Proton Radiation Therapy: IBA, Proton International, Mevion
Of the three examined companies, IBA (31.73%) has the highest global market share based on revenues, followed by Mevion Medical Systems (9.63%), and then Proton International (0.09). However, using the number of centers installed, we found that IBA had a 55.56% market share in the United States, while Proton International and Mevion Medical Systems had 26.63% and 3.70% market share, respectively. These figures have been added into the attached spreadsheet. Below is a deep dive into our findings as well as details of our research approach explaining why the United States market share data by radiation therapy units was not possible.
In order to identify the United States market share of IBA, Proton International, and Mevion Medical Systems, we commenced our research by exploring each company's website to first identify if they were public or private companies, which will determine our research path for finding their financial information. This was necessary since prior research had already identified the size of the proton therapy market in the United States. By searching through these companies, we found that only IBA was a public company. We were also able to locate its recent financial statement covering the 2018 fiscal year, which included the total proton therapy equipment sales globally, but not in the United States. No further information in this report gave any inkling to the equipment sales in the United States only.
Our next approach was to conduct a press release and identify the number of equipment each company had installed in the United States in 2018 with the premise that we would then multiply the number of equipment by the average cost price of each company's proton therapy. We quickly realized certain limitations with this approach. Firstly, while deals are announced in specific years, some of the deals do not take effect until the proton therapy center was ready. For example, IBA reports that while it sold 7 proton therapy equipment in 2018, only 3 were "financially activated at year-end." Another challenge with this approach is that these companies do not reveal the price of their proton therapy equipment and data available in the public domain is inclusive of other services such as installation and multi-year maintenance.
We also explored national and regional associations that were devoted to particle therapy or proton therapy such as the National Association of Proton Therapy (NAPT) and other oncology associations to see if they had published resources and reports on the proton therapy market in the United States that provided the requested information or at the very least enabled us to triangulate a reasonable estimate. A thorough examination of these organizations' website did not yield any tangible market size data or information.
In the absence of revenue data specific to the United States and specific to only the units of equipment sold, we have used global revenues of the assigned companies to provide their market share. Additionally, we have provided the market share based on the number of centers in the United States. This would have been a very useful proxy for the units of equipment sold if we were able to identify the number of proton therapy rooms per center as well. Unfortunately, this data is not in the public domain. Lastly, we provided data on the number of proton therapy rooms that were installed in 2018 in the United States and the company that installed them.
Global Market Share
GLOBAL PROTON THERAPY MARKET SIZE
According to a report by Fior Market Research, the global particle therapy market is expected to grow from $879.07 million in 2017 to $2.11 billion by 2025 at a cumulative annual growth rate (CAGR) of 11.37%. Using these data points and an online CAGR calculator, we were able to estimate the 2018 size of the global particle therapy market.
Final value (2025 market size): $2.11 billion
Number of periods (2018-2025): 8 years
Initial value (2018 market size): Unknown
Imputing the above values into the online CAGR calculator, the Global particle therapy market was estimated at $990 million in 2018.
According to the same report by Fior Market Research, "The proton therapy segment was dominating the market and held the largest market share of 56.90% in 2017." Assuming this market share remained the same in 2018, then the size of the global proton therapy market is:
56.90% of $990 million = $563.31 million
According to IBA's investor presentation covering the 2018 fiscal year, the total sales from proton therapy was EUR 160.40 million (160.40 * 1.1443 = $178.73 million). This total included EUR 86.64 million (86.64 * 1.1443 = $99.14 million) in only proton therapy equipment sales and EUR 73.75 million (73.75 * 1.1443 = $84.39 million) in proton therapy services. Unfortunately, data on the global proton therapy market limited to equipment units is behind a paywall, as such we have taken the IBA's market share from the global market size based on its overall proton therapy revenue.
Market Share: ($178.73 million/$563.31 million) * 100 = 31.73%
Proton International has an estimated revenue of $530,000. Therefore, its global market share is:
($530,000/$563.31 million) * 100 = 0.09%
MEVION MEDICAL SYSTEMS
Mevion Medical Systems has an estimated revenue of $54.23 million. Therefore, its global market share is: ($54.23 million/$563.31 million) * 100 = 9.63%
United States Market Share Using Number of Centers
As of 2018, there were 27 proton therapy centers in the United States. Based on available data, IBA installed 15 centers, Mevion Medical Systems installed 8 centers, while Proton International reports that it has one center in the United States. Therefore, the market share based on the number of centers is:
- IBA: (15/27) * 100 = 55.56%
- Mevion Medical Systems: (8/27) * 100 = 26.63%
- Proton International: (1/27) * 100 = 3.70%
2018 Only Market Share of Proton Therapy Sales in the United States
In 2018, there were only 12 proton therapy rooms installed in the world. Of this total, 3 were in the United States and were all installed by Mevion Medical Systems. This means that in 2018, Mevion Medical Systems had a 100% share of the United States proton therapy market. On the global scale though, IBA installed 7 of the 12 proton therapy rooms installed globally, which represents 58% market share. IBA is followed by Mevion Medical Systems with 4 rooms (34%), and Hitachi with 1 room (8%).