Medical Imaging Software Market

Market Overview

The global medical imaging software market size was valued at USD 6.64 billion in 2022. It is estimated to reach USD 12.17 billion by 2031, growing at a CAGR of 6.97% during the forecast period (2023–2031).

Medical imaging, also referred to as radiology, is the branch of medicine in which medical professionals reconstruct diagnostic or therapeutic images of various body regions. Medical imaging procedures include non-invasive tests that enable physicians to diagnose injuries and diseases without invading the patient's privacy. Medical imaging software improves the efficacy of the chosen medical treatment by enabling the viewing, training, storage, and sharing of medical data.

The software for medical imaging includes both 2D and 3D imaging formats. With the aid of this program, medical staff can monitor, store, manage, and modify patient photographs and administrative procedures. Medical image analysis software, medical image management software, and medical image processing software, among others, are the type of medical imaging software. Hospitals, diagnostic and research centers, and independent radiology centers utilize the software for medical imaging.

Market Dynamics

Global Medical Imaging Software Market Drivers

Rising Investments in AI-based Medical Imaging

The advancements in artificial intelligence (AI) across many imaging modalities and therapeutic domains have led to a surge in its utilization in medical imaging. Artificial intelligence has helped identify and distinguish four diseases in chest radiographs, helping radiologists prioritize patients with the most severe and complex cases. The clear potential of AI technology is driving a surge in investments among start-ups and growing interest from larger companies.

Many established companies have invested in AI-assisted medical imaging through partnerships or acquisitions or by developing their capabilities. For instance, in 2018, GE Healthcare partnered with Intel to apply AI to various medical imaging formats. Additionally, Siemens Healthineers introduced an AI solution to diagnose potential abnormalities in chest CTs. Such investments in AI-assisted medical imaging will drive market growth.

Rising Demand for Hybrid Imaging Technology

Hybrid imaging involves fusing two or more imaging modalities to create a new technique. A new and more powerful modality comes to light by synergistically combining the innate advantages of fused imaging technologies. The most significant development in this regard has been the innovation of hybrid PET-CT systems, hybrid PET-MRI, and SPECT-CT systems. These hybrid imaging systems obtain morphological and physiological information in just one examination with precise images and better resolution than standalone systems.

Other hybrid imaging modalities also combine structural and molecular imaging. Some existing hybrid imaging modalities include MRI-SPECT, ultrasound and MRI, ultrasound and CT, and MRI-CT. As the advantages associated with hybrid imaging systems are high, many hospitals are now replacing their standalone systems with hybrid systems. With the growing adoption of hybrid imaging systems, the demand for software used in these systems has also increased, boosting market expansion.

Global Medical Imaging Software Market Restraint

Rising Concerns of Data Breach and Software

The growing usage of software-enabled medical diagnostic equipment has increased the challenge of software hacking, severely impacting the hacked individual. Data breaches have become a growing concern with the increasing usage of advanced imaging systems. A growing number of high-profile security incidents have brought into sharp focus the importance of cybersecurity, which had previously been undervalued and underfunded in many hospitals. Such factors hinder the market growth.

Global Medical Imaging Software Market Opportunities

Technological Advancements in Medical Imaging Systems

Researchers' increased focus on eradicating cancer, heart, and neurological disorders has brought innovations in medical imaging and IT closer to prevention, treatment, and cure for deadly diseases. Due to essential research and technological evolution, numerous medical imaging technology advancements have occurred. The integration of these innovations, together with the utilization of information technology and the expansion of digital infrastructure, has facilitated enhanced operational effectiveness in the delivery and implementation of healthcare services to patients.

Additionally, the use of 3D (and potentially even 4D) technologies in diagnostic radiology to create better images for powerful results is gaining significance in recent years. CareStream Health, a leader in digital medical solutions and IT infrastructure for healthcare, has been exploring 3D capabilities in imaging, specifically in CT scans. Comparing its OnSight 3D Extremity System to conventional CT pictures, the program improves the contrast of soft tissue and lessens the presence of metal artifacts. Similarly, big data analytics, augmented reality (AR), and virtual reality have revolutionized healthcare. Therefore, the rising technological advancements are expected to further boost the market demand during the forecast period.

Regional Analysis

Based on region, the global medical imaging software market 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 medical imaging software market shareholder and is anticipated to exhibit a CAGR of 5.41% during the forecast period. The area has dominated the market due to the surging population and prevalence of chronic conditions leading to the high demand for medical imaging and diagnostics in healthcare settings for rapid diagnosis and enhanced medical care. In addition, the growing healthcare expenditure, the need for advanced imaging techniques, various advantages associated with imaging software, the presence of well-established players, and a major shift towards digital imaging are also leading the market growth in this region. In addition, medical imaging and diagnosis play an important role in healthcare, contributing to accurate diagnosis and appropriate treatment for a condition. The increased usage of imaging equipment in diagnostic centers has been observed over the years due to the growing hospitalization rates. Using ultrasound, CT, MRI, and nuclear imaging has continued to increase across all age groups in North America.

Europe is estimated to exhibit a CAGR of 7.99% over the forecast period. The growing demand for medical imaging devices, the rise in applications of computer-aided diagnosis, and an increased number of players have contributed to the market growth in the region. Moreover, the continuously changing lifestyle and expanding geriatric population demand advancements in medical imaging solutions to help in the effective and early diagnosis of diseases. In addition, R&D activities and government initiatives are helping meet such requirements in the medical imaging sector. The availability and usage of CT and MRI have increased rapidly in most European countries over the past two decades but have wide differences.

Germany, Italy, Greece, and Finland have the highest number of MRI units per capita. In contrast, the UK, Romania, and Hungary have the lowest number of MRI units and CT scanners per capita. In the region, Germany possesses the most substantial per capita quantity of computed tomography (CT) scanners. Germany has the highest per capita rate of CT and MRI exams compared to other countries.

China, Japan, India, South Korea, and Australia are the major revenue contributors to the medical imaging software market in the Asia-Pacific region. According to a study, more than 0.3 million patients underwent 4.9 million diagnostic tests from 1997 to 2006. In this large healthcare plan, ultrasound imaging increased by nearly 40%, CT doubled, and MRI almost tripled. The utilization of imaging services has shown significant growth over this timeframe, with expenditures doubling from USD 6.6 billion to USD 13.7 billion. The supply of CT and MRI scanners has also increased dramatically, contributing to further use and spending on these services. Within the radiology community, the profit margin is considered the greatest for MRI, followed by CT. The need for imaging system software applications is predicted to increase in the next years due to the region's increasing demand for imaging and diagnostics.

In recent years, Latin American countries have used their economic growth to improve technologies applied to healthcare. The economic development of Latin American countries was followed by significant growth in the medical technology sector, led by countries such as Argentina, Brazil, and Mexico. Latin America's largest technology investments are in major cities within the larger, more specialized, highly complex diagnostic and healthcare centers. This generates a high concentration of patients in larger cities. In the coming years, medical technology will likely witness several advancements to cater to the rising patient population.

In the Middle East and Africa, many countries have reported a shortage of radiologists, increasing the workload for doctors. The increasing dependency on technology has increased the need for diagnostic imaging and radiology professionals. The high prevalence of diabetes, end-stage renal disease, peripheral vascular disease, and many others translates to high demand for interventional radiologists. In recent years, there has been a substantial surge in the need for radiologists, with projections indicating that this trend will persist and further intensify in the foreseeable future. The growing advancements in medical imaging and increased demand for diagnostic imaging equipment have fueled the market growth in the region.

Segmental Analysis

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

Based on type, the global medical imaging software market is divided into medical image analysis software, medical image processing software, medical image management software, and others. 

The medical image analysis software segment is the most significant contributor to the market and is estimated to exhibit a CAGR of 7.55% over the forecast period. Medical image analysis solutions are relevant to many areas of healthcare, including but not limited to neurology, cardiology, orthopedics, dentistry, and oncology, helping to automate and accelerate tasks that require a longer time when performed manually. The software can learn to recognize specific features of these images, making the diagnostic process significantly faster and more reliable. The software helps analyze traditional 2D images and can read 3D and 4D images.

Based on modality, the global market is bifurcated into ultrasound, radiography, computerized tomography (CT), magnetic resonance imaging (MRI), mammography, positron emission tomography/single-photon emission computed tomography (PET/SPECT), and others. 

The ultrasound segment is the highest contributor to the market share and is anticipated to exhibit a CAGR of 5.69% over the forecast period. Ultrasonic imaging has evolved as a rapidly advancing technology and a powerful diagnostic tool due to its relative safety and non-invasive nature. Some developments in ultrasound imaging include newer applications of ultrasound contrast, advanced applications in 3D imaging, app-based ultrasound technology, development of wireless transducers, shear wave elastography, fusion with CT/MR, and laparoscopic ultrasound. Advancements in ultrasound are making the technology appear more attractive for certain clinical applications ranging from breast health to cardiology due to their non-invasive, cost-effectiveness, and reduced radiation exposure.

Based on application, the global medical imaging software market is divided into cardiology, orthopedic, oncology, neurology, gastroenterology, dental, obstetrics and gynecology, and others. 

The cardiology segment dominates the global market and is predicted to exhibit a CAGR of 6.44% over the forecast period. The choice of cardiac imaging depends on the clinical history and examination of the patient. It helps to monitor known pathology in many cardiovascular diseases, such as interval monitoring of aortic stenosis. The type of cardiac imaging modality is based on patient characteristics, disease type, and accessibility of tests. In addition, various clinical presentations, including chest pain, dyspnoea, palpitations, and syncope, raise suspicion of cardiovascular disease. The cardiac imaging channel includes the modalities of computed tomography (CT), cardiac ultrasound (echocardiography), magnetic resonance imaging (MRI), nuclear imaging (PET and SPECT), and angiography.

Based on imaging type, the global market is segmented into 2D, 3D, and others. 

The 2D imaging segment is the largest revenue contributor to the market and is anticipated to exhibit a CAGR of 6.57% over the forecast period. 2D imaging, such as the standard CT or MRI, has existed since 1972. Two-dimensional echocardiography (2D echo) is one of the most useful imaging methods due to its wide availability, ease of use, price, capacity to serve as a bedside technique, and repeatability. It is the most utilized cardiovascular imaging modality for assessing cardiovascular disease and is often performed in patients without a history of ischemic heart disease. It is also very useful to rule out the possibility of other etiologies of acute chest pain or dyspnea, such as aortic dissection and pericardial effusion.

Based on end-users, the global market is bifurcated into hospitals, diagnostic centers, ambulatory surgical centers (ASCs), and research and academic institutes. 

The hospital segment owns the highest medical imaging software market share and is projected to exhibit a CAGR of 6.53% over the forecast period. Hospitals utilize more diagnostic imaging equipment than any other healthcare setting. Diagnostics are the preliminary screening method in hospitals and the first point of contact for any infection and disease. The availability of skilled professionals for handling imaging equipment has contributed to the high usage of medical imaging in hospitals.

Recent Developments

• May 2023- Claritas HealthTech, based in Singapore, partnered with PwC for the deployment of its medical imaging platforms. The companies will distribute, implement, and support a suite of medical image enhancement and artificial intelligence (AI) diagnostic software through collaboration.
• March 2023- Qure.ai, a supplier of artificial intelligence (AI) software for medical imaging, was granted CE Class IIb certification for medical devices under the European Union Medical Device Regulation (Regulation (EU) 2017/745). (EU-MDR).