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Government Incentives Spur Adoption of Computed Tomography, Magnetic Resonance Imaging and Ultrasound Systems in Brazil, Finds Frost & Sullivan

MRI market expected to grow faster than ultrasound and CT

PR Newswire

SAO PAULO, April 29, 2013

SAO PAULO, April 29, 2013 /PRNewswire/ -- Government programs and investments in Brazil's healthcare sector have lent momentum to the medical imaging market in the country. More hospitals have acquired national and international accreditation certificates, highlighting the improving quality of overall healthcare and the growing use of computed tomography (CT), magnetic resonance imaging (MRI), and ultrasound systems in Brazil.

New analysis from Frost & Sullivan (http://www.medtech.frost.com), Brazilian Medical Imaging Market Outlook for CT, MRI, and Ultrasound, finds that the market earned revenues of more than $584.3 million in 2012 and estimates this to reach $919.7 million in 2017. The MRI market is expected to grow faster than ultrasound and CT.

Government proposals to increase the number of community health agents, oncology centers as well as units and beds for emergency care will, in turn, widen the scope of the medical imaging market in Brazil.

"Private hospitals' plans for expansion and the provision of decentralized services for examination, diagnoses and cancer-specific treatments will accelerate demand for CT, MRI and ultrasound equipment in the country," saidFrost & Sullivan Healthcare Research Analyst Gabriel Walmory Silveira. "Uptake will continue as small- and medium-sized hospitals look to enhance their internal processes and speed up technology updates for devices."

Rising employment levels and the expansion of the higher classes have empowered more sections of society to gain access to healthcare plans, boosting diagnostic rates and fueling the need for medical imaging systems. Modernization requirements, which necessitate the replacement of obsolete medical imaging equipment such as one- and two-slice CTs or low-field MRIs, add to market revenues.

However, the lack of qualified healthcare professionals to operate advanced medical imaging equipment limits equipment acquisition in Brazilian healthcare institutions. Stringent tax policies, which allow only philanthropic and public healthcare institutions to purchase medical devices without paying tax, heighten device prices and further dissuade small clinics and private hospitals from procuring imaging diagnostic equipment.

"Nevertheless, multinational companies will invest in the development of local factories to capitalize on national incentive policies that permit lower taxes for domestically-produced products," concluded Frost & Sullivan Healthcare Industry Analyst Federico Baguear. "In fact, these new factories in Brazil are expected to serve as an export platform to the rest of Latin America."

Medical imaging manufacturers in Brazil will need to ramp up marketing and service efforts to achieve product differentiation and drive revenues.

If you are interested in more information on this research, please send an e-mail to Francesca Valente, Corporate Communications, at francesca.valente@frost.com, with your full name, company name, job title, telephone number, company e-mail address, company website, city, state and country.

Brazilian Medical Imaging Market Outlook for CT, MRI, and Ultrasound is part of the Advanced Medical Technologies Growth Partnership Service program. Frost & Sullivan's related research services include: Analysis of the Cardiac Rhythm Device Market in Mexico, Biologics Market in Brazil, Healthcare Landscape, Outlook and Growth Opportunities in Brazil. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan

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Brazilian Medical Imaging Market Outlook for CT, MRI, and UltrasoundNBBF-54

Contact:
Francesca Valente
Corporate Communications – Latin America
P: +54 11 4777 5300
F: +54 11 4777 5300
E: francesca.valente@frost.com

http://www.frost.com

SOURCE Frost & Sullivan

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