China Radiology Service Market Analysis

China Radiology Service Market Executive Summary

The China Radiology Service market is at around $321.6 Mn in 2023 and is projected to reach $919.8 Mn in 2030, exhibiting a CAGR of 16.2% 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.

China faces a significant challenge in managing chronic diseases, leading to reduced quality of life and well-being of its citizens. The China 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, limited access, and shortage of radiologists restrict the growth and potential of the market.

The major players of the China Radiology Service Market are Peking Union Medical College Hospital, Shanghai Huashan Hospital, Guangzhou Medical University Affiliated Cancer Hospital, Fudan University Shanghai Cancer Centre, Beijing Cancer Hospital, and Shanghai Renji Hospital, among others.

Market Dynamics

Market Growth Drivers

Increasing Burden of Chronic Diseases: There is almost 70% of the total burden of diseases on the healthcare system and the well-being of its citizens. The increasing prevalence of chronic diseases like cancer, heart disease, and diabetes is leading to a growing demand for diagnostic imaging procedures. Radiology’s role is central to disease management, with a wide choice of tools and techniques available for the detection, staging and treatment, which leads to the market growth.

Aging Population: In China, an estimated 402 Mn people (28% of the total population) will be aged 60 and above by 2040. The geriatric population is more susceptible to chronic conditions such as diabetes, cardiovascular diseases, musculoskeletal disorders. Thus, the older adults are more likely to require the medical diagnostic services due to an increased risk of chronic diseases. This geriatric population accounts for a majority for whom the radiology services are delivered and thus acts as a significant driver of the radiology service market.

Technological Advancements: Advancements in imaging technologies, such as AI powered image analysis, 3D imaging, and low-dose radiation techniques, are making radiology services more accurate, efficient, and patient-friendly. These advancements are leading to a wider range of applications for radiology services and increased adoption. Thus, the market experiences drastic growth.

Market Restraints

High Cost: Radiology services are expensive due to the high cost of equipment like MRI, CT, and PET scanners, each of which can cost millions of dollars. Furthermore, significant financial investment is required for the regular maintenance and operation of these machines, including software updates and specialized technical staff. These factors contribute to making radiology one of the most costly services in the medical sector, impacting the growth of the Radiology Service Market.

Limited Access: Radiological services may not be as easily accessible in some rural and low-income communities because of inadequate healthcare infrastructure. Additionally, integrating cutting-edge technology with medical imaging systems is difficult in developing nations. Therefore, the nation will inevitably face financial difficulties, which could have a detrimental impact on the market for radiology services.

Shortage of Radiologists: Just as vital as MRI and CT scanners and other radiological technology are trained radiologists for image analysis. However, the healthcare industry faces a significant difficulty due to a lack of these competent professionals in healthcare. Thus, the growth of the radiology services market is hindered by a lack of suitable trained radiologists.

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 Radiology Service Market:

• Peking Union Medical College Hospital
• Shanghai Huashan Hospital
• Guangzhou Medical University Affiliated Cancer Hospital
• Fudan University Shanghai Cancer Centre
• Beijing Cancer Hospital
• Shanghai Renji Hospital
• West China Hospital of Sichuan University
• Tongji Hospital
• Xijing Hospital
• Sichuan Provincial People's Hospital