VNA and PACS Market by Procurement (PACS [Departmental {Radiology, Mammography, Dental} Enterprise] VNA [Enterprise, Multi-site] [CT, Angiography, MRI, Ultrasound]), Delivery (On Premise, Cloud, Hybrid), Vendor Type, End User - Global Forecast to 2031

The VNA and PACS Market was valued at $3.72  billion in 2023. This market is expected to reach $6.5  billion by 2031, from an estimated $4  billion in 2024, at a CAGR of 7.2% during the forecast period 2024-2031.

VNA and PACS Market Size & Forecast

Vendor Neutral Archive (VNA) & Picture Archiving and Communication System (PACS) are medical image management solutions used for aiding diagnosis, comparing images between patients or within the same patient at different time points to assess the progress of the disease, and evaluating prognosis. These solutions are used to replace physical archiving by storing all medical image datasets digitally in an organized manner. Such solutions also allow the integration of medical image data with patient data in other records, such as electronic health records, health information systems, and radiology information systems (RIS).

The growth of this market is driven by factors such as the increasing investments in medical imaging technologies, growing demand for imaging equipment, technological advancements in diagnostic imaging modalities, rising geriatric population, thereby increasing imaging volumes, growing big data presence in healthcare, and growing healthcare IT & EHR adoption. Moreover, the integration of PACS/VNA with EMR, penetration of Artificial intelligence (AI) in medical imaging, rising adoption of hybrid & cloud-based medical imaging solutions, and rapidly growing telehealth market are expected to offer significant market growth opportunities.

However, the longer product lifecycle of VNA and budgetary constraints restrain the market’s growth. Additionally, data migration and lack of interoperability pose challenges to the market’s growth.

The Increasing Investments in Medical Imaging Technologies is Driving the Market’s Growth

Medical imaging uses various imaging modalities, such as X-ray, Computed Tomography (CT), and Magnetic Resonance Imaging (MRI), to diagnose diseases. It also helps view and analyze the body’s internal conditions. Factors driving investments in medical imaging technologies include efforts by government bodies to modernize imaging facilities and research, the proliferation of diagnostic imaging centers, technological advancements in diagnostic imaging modalities, and patients’ increasing preference for minimally invasive treatments.

Growth in the utilization of diagnostic imaging services has led to the generation of huge volumes of images that require tools such as PACS and VNA for proper storage, organized analysis, archival, sharing, and management. Funding from government bodies and investments from private organizations in the medical imaging field is critical to the development & implementation of innovative imaging technologies, modernizing imaging facilities, improving patients’ quality of life, and opening up new areas of scientific discovery. Some of the related key developments in the medical imaging space are as follows:

• In September 2023, GE HealthCare Technologies Inc. (U.S.) received more than USD 44 million in funding from the Bill & Melinda Gates Foundation (U.S.) to develop accessible, artificial intelligence (AI)-assisted ultrasound imaging auto-assessment tools and to make ultrasound more available in low-and-middle-income countries.
• In October 2021, DeepSight Technology, Inc. (U.S.) announced raising USD 25 million in Series A funding. DeepSight Technology aims to enhance non-invasive & invasive medical imaging for multiple diagnostic procedures. The company plans to use the funds to advance its medical imaging technology platform and scale its business.
• In July 2021, Exo Imaging, Inc (U.S.) raised USD 220 million in Series C funding to support the company’s plan to deliver a smartphone-connected ultrasound probe, an advanced technology in the medical imaging field.

Such investments in medical imaging technologies are expected to increase the adoption of medical imaging modalities in the coming years, driving the growth of the VNA & PACS market.

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Integration of PACS/VNA with EMR to Offer Market Growth Opportunities

With the advancement in imaging modalities and the enhanced role of imaging in patient care management, there is a rapid increase in image volumes in radiology, cardiology, oncology, and other departments. Earlier, medical images were analogical and stored on film; with technological advancements, modern imaging modalities, and image management systems, it is possible to turn traditional film-based radiology into a filmless operation. All medical images today can be initially generated in digital form and stored in PACS. Digital storage results in a significant cost reduction while increasing available space in the facility and improving the overall efficiency of imaging centers.

EMR and PACS can view images using the EMR enterprise PACS/VNA integration. Therefore, companies have developed integrated platforms. For instance, the INFINITT Healthcare Platform (IHP) of INFINITT North America Inc. (U.S.) offers full integration with EMRs for content sharing and display. The platform fully supports various data formats beyond DICOM, managing DICOM and non-DICOM data on an Oracle database. Similarly, Change Healthcare’s (U.S.) Conserus Image Repository integrates with all major PACS, cardiac PACS, and EMR vendors through a standard EMR web API.

Innovation in integration technology has enabled the flexibility to connect this gap with improved interface implementation. Users can now use a standard web browser to access medical imaging studies within the patient's comprehensive medical records/charts. Large health systems have different EMRs and different imaging solutions across many departments. Integrating images and having them in one repository is in high demand. Increasing demand for collaborative and patient-centered care serves as an opportunity for the VNA & PACS with EMR solutions.

Key Findings in the VNA & PACS Market Study:

The Departmental PACS Segment is Expected to Account for the Larger Share of the Market in 2024

Among the procurement models of PACS covered in this report, in 2024, the departmental PACS segment is expected to account for the larger share of the PACS market. The large market share of this segment can be attributed to the increasing adoption of these PACS to process large volumes of images. Radiology departments use these PACS due to their ability to solve radiology-related issues by digitalizing the traditional process, improving efficiency, ensuring data privacy & security, and enhancing image access. Most PACS have image viewing & annotation tools built into them to obtain proper conclusions and plan treatment, contributing to their widespread adoption.

The On-Premise PACS Segment is Expected to Account for the Largest Share of the Market in 2024

Among the delivery modes for PACS covered in this report, in 2024, the on-premise PACS segment is expected to account for the largest share of the PACS market. The large market share of this segment can be attributed to the various advantages offered by on-premise PACS, such as high security, control over images, and comparatively lower latency than web/cloud-based PACS are the factors contributing to the significant market share of this segment.

The Enterprise VNA Segment is Expected to Account for the Larger Share of the Market in 2024

Among the procurement models of VNA covered in this report, in 2024, the enterprise VNA segment is expected to account for the larger share of the VNA market. The large market share of this segment can be attributed to the increasing need to aggregate data across multiple sites to improve care coordination across sites of care. Moreover, the emergence of Integrated Delivery Networks (IDNs), Accountable Care Organizations (ACOs), and Health Information Exchanges (HIE) and rapid globalization and consolidation further propels the demand for collaborated care & easy access and sharing of data across healthcare settings. Additionally, multiple hospitals connecting to central repositories and patient mobility between local hospitals and centers are expected to drive the growth of the multi-site VNA market.

The On-Premise VNA Segment is Expected to Account for the Largest Share of the Market in 2024

Among the delivery models covered in this report, in 2024, the on-premise VNA segment is expected to account for the largest share of the VNA market. The benefit of the on-premise VNA delivery model, specifically for organizations that are migrating or upgrading from one system to another, is the ability to reuse existing servers and storage hardware. Hardware reuse alleviates costs, particularly for smaller organizations that distribute the cost of server hardware over a relatively small number of users. Thus, despite the high upfront cost of installation, on-premise models are still preferred by healthcare organizations, mainly due to patient data security and confidentiality, contributing to the significant market share of this segment.

The Computed Tomography (CT) Segment is Expected to Account for the Largest Share of the Market in 2024

Among the imaging modalities covered in this report, in 2024, the Computed Tomography (CT) segment is expected to account for the largest share of the VNA & PACS market. The large market share of this segment can be attributed to the rising demand for imaging services and technological advancement in CT having drastically boosted image resolution, quality, and diagnostic capabilities. These improvements have turned CT scanning into a vital tool in medical imaging, resulting in higher demand for storage and administration solutions such as VNA and PACS.

The Independent Software Vendors Segment is Expected to Account for the Largest Share of the Market in 2024

Among the vendor types covered in this report, in 2024, the independent software vendors segment is expected to account for the largest share of the VNA & PACS market. The large market share of this segment can be attributed to the increasing number of hospitals, community centers, and diagnostic imaging centers are turning towards independent software vendors such as Merge Healthcare (IBM), Dejarnette Research Systems, Hyland Software (Acuo), and TeraMedica (Fujifilm) for their vast experience and better functionality, scalability, integration, and support provided for VNA.

The Hospitals Segment is Expected to Account for the Largest Share of the Market in 2024

Among the end users covered in this report, in 2024, the hospitals segment is expected to account for the largest share of the VNA & PACS market. This segment’s large market share can be attributed to the higher patient visits and admissions, efficient management of patient data, and initiatives undertaken to implement advanced technologies.

Asia-Pacific: Fastest-growing Regional Market

The market in Asia-Pacific is projected to register the highest growth rate during the forecast period. The growth of this regional market can be attributed to the rising investment in the healthcare sector for improving healthcare infrastructure and digital health, the adoption of advanced imaging modalities into the healthcare industry, and the presence of major VNA & PACS software developers in countries such as China, India, Singapore, and Japan, and technological advancements related to diagnostic imaging, and, government initiatives aiming to increase the utilization of EMR and telehealth services.

VNA and PACS Market: Competitive Analysis

The report offers a competitive landscape based on an extensive assessment of the software offerings and geographic presence of leading market players and the key growth strategies adopted by them over the past three to four years. The key players profiled in the VNA & PACS market report are Novarad Corporation (U.S.), Koninklijke Philips N.V. (Netherlands), Siemens Healthineers AG (Germany), Agfa-Gevaert NV (Belgium), Mach7 Technologies (Australia), GE HealthCare Technologies Inc. (U.S.), Fujifilm Holdings Corporation (Japan), Sectra AB (Sweden), Bridgehead Software, Ltd. (U.K.), INFINITT Healthcare Co., Ltd. (South Korea), Hyland Software, Inc. (U.S.), ASPYRA, LLC (U.S.), Merative L.P. (U.S.), SoftTeam Solutions Pvt Ltd. (India), Carestream Health, Inc. (U.S.), and Neusoft Corporation (China).

VNA and PACS Market Report Summary:

Key questions answered in the report: