As Europe's aging and unhealthy population wears down the region's diagnostic imaging systems, the parts and service industry will step in and get a boost. It's slated to be worth $1 billion by 2021, according to a new report from Millennium Research Group.
Besides wear and tear on the install base, the region also continues to experience economic uncertainty, leading facilities to continue putting off new equipment purchases.
"The beneficial aspect of the older installed base is that mature machines will have a positive impact on the diagnostic imaging equipment parts market," MRG Analyst Felix Lam said in a press release. "Older machines are more likely to require parts, and these parts must be purchased outright when systems are not covered by a contract."
Once the economy picks up further and facilities return to purchasing high-end systems, the need for service contracts will return as well, growing that part of the sector.
The report also notes that the sale of high-end system contracts and parts, which carry a high price tag, will also help bolster the market. The CT, MRI and nuclear medicine sectors in particular have costly parts and service contracts.