The U.S. office-based labs market size was estimated at around USD 9.7 billion in 2021 and it is projected to hit around USD 18.5 billion by 2030, growing at a CAGR of 7.44% from 2022 to 2030.
The increasing prevalence of vascular diseases and rising preference for minimally invasive procedures in outpatient settings are the major factors driving the demand for office-based labs (OBL) in the U.S. High prevalence of risk factors, such as smoking, high blood pressure, diabetes, and high cholesterol, along with the growing geriatric population, is expected to increase the incidence of Peripheral Artery Diseases (PADs).
The resultant surge in the number of procedures performed for their treatment is anticipated to fuel the market growth during the forecast period. The rapidly transitioning healthcare delivery scenario is driving key market players to transform their business models to achieve maximum benefit from ongoing transitions. A key driving factor supporting the changing preferences of consumers is the cost-effectiveness of OBL. Some of the key reasons to visit office-based labs are preventive care, underlying chronic condition, pre/post-surgery care, and injuries/trauma. In addition, high patient satisfaction with a focused and dedicated team of doctors is expected to boost the market in the U.S.
During the COVID-19 pandemic, private practices, such as OBLs, postponed elective procedures, which included elective angioplasty or elective rotational atherectomy during transcatheter aortic valve implantation, or any other elective vascular operations performed under general or peripheral anesthesia. According to the findings published by The Commonwealth Fund, in August 2020, the total number of ambulatory practices witnessed a decline of 60% and recorded a significant decline in provider office visits. Many OBLs in the U.S. have reported a sharp decline in their businesses, however, some of them are offering testing facilities and post-respiratory therapy.
Scope of The Report
|Market Size in 2021||USD 9.7 billion|
|Revenue Forecast by 2030||USD 18.5 billion|
|Growth rate from 2022 to 2030||CAGR of 7.44%|
|Forecast Period||2022 to 2030|
|Segmentation||Modality, services, specialists|
|Companies Covered||Koninklijke Philips N.V., GE Healthcare, Siemens Healthineers AG, Medtronic PLC, Boston Scientific Corporation, Abbott, Cardiovascular Systems, Inc., Envision Healthcare, Surgery Care Associate, Inc (SCA); Surgery Partners, National Cardiovascular Partners, Cardiovascular Collation; TH Medical|
Based on modality, the market is categorized into single specialty, multi-specialty, and hybrid labs. The hybrid labs segment is expected to register the fastest CAGR of more than 8.50% during the forecast period owing to technological advancements, an increase in reimbursement rates, and a rise in the number of minimally invasive procedures. In addition, improvements in technology, providing high-quality and convenient solutions for patients, are projected to support the growth of this segment. The hybrid lab operates as an OBL for a few days of the week and as an ASC on other days.
Thus, hybrid labs increase the volume of procedures & reimbursement for providers and significantly enhance the efficiency and utilization of OBL/ASC. The single-specialty modality segment dominated the market in 2021. Single specialty centers are growing at a significant rate due to their investment-friendly model and importance in specified specialties, such as ophthalmology, urology, plastics, and gastroenterology. Single specialty clinics are more cost-efficient in comparison with multi-specialty hospitals that require many resources to support multiple service lines, leading to an increase in operational costs.
Based on specialists, the market has been further classified into vascular surgeons, interventional cardiologists, interventional radiologists, and others. The interventional radiologist segment is expected to grow at the fastest growth rate of 8.6% during the forecast period on account of the increasing use of minimally invasive image-guided techniques for the diagnosis and treatment of diseases. Advancements in medical technology, increasing preference for better & efficient care, and patient demographics are factors expected to fuel the demand for vascular specialists.
Currently, there is a shortage of physicians for vascular surgery. According to the Society for Vascular Surgery, 100 million people in the U.S. are at risk of vascular disease. The office-based labs are the top preference of vascular surgeons, as performing surgeries at office-based facilities has financial benefits for them, with all the excess margin for surgical procedures going to the surgeon directly & indirectly. Moreover, interventional radiology reduces cost, recovery time, pain, and risk to patients. According to the latest statistics by the American Medical Association, there were 48,767 radiologists in the U.S. in 2021.
Furthermore, the American College of Radiologists Commission on Human Resources Workforce Survey in 2019 highlighted the growing shortage of physicians and the surge of 30% job openings in radiology from 2017 to 2018. Therefore, the lack of physicians in the field of radiology creates demand for specialists, thereby boosting the segment growth. The vascular surgeons segment led the market in 2021 and accounted for the largest revenue share owing to the advancements in medical technology, an increase in the demand for specialists, and a shift in preference from hospital settings to OBLs for better & more efficient care.
Based on services, the OBLs market has been categorized into peripheral vascular intervention, endovascular intervention, cardiac, interventional radiology, venous, and others. The interventional radiology segment is estimated to register the fastest CAGR of more than 8.00% from 2022 to 2030. Interventional radiology is beginning to play a vital role in the adoption of value-based healthcare models. Interventional radiology helps diagnose and treat patients using the least invasive techniques that are less expensive, cause minimum pain, and need less recovery time in comparison with traditional surgery.
It utilizes image-guided procedures, such as MRI, CT, and ultrasound, to guide minimally invasive procedures to diagnose and treat diseases in every organ system. According to Cardiovascular Disease Management Annual Symposium, around 12% of interventional radiologists performed office-based interventions in the U.S. The peripheral vascular intervention segment accounted for the largest share of the overall revenue in 2021 on account of the increased prevalence of PAD, favorable reimbursement, and technological advancements in minimally invasive vascular procedures.
Industry players are trying to strengthen their peripheral intervention product offerings to commercialize the growing opportunities in OBL settings. In March 2021, Cardiovascular Systems, Inc. acquired WavePoint Medical’s line of peripheral support catheters, which are used in peripheral vascular intervention. Under this acquisition agreement, WavePoint Medical would develop a specialty catheter portfolio used in complex percutaneous coronary intervention and chronic total occlusions for Cardiovascular Systems, Inc.
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