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), and By Setting (Hospitals, Imaging Centers, and Others), 2023-2030

The U.S. diagnostic imaging services market size was valued at USD 122.41 billion in 2022 and is projected to grow from USD 130.38 billion in 2023 to USD 206.84 billion by 2030, exhibiting a CAGR of 6.8% during the forecast period.

Medical imaging is an ideal diagnostic procedure as it provides vital data with high efficiency and safety. Imaging services include different imaging modalities such as MRI, nuclear medicines scans, ultrasound, x-ray, and CT scans, which are non-invasive techniques to diagnose various diseases. Growing technological advancements in MRI modality and the widening application of MRI in the medical field are the key drivers augmenting the market growth. In addition, increasing insurance coverage for diagnostic imaging services coupled with new services launched by key players support the industry growth during the forecast period.

COVID-19 IMPACT

Pandemic Negatively Hampered the Market Growth Due to Decline in Diagnostic Imaging Procedures

The COVID-19 pandemic had both positive and negative impacts on the 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 billion in 2019 to 73 billion in 2020, with an annual decline of 21.0%. Moreover, major players in the market, such as 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., negatively affecting industry growth in 2020. The market was expected to witness a recovery in 2021 and 2022 and is set to exhibit steady growth in the forecast period henceforth.

LATEST TRENDS

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Growing Geriatric Population is a Prominent Trend Impelling 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 aged 65 and above may have more than one chronic illness. The need for better healthcare facilities, new treatment choices, and drugs will rise with an increasingly aging population.

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 with the growth of the geriatric population across the globe. This 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 Market Growth 

The increased prevalence of chronic diseases such as cardiovascular diseases and cancer is expected to drive the demand for medical imaging procedures. Medical imaging aids in the early diagnosis of the diseases and helps in offering the effective treatment of diseases. 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 healthcare professionals are deploying medical imaging devices for diagnostic imaging services before the performance of 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 such diseases.

Among the most common chronic diseases, heart disease is considered one of the leading causes of death in the U.S. as per data from the Centers for Disease Control and Prevention (CDC). This indicates that more than 34 billion Americans suffer from diabetes, while 88 billion adults have prediabetes. Diabetes increases the risk in cases of stroke and heart disease and can also lead to kidney failure. Due to the increasing prevalence of chronic diseases, sedentary lifestyle, and growing geriatric population, the market is expected to grow at a significant growth rate. 

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

A rise in government regulations supporting reimbursement policies is expected to enhance the U.S. market. Many modifications in the U.S. regulations have been done to provide these 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%. On the other hand, 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%. Increasing insurance coverage and favorable government regulation are the major drivers propelling the U.S. diagnostic imaging services market growth.

RESTRAINING FACTORS

Shortage of Skilled Workforce Affecting the 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 represented an increase of 10.0%. The major reason for this shortage is physical retirement and a surge in the accessibility to healthcare.

However, based on the AAMC, enrollments in 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 Rise in the Number of CT Scan Procedures

Based on procedure, the market can be divided into CT, MRI, X-Ray, ultrasound, and others. The computed tomography (CT) segment held the largest share in 2022. The segment's dominant market share resulted from the increase in the number of CT scan procedures and its high average price. For instance, as per the data published by OECD for the year 2021, in the U.S., 84.5 million CT scan procedures were conducted in 2021, recording an increase of 15.8% from the prior year. Furthermore, the increase in the geriatric population has also led to the increased demand for CT scan procedures.

Moreover, the demand for CT scanners increased post COVID-19 outbreak, as the CT scan of chest played a major role in diagnosis of COVID-19 infection. . The X-ray segment is the second dominant segment in 2022 due to the product launches with advanced technological features. The MRI segment is estimated to grow at a comparatively lower CAGR during the forecast period.

By Application Analysis

Increasing Prevalence of Parkinson’s and Alzheimer’s Diseases 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 U.S. diagnostic imaging services 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. These 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 the Parkinson’s Foundation, around 1 billion people live with Parkinson’s disease in the U.S., and this number is expected to reach 1.2 billion by 2030.

Oncology is the second most dominant segment due to the strong prevalence of cancer in the U.S. and is expected to exhibit substantial growth during the forecast period. The cardiology segment is anticipated to hold a significant market share over the study period owing to the increasing number of cardiovascular cases in the U.S. For instance, according to the 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 Segmental Share

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 U.S. diagnostic imaging services market in 2022. The growth of the segment is attributed to the rise of the working demographic in the country going for private insurance coverage. For instance, based on the U.S. Census Bureau statistics, about 87.0% of full-time, year-round workers had private insurance coverage in 2020, which was 85.1% in 2018. Moreover, as per the same source, in 2021, private insurance was more prevalent as compared to public insurance.

The public health insurance segment is expected to increase at a substantial growth rate during the forecast period. The surge in the coverage rate through public health insurance has been fueling the segment’s growth. For instance, as per data published by the U.S. Census Bureau, from 2020 to 2021, Medicaid coverage increased by 0.9% and covered around 18.9% of the people.

By Setting Analysis

Hospitals to Emerge as Dominant Segment in 2022 Owing to Strong Procedural Volume

Based on the setting, the market is segmented into hospitals, imaging centers, and others. The hospital segment dominated the market in 2022. There is an increased prevalence of cardiovascular-related diseases and patients suffering from cancers in hospitals, 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 occurs in non-hospital-like freestanding centers such as RadNet. Furthermore, around 60.0% of the imaging occurs in hospitals, 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 to Fuel 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 2022. 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 imaging services. The company has around 331 diagnostic imaging centers across the U.S. and annually conducts the diagnostic imaging of about 8 billion outpatients. 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 due to the company’s strong portfolio of imaging services.

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

LIST OF KEY COMPANIES PROFILED:

• RadNet, Inc. (U.S.)


• Akumin, Inc. (U.S.)


• Rayus Radiology (U.S.)


• MedQuest Associates (U.S.)


• LucidHealth, Inc. (U.S.)


• US Radiology Specialists (U.S.)


• Radiology Partners (U.S.)


• Envision Radiology (U.S.)


• Capitol Imaging Services (U.S.)

KEY INDUSTRY DEVELOPMENTS: 

• April 2023 – Envision Radiology announced that the company will be acquiring a GE Pioneer 3T scanner which would reduce scanning time and give results with higher resolutions.


• January 2023 – MedQuest Associates announced that Novant Health and TPG together partnered with MedQuest Associates to expand the company’s services across U.S. states.


• December 2022 – US Radiology Specialists, Inc. announced the addition of new imaging technology MROpen EVO systems from ASG Superconductors. This would allow more convenient MRIs for patients at its American Health Imaging (AHI) facilities.


• December 2022 – RadNet, Inc. through its subsidiary, DeepHealth, Inc., announced the FDA approval of Saige-Density, its mammography density assessment software. This tool reduces the subjectivity inherent during visual analysis.


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

REPORT COVERAGE

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The report provides a detailed analysis of the market. 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 growth over recent years.

Report Scope & Segmentation