Robust demand, the rising costs of R&D and the nondiscretionary nature of effective medical equipment have been pushing prices up for CT scanners
Los Angeles, CA (PRWEB) October 15, 2014
CT scanners have a buyer power score of 3.0 out of 5. According to IBISWorld analyst Keiko Cadby, this score reflects a medium level of buyer bargaining power due to changing regulations, robust demand and limited product options. High market share concentration, few substitutes and a medium level of product specialization reduce options available to buyers. However, expected patent expirations and the entry of more standardized CT scanners during the next three years are forecast to increase options and foster price competition, mitigating the rising average price of CT scanners.
Prices for these products have been increasing over the past three years primarily due to patent activity in new-and-improved CT scanner technologies, and their resulting premium pricing strategies, continues Cadby. Additionally, rising research and development (R&D) spending and wages have been contributing to product price increases as innovators have been struggling to improve image quality while reducing exposure to radiation. However, due to the increased availability of standardized CT scanners (which are far less expensive than their cutting-edge counterparts) and fierce competition among suppliers, average prices are not expected to skyrocket in the three years to 2017. Major suppliers of CT scanners include GE Healthcare, Siemens AG and Toshiba.
Demand for CT scanners is robust due to the rising number of adults aged 65 and older. The elderly demographic prompts the most demand for CT scanner diagnostic procedures than any other age group, primarily because of a growing culture of proactive and educated patients seeking preventative and diagnostic care. The Affordable Care Act (ACA) allows previously uninsured patients to seek medical treatment and existing insured patients with better coverage to be more liberal with healthcare needs, boosting demand for new CT scanners. The wide acceptance and use of these products benefits buyers because most suppliers focus on existing contracts rather than reaching out to new markets. For more information, visit IBISWorld’s CT Scanners procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of computerized tomography (CT) scanners. These devices utilize a series of X-ray photos taken from multiple angles to create cross-sectional images of a body's internal structure to create 3D images. CT scans are used as a security measure for objects such as airport baggage. They are also used in medical settings to develop internal photos for nearly all parts of the body including organs, blood vessels, bones and the spinal cord. CT scans are also referred to as CAT and Multi-Slice CT (MSCT) scans.
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Product Life Cycle
Total Cost of Ownership
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Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
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Key RFP Elements
Buyer Power Factors
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IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement 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.