Teleradiology Software Market Size, Share & Trends Analysis Report By Type (Radiology Information System, PACS, VNA), By Deployment (Web-based, Cloud-based, On-Premise), And Region, And Segment Forecasts, 2019 - 2025

Industry Insights

The global teleradiology software market size was valued at USD 1.4 billion in 2018 and is expected to expand at a CAGR of 8.1% during the forecast period. The shortage of radiologists in major countries, such as the U.S. and India, is a key growth driver. According to the National Cancer Institute, in the U.S. around 1,735,350 new cases and around 609,640 deaths caused by cancer were estimated to be registered in 2018. The rising prevalence of chronic diseases, such as cancer, liver disorders, and spinal cord injuries, has increased the need for diagnostic imaging. With the increasing demand for imaging diagnostics, the gap between demand and supply is surging due to the shortage of skilled radiologists to interpret the imaging reports data. To reduce the supply gap, various radiology centers and hospitals are adopting teleradiology solutions, which is one of the key factors driving the market.

Cloud-based solutions have witnessed significant adoption by healthcare providers. A HIMSS Analytics survey published in 2018 stated that about 60% of the responding healthcare organizations were using the cloud for backup and disaster recovery, and nearly 51% started utilizing the cloud for core clinical applications. Numerous advantages of cloud-based teleradiology software such as high accessibility to patient data despite large volumes are expected to drive the adoption of cloud-based software solutions, fueling the overall market growth.

Rising adoption of digital healthcare infrastructure across all geographies and rapid increase in the number of radiology image data sets are among the few vital factors driving the demand for healthcare information networks to store, ingest, manage, access, and interpret clinical data of various patients individually. The rise in the number of medical images produced annually is propelling the need for a structured reporting system for radiology images to integrate it with individual Electronic Health Records (EHR) solutions, which has further surged the demand and adoption of Radiology Information System (RIS) by diagnostic centers and other healthcare institutes.

Also, nonprofit organizations and governments across all regions are promoting and investing in teleradiology services, which is expected to drive the market. For instance, Telerad Foundation, a non-profit trust focuses on imparting teleradiology support to hospitals located in rural/under-served/semirural parts of Asia that are unable to receive on-site radiology coverage. Similarly, growth in the number of joint ventures between governments and private companies, such as the Singapore government and Teleradiology Solutions and Tripura government and Teleradiology Solutions is anticipated to create growth opportunities in the forthcoming years.

Moreover, the surging implementation of Picture Communication and Archiving Systems (PACS) is expected to boost the demand for teleradiology software. Diagnostic centers, medium-sized hospitals, and diagnostic clinics are focusing on the procurement of specialized PACS tools due to the growing demand for CT scans. Companies developing PACS are focusing on the changing requirements of small hospitals.

Companies offering teleradiology software are involved in new product launches, existing product upgrades, mergers and acquisitions, and regional expansion to enhance their market position. For instance, in July 2019, Comarch SA opened its office in Australia to expand its business and to strengthen its global presence. Also, the company is focusing on the development of a hosting services portfolio for its present and future clients in Australia. Likewise, in November 2014, Carestream Health introduced upgrades to its existing Vue Radiology Information System platforms, such as mammography workflow and clinical document exchange.

Type Insights

In 2018, the PACS software segment held the largest share of the teleradiology software market and was valued at USD 678.35 million. Factors such as arise in medical diagnostic procedures and the growing adoption of remote patient monitoring, has increased the adoption of PACS software among healthcare providers. According to a recent HIMSS Analytics Essentials report, the radiology PACS technology is used extensively across the healthcare industry, allowing healthcare providers to store and access electronic imaging studies in an effective and cost-efficient manner.

RIS aids radiologists with patient scheduling, registration, documentation, and booking, and scheduling. Growing awareness about the benefits of RIS among radiologists is a prominent driver for the growth of the RIS Segment. Also, demand for cloud-based RIS is increasing among radiologists owing to benefits such as reduced operational cost and easy accessibility to patient data. Radiologists can effectively analyze and save the report on the cloud using cloud-based RIS, making the data accessible to multiple practitioners from different physical locations.

However, Vendor Neutral Archive (VNA) is anticipated to register the fastest CAGR of 9.46% over the forecast period. Rising need to easily share medical imaging information among healthcare providers is one of the key factors boosting the demand for VNA. Healthcare providers are utilizing VNA software owing to its advantages over PACS such as flexibility, accessibility, interoperability, and data ownership. Although, the initial investments are required for VNA is very high, yet in the long run, this can be proved as a cost-effective solution as they avoid data migration costs.

Deployment Insights

The web-based segment accounted for the largest revenue share in 2018. Remote data accessibility and high preference for web applications are some of the factors propelling the segment growth. Moreover, the number of imaging procedures is growing as CT and MRI scans are becoming routine and thus radiologists have to access a large number of images at any time. This factor is likely to drive the demand for web-based teleradiology solutions.

Benefits of cloud-based solutions, such as unlimited scalability and deployment flexibility, cost-effectiveness, and predictability, are aiding the adoption of these solutions among healthcare providers. Also, by using cloud-based solutions, radiologists can effectively manage multimodality units without paying the high upfront costs. In March 2018, Vue Cloud-an imaging cloud service based on the Carestream Clinical Collaboration Platform-managed more than 26 billion images in private and public data centers across the globe.

Although the use of the on-premise solutions is lower compared to web-based and cloud solutions, factors such as data security and limited requirement of internet connection in case of on-premise solutions are aiding segment growth. Also, benefits offered by on-premise solutions such as customization depending on radiologists or healthcare providers’ requirements support market growth.

Regional Insights

In 2018, North America held the majority of the revenue share of nearly 43.7% of the global market. Increasing the target population, the prevalence of chronic diseases, such as cancer and bone impairments, the presence of major market players, and the existence of developed healthcare IT infrastructure are the key factors that have contributed to the growth. Favorable government initiatives, technological advancements, and high healthcare expenditure are the leading factors positively impacting regional market growth.

In Europe, factors such as shortage of radiologists and the need for specialist advisors and on-call radiology reading is boosting the demand for teleradiology software. Increasing healthcare costs and reducing healthcare budgets have pushed for efficient teleradiology services, which in turn support the regional market growth. Also, the high demand and availability of PACS are expected to create growth opportunities for teleradiology software in Europe.

The Asia Pacific is projected to be the most lucrative region over the forecast period. A high unmet medical need, resulting from the prevalence of targeting chronic diseases such as cancer and cardiac diseases, propels the demand for medical imaging in the region. Also, the shortage of radiologists in several countries such as India, favorable government initiatives in the digital health sector, and the growing adoption of advanced technology supports the market growth in the region. According to the estimates of the Health Department of India, the state of Uttarakhand had a shortage of around 73% radiologists and 52% doctors in 2016. The state health department is expected to utilize teleradiology services in government hospitals in various parts of India to ensure timely diagnosis and treatment of patients. This factor is expected to further fuel the regional growth.

Global Teleradiology Software Market Share Insights

Key players operating in the market are Carestream Health, Telerad Tech, Comarch SA, Medsynaptic Pvt Ltd, Perfect Imaging LLC, Impose Technologies Pvt Ltd., and Radical Radiology. Increasing mergers and acquisitions, collaborations with other industry players, geographic expansions, and product differentiation are among the key strategies adopted by these companies for gaining a competitive edge in the global market.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For this study, Grand View Research, Inc. has segmented the global teleradiology software market report based on type, deployment, and region:

• Type Outlook, (Revenue, USD Million, 2014 - 2025)

  • Radiology Information System (RIS)

  • Picture Archive and Communication System (PACs)

  • Vendor Neutral Archive (VNA)

• Deployment Outlook, (Revenue, USD Million, 2014 - 2025)

  • Web-based

  • Cloud-based

  • On-Premise

• Regional Outlook (Revenue, USD Million, 2014 - 2025)

  • North America 

    • The U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • Spain

    • Italy

    • France

    • Russia

  • Asia Pacific 

    • China

    • Japan

    • India

    • Australia

    • Singapore

    • South Korea

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • Middle East & Africa

    • South Africa

    • Saudi Arabia

    • UAE