The Chinese medical imaging market is expected to grow modestly to reach more than $2.5 billion by 2016, according to a new report from market research firm Millennium Research Group (MRG).
Growth will be driven primarily by the Chinese government's large investment in bridging the gap in healthcare quality between rural and urban hospitals, according to the company. Millennium projects that domestic competitors will maintain a strong presence, particular in lower-end x-ray and ultrasound systems. However, consumer preference for known brand names will support sales by multinational manufacturers.
Intended to provide affordable healthcare to the entire population by 2020, the Chinese government's $125 billion New Medical Reform Plan will invest money to upgrade lower-tier rural hospitals, as well as construct new facilities. As a result, higher-tier hospitals will be able to replace their outdated systems, while smaller and less affluent hospitals will be able to purchase systems for the first time, particularly more advanced imaging systems such as CT, MRI, and nuclear medicine scanners.
The three largest multinational companies (GE Healthcare, Siemens Healthcare, and Philips Healthcare), have shares in each of the market's MRI, CT, x-ray, ultrasound, and nuclear medicine segments, Millennium said. This will allow them to leverage their position to raise brand awareness and establish strong customer relationships, according to Millennium. Wealthy urban Chinese show a strong preference for known international brands, and this influences hospital system purchases, the company said.
Millennium also highlighted a Chinese government PET/CT initiative. While the plan is to increase licensing and install many new PET/CT systems by 2016, this initiative will initially be limited by the need to establish a new radiopharmaceutical supply chain, according to Millennium. Once that infrastructure is in place, a rapid increase in sales is expected, probably by 2015, the company said.
