[183 Pages Report] The teleradiology market is expected to reach USD 22.8 billion by 2025 from USD 7.9 billion in 2020, at a CAGR of 23.5% during the forecast period of 2020 to 2025. Due to the outbreak of corona virus globally, there is a sudden rise in the demand for teleradiology services. The growth of this market is mainly attributed to the rising geriatric population and the subsequent increase in the prevalence of associated diseases, the increasing adoption of cloud-based solutions, and the benefits offered by teleradiology and a dearth of skilled radiologists. However, declining reimbursements and increasing regulatory burden in the US and data breaching of imaging report hampered market growth to an extent.
In this report, the teleradiology market is segmented on the basis of product and service, imaging technique, end user, and region.
Coronavirus has spread across 215 countries and territories and affected more than 4.4 million people, with close to 300 thousand deaths. Due to the outbreak of COVID-19 globally, medical practices of all sizes are under immense pressure, and healthcare providers need to rely on teleradiology solutions to read diagnostic reports and treat patients. Teleradiology solutions also help to improve the efficiency of diagnostic imaging by optimizing and simplifying radiology with correct reads and reduced manual errors. As the battle against COVID-19 continues, there is a growing need to make teleradiology solutions more common.
However, this industry is facing staffing, monetary, and logistics challenges as a number of radiologists are moving into the cluster of telehealth and teleradiology. In radiology, the volumes have dropped drastically due to the cancellation or postponement of elective procedures. Additionally, there are internet bandwidth issues, especially in rural hospital settings, and people living in rural areas are hesitant to accept teleradiology reports due to data breaching issues.
Teleradiology enables the transmission of diagnostic medical images from one location to another, where it can be accessed by radiologists and physicians. It enables radiologists to provide their expertise without necessarily being at the same location as the patient. This is essential because radiologist subspecialties are few in number and typically located in metropolitan cities. The adoption of teleradiology solutions has significantly helped bridge the rural-urban disparity in many emerging countries, including India and Brazil, as well as developed economies like the US, the UK, and Germany. These solutions are more convenient and cost-effective as they eliminate the need for travel and allow radiologists to work from anywhere. A dearth of qualified radiologists has further increased the demand for teleradiology services.
The US dominates the teleradiology market and accounts for more than 60% share of this market. However, from 2016 to 2018, there has been a steady decline in reimbursements and an increase in regulatory changes within the country. This has led to consolidation in the healthcare industry. The regulatory processes associated with the industry are impeding the growth of the market. For instance, in the US, the Protecting Access to Medicare Act of 2014 or PAMA sets appropriate use criteria (AUC) for advanced diagnostic imaging services provided to the beneficiaries of Medicare. According to PAMA, every healthcare professional who orders an advanced diagnostic imaging test should consult the AUC through a clinical decision support mechanism (CDSM). These developments can significantly restrain the growth of the diagnostic imaging market in the US, which, in turn, will affect the growth of the teleradiology market.
Artificial intelligence is one of the most promising breakthroughs in the field of teleradiology. In the past 10 years, it is estimated that the number of publications on AI in radiology increased from an average of 100150 research publications per year to 700800 per year. Of all the major imaging modalities, the adoption of AI is higher in CT and MRI systems; likewise, based on applications, AI is majorly used in neuroradiology. Several players in this market have increased their offerings in the field of AI. For instance, in the Radiology Society of North America (RSNA) annual conference of 2018, about 104 companies exhibited AI-based technologies in the medical imaging space, of which 25 companies were first-time exhibitors. AI can help create an inbuilt system that prioritizes cases based on a protocol requirement. For example, cases of trauma and stroke can be prioritized and assigned to the radiologists work lists, thereby saving many lives.
Teleradiology enables the sharing of medical images to facilitate the delivery of care. However, cybersecurity measures to protect patient health information are often not implemented. There are ethical and legal obligations for healthcare providers to preserve the privacy and confidentiality of patient information, which can contain some of the most intimate information about an individual. Most clinical picture archive and communication systems (PACS) use digital imaging and communications in medicine (DICOM) standard image format for medical images. PACS could result in significant data loss, could serve as an avenue to cause disruption through a hospitals system, or should the information be altered or misdirected, could impede timely diagnosis and treatment, thereby challenging the growth of this market.
Based on product and service, the teleradiology market is segmented into teleradiology services, software, and hardware. The teleradiology services segment accounted for the largest share in 2019. The software segment is estimated to grow at the highest CAGR during the forecast period. The increasing demand for healthcare software has driven software companies to improve interoperability, enhance technical capabilities, and increase data transparency. Moreover, the COVID-19 outbreak has led to an increased need for better management of large amounts of patient data. Owing to this, many hospitals are deploying teleradiology solutions to improve the efficiency of healthcare providers and improve patient outcomes. Moreover the software segment is further classified as RIS and PACS
Based on imaging technique, the teleradiology market is segmented into X-ray, computed tomography (CT), ultrasound, magnetic resonance imaging (MRI), nuclear imaging, fluoroscopy, and mammography. In 2019, the computed tomography segment accounted for the largest market share. Computed tomography (CT) is used in a wide range of applications, such as cardiology, oncology, neurology, and abdomen and pelvic, and spine and musculoskeletal imaging. Factors such as the growing need for effective and early diagnosis, technological advancements, and digitalization in this field are driving the growth of the teleradiology market for this segment. According to the WHO, more than 100 million CT scans are performed every year across the globe. The need to prevent exploratory surgeries and improvements in cancer diagnosis and treatment have increased the demand for CT scans over other imaging techniques.
Based on end users, the teleradiology market is segmented into hospitals and clinics; diagnostic imaging centers and laboratories; long-term care centers, nursing homes, and assisted living facilities; and other end users. The hospitals and clinics segment accounted for the largest share of in 2019. The large share of this segment can be attributed to the rising number of diagnostic imaging procedures performed in hospitals, the growing inclination of hospitals towards the automation and digitization of patient records, and the growing need to improve the quality of patient care. Moreover, a shortage of radiologists due to the COVID-19 pandemic and the rising adoption of advanced imaging modalities to improve workflow efficiency in hospitals are further expected to support the growth of this end-user segment.
The teleradiology is divided into five regionsNorth America, Europe, the Asia Pacific, Latin America, and the Middle East & Africa. These regions are further analyzed at the country levels. North America held the largest share of the teleradiology market in 2019, followed by Europe and the Asia Pacific. The Asia Pacific market is projected to grow at the highest CAGR during the forecast period. Market growth in the APAC region is mainly driven by the growing awareness about the benefits of early disease diagnosis, improvements in healthcare systems, growing medical tourism market in APAC countries, increasing healthcare expenditure, and increasing government initiatives for modernizing the healthcare infrastructure.
The products and services market is dominated by a few globally established players such as Philips Healthcare (Netherlands), MEDNAX Services Inc.(US), Teleradiology Solutions (India) and Carestream Health Inc. (US)
Report Metric |
Details |
Market size available for years |
2018-2025 |
Base year considered |
2019 |
Forecast period |
20202025 |
Forecast units |
Value (USD) |
Segments covered |
By Products and Services , By Imaging Technique, By End User |
Geographies covered |
North America, Europe, Asia Pacific, Latin America, Middle East and Africa |
Companies covered |
The major market players include Philips Healthcare (Netherlands), Cerner Corporation (US),Siemens Healthineers (Germany), McKesson Corporation (US), FUJIFILM Holdings Corporation (Japan), Agfa Healthcare (Belgium), MEDNAX Services, Inc. (US), ONRAD Inc. (US), RamSoft Inc. (Canada), Novarad Corporation (US), TeleDiagnostic Solutions Pvt. Ltd. (India), Teleradiology Solutions (India), Telerad Tech (India), StatRad LLC (US), MedWeb LLC (US), WebRad TeleRadiology (India), Nautilus Medical (US), Carestream Health Inc. (US), USARAD Holdings, Inc. (US), and Everlight Radiology (Australia). |
The study categorizes the teleradiology market based on product and services , imaging technique, end user, component at the regional and global level.
Which type of products is leading the by products and services segment?
Based on product and service, the teleradiology market is segmented into teleradiology services, software, and hardware. The teleradiology services segment accounted for the largest share in 2019. The software segment is estimated to grow at the highest CAGR during the forecast period.
Which is the leading end user for teleradiology market?
Based on end users, the teleradiology market is segmented into hospitals and clinics; diagnostic imaging centers and laboratories; long-term care centers, nursing homes, and assisted living facilities; and other end users. The hospitals and clinics segment accounted for the largest share of in 2019, the COVID-19 outbreak has led to an increased need for better management of large amounts of patient data. Owing to this, many hospitals are deploying teleradiology solutions to improve the efficiency of healthcare providers and improve patient outcomes.
Which is the leading imaging technique of teleradiology market?
Based on imaging technique, the teleradiology market is segmented into X-ray, computed tomography (CT), ultrasound, magnetic resonance imaging (MRI), nuclear imaging, fluoroscopy, and mammography. In 2019, the computed tomography segment accounted for the largest market share. Computed tomography (CT) is used in a wide range of applications, such as cardiology, oncology, neurology, and abdomen and pelvic, and spine and musculoskeletal imaging
Who are the key players operating in the teleradiology market?
The teleradiology market is highly competitive and fragmented. The prominent players operating in this market include Philips Healthcare (Netherlands), Cerner Corporation (US),Siemens Healthineers (Germany), McKesson Corporation (US), FUJIFILM Holdings Corporation (Japan), Agfa Healthcare (Belgium), MEDNAX Services, Inc. (US), ONRAD Inc. (US), RamSoft Inc. (Canada), Novarad Corporation (US), TeleDiagnostic Solutions Pvt. Ltd. (India), Teleradiology Solutions (India), Telerad Tech (India), StatRad LLC (US), MedWeb LLC (US), WebRad TeleRadiology (India), Nautilus Medical (US), Carestream Health Inc. (US), USARAD Holdings, Inc. (US), and Everlight Radiology (Australia).
Which geographical region is dominating in teleradiology market?
The teleradiology market is segmented into North America, Europe, the Asia Pacific, Latin America and Middle East and Africa. In 2019, North America dominated the teleradiology market, followed by Europe. However, the Asia Pacific market is estimated to register the highest CAGR during the forecast period. The growth of this market can be attributed to the large patient pool in the region, increasing prevalence of chronic diseases & disorders, outbreak of infectious diseases and changing lifestyle. .
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This study involved four major activities for estimating the current size of the teleradiology market. Exhaustive secondary research was conducted to collect information on the market as well as its peer and parent markets. The next step focused on validating these findings, assumptions, and sizing with industry experts across the value chain through primary research. Revenue Share Analysis, Parent Market and top-down approaches were employed to estimate the complete market size. After that, market breakdown and data triangulation were used to estimate the sizes of segments and sub-segments.
In the secondary research process, various secondary sources such as D&B Hoovers, Bloomberg Business, and Factiva have been referred to identify and collect information for this study. These secondary sources include annual reports, press releases and investor presentations of companies, white papers, certified publications, articles by recognized authors, gold-standard and silver-standard websites, regulatory bodies, and databases.
In the primary research process, various sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information for this report. Primary sources from the supply side include industry experts such as CEOs, vice presidents, marketing and sales directors, technology and innovation directors, and related key executives from various key companies operating in the teleradiology market. Primary sources from the demand side include experts from hospitals and diagnostic labs and research and academic laboratories. Primary research was conducted to validate the market segmentation, identify key players in the market, and gather insights on the key industry trends and key market dynamics, such as market drivers, restraints, challenges, and opportunities.
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The total size of the teleradiology market was arrived at after data triangulation from two different approaches, as mentioned below.
The size of the teleradiology market was obtained from annual reports, SEC filings, online publications, and extensive primary interviews. A percentage split was applied to arrive at the size of market segments. Further splits were applied to arrive at the size for each sub-segment. These percentage splits were validated by primary participants. The country-level market sizes obtained from the annual reports, SEC filings, online publications, and extensive primary interviews were added up to reach the total market size for regions. By adding up the market sizes for all the regions, the global teleradiology market was derived.
The market size and market growth were estimated through primary interviews on a regional and global level. All responses were collated, and a weighted average was taken to derive a probabilistic estimate of the market size and growth rate.
After arriving at the overall market sizeusing the market size estimation processes explained abovethe market was split into several segments and sub-segments. To complete the overall market engineering process and arrive at the exact statistics of each market segment and sub-segment, the data triangulation and market breakdown procedures were employed, wherever applicable. The data was triangulated by studying various factors and trends from both the demand and supply sides.
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