Rising demand and falling profit for medical device manufacturers due to healthcare reform will increase average prices for MRI scanners, but more production of standardized and refurbished MRI scanners will help to limit price increases
Los Angeles, CA (PRWEB) December 04, 2014
MRI scanners have a buyer power score of 2.8 out of 5. This score reflects a mixed amount of buyer bargaining power due to changing regulations, volatile key inputs and a high total cost of ownership. High market share concentration, few substitutes and a medium level of product specialization reduce options for buyers. The top four players (Siemens, GE, Philips and Toshiba) account for more than half of the total market. “The introduction of refurbished and more standardized MRI scanners into the market during the next three years, however, will increase options and foster price competition, mitigating the rising average price of MRI scanners,” says IBISWorld procurement analyst Keiko Cadby.
Prices for these products have been rising over the past three years primarily due to increased demand. The passage of major healthcare reform has spurred rampant federal budget increases, and the high costs associated with owning an MRI scanner have led buyers to purchase MRIs as funds become available. Rising wages and research and development (R&D) spending have also contributed to increasing product prices as innovators strive to improve image quality and speed, expand clinical applicability and seek alternatives to helium. Rising concerns regarding helium depletion encourage developers to depend less on the limited resource. “Despite the increased availability of refurbished and standardized MRI scanners and fierce competition among suppliers, average prices will continue to rise steadily in the three years to 2017,” adds Cadby.
Demand for new MRI scanners is robust due to the rising number of adults aged 65 and older. This demographic prompts more demand for MRI-scanner diagnostic procedures than any other age group; they are part 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 insured patients with better coverage to be more liberal with their healthcare expenses, boosting demand for new MRI scanners. The wide acceptance and use of these products benefits buyers because most suppliers focus on retaining existing contracts in favor of reaching out to new markets, further increasing buyer power. For more information, visit IBISWorld’s MRI Scanners procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of magnetic resonance imaging (MRI) scanners. These devices are tubular structures that use large magnets and radio waves to alter the atomic nuclei of a patient or object and produce images of internal bodily structures. Health professionals often use MRI scanners to search for potential tumors, internal bleeding, injuries or infections. MRI scanners, unlike computed tomography (CT) scans or X-ray systems, do not use ionizing radiation. MRI scans may also be referred to as magnetic resonance tomography.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Buying Lead Time
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.