Updated on 24 October 2013
Europe and the US contribute to about 79 percent of the tissue diagnostic products' market
Singapore: Global market for tissue diagnostic products accounted for $2.4 billion in 2012 and is estimated to reach $3.5 billion by 2017, according to Frost & Sullivan. Together, Europe and the US contribute to about 79 percent of the market, leaving the remaining share to Asia Pacific (APAC) and rest of world economies.
For most tier I companies, factors such as reimbursement cuts and heavy hospital consolidation have massively affected the sale of equipment. Advanced technology applications like automatic stainers, microtomes and tissue processors require capital financing, and capital budgets are always a problem.
"Customer consolidation is a key challenge which leaves vendors with very few customers to compete for," noted Mr Divyaa Ravishankar, healthcare research analyst, Frost & Sullivan.
"Both in Europe and the US, consolidation is affecting the hospital industry, as well as clinical laboratories. Vendors are therefore reworking and redefining their strategies, for instance focusing on acquisition and procurement strategies that will benefit customers. These may include offering competitive monthly payments or tax benefits in connection with the IRS section or providing incentives and deferring payments to help overcome budgetary constraints," added Mr Ravishankar.
Market is expected to witness growth from 2014 onwards. Major pharmaceutical participants will acquire the molecular and Tissue In Vitro Diagnostics (IVD) business, as drug diagnostic products become more prevalent. All laboratories are now focused on Lean Six Sigma and are re-engineering their workflow structure, which will promote the adoption of automated equipment.
Moreover, lack of pathologists and shortage of technicians in pathology laboratories is generating a demand to automate tissue handling and the analysis process, which in turn drives the adoption of more automated slide stainers.