Japan Radiology Service Market Analysis

Japan Radiology Service Market Executive Summary

The Japan Radiology Service market is at around $248.6 Mn in 2023 and is projected to reach $669.5 Mn in 2030, exhibiting a CAGR of 15.2% during the forecast period.

There are many techniques used in radiology. MRI (Magnetic Resonance Imaging) scan is a powerful imaging technique that uses magnets instead of radiation to create images of the body. It is excellent for visualizing soft tissues like the brain, muscles, and organs. Areas investigated through MRI scanning include spinal cord and brain abnormalities, cysts and tumors, joint injuries, breast tissue anomalies, and abdominal and liver irregularities. Radiography is a type of radiological imaging technique which applies X-ray radiation. X-ray mammograph is also a type of radiological imaging technique which is used specifically to identify abnormalities or lesions in the human breast. MRA (Magnetic Resonance Angiogram) scan is an examination that produces detailed versions of the blood vessels in the body. Compared to X-rays, CT (Computed Tomography) uses a low dose of radiation and also provides a better overview of the interior of the body. An ultrasound or sonography is a technique that uses high frequency ways to produce images. As it does not involve the use of radiation it is the most widely used technique for monitoring pregnancy. A Positron Emission Tomography (PET) scan is an advanced technique used to reveal the metabolic or biochemical functions of tissues and organs. Lastly, a Single-Photo Emission Computerized Tomography (SPECT) uses a radioactive substance and a special camera to create 3-D images.

Consistently having the oldest population in the world, Japan faces a significant healthcare burden due to the rising chronic diseases. The Japan 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, radiation exposure concerns, and regulatory compliance restrict the growth and potential of the market.

The major players of the Japan Radiology Service Market are Tokyo Medical University Hospital, Keio University Hospital, Osaka University Hospital, Kyoto University Hospital, and National Cancer Center Hospital, among others.

Market Dynamics

Market Growth Drivers

Increasing Burden of Chronic Diseases: The three major diseases in Japan that have been the leading cause of death include cancer, heart disease, and cerebrovascular disease. The age standardized incidence rate for cancer was 267.1 in males and females collectively in 2022 as per the WHO.  These conditions require long-term care associated with the 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: When it comes to having the most significant aging population, Japan takes the lead. 28.2% of Japan’s population is 65 years old or older, which equates to around 36.23 Mn people. 34% of those people are between 75 and 84, and 16% are over 85. This elderly population in the country is more likely to require the medical diagnostic services due to an increased risk of chronic diseases. They increase the demand for the radiology services and thus acts as a significant driver of the Radiology Service Market.

Technological Advancements: Advances in imaging technologies, such as the PET and SPECT scan, enable more precise and earlier diagnosis of various medical conditions. Integration of AI and machine learning in imaging analysis enhances diagnostic accuracy and efficiency, which also reduces human error and enhances patient care. As these technologies continue to evolve, they drive market growth by improving patient outcomes and expanding the capabilities of radiology as a service.

Market Restraints

High Cost: Radiology services are notably expensive due to the high cost of essential equipment like MRI, CT, and PET scanners, each potentially priced in the millions. Beyond the initial investment, substantial ongoing financial commitments are necessary for routine maintenance, software upgrades, and employing specialized technical personnel to operate and service these machines. These considerable expenses contribute to the high cost of radiology services, posing a challenge to the growth of the Radiology Service Market.

Radiation Exposure Concerns: Despite the limited clinical evidence, even the relatively low health risks linked to ionizing radiation from diagnostic imaging procedures like X-rays and CT scans are met with significant apprehension, which impacts their widespread use. Concerns about radiation exposure have led healthcare providers and patients to exercise greater caution, potentially decreasing the frequency of these procedures. Consequently, these factors are restraining the growth of the Radiology Service Market.

Regulatory Compliance: Strict regulations and standards imposed by the medical devices regulatory agency can increase operational costs and complexity for radiology service providers. Also, the time, resources, and expertise needed for the navigating through the regulatory requirements can be challenging. This can slow down the adoption of new technologies and can hinder the market expansion.

Regulatory Landscape and Reimbursement Scenario

The PMDA (Pharmaceuticals and Medical Devices Agency) is Japanese regulatory agency, working together with Ministry of Health, Labour and Welfare (MHLW). Their core purpose is to ensure the safety, quality, and efficacy of the pharmaceuticals and medical devices in the Japan.

The PMDA conducts thorough review and evaluation of the new drugs based on safety, quality, and efficacy seeking marketing authorization in Japan. This minimizes the risk of patients experiencing adverse effects from medications or faulty medical devices. The PMDA’s responsibility extends beyond granting market authorization and includes post-marketing surveillance for reporting any adverse drug reactions. As a founding country, Japan is an important member in the development and application of ICH (International Council for Harmonisation of Technical Requirements for Pharmaceuticals for Human Use) guidelines. The PMDA regularly participates in ICH meetings and contributes to establishing harmonized standards for the pharmaceutical industry. Japanese pharmaceutical companies can expedite the registration of their products in Japan and other ICH member nations by following ICH rules. This makes it easier for innovative drugs to be marketed internationally more quickly.

The reimbursement system in Japan plays a crucial role in balancing access to care with affordability. The majority of Japanese citizens are covered by the National Health Insurance (NHI), a government-mandated insurance scheme. For inpatient and outpatient services at approved medical facilities, NHI reimburses a significant percentage of medical expenses. However, deductibles and copayments may be necessary based on the service, the patient’s age, and income. Government subsidies are provided for certain services, such long-term care and some chronic conditions, the government offers extra funding. In comparison to NHI, voluntary private insurance policies may provide more coverage and better reimbursement rates. These plans can pay for expenses that NHI does not cover, such as sophisticated procedures and diagnostics, shorter waiting times for some medical procedures, and individual hospital rooms.

Competitive Landscape

Key Players

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

• Tokyo Medical University Hospital
• Keio University Hospital
• Osaka University Hospital
• Kyoto University Hospital
• National Cancer Center Hospital
• St. Luke’s International Hospital
• Nagoya University Hospital
• Fujita Health University Hospital
• Forest Japan Medical Centre
• University of Tokyo Hospital