Digital X-ray Set to Penetrate Deeper into Chinese Market
Date: 27 December 2011

The Chinese market for digital radiography X-ray equipment is set to increase significantly in the next five years in China, highlighted by a new report from InMedica (www.in-medica.com). Shipments of analogue general radiography equipment will be impacted by this transition, and are set to decline at a CAGR of -14.2%. Consequently, it is predicted that the overall X-ray market in China will reach $ 1.32 billion by 2016, representing a CAGR of 9.5%.

 

In China, analogue general radiography X-ray equipment is mainly purchased by the government to support rural healthcare, particularly following its Healthcare Reform announced in early 2009. The main users and benefactors were health centres in rural areas. Now many of these centres are trying to digitalize their X-ray equipment, either by upgrading analogue systems with computed radiography (CR) equipment, or by purchasing digital radiography (DR) X-ray equipment. This has led to many local suppliers attempting to shift their business to digital radiography in response.

 

County based hospitals, especially those in rural areas, will also drive this trend. These hospitals will be strongly supported by the Chinese government in the next few years, as a further step of the Chinese healthcare reform. These hospitals are a link between rural health centres and large metropolitan hospitals. Therefore, the Chinese government wants county based hospitals to take more responsibility for providing basic medical services to a large proportion of the Chinese population. In order to answer this demand and improve efficiency, they now require digital radiography X-ray equipment.

 

Level 3 hospitals and big level 2 hospitals also have strong demands for new digital radiography equipment. “This type of hospital already uses digital radiography X-ray equipment; almost all new systems purchased by these hospitals will be high specification flat panel detector based DR X-ray”, commented Owen Tang, a Shanghai based Analyst at InMedica. These hospitals closely monitor the daily patient scan volume; once a hospital reaches 100 patient scans per DR X-ray system, they have reached maximum efficiency, and it is necessary for the hospital to purchase a new system.

 

“Unlike other kinds of X-ray equipment, such as mammography and fluoroscopy X-ray, DR equipment can help hospitals increase their revenue stream based on their more frequent use”, added Owen. “In fact, return on investment (ROI) is a critical factor for hospitals making a purchase decision, as current investment from the government is not enough.”

 

Multinational companies still dominate the high-end DR X-ray equipment market segment, with most level 3 hospitals and big level 2 hospitals only willing to purchase the equipment from non-domestic suppliers. This is driving local suppliers to focus on the county based hospital market, also a key growth target for many multinational companies who are already trying to expand their business into rural areas. The convergence of business interest from both local and multinational X-ray suppliers, suggests an increasingly competitive Chinese market. For those that succeed, the rewards will be long-term and profitable.      

Editors Note :

For more information please contact:

Theo Ahadome – Press Contact

T: +44 (0) 1933 402255 theo.ahadome@in-medica.com

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Owen Tang is the author of InMedica’s report on the X-ray Equipment market in China 2012. For more details, please visit www.in-medica.com.  

 

About InMedica :

InMedica is the brand name of IMS Research’s medical research group. We publish high quality, in-depth market research on Clinical Care Devices, Consumer Medical Devices, Medical Imaging, Healthcare IT and Telehealth. We offer our clients complete coverage of the global market, with dedicated reports on high growth regions, such as China, Eastern Europe and the Middle East. To find out more, contact IMS Research: enquiries@in-medica.com; T: +44 (0) 1933 402255; http://in-medica.com