The Challenge of Providing Comfortable, Quiet MRI Systems Presents Revenue Growth Opportunity for Industry Participants

Business Wire, August 8, 2000

Business Editors & High-Tech Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--Aug. 8, 2000

Improving the comfort of patients has been a driving force behind many of the recent technological advances made in the Magnetic Resonance Imaging (MRI) industry.

The success of the open MRI, which clearly improved the comfort level of both patient and caregiver, has led to other research in this area, and patient comfort is now becoming a main factor in the purchasing of new systems.

According to new strategic research by Frost & Sullivan (www.frost.com), "U.S. Magnetic Resonance Imaging Equipment Markets," this industry generated revenues of more than $1 billion in 1999. Moderate growth will continue through 2006, when the market will achieve revenues of more than $1.5 billion.

Comfort applications will contribute to this growth.

"It can be expected that in areas where MRI scanning service producers are saturated, comfort will be a differentiator," says Frost & Sullivan analyst Katharina Steiner-Leuthold. "Also, comfort-enhancing accessories have the potential to increase the number of applications for MRI and, will therefore, heighten market potential."

Higher field strength systems are also pushing the market forward. High field strength is required for a high-quality image, and the demand for systems with better imaging capabilities is rising. High field strength systems are being purchased at a much faster rate than in the past.

However, improved imaging techniques have allowed even lower field strength equipment to produce images of a much higher quality than was possible a few years ago. Practitioners who can utilize lower field systems will see significant cost savings.

"For applications that can be satisfied with lower field strength, other key factors such as system openness and price become more important than the higher field image," says Steiner-Leuthold. "The economical MRI systems represent a fundamental approach to meeting customer demands."

Customers tend to purchase systems that either have the highest field strength or lowest cost, instead of choosing mid-range equipment. Since the improvements in imaging are allowing new applications in both of these categories, the market penetration for MRI equipment is increasing, especially in the clinical segment.

Frost & Sullivan presents the 2000 Marketing Engineering Awards to companies that have worked hard to make a positive contribution to the diagnostic imaging industry. The 2000 Customer Service Leadership Award is presented to GE Medical Systems (GEMS). The 2000 Product Innovation Award is given to MagneVu. The 2000 Product Line Strategy Award is presented to Siemens.

Companies that participated within this industry include: Bruker Medical GMBH; Caprius; Esaote Biomedica; Fonar; GE Medical Systems (GEMS); Hitachi Medical Systems America; Innervision; Lunar Corp.; MagneVu; Marconi Medicals; Philips Medical Systems; Shimadzu; Siemens and Toshiba America Medical Systems.

Industry organizations include: American Association of Physicists in Medicine; American College of Radiology; American Healthcare Radiology Administrators; American Medical Association; Clinical Magnetic Resonance Society; International Society for Magnetic Resonance in Medicine (ISMRM); Magnetic Resonance Managers Society (MRMS); North American Society for Cardiac Imaging (NASCI); Radiological Society of North America and Society of Cardiovascular & Interventional Radiology.

Frost & Sullivan, which is headquartered in San Jose, Calif., is a global leader in international strategic market consulting and training. Frost & Sullivan's industry experts monitor the healthcare industry for market trends, market measurements and strategies. This ongoing research is used to complement the "Diagnostic Imaging Custom Subscription," which includes studies on the "World Nuclear Cardiology Markets," and the "World Markets for Interventional Radiology Equipment." Executive summaries and interviews are available to the press.

Along with publishing in-depth strategic market consulting research, Frost & Sullivan also provides custom consulting needs to a variety of national and international companies.

"U.S. Magnetic Resonance Imaging (MRI) Equipment Markets"

Report: 7282-50 Date: July 2000