies (CBDCs). The Swiss Financial Market Supervisory Authority (FINMA) confirmed in April that it had received an application for a payment system license from a Geneva-based association governing Facebook’s planned cryptocurrency Libra.
• Regarding CDBCs, both the Bank of England (BoE) in the United Kingdom and the Central Bank of France (Banque de France) are making progress.
• It is anticipated that the growing cryptocurrency investments from South Africa, the Middle East, and Africa would open up new markets for the industry worldwide.

Recent Developments

• May 2023- The Food and Drug Administration (FDA) of the United States granted breakthrough device designation (BDD) to Orlucent's skin fluorescence imaging system. A handheld molecular-level mole imaging and analysis device, the Orlucent system is designed for use at the point of care.
• June 2023- FotoFinder Systems GmbH, a global leader in dermatological medical imaging systems, unveiled two new products: meesma, a portable aesthetic imaging solution, and the FotoFinder ATBM Master 4th Generation, which features its ultimate AI Assistant, AIMEE, for increased speed and intelligence in total body dermoscopy at the Suntec Singapore Convention & Exhibition Centre for interested parties.