US Picture Archiving & Communication System (PACS) Market - Focused Insights 2024-2029

MARKET INSIGHTS

The U.S. picture archiving & communication system (PACS) market was valued at USD 981.08 million in 2023 and is projected to reach USD 1.27 billion by 2029, expanding at a CAGR of 4.50% during the forecast period. The increasing demand for the U.S. picture archiving & communication system market is driven by multiple factors, including the rising adoption of healthcare IT infrastructure, the growing use of diagnostic imaging for disease detection, and a surge in infectious disease cases.

Picture archiving & communication system (PACS) is a medical imaging technology that enables healthcare professionals to store, retrieve, and distribute digital medical images and reports.

MARKET TRENDS & GROWTH DRIVERS

Growing Adoption of Cloud and AI Technologies

The adoption of cloud solutions in healthcare image management is rising rapidly as providers seek more efficient data management approaches. Providers now offer cloud-hosted, hybrid-cloud, and cloud-adjacent solutions, delivering advantages such as scalable resources on demand and cost-effective service models. Unlike traditional on-premise PACS deployments, cloud solutions can seamlessly adapt to changing requirements. However, hospitals still face challenges related to cost, security, and performance expectations. Hybrid solutions are anticipated to lead the market, combining the strengths of both cloud and on-premise systems to provide essential benefits for this critical technology.

Rising Incidence of Brain Cancer

The increasing prevalence of brain cancer necessitates efficient and effective diagnostic and management methods. Radiology imaging plays a crucial role in detecting, diagnosing, and monitoring brain tumors. Radiology Information Systems (RIS) are essential in managing imaging orders, storing patient data, and streamlining billing processes. When integrated with PACS and Vendor Neutral Archives (VNAs), RIS enables seamless access to image archives and ensures comprehensive record-keeping. According to the American Cancer Society, approximately 25,400 malignant brain or spinal cord tumors were expected to be diagnosed in 2023, with around 18,760 deaths attributed to these tumors. These statistics highlight the urgent need for advanced diagnostic and treatment technologies, including radiology imaging, to effectively address brain cancer.

MARKET CHALLENGES

Availability of PACS Alternatives

Vendor Neutral Archives (VNAs) were developed to overcome limitations associated with vendor-specific PACS. VNAs store medical images in a standardized format with a uniform user interface, enabling access from any workstation, regardless of the vendor. Various software platforms provide solutions for medical image sharing, facilitating viewing, training, storage, and collaboration in medical treatment. Medicai is an example of such a platform, offering technology that connects hospitals, clinics, doctors, and patients into an integrated network, effectively forming a virtual hospital.

U.S. PICTURE ARCHIVING & COMMUNICATION SYSTEM INSIGHTS

• By Development Type: The U.S. picture archiving & communication system (PACS) market by development type is divided into cloud-based PACS and on-premise PACS. The cloud-based PACS segment held the largest market share in 2023, accounting for over 65%. This growth is driven by the increasing adoption of cloud-based technology in integrated healthcare systems to enhance digital workflows. By transitioning to a fully cloud-native SaaS model, healthcare facilities can reduce overhead costs, ensure reliable remote reading access, and benefit from advanced cybersecurity measures.
• By Application Type: The U.S. picture archiving & communication system (PACS) market by application type is classified into radiology PACS, cardiology PACS, and others. The radiology PACS segment held the largest share in 2023, supported by the increasing number of radiology and cardiology procedures due to the rising incidence of chronic illnesses. The expanding use of AI in radiology signifies the rapid evolution of the sector. According to the American College of Radiology, clinical AI adoption surged to 30% in 2020, compared to negligible usage in 2015.
• By End-User Type: The other end-user segment, encompassing educational and research medical institutions, is experiencing substantial growth, with the highest CAGR of over 5% during the forecast period. Academic and research institutions are increasingly leveraging PACS for medical imaging purposes, streamlining storage, retrieval, and sharing processes to enhance collaboration among researchers and clinicians. The rising adoption of cloud-based PACS in research labs, driven by its expanding applications across various medical specialties such as orthopedics, neurosurgery, oncology, and cardiology, is fueling market growth.

COMPETITIVE LANDSCAPE

The U.S. picture archiving & communication system (PACS) market features exclusive data on 27 vendors. Market players engage in strategic collaborations, new service launches, and regional expansions, as emerging markets continue to adopt healthcare cloud PACS. Leading companies invest significantly in research and development to enhance their offerings, focusing on image resolution, processing speed, data storage, and security features. Notable vendors in the market include Sectra, Fujifilm, Change Healthcare, Philips, Agfa, Intelerad, GE Healthcare, Carestream, and IBM.