Japan MRI Market Analysis

Japan MRI Market Executive Summary

The Japan MRI Market is at around $412.73 Mn in 2023 and is projected to reach $662.76 Mn in 2030, exhibiting a CAGR of 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 disrupts 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), Japan has the highest density of MRI units with 57 units available per every Mn of its population. The market therefore is driven by significant factors like the increasing prevalence of chronic diseases, affordability, and growing government expenditure. However, high cost, workforce shortage, and declining population restrict the growth of the market.

The leading pharmaceutical companies include Siemens Healthineers and GE Healthcare for MRI machines.  Koninklijke Philips NV, Fujifilm Holdings Corporation, Elekta AB, and Neusoft Japan Co. Ltd are also significant contributors to the MRI  market, with continuous research and development activities.

Market Dynamics

Market Growth Drivers

Increase Prevalence of Chronic Diseases: The rising incidence of chronic ailments, including cancer, neurological disorders, and cardiovascular diseases, serves as a substantial factor contributing to the expansion of the Magnetic Resonance Imaging (MRI) market. Cancer stands as the predominant mortality cause in Japan, representing approximately 27% of all fatalities. The utilization of MRI facilitates comprehensive visualization of internal anatomy, thereby facilitating precise diagnosis and strategic treatment planning for these medical conditions. As the prevalence of chronic diseases escalates, there has been a notable increase in the demand for sophisticated diagnostic instruments, such as MRI, within the Japanese healthcare sector.

Affordability: MRI scans are significantly less expensive in Japan compared to the US. In Japan, the government regulates MRI prices, keeping costs low at around $200 per scan, while in the US prices can exceed $2,000. This affordability has led to widespread adoption of MRI in Japan, with the country having the highest number of scanners per capita globally.

Increasing Government Expenditure: Increasing government expenditure in the healthcare sector is driving growth in Japan's MRI market. For instance, the Japanese government has been investing heavily in healthcare infrastructure, including MRI equipment, to improve diagnostic capabilities and enhance patient care. This increased spending has led to a higher demand for MRI services and equipment, thereby boosting the market.

Market Restraints

High Cost: In Japan, space constraints and budget limitations are especially impactful for smaller hospitals and clinics. The high initial cost and ongoing maintenance of MRI machines can be prohibitive, limiting their adoption compared to larger facilities. This can create regional disparities in access to advanced MRI diagnostics.

Workforce Shortage: Technician shortage creates a bottleneck with fewer qualified technicians to operate and maintain MRI machines means longer wait times and potentially underutilized machines. This limits patient access to this vital diagnostic tool and hinders overall efficiency in the healthcare system.

Declining Population: Japan's rapidly declining population, expected to drop from 125.5 Mn in 2021 to 120 Mn by 2029, poses a significant challenge to the MRI market. The population reduction could lead to lower government healthcare expenditures, as the tax base shrinks and the proportion of elderly citizens increases.

Regulatory Landscape and Reimbursement Scenario

The Japanese MRI market operates within a strict regulatory framework overseen by the Ministry of Health, Labour and Welfare (MHLW) and its subordinate agency, the Pharmaceuticals and Medical Devices Agency (PMDA). All MRI systems must undergo a rigorous pre-market approval process by the PMDA before being marketed and sold in Japan. This ensures safety, efficacy, and quality standards are met. Manufacturers need to submit a comprehensive technical documentation package demonstrating the MRI system's design, manufacturing processes, performance data, and risk assessments.

Japan has a universal national health insurance system (NHI) that covers a significant portion of the costs for medically necessary procedures, including MRI scans. NHI reimbursement rates for MRI scans are set by the government and can vary depending on the specific type of scan and the body part being examined. These rates aim to balance patient access with fiscal responsibility. As part of an effort to control rising healthcare costs, the government has been expanding a prospective payment system called Diagnosis Procedure Combination/ Per-Diem Payment System (DPC/PDPS). This system includes hospital fees for MRI scans, while physician fees are excluded

Competitive Landscape

Key Players

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

• Siemens Healthineers
• GE Healthcare
• Koninklijke Philips NV
• Canon (Canon Medical Systems Corporation)
• Fujifilm Holdings Corporation
• Elekta AB
• United Imaging Healthcare Co. Ltd
• Esaote
• Neusoft Japan Co. Ltd
• Shenzhen Anke High-tech Co. Ltd