Japan CT Scan Market Analysis

Japan CT Scan Market Executive Summary

Japan CT Scan Market was valued at $286.55 Mn in 2023 and is predicted to grow at a CAGR of 8.37% from 2023 to 2030, to $503 Mn by 2030.

A CT scan, or computed tomography scan, is a sophisticated imaging procedure that uses X-rays to produce detailed cross-sectional images of the body. Unlike traditional X-rays, CT scans capture multiple views from various angles, which a computer then processes into a three-dimensional representation of internal structures such as organs, bones, and soft tissues. Before the scan, patients may prepare by wearing a gown and removing metal objects. Depending on the type of scan, they might need to ingest a contrast material to enhance the visibility of specific tissues. During the scan, patients lie on a table that moves through a donut-shaped scanner while X-ray images are taken. Afterward, a radiologist interprets the images to diagnose conditions like cancer, heart disease, bone fractures, internal bleeding, and injuries. While CT scans offer detailed diagnostic capabilities, they involve radiation exposure and can be costly, though advancements have minimized risks and enhanced safety. Other imaging options like X-rays, ultrasound, and MRI scans are considered based on specific medical needs and radiation concerns.

In Japan, the significant prevalence of chronic diseases drives the demand for diagnostic imaging, including CT scans. Chronic kidney disease affects an estimated 13% of the population, while in 2021, Japan reported 378,600 new cancer cases, with lung cancer being the most common. Approximately 30 Mn patients undergo CT scans annually, with 23% involving upper abdominal examinations.

The market therefore is driven by significant factors like the aging population, rising chronic disease burden, and technological advancements. However, high costs, radiation concerns, and skilled workforce shortage restrict the growth and potential of the market.

A prominent player in this field is GE Healthcare, which launched a new refurbishing unit in Bangladesh for A1-Sure Ultrasound Systems, aiming to enhance accessibility to affordable ultrasound technology in developing regions, and Siemens Healthineers partnered with Microsoft to utilize Azure cloud services for AI-powered medical imaging solutions, aimed at advancing healthcare delivery with secure and scalable cloud computing. Other contributors include Canon Medical Systems, and NeuroLogica Corp. among others.

Market Dynamics

Market Growth Drivers

Aging Population: Japan has the highest percentage of elderly citizens globally, with over 28% aged 65 or above, according to the World Bank 2023. This growing demographic necessitates increased medical attention, including the use of CT scans for diagnosis and treatment planning.

Rising Chronic Disease Burden: Chronic illnesses such as cancer are highly prevalent in Japan. The National Cancer Centre estimated over 1 Mn new cancer cases annually in 2022. CT scans are essential for early detection and treatment, significantly driving the CT scan market.

Technological Advancements: Japan is at the forefront of medical technology innovation. Companies like Canon Medical Systems are developing high-resolution CT scanners, which enable more precise diagnoses, thereby boosting market growth

Market Restraints

High Costs: CT scanners are expensive, with the market size estimated at $370 Mn in 2024. High acquisition and maintenance costs can limit affordability for smaller healthcare facilities, restraining market growth.

Radiation Concerns: Despite the diagnostic benefits, radiation exposure from CT scans remains a concern. This might prompt some patients to seek alternative imaging methods, when possible, potentially slowing market growth.

Skilled Workforce Shortage: A lack of trained radiologists and technicians to operate and interpret CT scans can limit their effective utilization. This creates a bottleneck in the diagnostic process, impacting market growth.

Regulatory Landscape and Reimbursement Scenario

In Japan, the regulatory framework for CT scanners is governed by the Pharmaceuticals and Medical Devices Agency (PMDA) and the Ministry of Health, Labour and Welfare (MHLW). These agencies ensure that CT scanners meet stringent safety and efficacy standards before they are approved for clinical use. The approval process involves rigorous testing and evaluation to ensure compliance with Japanese regulations. Additionally, manufacturers must obtain a certification known as "Shonin" to market their CT scanners in Japan. This regulatory environment aims to maintain high standards of patient safety and technological quality within the medical imaging sector.

Reimbursement for CT scans in Japan is managed under the country's universal healthcare system, which is known for providing comprehensive coverage to its citizens. The reimbursement rates for CT scans are determined by the MHLW and are included in the National Health Insurance (NHI) fee schedule. These rates are periodically reviewed and adjusted to reflect changes in medical practice and technological advancements. While the NHI covers a significant portion of the cost of CT scans, patients may still incur out-of-pocket expenses, especially for advanced imaging techniques or scans performed outside standard clinical indications. This well-structured reimbursement system ensures broad access to CT imaging while controlling healthcare costs.

Competitive Landscape

Key Players

Here are some of the major key players in the Japan CT Scan Market:

• GE HealthCare
• Koninklijke Philips N.V.
• Siemens Healthineers AG
• Canon Medical Systems
• NeuroLogica Corp.
• Shanghai United Imaging Healthcare Co., Ltd.
• Fujifilm Holdings Corporation
• Shenzhen Anke High-tech Co., Ltd.
• Koning Health
• Carestream Dental LLC.