U.S. Diagnostic Imaging Services Market Size, Share & COVID-19 Impact Analysis, By Procedure (CT, MRI, X-Ray, Ultrasound, and Others), By Application (Cardiology, Neurology, Oncology, Orthopedics, Gynecology, and Others), By Payor (Public Health Insurance, and Private Health Insurance/Out of pocket), By Setting (Hospitals, Imaging Centers, and Others), Forecast, 2021-2028

The U.S. diagnostic imaging services market size was USD 94.31 billion in 2020. The market is projected to grow from USD 104.65 billion in 2021, and the market is expected to reach USD 176.50 billion in 2028 at a CAGR of 7.8% in the 2021-2028 period. The impact of COVID-19 was unprecedented and staggering, with diagnostic imaging services witnessing a negative demand across the U.S. during the year 2020. Based on our analysis, the U.S. market exhibited a decline of -17.5% in 2020.

Medical imaging is an ideal diagnostic procedure as it provides vital data with high efficiency and safety. Imaging services include different imaging modalities like x-ray, ultrasound, nuclear medicines scans, MRI, and CT scans, which are non-invasive techniques to diagnose various diseases. Growing technological advancements in MRI modality and widening the application of MRI in the medical field are the key drivers augmenting the U.S. market's growth and has also been boosting global diagnostic imaging services market. Moreover, increasing insurance coverage for medical imaging services coupled with new services launches by key players supports the market growth during the forecast period.

COVID-19 IMPACT

COVID-19 Outbreak Negatively Hampered Market Growth Due to Decline in Diagnostic Procedures

The COVID-19 pandemic had both positive and negative impacts on the diagnostic imaging services market. One of the major consequences was that the hospitals and the imaging centers limited the number of procedures conducted. For instance, the total number of CT scan procedures conducted in the U.S. decreased from 92 million in 2019 to 73 million in 2020, with an annual decline of -21.0%. Moreover, major key players in the market, like RadNet, Inc., observed an annual decline of -12.9% in the number of procedures conducted in 2020 for all modalities.

Furthermore, the average cost of these procedures increased in 2020 due to the COVID-19 outbreak. For instance, the cost of CT scans increased from USD 231.0 in 2019 to USD 312.0 in 2020. However, this decline had a short-term negative effect on the market. There will be minimum or no change in the long-term fundamental drivers affecting the demand for diagnostic imaging devices. These factors led to a decline in the number of diagnostic imaging procedures conducted in the U.S., and thus, the diagnostic imaging services witnessed a negative growth in 2020.

LATEST TRENDS

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Growing Geriatric Population to Augment U.S. Diagnostic Imaging Services Market Growth

With age, the risk of developing diseases rises correspondingly. As per the Centers for Disease Control and Prevention (CDC), nearly 80.0% of the elderly in the U.S. have at least one chronic illness. Furthermore, the American Medical Association (AMA) estimates that by 2030, at least 60.0% of people age 65 and up may have more than one chronic illness. The need for better healthcare facilities, new treatment choices, and drugs will rise as the population ages.

The prevalence of age-related disorders such as Alzheimer's disease, Parkinson's disease, arthritis, and dementia, as well as cardiovascular disease and cancer, is predicted to increase as the worldwide geriatric population grows. This diagnostic imaging services trend is expected to create huge demand for technologically advanced devices.

DRIVING FACTORS

Increasing Prevalence of Chronic Diseases in the U.S. to Aid the Diagnostic Imaging Services Demand

The increased prevalence of chronic diseases such as cancer and cardiovascular diseases is expected to drive the demand for medical imaging procedures. Medical imaging aids in the early diagnosis of diseases and helps in providing effective disease treatment. As per the National Cancer Institute at the NIH, in 2018, around 1,735,350 new cancer cases were diagnosed in the U.S. Therefore, to combat the increasing disease burden, a large number of medical professionals are using medical imaging devices for imaging services before performing the surgical procedures.

Furthermore, based on CDC’s National Center for Chronic Disease Prevention and Health Promotion (NCCDPHP), chronic diseases are considered one of the leading causes of death and disability in the U.S. It is the leading driver for healthcare costs in the U.S., with USD 3.8 trillion in annual health care costs. Every 6 in 10 adults suffer from chronic diseases, and every 4 in 10 adults are suffering from two or more of such diseases.

Among the most common chronic diseases, heart disease is considered one of the leading causes of death in the U.S. Centers for Disease Control and Prevention (CDC) data indicates that more than 34 million Americans suffer from diabetes, while 88 million adults have prediabetes. Diabetes upsurge the risk in cases of stroke heart diseases and can also lead to kidney failure. The increasing prevalence of chronic diseases, sedentary lifestyle, and growing geriatric population is eventually driving the diagnostic imaging services market in the region.

Increasing Government Regulations Supporting the Insurance Coverage to Boost the Market Growth

Furthermore, increasing government regulation supporting reimbursement policies is expected to enhance the U.S. market. Many modifications in the U.S. regulations has been done to provide diagnostic imaging services to patients with chronic diseases. As per the radiology services reimbursement policy, the allowance for the technical constituent of the initial procedures is 100%. Whereas for the second and further imaging procedures the allowance is 50%. The allowance for the professional component of the primary procedure is 100%. The allowance for the second and subsequent imaging procedure's professional component is 95%. The increasing insurance coverage and favorable government regulation are the major growth drivers of the U.S. Diagnostic Imaging Services Market.

RESTRAINING FACTORS

Shortage of Skilled Workforce Affects Penetration of Diagnostic Imaging to Restrict Market Growth

One of the major factors limiting the U.S. market growth is the shortage of a skilled workforce. As per the result of the AAMC public opinion survey, in 2019, around 35.0% of Americans reported that they had difficulty finding doctors from the past three years before the pandemic. In comparison to 2015, this was a 10.0% increase. The major reason for this shortage is physical retirement and a surge in the accessibility to healthcare.

However, based on the AAMC, enrollments by the medical schools have increased by 30.0% since 2002. But the acceptance rates are still low, and selective medical schools such as Harvard accept only 3.8% of the applicants. The average medical school acceptance rate is around 7.0%. Thus, the shortage of skilled workforce seems to be the biggest restraint in the growth of the number of diagnostic imaging procedures being conducted in the U.S. Furthermore, concerns regarding the side effects of medical imaging procedures are expected to restrain the market growth.

SEGMENTATION

By Procedure Analysis

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CT Segment to Dominate the Market with Holding the Major Shares in the Forecast Period (2021-2028)

The procedure segment can be divided into CT, MRI, X-Ray, ultrasound, and others.

The computed tomography (CT) segment held the largest share in 2020. The segment's dominant market share is owing to the CT scans resulted from the increase in the number of CT scan procedures and its high average price. According to the OECD data, the CT exam procedure in 2017 was 83.3 million, and 91.6 million in 2019 were conducted in the U.S. The growth rate of CT exam procedures in 2019 was around 3.1% over 2018. Furthermore, the increase in the geriatric population has also been attributed to the increased demand for CT scan procedures. For instance, based on the U.S. Census Bureau, the geriatric population aged 65 or above in the U.S. accounts for around 16.5% of the country’s population.

Moreover, there has been a steady increase in the demand for CT scanners ever since the COVID-19 pandemic started. CT of the chest plays an important role in diagnosing COVID-19; almost every patient needs a CT scan to monitor disease progression. Consequently, the rising demand for disease treatment has favored the CT scanners market, even with the deferred procedures. The X-ray segment is the second dominant segment in 2020 due to the product launches with advanced technological features. The MRI segment is estimated to grow at a comparatively lower CAGR in the forecast period.

By Application Analysis

Increasing Prevalence of Parkinson and Alzheimer’s disease enabled the Dominance of the Neurology Segment

Based on application, the U.S. market is segmented into cardiology, neurology, oncology, orthopedics, gynecology, and others. The neurology segment is anticipated to dominate the market in terms of market share during the forecast period. The surge in neurological disorder cases and incidence of strokes in the U.S. is likely to contribute to the segment’s dominance. Diagnostic imaging services could aid physicians in confirming and diagnosing neurological disorders. Parkinson’s disease is the second most common deteriorating neurological disorder next to Alzheimer's disease. For instance, based on an article from Parkinson’s Foundation, around 1 million people live with Parkinson’s disease in the U.S., and this number is expected to reach 1.2 million by 2030. Oncology is the second most dominant segment due to the strong prevalence of cancers in the U.S. and is expected to grow in the forecast period. The cardiology segment is anticipated to hold a significant market share during the forecast period owing to the increasing number of cardiovascular cases in the U.S. For instance, according to CDC, in every 36 seconds, one person dies from cardiovascular disease in the U.S., and on average, around 659,000 people die from heart disease every year.

By Payor Analysis

Strong Adoption of Private Health Insurance in the U.S. to Boost Segment’s Dominance

Based on payor, the market is segmented into public health insurance and private health insurance/out-of-pocket. The private health insurance/out-of-pocket segment dominated the market in 2020. The dominance of this segment is attributed to the increasing focus of many companies in the U.S. on providing health insurance to their employees. For instance, based on the United States Census Bureau, about 87.0% of full-time, year-round workers have private insurance coverage in 2020, estimated to be 85.1% in 2018. Moreover, around 8.6% or 28 million people did not have health insurance in 2020, leading these individuals to incur out-of-pocket expenditures.

The public health insurance segment is expected to increase at a substantial growth rate during the forecast period due to the favorable reimbursement policies provided by Medicare and Medicaid. For instance, based on the RadNet Annual report, around 24.0% of the coverage for diagnostic imaging solutions in RadNet is from the public health insurance segment in 2020; this helps mitigate reimbursement risk.

By Setting Analysis

Hospitals to Emerge as Dominant Segment in 2020 Owing to Strong Procedural Volume

Based on setting, the market is segmented into hospitals, imaging centers, and others. The hospital segment dominated the market in 2020. There is an increased prevalence of cardiovascular-related diseases and patients suffering from cancers in hospitals, and so the imaging service is still preferred in hospital settings. People in the U.S. prefer the safer hospital for complex cancer surgeries. Based on the annual report of RadNet, approximately 40.0% of the imaging happens in non-hospitals like freestanding centers such as RadNet, and around 60.0% of the imaging occurs in the hospital, though it is more expensive for patients and could have inferior service. The imaging centers segment is expected to witness a substantial market share in the forecast period due to the shift of outpatient volume from hospitals to imaging centers.

KEY INDUSTRY PLAYERS

Large Number of Imaging Centers Operated by RadNet, Inc. & Rayus Radiology has been boosting their dominance in the U.S. Market

In the U.S. market, RadNet, Inc. and Rayus Radiology held major shares of the market and dominated the market in 2020. RadNet, Inc. dominates the market due to its large number of outpatient diagnostic centers operated by the company in the U.S. and the diverse services portfolio of its diagnostic imaging services. The company has around 331 diagnostic imaging centers across the U.S. and annually conducts about 8 million outpatients diagnostic imaging. Moreover, a recent acquisition of DeepHealth, Inc. helped RadNet to expand its presence in the U.S. Moreover, the company holding major market shares just after RadNet, Inc. is expected to be Rayus Radiology. This is because of the company’s strong portfolio for diagnostic imaging services.

The market includes more companies like US Radiology Specialists, Akumin, Inc., LucidHealth, Inc., and Radiology Partners held significant markets share because of their varied diagnostic imaging service offerings.

LIST OF KEY COMPANIES PROFILED:

• RadNet, Inc. (Los Angeles, U.S.)


• Akumin, Inc. (Plantation, U.S.)


• Rayus Radiology (St Louis Park, U.S.)


• MedQuest (Alpharetta, U.S.)


• LucidHealth, Inc. (Columbus, U.S.)


• US Radiology Specialists (Raleigh, U.S.)


• Radiology Partners (El Segundo, U.S.)


• Envision Radiology (Colorado Springs, U.S.)


• Capitol Imaging Services (Metairie, U.S.)

KEY INDUSTRY DEVELOPMENTS:

• September 2021 – LucidHealth, Inc. announced its contract to provide diagnostic and interventional radiology services for Genesis Healthcare System (Genesis). This contract expanded its diagnostic and interventional radiology services in Southeastern Ohio.


• November 2019 – RadNet, Inc. established an Artificial Intelligence (AI) branch, with the help of the acquisition of Nulogix and DeepHealthwhich and the company’s investment in WhiteRabbit.ai. This development helped the company set up AI to boost the radiologist's interpretation of images.

REPORT COVERAGE

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The market research report provides a detailed U.S. diagnostic imaging services market analysis. It focuses on key aspects such as leading companies, procedures, payor, setting, and application. Besides this, it offers insights into the market trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several factors that have contributed to the market's growth over recent years.

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