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According to a new series of reports on the U.S. market for interventional oncology devices by iData Research, approximately 23 million external radiation procedures were performed in the U.S. in 2015. The total external radiation therapy device market consists of the segments for linear accelerators and proton therapy devices. Due to the widespread nature of linear particle accelerator (LinAcc) treatments, procedural volumes are expected to remain fairly stable in this segment. Proton therapy, however, is expected to experience significant growth over the forecast period.
Overall, high-dose rate procedures accounted for the large majority of all internal radiation brachytherapy procedures performed in 2015. External radiation therapy is a common procedure in many different types of cancer treatments and has been for decades. While competing modalities are negatively affecting nearly every other type of interventional oncology treatment, they have a far less renowned effect on the external radiation therapy market since it is often used as an adjunct treatment.
Revenues from device maintenance accounted for a substantial portion of the total market in 2015. In addition to the capital equipment, typical contracts include service agreements. This is also a large part of the total revenue generated from their sale, as hospitals must continually perform maintenance on their equipment to ensure that the radiation being delivered is equivalent to the desired amount. As the national installed base continues to rise and the number of maintenance contracts increase throughout the forecast period, maintenance revenues will gradually comprise a larger portion of the total market.
“Producing LinAccs comes with high barrier to entry”, explains Dr. Kamran Zamanian, CEO of iData. “There are extremely large capital costs, and the two dominant companies in the market enjoy vast economies of scale in their production.”
However, when compared with the expensive cost of proton therapy and the lower performance of Colbalt-60 machines, LinAccs are a highly popular mid-way point. While the market is primarily a replacement market, LinAccs only have a life cycle of around ten years. This means that they will need to be replaced continually, especially in clinics where PT machines are not viable.
Varian Medical Systems controls over half of the LinAcc market in the United States with its total oncology sales being around $3 billion. In addition to selling the systems themselves, Varian also makes a substantial amount of revenue from service agreements. When LinAccs are installed, 90% of the time the purchaser signs a service agreement with the seller. Service contracts can range up to $1.5 million, depending on the level of service and what is contained inside the LinAcc. Varian has five different models of linear accelerators. Its Clinac iX® is its most popular model, with a worldwide installed base of over 5,000 machines.
Elekta was the second-leading competitor in the LinAcc market. Similar to Varian, this company exclusively specializes in radiation oncology, with products ranging from radiotherapy to radiosurgery and brachytherapy. Elekta features four models of LinAcc, with its least expensive being the Compact®. As is the case with other compact accelerators, the low cost combined with the effective treatment makes it an extremely desirable option, especially for smaller hospitals. Other competitors in the internal and external radiation therapy market include Brainlab, Accuray, Theragenics, C.R. Bard, GE Oncura, Best Medical, Eckert & Ziegler BEBIG, IsoAid, and IsoRay Medical among others.
For Further Information
More on the oncology device market in the US can be found in a report suite published by iData Research entitled the US Interventional Oncology Market Report Suite. The suite covers reports on the following markets: External Radiation Therapy Device Market, Internal Radiation Therapy Device Market, Ablation Device Market, Embolization Particle Market, and Cancer Procedures and Incidence Rates.
Reports also provide a comprehensive analysis including units sold, procedure numbers, market value, forecasts, as well as detailed competitive market shares and analysis of major players’ success strategies in each market and segment. To find out more about oncology device market data or procedure data, register online or email us at [email protected] for a US Interventional Oncology Market Report Suite brochure and synopsis.
About Procedure Tracker
Procedure number data is available from iData’s Procedure Tracker service, which allows subscribers to define and analyze procedure data segmented by state, region, hospital, surgery centre, and physician. A customizable dashboard sorts procedure data for further analysis and research.
About Reimbursement Tracker
iData Research’s Reimbursement Policy Tracker enables medical device, dental, pharmaceutical and healthcare professionals to receive real-time policy updates from hundreds of insurance companies and 60,000+ policies across all therapeutic areas in the United States.
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