Saudi Arabia Radiology Service Market Analysis

Saudi Arabia Radiology Service Market Executive Summary

The Saudi Arabia Radiology Service market is at around $68 Mn in 2023 and is projected to reach $194.5 Mn in 2030, exhibiting a CAGR of 16.2% 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.

In Saudi Arabia, the premature death, morbidity and disability associated with Non-Communicable Diseases (NCDs) not only affect the healthcare sector, but also negatively affect socio-economic development and long-term fiscal sustainability of government and public services. The Saudi Arabia Radiology Service Market is thus driven by significant factors such as the increasing burden of chronic diseases, aging population, and growing awareness. However, high cost, limited access, and shortage of radiologists restrict the growth and potential of the market.

The major players of the Saudi Arabia Radiology Service Market are Manipal Hospitals Radiology Group, Al Adwani General Hospital, Almana General Hospital, Dr. Sulaiman Al Habib Hospital, and Al Ahsa Hospital, among others.

Market Dynamics

Market Growth Drivers

Increasing Burden of Chronic Diseases: The rise of chronic diseases is a complex issue with significant consequences for individuals and healthcare systems in Saudi Arabia. Cancer, cardiovascular diseases, diabetes and chronic respiratory diseases are the four major diseases which account for 35% of all deaths. The increasing prevalence of these chronic diseases in turn leads to a growing demand for diagnostic imaging procedures. With so many tools and techniques for detecting and treating diseases, radiology plays a significant role in disease management which leads to the market growth.

Aging Population: The proportion of people in Saudi Arabia aged 60 or more is predicted to be 25% of the total population by the end of 2050. The elderly population is more vulnerable to long-term illnesses including diabetes, heart disease, and musculoskeletal problems. Because they have a higher chance of developing chronic illnesses, older persons are therefore more likely to need medical diagnostic services. The majority of people who receive radiography treatments are elderly, and as such, they play a large role in driving the market for these services.

Growing Awareness: The awareness of radiology services in Saudi Arabia has increased recently as a result of advancements in medical technology and increased spending on healthcare. This has been facilitated by government efforts and programs that raise awareness of early illness identification and diagnosis, as well as public health campaigns and educational activities. Therefore, the demand of early intervention for disease diagnosis increases which leads to the growth of the Radiology Service Market.

Market Restraints

High Cost: High costs of advanced imaging equipment, such as MRI, CT, and PET scanners act as a significant restraint on the growth of the radiology service market. The expense of acquiring these scanners, which can each cost millions of dollars, is a major barrier. Additionally, the substantial cost for regular maintenance, software updates, and the employment of specialized technical staff further worsens the cost issue. These factors collectively make radiology services among the priciest in the medical field, hindering market expansion.

Limited Access: The lack of adequate healthcare infrastructure may restrict the availability of radiological services to some rural and low-income communities. Moreover, integrating cutting-edge technology with medical imaging systems in developing nations is difficult. The nation would thus inevitably face financial difficulties, which has a detrimental impact on the demand for radiological services.

Shortage of Radiologists: Saudi Arabia faces a shortage of at least 2,000 radiologists. According to a global estimate, for every 1 Mn people, at least 1,000 radiologists are needed. The population of Saudi Arabia is 30 Mn; so, for them, at least 3,000 radiologists are required. However, there are only 1,000 radiologists available in the Kingdom. The shortage of radiologists in Saudi Arabia thus negatively impacts the growth of the Radiology Services Market.

Regulatory Landscape and Reimbursement Scenario

The regulatory authority in charge of the pharmaceuticals in the Saudi Arabia is the Saudi Food and Drug Authority (SFDA). It is responsible for ensuring the safety and efficacy of drugs and other health related products sets post-marketing criteria and controls the distribution of pharmaceutical products in Saudi Arabia.

Clinical Trial Administration was formed in 2009 and its primary responsibilities are to evaluate the clinical trials protocol, conduct inspections based on Good Clinical Practice (GCP), and maintain the Saudi Clinical Trial Registry (SCTR). The applications submitted by the pharmaceutical companies is verified by the SFDA to ensure compliance with rules and completeness after rigorous assessment, testing, and inspection. Prior to authorization, an internal price agreement must be formed and a Certificate of Pharmaceutical Product (CPP) must be obtained at the time of registration. Applications may be reviewed after two to six months, but priority products are removed from the queue.

The Ministry of Health (MoH) is in charge of managing certain facets of private insurance as well as the public healthcare system. The Saudi General Organization for Social Insurance (SAGO) offers health insurance to those who work for the government and their families. For covering the public sector, the MoH employs a variety of techniques, such as diagnosis-related groups (DRGs) and fee-for-service (FFS). FFS pays providers according to the services they offer, whereas DRGs establish a fixed fee for treating a particular illness. For the private sector, FFS, capitation (fixed payments per insured individual), and bundled payments (set price for a period of treatment) are only a few of the techniques used by private insurance companies.

Competitive Landscape

Key Players

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

• Manipal Hospitals Radiology Group
• Al Adwani General Hospital
• Almana General Hospital
• Dr. Sulaiman Al Habib Hospital
• Al Ahsa Hospital
• King Faisal Specialist Hospital and Research Centre
• MOH-King Saud Medical City 
• Saudi German Hospital
• International Medical Centre Hospital, Jeddah
• Al Falah Hospital