Medical Image Analysis Software Market

Market Overview

The global medical image analysis software market size was valued at USD 3.09 billion in 2022. It is estimated to reach USD 6.23 billion by 2031, growing at a CAGR of 7.9% over the forecast period (2023–2031). Innovations in healthcare technology are driving demand for medical image analysis software and opening up new opportunities for companies in the industry.

Deep learning techniques are utilized by medical image analysis software to read and assess images. It can manage heavy workloads by sorting through hundreds of photos at once. It can be programmed to 'tag' images with questionable findings, speeding up radiologists' work because they do not have to look through all the images and can concentrate on the marked ones.

Medical imaging software is an integral part of global healthcare that utilizes state-of-the-art software, technological advancements, and advanced equipment to obtain or create visual representations of the body's internal structures for diagnosis, clinical analysis, and medical intervention. Devices equipped with medical imaging software facilitate the diagnosis of tumors and visually represent the functionality of specific organs or tissues.

Market Dynamics

Global Medical Image Analysis Software Market Drivers

Increasing Incidences of Chronic Diseases

An increase in the prevalence of chronic diseases is likely to boost market growth. According to WHO, in 2018, nearly 17 million new cases of cancer and about 9.6 million deaths due to the disease were reported globally. Cancer is the second most common cause of death in the US, after cardiovascular disorders. The American Cancer Society estimated that 606,520 Americans died from cancer in 2020, which equates to more than 1,600 deaths per day. Most of these deaths are anticipated to be caused by prostate, lung, and colorectum cancers in men and breast, lung, and colorectum in women. Therefore, increasing cancer incidence worldwide is projected to spur market expansion.

Additionally, the prevalence of bone fractures is driving up the use of medical imaging technology for diagnosis and therapy. The CDC predicts a 310% increase in men's hip fracture rates and a 240% increase in women's hip fracture rates worldwide. According to NCBI, currently, nearly 200 million women worldwide have osteoporosis. Moreover, according to the International Osteoporosis Foundation, one in every three women aged 50 and above and one in every five men are likely to experience osteoporosis in their lifetime, significantly increasing the demand for surgical interventions for treating fractures. Hence, areas of diagnosis and monitoring find wider applications in treating such conditions, which will likely drive market growth during the forecast period.

Global Medical Image Analysis Software Market Restraint

Growing Concerns About Software Hacking

Hacking of medical equipment can lead to unwanted outcomes for patients. For instance, according to Alpine Security, LLC, there are more than ten connected devices per hospital bed in the U.S., wherein devices such as pacemakers and other embedded devices use radio or network technology, which is vulnerable to attack by hackers. Connectivity does increase the amount of data available to clinicians, leading to positive outcomes; however, it can also be unsafe unless healthcare settings employ stringent security measures.

Hacking is the main concern in the medical image analysis software market, as it can be used to shut down a device effectively and result in security and data breaches, which may impact clinical care and patient safety. Moreover, growing dependence on imaging software creates concerns about crashes, bugs, and susceptibility to digital attacks. Thus, the adverse consequences of hacking and unintended malfunctioning make healthcare professionals hesitant to install imaging software in their facilities, which may impede market growth.

Global Medical Image Analysis Software Market Opportunities

Technological Advancements

The medical image analysis software market is propelled by technological advancements that are expected to create growth opportunities for market players. Key players are increasingly launching new products due to such technological advancements. Moreover, image analysis through CAD includes initial detection, image enhancement, and image feature extraction. This method assists radiologists in diagnosing abnormalities and decreases manual errors while interpreting data. Therefore, the growing usage of CAD technology for diagnostic image analysis will likely boost market growth.

Furthermore, multinational companies are focused on innovations in medical Imaging. For instance, in May 2020, Philips introduced an ultrasound solution for pediatric assessment. This solution offers excellent detailed images, which are helpful for definitive diagnosis. It also decreases the need for other diagnostic imaging techniques, such as X-ray imaging. Such innovations will positively impact the medical image analysis software market.

Moreover, companies are adopting mergers and acquisitions and collaboration strategies to boost market growth. For instance, in March 2019, Zebra Medical Vision and HealthNet Global—a division of the Apollo Hospitals Group, India—mutually received funding from the Technological Innovation Fund of USD 4.9 million to co-develop and offer clinical validation and efficacy for radiology Al-based imaging devices in India.

Regional Analysis

Region-wise, the global medical image analysis software market is segmented into North America, Europe, Asia-Pacific, and LAMEA.

North America Dominates the Global Market

North America is the most significant global medical image analysis software market shareholder and is estimated to exhibit a CAGR of 7.01% during the forecast period. The presence of key players and new product launches are major factors contributing to this segment's dominance. The region displays high-priced diagnostic imaging modalities, increased adoption of advanced imaging systems owing to high patient awareness, and favorable reimbursement policies. In addition, a high service charge guarantees a faster return on investment for expensive diagnostic suits and systems. In 2018, North America had the highest healthcare expenditure as a percentage of its GDP. The United States alone spent USD 3.6 trillion, accounting for 17.7% of its healthcare spending. Moreover, the regional market is expected to be driven by factors such as the increasing prevalence of chronic diseases, the aging population, and the growing adoption of preventive and diagnostic practices.

Europe is estimated to grow at a CAGR of 8.5% during the forecast period. Several government initiatives for continued improvements and product approvals are responsible for the market growth in this region. In addition, organizations such as the European Department of Health are involved in improving the quality and efficiency of the devices through early engagement and collaborations with social care agencies, thereby widening the scope of market growth in Europe. Moreover, factors responsible for the growth of the medical image analysis software market include a large percentage of the digitally literate population and changing socioeconomic conditions. These factors are further predicted to drive the market over the forecast period.

Asia-Pacific medical imaging analysis software market will likely witness lucrative growth over the forecast period due to developments in medical device companies and rising R&D expenditure. The Asia-Pacific imaging analysis software market is anticipated to experience increased demand due to the combination of growing disposable income and a substantial patient population, which will drive the need for enhanced healthcare services. Similarly, investments in the healthcare industry have gained momentum, particularly in China, India, and Japan. The construction of adequate diagnostic and treatment facilities for healthcare is becoming increasingly important to nations. As per Invest India, 2020, the hospital industry accounts for around 80% of the total healthcare market in India and is witnessing a significant investor demand from domestic and international investors.

Segmental Analysis

The global medical image analysis software market is segmented into software type, imaging type, modality, application, and end-user.

By software type, the global medical image analysis software market is segmented into integrated, stand-alone software. 

The integrated software segment dominates the global market and is estimated to register a CAGR of 7.6% during the forecast period. Due to its increased usage, integrated software constituted the largest medical image analysis software market segment at 54.99%. Its rapid adoption can be attributed to benefits such as a uniform data pool, where users can access an overview of activities, centralized data storage, and faster data analysis that facilitates critical identification processes during diagnosis. Moreover, integrated software allows users to access and maintain a health record data system, resulting in low maintenance costs and less troubleshooting time. All the factors mentioned above serve as key drivers expected to propel segment demand throughout the forecast period.

Based on imaging type, the global medical image analysis software market is segmented into 2D Imaging, 3D Imaging, and 4D Imaging. 

The 2D Imaging segment owns the highest market share and is expected to exhibit a CAGR of 7.5% during the forecast period. It is used for obtaining and analyzing images easily and quickly. 2D software has adaptive preprocessing screens, which can produce X-ray images exactly as intended, from intraoral and panoramic to cephalometric images. This method can provide shorter imaging times with high sensitivity to slow flow. Moreover, recent developments are expected to boost the market during the forecast period. In December 2019, Samsung Healthcare launched CrystalPure, an ultrasound imaging engine with improved 2D image and color signal processing. It enables efficient workflow and high-quality Imaging.

Based on modality, the global medical image analysis software market is segmented into tomography, ultrasound imaging, and radiographic imaging. 

The tomography segment dominates the global market and is estimated to grow at a CAGR of 7.9% during the forecast period. Tomography provides body images in 2D, 3D, or 4D. The key factor contributing to the segment's steady growth is the technology's cost-efficiency and elimination of ionizing radiation that causes adverse patient effects, resulting in significant market growth.

Based on application, the global medical image analysis software market is segmented into orthopedic, dental, neurology, cardiology, obstetrics and gynecology, oncology, mammography, urology, and nephrology. 

The cardiology segment owns the highest market share and is estimated to grow at a CAGR of 7.8% during the forecast period. The prevalence of cardiovascular and reproductive diseases is rising, and the government is providing more funding to make treatments more accessible. As a result, the cardiology field should expand at a profitable rate within the anticipated time frame. Innovations in diagnostic methods, including open MRI, superconducting magnets, and visualization software, are anticipated to propel this market. Moreover, recent developments have helped simplify imaging workflow to generate contrast scans faster.

For instance, in September 2019, Siemens Healthineers invested USD 3 million to open a medical imaging unit in Bengaluru, including a manufacturing facility and R&D center. The new facility would manufacture CT systems based on the Somatom Go Platform. This platform can be applied in CT-guided intervention, cardiology, and dual-energy CT and can manage the typically high patient loads in countries such as India. Such advancements are expected to propel the market over the forecast period.

Based on end-users, the global medical image analysis software market is segmented into hospitals, ambulatory surgical centers, diagnostic centers, and others. 

The hospitals segment dominates the global market and is expected to exhibit a CAGR of 7.41% during the forecast period. The increase in the incidence of diseases and disorders has boosted the number of patients visiting doctors in hospitals. Greater financing capabilities and a high volume of surgeries contribute to segment growth. Hospitals have supportive infrastructure that facilitates accurate operative procedures involving medical Imaging. Hospitals present a wide range of facilities in a controlled environment generally preferred by patients for the diagnosis of diseases. The factors mentioned above can be ascribed to the growth of this segment and are expected to propel the overall market.

Furthermore, the availability of a larger patient pool and healthcare staff is a high-impact rendering driver for this segment. Hospitals are expected to grow steadily during the forecast period, which can be attributed to various applications such as the engagement of clinicians, future-proof infrastructure, data storage for all patients, centralized systems, and remote data availability. Moreover, hospitals collaborate with different insurance companies for better and faster reimbursement on installation. Owing to these benefits, the overall footfall in hospitals is more for the medical image analysis software market.

Recent Developments

• January 2023 - ScImage, Inc. and Canon Medical Systems USA Inc. announced the conclusion of a strategic collaboration agreement. ScImage, Inc. is a commercial subsidiary of Canon Medical Systems Corporation, a world pioneer in cutting-edge diagnostic imaging technology. Based in Los Altos, California, Sclmage offers Cloud-native enterprise image management, PACS, and image exchange solutions for the healthcare sector.
• December 2022- The debut of SP Configurations, Orian SP, and Galan SP was announced by Canon Medical Systems USA Inc., a commercial division of Canon Medical Systems Corporation and a world pioneer in cutting-edge diagnostic imaging technology. This recently released product is intended to provide daily high-end performance and includes AI-driven workflow solutions, an intelligent Ceiling Camera, and the Tablet UX mobile interface.