Canada Radiology Service Market Analysis

Canada Radiology Service Market Executive Summary

The Canada Radiology Service market is at around $320 Mn in 2023 and is projected to reach $835.8 Mn in 2030, exhibiting a CAGR of 14.7% during the forecast period.

Radiology, also known as diagnostic imaging, is a branch of medicine that uses imaging technology to diagnose, characterize, monitor, and treat diseases. Some of the most common imaging techniques include X-ray, MRI, ultrasound, CT scan and PET scan. Radiology is important as every sector within the healthcare field relies on radiology, including surgery, paediatrics, obstetrics, oncology, emergency medicine, to name a few. Radiology is a broader term composed of diagnostic radiology, interventional radiology, and therapeutic radiology which use radiant energy to diagnose and treat the diseases. Diagnostic radiology involves visualization of the various images of the body for evaluating symptoms, screening of illnesses, and diagnosis of diseases. Diagnostic radiology is usually non-invasive and performed without any incisions or surgical interventions. Interventional radiology is basically image-guided surgery and is used as a part of the medical treatment process. The various procedures under interventional radiology include angiography, angioplasty, embolization, gastrostomy, stent placement, catheter placement, and many more. It is often used to help treat cancer, lymphatic diseases, and vascular abnormalities. Therapeutic radiology is also referred to as radiation oncology or radiation therapy which involves treatment of cancer and other diseases using radiation.

The Canada faces a heavy burden in the healthcare sector due to the rising chronic diseases and increased mortality cases in the nation, with the rising demand for medical imaging services. The Canada Radiology Service Market is thus driven by significant factors such as the increasing burden of chronic diseases, aging population, and technological advancements. However, high cost, radiation exposure concerns, and security challenges restrict the growth and potential of the market.

The major players of the Canada Radiology Service Market are The Ottawa Hospital, Vancouver General Hospital, St. Paul’s Hospital, Royal Alexandra Hospital, Foothills Medical Centre, and McGill University Health Centre, among others.

Market Dynamics

Market Growth Drivers

Increasing Burden of Chronic Diseases: 73% of individuals aged 65+ years who have at least 1 of 10 common chronic diseases including hypertension with 65.7%, diabetes with 26.8%, and cancer with 21.5% prevalence. Radiology services play a crucial role in managing these chronic diseases, especially neurological disorders by providing detailed and accurate imaging that aids in early diagnosis, ongoing monitoring, and treatment planning. Due to the crucial role of radiology services in every stage of disease, the Radiology Service Market is at its full potential growth.

Aging Population: Canada is home to about 7.6 Mn people aged 65 and older as of 2023. This geriatric population is more susceptible to chronic disorders, especially the neurodegenerative disorders such as Alzheimer’s and Parkinson’s disease. For instance, MRI serves as a first line imaging technique for these diseases as they reveal specific patterns in the brain. Overall, the aging population increases the demand for radiology services, which contributes to the growth of the Radiology Service Market.

Technological Advancements: There have been many technological innovations in the field of the medical imaging. Digital radiography reduces the need for additional sessions of imaging which decreases the overall radiation exposure. Also, many other advantages of digital radiography include shorter exposure time, improved detail detectability, extremely high imaging quality, faster processing and diagnosis, and last but not the least, capability for remote viewing from connected digital devices. The benefits of radiology in the medical sector are indispensable, which drives the overall market.

Market Restraints

High Cost: Radiology is costly as it requires expensive equipment, such as MRI, CT, and PET scanners, which can cost millions of dollars each. Additionally, maintaining and operating these machines demands significant financial investment in terms of regular maintenance, software updates, and the need for specialized technical staff. These factors make radiology services one of the costliest in the medical sector, ultimately affecting the growth of Radiology Service Market.

Radiation Exposure Concerns: While radiology is highly beneficial in medical diagnostics, the concern over radiation exposure is significant, influencing patient safety, public perception, and regulatory standards. The ionizing radiation from X-rays and CT scan, although minimal, can pose risks with repeated exposure, causing patient reluctance. Such concerns negatively affect the expansion of the Radiology Service Market.

Security Challenges: Medical images are confidential as they contain valuable information for disease diagnosis and treatment. Thus, it is essential to secure their storage, processing, analysis, and transmission without violating ethical and legal issues regarding health information privacy. This is difficult due to the multimedia and communication technologies development, which makes tampering and misuse an easy process. Attaining high security of medical images thus remains a challenge, in technological era, negatively affecting the market.

Regulatory Landscape and Reimbursement Scenario

The regulatory body in charge of policing a range of medical goods and services is the Health Canada. Foods, pharmaceuticals, medical equipment, biologics, natural health products, and other health products are all under the purview of Health Canada. Health Canada oversees the safety, effectiveness, and quality of all pharmaceutical medications intended for human use in Canada, both before and following their entry into the Canadian market, under the Food and Drugs Act.

The Department carries out this task by combining monitoring, scientific evaluation, compliance, and enforcement actions. It seeks to guarantee that people who require information about safety issues are informed and that the general public has prompt access to pharmaceuticals that are both safe and effective. Some of the responsibilities of the Health Canada include: Enforcing the pharmaceutical industry’s compliance with regulations, such as those pertaining to clinical trials, drug manufacturing, and the reporting of adverse drug reactions; reviewing clinical trial applications; reviewing drug submissions from manufacturers for market authorization and post-market changes; monitoring the safety of drugs in the Canadian market and informing the public and health care professionals about safety risks.

Through the Canada Health Transfer (CHT), the federal government distributes money to the states, territories, and provinces. Each province’s share of financing is decided by a complicated system that takes into account factors including population, health care requirements, and past expenditure trends. The costs of hospital stay, doctor visits, diagnostic tests, and some prescription drugs are then covered by the public healthcare insurance programs that are managed by the provinces and territories.

Competitive Landscape

Key Players

Here are some of the major key players in the Canada Radiology Service Market:

• Toronto General Hospital
• Mount Sinai Hospital
• Sunnybrook Health Sciences Centre
• St. Michael’s Hospital
• The Ottawa Hospital
• Vancouver General Hospital
• St. Paul’s Hospital
• Royal Alexandra Hospital
• Foothills Medical Centre
• McGill University Health Centre