European Diagnostic Imaging Equipment Servicing Market to Reach $1 Billion by 2021

According to Millennium Research Group (MRG), the global authority on medical technology market intelligence, an overall increase in diagnostic imaging procedures due to an ageing and unhealthy population will accelerate wear and tear on the installed base of diagnostic imaging systems in Europe. These systems will in turn require additional servicing, driving the markets for both service contracts and parts.

Lingering economic concerns continue to have a negative impact on the diagnostic imaging equipment servicing market. Budget constraints stemming from the ongoing debt crisis in Europe have caused many facilities to put off purchasing expensive capital equipment or to purchase less expensive or refurbished units. This trend will result in an older installed base, which will hinder the market because more mature systems are less likely to be covered by service contracts, reducing the overall number of contracts signed.

"The beneficial aspect of the older installed base is that mature machines will have a positive impact on the diagnostic imaging equipment parts market," said MRG Analyst Felix Lam. "Older machines are more likely to require parts, and these parts must be purchased outright when systems are not covered by a contract."

As the European economy recovers over the next few years, however, facilities will begin purchasing new and higher-end systems. The proportion of premium systems will thus increase through 2021. As older and low-end equipment is replaced, growth in the parts market will slow and service contracts will become more prevalent. High-end system contracts and parts also carry a premium price, particularly in the computed tomography (CT), magnetic resonance imaging (MRI), and nuclear medicine system markets, which will further support market revenues.

Millennium Research Group's European Markets for Diagnostic Imaging Equipment Servicing 2013 report includes unit, installed base, average selling price and revenue information, along with market drivers and limiters and a competitive landscape for magnetic resonance imaging system servicing, CT system servicing, general radiography system servicing, ultrasound system servicing and nuclear medicine system servicing in France, Germany, Italy, Spain and the United Kingdom (UK).