China PET Scan Market Analysis

China PET Scan Market Executive Summary

The China PET Scan market is at around $155.9 Mn in 2023 and is projected to reach $248.8 Mn in 2030, exhibiting a CAGR of 6.9% during the forecast period.

A positron emission tomography (PET) scan is an imaging test that produces images of the body’s organs and tissues. PET is a type of nuclear medicine approach as a radioactive chemical called tracer is used for analyzing how the body tissues absorb and use different chemicals in real time. PET evaluates the metabolism of tissues to provide information about their anatomy and physiology as well as their biochemical properties. This is in contrast to other techniques such as magnetic resonance imaging (MRI) scan and computed tomography (CT) scan which provide images of merely the anatomy of the body. Before the actual PET scan, a tracer is injected into body and once the tracer is absorbed, a ring-shaped scanner is positioned over the body area for scanning. The most commonly used tracer in PET scan is a type of sugar, fluorodeoxyglucose (FDG) which is taken up by extensive energy-consuming cells of the body. The tracer is radiolabeled so it emits gamma rays which are detected by the scanner. A computer then analyzes this information to create 3-D images of the body. The radioisotopes used in PET scan to label tracers are 11C, 13N, 15O, and 18F. To produce even more detailed images, nowadays, most PET scans are performed along with MRI and CT scan and this combination is called PET-MRI and PET-CT scan, respectively. The PET scan is usually performed as an outpatient procedure as it consumes only around 1 hour.

In China, the mortality rates of chronic diseases, such as diabetes, heart disease, and cancer, is drastically rising and often requires consistent monitoring to track disease progression and manage them effectively. To support this, in 2022, cancer caused more than 2.5 Mn deaths in China and is one of the major causes of death. The China PET Scan Market is thus driven by significant factors such as the rising prevalence of chronic diseases, rising demand for non-invasive diagnostic devices, and increased demand for early diagnosis. However, the high cost, limited availability of radiotracers, and competition from other imaging techniques restrict the growth and potential of the market.

The major players of the China PET Scan Market are GE Healthcare, Siemens Healthineers, Basda Medical, Toshiba, Schiller, and Hitachi, among others.

Market Dynamics

Market Growth Drivers

Rising Prevalence of Chronic Diseases: The increased prevalence of chronic illnesses, particularly cancer, is one of the main factors propelling the growth of the PET Scan Market. In 2022, the age-standardized cancer incidence rate for males and females was 209.6 and 197.0, respectively, according to the WHO Global Cancer Observatory. Early detection is crucial because the number of cancer cases is on the rise. In addition to being effective diagnostic tools, PET scans are essential for cancer staging. Planning the course of treatment requires having access to crucial information about the cancer’s spread and severity, which staging offers. PET scans, in particular, assist in identifying the precise malignant areas, which enables for more targeted therapy. Also, PET scans are used to distinguish between benign and malignant cancers which is vital for deciding the treatment. Thus, PET scans offer numerous advantages which allow for early intervention and potentially better treatment outcomes, which ultimately leads to a growth in the market.

Rising Demand for Non-Invasive Diagnostic Devices: Patients tend to prefer non-invasive procedures due to their ability to minimize pain and discomfort. Non-invasive techniques, such as PET scans, are more appealing to patients as they eliminate the need for incisions and surgical interventions. Additionally, non-invasive procedures like PET scans offer shorter recovery times compared to other treatment options, enabling patients to return to their normal activities sooner. Importantly, non-invasive methods pose a lower risk of complications when compared to invasive procedures. Overall, the market is expanding due to the rising demand for non-invasive procedures and their associated benefits.

Increased Demand for Early Diagnosis: PET scans, in contrast to traditional CT and X-ray methods, concentrate on detecting heightened metabolic activity in cells at an earlier stage. This leads to early detection, enabling the selection of the most optimal treatment options. The subsequent effect of early detection leads to a higher demand for PET scans for screening, monitoring responses, and improving prognoses. Consequently, the PET scan market is expanding due to the focus on early disease identification.

Market Restraints

High Cost: PET scans are costly and they demand substantial investment. The expenses encompass not only the scanning procedure, but also the radiopharmaceuticals used and the actual scanner. For certain patients and medical institutions, particularly those in regions with constrained healthcare budgets, this can prove to be a financial burden. Furthermore, the operational and continuous maintenance costs further contribute to the overall expense. The potential growth of the market might be limited if these costs remain high or if reimbursement regulations become more stringent.

Limited Availability of Radiotracers: Numerous radiotracers utilized in PET scans possess brief half-lives, necessitating production and utilization within a limited timeframe. This entails close proximity to production facilities housing a cyclotron and radiochemistry lab, a setup that may not be feasible in rural or underdeveloped areas. Moreover, the extensive creation and distribution of radiotracers is challenging due to the need for sophisticated technology and strict compliance with regulations. The insufficient supply of radiotracers presents various technical, regulatory, and logistical obstacles that hinder the full expansion of the PET scan market.

Competition from other Imaging Techniques: Established imaging methods like Single Photon Emission Computed Tomography (SPECT), CT, and MRI scans pose a challenge to the emerging PET scans. These traditional techniques are not only more affordable than PET scans, but they are also more readily available to patients, making them a preferred choice. As a result, the PET Scan Market faces tough competition from these well-established imaging technologies.

Regulatory Landscape and Reimbursement Scenario

China’s pharmaceutical regulatory authority was previously called China Food and Drug Administration (CFDA) which was renamed to National Medicinal Products Administration (NMPA) in 2018. The NMPA is the government agency which is responsible for regulating the pharmaceuticals, cosmetics, medical devices, and in-vitro diagnostics in the nation. 

The effectiveness and safety of medications, medical equipment, and cosmetics sold in China are ensured by the NMPA. This entails checking applications, carrying out examinations, and monitoring post-market risks. Also, the whole medical product life cycle, from research and development to manufacture, marketing, and distribution, is governed by rules that are created and enforced by the NMPA. The Chinese Pharmacopoeia, which establishes quality standards for pharmaceuticals, is one of the requirements they set for the safety and quality of medicinal products. By expediting the approval procedures for cutting-edge medications and equipment, the NMPA promotes research and development of new and improved medical products.

The NRDL is the main pathway for pharmaceutical reimbursement in China, with primary goal being to improve affordability of drug treatments. The reimbursement landscape for pharmaceuticals in China is complex and prioritizes cost-effectiveness. Even though there are several advantages to being an NRDL member, there are competition in the process and significant cost savings. It is essential for pharmaceutical companies doing business in China to comprehend this framework.

Competitive Landscape

Key Players

Here are some of the major key players in the China PET Scan Market:

• GE Healthcare
• Siemens Healthineers
• Toshiba
• Schiller
• Hitachi
• Basda Medical
• Canon Medical Systems
• Philips
• Fujifilm
• MinFound Medical