Technology Innovation in Diagnostic Imaging
Investments in medical imaging are being propelled by the need for more efficiency and cost-effectiveness, as well as technological innovations that help improve accuracy and quality in the delivery of healthcare.
Artificial Intelligence has become a key area of focus across all modalities. With the ability to analyze large numbers of images to deliver insights, AI can help physicians improve both accuracy and speed.
Algorithms to process medical images abound, however, they frequently suffer from a lack of generalization, which means they cannot be successfully applied to large sets of images taken across diverse settings.
While there is a lot of talk about the need for preparing medical images for AI, this preparation needs to move well beyond annotation (standardized tagging). In fact, images taken on similar machines installed in different settings, with different operators frequently deliver substantially different results when processed by machine automation algorithms. This limitation in processing robustness has slowed the penetration and adoption of AI in the medical imaging field.
Both large, established players in medical imaging and start-ups are investing in innovation to address these needs. Luminous analyzed what is happening in the space. This is what we found (refer to the graphic below):
Established players are making direct investments in technology (i.e., Siemens AI identification of abnormalities in chest CT), acquisitions (i.e., Philips purchased Carestream’s AI diagnostics business), and establishing partnerships (i.e., GE alliance with Intel and the alliance between NVIDIA accelerator program and the GE Healthcare Edison Developer Program).
Among start-ups in the space, established modalities have received 96% of the capital invested, while only 4% is focused on advanced and emerging technologies such as SFDI, MSOT, Infrared, and SPECT. Efforts related to a single modality make up 55% of investments, with Ultrasound receiving the largest amount (31%). Where multiple modalities are addressed, MRI is most frequently included (35%), followed by CT (27%), and X-Ray (10%).
Start-ups in North America and Europe have received 65% of the investment. After the US (which represents 35% of the companies and 58% of the funds) Israel is the most active country (9% of companies and 14% of the funds). While the start-up environment in Europe is healthy (with 24% of companies), their access to capital is limited (9% of the funds), thus, they are less well funded than those in North America and Israel.
While 69% of the investments cover multiple medical specialties, the most frequently addressed are neurology (81% of invested capital), cardiology (70%), oncology (66%), and pulmonary (63%). Other medical specialties addressed by start-ups are dental, ophthalmology, orthopedics, gastroenterology, and vascular medicine.
Gains in accuracy of diagnosis through AI and a streamlined workflow through Cloud are driving a focus on efficiency, as evidenced by dollars invested. An overwhelming share of start-up capital (93%) is being put into image storage and transmission (Cloud) and intelligent processing (AI). The remaining 7% of capital is focused on Image Clarity and other technologies such as Teleradiology and Robotics, 3D, Virtual Reality, and Blockchain. Interestingly, while these emerging technologies attract a lot of attention, collectively, they account for only a small share of investments.
As Cloud technology continues to grow and increasingly become an enabler of improvements in efficiency and quality of outcomes, how will the competitive landscape evolve? What will be the role of large tech Cloud providers (Google, Microsoft, Apple, Amazon, IBM) and other healthcare technology players offering Cloud services (i.e., ThermoFisher’s cloud solutions built on Amazon Web Services, Parexel’s Perceptive Cloud built on Microsoft Azure) versus traditional medical imaging players (i.e., Siemens, GE Healthcare, Philips)?
By putting the Spotlight on patients, Luminous can work with you to identify opportunities in this evolving market and map the pathway to adoption among users along the healthcare value chain.