Greater Concern for Breast Cancer Prevention Driving Demand for Mammography Machinery, Says New Industry Research Report from IBISWorld

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October is Breast Cancer Awareness Month and the growing concern for breast cancer prevention is driving demand for mammograms. In turn, this is pushing hospitals and clinics to invest in new mammography machinery. According to a new industry research report from IBISWorld, the U.S. Mammography Machinery Manufacturing industry is forecast to grow at an average annual rate of 6.4 percent - to $739 million - during the five years to 2016. Senior Industry Analyst Nima Samadi says that this is a “direct result of the aging population, technological advancements, outsourcing and healthcare reform.”

Emerging and rapidly developing economies are becoming major drivers of export growth.

October is Breast Cancer Awareness Month and the growing concern for breast cancer prevention is driving demand for mammograms. In turn, this is pushing hospitals and clinics to invest in new mammography machinery. According to a new industry research report from IBISWorld, the U.S. Mammography Machinery Manufacturing industry is forecast to grow at an average annual rate of 6.4 percent - to $739 million - during the five years to 2016. Senior Industry Analyst Nima Samadi says that this is a “direct result of the aging population, technological advancements, outsourcing and healthcare reform.”

“The US economic downturn did little to deter hospitals and clinics from purchasing mammography machines and sales were largely driven by the fact that customers were shifting from older analog products to new digital ones,” explained IBISWorld Senior Analyst Nima Samadi. ”The aging US population is also a major factor driving demand. More than half of the diagnosed breast cancers are in women aged 65 or older. IBISWorld forecasts that this demographic will expand as a percentage of the total population during the five years to 2016, which will help maintain growth for medical devices, such as mammography machines, vital signs monitors and endoscopes.”

While the industry is forecast to see strong growth of 6.4 percent in the next five years, this actually represents a decline from the previous five-year period, where the industry increased at an average annual rate of 14.4 percent. The changing regulatory environment will be the main hindrance. For example, the Patient Protection and Affordable Care Act of 2010 will place an excise tax on medical devices, reducing industry profitability to about 8.5 percent of revenue in 2016, down from 9.0 percent in 2011. Also, potential reform to the approval process for new devices will likely hamper innovation and encourage more companies to shift functions overseas. However, the Food and Drug Administration has reclassified full-field digital mammography (FFDM) systems from high-risk class III devices to medium-risk class II devices, which has eased regulatory requirements for those devices and should reduce research and development (R&D) times and costs.

Foreign outsourcing of manufacturing, R&D and other operations, combined with industry consolidation, is forecast to decrease the number of industry operators by 5.2 percent per year on average to 13 during the next five years. However, emerging and rapidly developing economies are becoming major drivers of export growth. The mammography machine markets in Brazil, China and India are expected to expand rapidly over the next five years as these countries continue to modernize their medical infrastructure. Over the five years to 2016, industry exports are expected to grow at a rate of 3.6 percent per year to $135.2 million.

The majority of major players in this industry are headquartered (and manufacture industry devices) in the United States; however, there are a number of prominent foreign players that are slowly becoming formidable competitors. These companies include Siemens (Germany), FujiFilm Medical (Japan), Philips (Netherlands) and Sectra (Sweden). In 2011, 24.0 percent of domestic demand will be satisfied by imports.

Today, tightening global regulations, increased global competition and new market opportunities have prompted some manufacturers to outsource a range of critical operations. Despite several reasons for keeping production domestic (e.g. perceived concerns about quality control, regulatory compliance, competitive pressures and a traditionally simpler market with less regulation and a smaller geographical focus), tougher competitive and regulatory challenges make outsourcing an increasingly attractive option. At the same time, many of the traditional barriers to outsourcing have lessened or disappeared. The convergence of these factors has fueled a growing trend toward the use of third-party resources to design, engineer, manufacture, package and distribute mammography machines.

For more information, download the full report from IBISWorld on the Mammography Machine Manufacturing industry.

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About IBISWorld, Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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