Germany MRI Market Analysis

Germany MRI Market Executive Summary

The Germany MRI Market is at around $243.02 Mn in 2023 and is projected to reach $335.18 Mn in 2030, exhibiting a CAGR of 4.7% during the forecast period.

Magnetic resonance imaging (MRI) is a type of diagnostic test that can create detailed images of nearly every structure and organ inside the body. It uses strong magnetic fields and radio waves to produce detailed images of the inside of the body. The MRI machine is a large, cylindrical (tube-shaped) device that generates a powerful magnetic field around the patient and emits pulses of radio waves from a scanner. Some MRI machines resemble narrow tunnels, while others are more spacious. The intense magnetic field produced by the MRI scanner causes the atoms in your body to align in the same direction. Subsequently, radio waves are emitted from the MRI machine, which disrupt this alignment, causing the atoms to return to their original positions. As the radio waves cease, the atoms revert to their initial alignment and emit radio signals. These signals are then picked up by a computer, which transforms them into an image of the area being examined. This image is displayed on a viewing monitor.

Among member countries of the Organization of Economic Co-operation and Development (OECD), Germany has 35.25 units available per every million of its population. The market therefore is driven by significant factors like the high prevalence of cardiovascular diseases, technological advancements in MRI, and increased healthcare expenditure. However, high cost, limitation of technology, and lack of proper reimbursement restrict the growth of the market.

The leading pharmaceutical companies include GE Healthcare and Koninklijke Philips N.V. for MRI machines. SternMed GmbH, Esaote, and Neoscan are also significant contributors to the MRI market, with continuous research and development activities.

Market Dynamics

Market Growth Drivers

Technological Advancement: The German government is supporting the development of new MRI technologies, such as portable systems and AI-powered scanners, to improve diagnosis and treatment. Portable MRI systems can be transported to remote locations or used in emergencies, improving access to advanced imaging. For example, DeepSpin GmbH secured $3.81 Mn in public funding in 2021 to develop next-generation, AI-powered MRI machines.

High Prevalence of Cardiovascular Diseases: Germany has seen a significant increase in deaths due to circulatory diseases, which account for the highest death rates for cardiovascular diseases in Europe. CVDs are the leading cause of death in Germany, accounting for about 35% of all deaths. Doctors use MRI, particularly cardiovascular MRI, to diagnose and monitor circulatory diseases. MRI allows them to examine the heart and arteries without radiation exposure.

Increase Healthcare Expenditure:  The German government's increased healthcare spending which supports the future development of the MRI market in the country. Germany spent around 12.5% of its GDP on healthcare costs, totaling about $466.7 Bn.

Market Restraints

High Cost: MRI machines are expensive capital investments for hospitals and clinics, with prices ranging from hundreds of thousands to millions of dollars depending on the model and features. The high upfront costs can make it challenging for some healthcare facilities to acquire MRI systems, limiting the availability of these services.

Limitation of Technology: Germany has many cardiovascular patients and MRI machines may not be suitable for larger patients or those with certain metal implants, pacemakers, or other devices that are incompatible with strong magnetic fields. Claustrophobia is another common issue, as many MRI scanners are narrow and enclosed, causing anxiety in some patients.

Lack of proper reimbursement: The costs of MRI procedures are not always fully covered by insurance providers, leading to higher out-of-pocket expenses for patients. This lack of proper reimbursement can limit patient access to MRI services, as they may be less willing or able to pay the full cost themselves.

Regulatory Landscape and Reimbursement Scenario

Germany's regulatory framework for MRI is considered one of the most stringent globally, on par with the EU and US. Federal Office for Drugs and Medical Devices (Bundesinstitut für Arzneimittel und Medizinprodukte - BfArM) is responsible for overseeing medical device regulations in Germany. They can issue specific guidance documents related to MRI safety and operation. MRI systems must meet rigorous standards for electromagnetic compatibility, radiation protection, and patient safety. Manufacturers must obtain regulatory clearance from agencies like the Federal Institute for Drugs and Medical Devices (BfArM) before their MRI products can be marketed in Germany. The approval procedures are lengthy and complex, often delaying the introduction of innovative MRI technologies in the country.

Competitive Landscape

Key Players

Here are some of the major key players in the Germany MRI Market:

• Siemens Healthineers
• GE Healthcare
• Koninklijke Philips NV
• Canon (Canon Medical Systems Corporation)
• Fujifilm Holdings Corporation
• Hitachi Medical Systems
• Hologic Inc.
• Esaote
• Neoscan
• SternMed GmbH