US PET Scan Market Analysis

US PET Scan Market Executive Summary

The US PET Scan market is at around $814.8 Mn in 2023 and is projected to reach $1029.7 Mn in 2030, exhibiting a CAGR of 3.4% during the forecast period.

PET Scan is an advanced diagnostic and imaging technique which effectively identifies a variety of health issues such as cancer, heart disease, and brain disorders. It aids in the initial diagnosis and also in monitoring of the conditions for planning the treatment course. There are various types of PET scan including whole body PET scan. In whole body PET scan, the images of the entire body from head to toe are detected. A radiotracer is injected into the body which gets absorbed by all the tissues in the body. The scanner then detects the emitted radiation and creates detailed images of the organs and tissues. A whole-body PET scan is typically used to detect cancer, determine the stage of cancer, and monitor the treatment effectiveness. This type of scan is particularly useful for metastasis detection as it can identify even small tumors which might not be identified through other imaging tests. Another type of PET scan, called DOTATATA PET scan is used which is highly sensitive and specific for diagnosing neuroendocrine tumors (NETs). It utilizes a radiotracer called Gallium-68 DOTATATE, which combines somatostatin analog (DOTATATE) with a radioactive isotope (Gallium-68). The radiotracer targets somatostatin receptors which are often over expressed on the neuroendocrine tumors, allowing for the detection of both primary and metastatic NETs. A PSMA PET Scan is another type of PET scan used to detect, stage, and monitor prostate cancer. PSMA is the short for Prostate-Specific Membrane Antigen, which is overexpressed on the prostate cancer cells.

The US faces a heavy burden in the healthcare sector due to the rising chronic diseases prevalence, leading to a change in the quality of life of the citizens. The US PET Scan Market is thus driven significant factors such as the rise in elderly population, increasing prevalence of chronic diseases, and increasing healthcare expenditure. However, the affordability, varied reimbursement, and competition from other imaging techniques restrict the growth and potential of the market.

The major players of the US PET Scan Market are GE Healthcare, Hitachi, Hologic, Siemens Healthineers, Toshiba, and Canon Medical Systems, among others.

Market Dynamics

Market Growth Drivers

Rise in Elderly Population: The Americans aged 65 and older were 58 Mn in 2022 (17% of total population) which is forecasted to increase to 82 Mn by 2025 (23% of total population), with 47% increase. As the population ages, the incidence of cancer, heart disease, and neurological disorders increases. PET scans are essential for diagnosing and monitoring these conditions, capable of detecting diseases like cancer early, thus improving patients' quality of life. The rising number of elderly patients who need diagnosis and treatment for these diseases boosts the demand for PET scans, contributing to market growth.

Increasing Prevalence of Chronic Diseases: Approximately 129 Mn of the total 330 Mn population was suffering from at least one chronic disease as of 2022. Managing chronic diseases such as cancer, heart disease, and neurological disorders effectively often requires early identification. PET scans play a crucial role in this process by detecting metabolic abnormalities linked to these illnesses at an early stage, enabling timely diagnosis and treatment. This not only simplifies patient management and reduces unnecessary interventions but also improves overall healthcare efficiency, increasing the demand for PET scans and fuelling market growth.

Increasing Healthcare Expenditure: Increased healthcare spending plays a crucial role in driving the PET scan market forward by facilitating the acquisition of advanced imaging tools like PET scanners by medical institutions. Despite the substantial costs associated with purchasing and maintaining these scanners, rising healthcare expenditures enable hospitals and clinics to afford them. Additionally, the growing healthcare expenditure leads to heightened patient expectations for precise and early diagnosis, qualities for which PET scans are highly valued. This surge in demand fuels the adoption of PET scan technology, contributing to a positive growth trajectory for the market.

Market Restraints

Affordability: The high cost of PET scans can be considered a major barrier to access for certain low- and middle-class patients. Also, for individuals without adequate insurance coverage, high cost remains a challenge which can limit the patients from PET scan access. In contrast, to the PET scan, MRI and CT scan are affordable and more accessible with a high benefit-to-cost ratio so the patients start demanding the alternative procedure. Thus, the fewer number of patients able to afford PET scans narrows the PET Scan Market, affecting its growth.

Varied Reimbursement: In the US, reimbursement for PET scan operations is a complicated process that takes into account a number of variables, including the type of PET scan, the patient’s insurance coverage, and the particular indications for which the scan is being performed. Private companies have their own policies regarding PET scan and usually requires preauthorization before the actual PET scan based on the medical necessity and appropriateness of the scan. Moreover, patients may have certain out-of-pocket costs such as deductible, co-payments, and co-insurance. Therefore, navigating through the reimbursement for PET scan can be challenging, affecting the market growth.

Competition from other Imaging Techniques: Well-established imaging techniques like SPECT, CT, and MRI scans present significant competition for PET scans. These traditional methods are often more cost-efficient, making them a more appealing choice for patients. Additionally, their widespread availability and accessibility make them preferred among healthcare providers. As a consequence, the PET scan market encounters challenge due to the prevalence and established use of these older imaging technologies.

Regulatory Landscape and Reimbursement Scenario

The United States Food and Drug Administration (USFDA) is a federal agency of the Department of Health and Human Services. The main goal of the USFDA is to protect public health by ensuring the safety and efficacy of drugs, biological products, medical equipment, along with food, cosmetics, and items that emit radiations. The Federal Food, Drug, and Cosmetic Act and several other comparable statutes are enforced by the FDA.

The process of gaining approval of new drugs involve rigorous and cumbersome evaluation by the USFDA. The two divisions of the USFDA, Centre for Drug Evaluation and Research (CDER) and the Centre for Biologics Evaluation and Research (CBER) extensively review applications for approval which makes it challenging for pharmaceutical companies to bring a new product to the market. The various types of applications submitted to the USFDA for getting approval of pharmaceuticals include Investigational New Drug Application (INDA), New Drug Application (NDA), Abbreviated New Drug Application (ANDA) for generic drugs and Biologics License Application (BLA).

Medicare and Medicaid are two of the health insurance programs administered by the US Government, with differences in covered services and cost-sharing. Medicare is a government health insurance program available to Americans 65 years of age or older, as well as to younger individuals with disabilities. Medicaid provides health coverage to low-income families, based on eligibility determined by comparing the income with the federal poverty level. Initially launched in 1965 by the Social Security Administration, the Centres for Medicare and Medicaid Services (CMS) currently oversee its administration. Medicare and Medicaid thus provide financial security and lessen the financial burden of healthcare and provides better outcomes for beneficiaries.

Competitive Landscape

Key Players

Here are some of the major key players in the US PET Scan Market:

• GE Healthcare
• Hitachi
• Siemens Healthineers
• Toshiba
• Canon Medical Systems
• Hermes Medical Solutions
• Philips Healthcare
• Mediso Medical Imaging Systems
• Hologic
• Neusoft Medical Systems