LONDON, May 19 There has been an increasing number of mergers and acquisitions (M&As) in the European medical imaging market with market leaders focussing on acquisitions to expand their share in emerging markets. Drug makers, research labs, equipment manufacturers and healthcare technology companies have been the active acquirers, whereas hospitals, insurers and pharmacological companies have a limited number of acquisitions. With healthcare industry being least affected by the economic downturn, there is sufficient funding available for healthcare deals, resulting in an increase in the number of takeovers.
New analysis from Frost & Sullivan (http://www.medicalimaging.frost.com), Consolidation/M&A in Medical Imaging Market, finds that the market earned revenues $5,650.4 million in 2009. Tier I companies are often the major global participants with high revenues and a wide range of product offerings across all segments of medical imaging. Tier II companies have a notable presence in the medical imaging market in terms of revenues, and their product portfolio covers most segments of the medical imaging market. Lastly, tier III companies have relatively lesser product offerings and are focused on selected segments of the medical imaging market.
"The economic slump, availability of low-priced acquisitions, and ready-financing for the healthcare industry have increased the viability of tier I companies to expand market share through acquisitions," says Frost & Sullivan Research Analyst Beulah Devadason. "Acquisition focus has mainly been in emerging markets such as the Brazil, Russia, India, and China (BRIC) and is likely to continue going forward."
However, market expansion trends through acquisitions and strategic alliances indicate the entry of Japanese manufacturers in the US and European markets, whereas US companies have expanded their market share by acquiring smaller American companies.
"Market expansion, technological developments, and competitive pricing will play an important role in the survival of non-tier I companies, as tier I companies continue to enhance their position in all three criteria through strategic acquisitions," explains Beulah.
The development of innovative technology and formation of strategic partnerships or alliances with influential market participants are the keys to success for most tier II and tier III companies in the medical imaging market.
"Tier III companies will witness significant consolidation activity in the medical imaging market," concludes Beulah. "Since the market is dominated by the tier I companies, tier III companies will be acquired for their technological developments and distribution channels, further increasing the domination of the tier I companies."
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Consolidation/M&A in Medical Imaging Market is part of the Medical Imaging Growth Partnership Services programme, which also includes research in the following markets: Medical Imaging Business Outlook During the Recession, Medical Imaging Industry Outlook - 2009, and Company Profiles - Medical Imaging Equipment Vendors. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.
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Consolidation/M&A in Medical Imaging Market
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SOURCE Frost & Sullivan