European PACS market to reach €650m by 2014
- 21 July 2008
The European Picture Archiving and Communications Systems (PACS) market is set to grow to €650m in 2014, according to a new report by Frost & Sullivan.
The research says the market for PACS, although mature in some parts of the region such as northern Europe, offers promising opportunities throughout the continent.
The study says there are significant opportunities in the European PACS market, valued at €370m in 2007, for vendors who can provide customised products supporting enhanced workflows.
Frost & Sullivan research analyst, Ranjit Ravindranathan, said: "Robust PACS will drive the market by offering integration with electronic patient records and electronic medical records.
"Europe is a growing market, especially because of the ongoing efforts to digitalise the European healthcare system."
The report notes that sizeable capital investment is being ploughed in and the advantages of having a good data management system are being recognised by healthcare authorities, which will propel the change from purchasing “mini PACS” to enterprise-wide deployments.
However, it goes on to say that demands for customised PACS projects, though lucrative, are stretching vendors’ capabilities and the provision of open architecture is a challenge to market participants.
"Enterprise-wide deployments are creating technical issues and political challenges within departments," adds Ravindranathan.
"Decision making and project sign off time are, moreover, intensifying the pressure on vendors even as cost-effective, value-added features offered by smaller vendors pose a challenge to tier-one participants."
By customising PACS modules and providing a smooth integrated workflow environment, vendors will have a successful deployment and they will be able to leverage their expertise and win prized contracts afterwards.
The report says that vendors must remain focused on product development in order to secure the competitive edge.
"Specialist participants already possess the required expertise to carve niches for themselves," concludes Ravindranathan.
"However, these firms will have to concentrate on building strategic alliances to boost their visibility in the industry and gain better access to decision makers."
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