Indonesia MRI Market Analysis

Indonesia MRI Market Executive Summary

The Indonesia MRI Market is at around $39.84 Mn in 2023 and is projected to reach $61.91 Mn in 2030, exhibiting a CAGR of 6.5% 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), Indonesia has 1.11 units available per every million of its population. The market therefore is driven by significant factors like the rise in mobile MRI units, increased focus on early detection, and rising prevalence of chronic disease. However, infrastructure challenge, limited public awareness, and limited reimbursement coverage restrict the growth of the market.

The leading pharmaceutical companies include Mindray and GE Healthcare for MRI machines. Neusoft Medical Systems, Fonar Corporation, and Hitachi Medical Systems are also significant contributors to the MRI  market, with continuous research and development activities.

Market Dynamics

Market Growth Drivers

Rise in Mobile MRI Units: Mobile MRI units bring MRI technology to remote areas of Indonesia, overcoming the limitations of fixed facilities. This expands access to vital diagnostic services for geographically isolated communities.

Increased Focus on Early Detection: Indonesia's shift towards preventive healthcare prioritizes early disease detection. MRI scans are a powerful tool in this strategy. By identifying potential problems early, doctors can intervene sooner, often leading to more successful treatment and improved patient outcomes in the long run.

Rising Prevalence of Chronic Diseases:  Cardiovascular Diseases is the leading cause of death in Indonesia, accounting for approximately 37% of all deaths due to the growing burden of chronic diseases such as cancer, cardiovascular disease, and diabetes, which require regular monitoring and management using MRI scans. MRI plays a vital role in diagnosing and monitoring these conditions, which will fuel demand for MRI machines.

Market Restraints

Limited Reimbursement Coverage: The lack of comprehensive reimbursement policies for MRI scans in Indonesia's healthcare system is a barrier to accessing these services, particularly for patients from lower socioeconomic backgrounds. The high costs of MRI scans can make them unaffordable for many Indonesians.

Limited Public Awareness: In Indonesia's rural areas, limited access to information can hinder public understanding of MRI scans. This creates a barrier to utilization. Even if MRI facilities become more available, people might not recognize the benefits or feel empowered to request this diagnostic tool due to a knowledge gap.

Infrastructural Challenge: Indonesia's remote areas often lack reliable electricity and essential medical infrastructure. This creates a hurdle for deploying MRI machines. Without consistent power and proper facilities to house and maintain them, MRI scanners can't function effectively. This restricts access to this crucial diagnostic tool for a substantial portion of the Indonesian population.

Regulatory Landscape and Reimbursement Scenario

The Ministry of Health (Kementerian Kesehatan) is the primary authority responsible for regulating medical devices in Indonesia. Badan Pengawas Obat dan Makanan (BPOM) plays a crucial role in the pre-market approval process for medical devices, including MRI systems. Manufacturers need to obtain marketing authorization from BPOM before selling their machines in Indonesia. Manufacturers (or their authorized representatives in Indonesia) need to classify the MRI system based on its risk level according to Indonesian regulations. This classification determines the required documentation and approval pathway. BPOM will thoroughly review the application package. This might involve technical expertise from the National Nuclear Energy Agency (BATAN) regarding magnetic field safety. Upon successful review and evaluation, BPOM will issue a marketing authorization for the MRI system.

Competitive Landscape

Key Players

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

• GE Healthcare
• Mindray
• Siemens Healthineers
• Philips Healthcare
• Toshiba Medical Systems
• Hitachi Medical Systems
• Fonar Corporation
• Esaote
• Neusoft Medical Systems
• Shimadzu