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The global magnetic resonance imaging (MRI) equipment market was valued at USD 6.71 billion in 2021. The market is projected to grow from USD 7.12 billion in 2022 to USD 11.03 billion by 2029, exhibiting a CAGR of 6.5% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with magnetic resonance imaging equipment experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a decline of -6.0% in 2020 as compared to 2019.
In terms of imaging techniques globally, magnetic resonance imaging (MRI) is one of the most common diagnostic imaging techniques used. It is often considered indispensable in diagnosing, treating, and managing various critical illnesses. The development of this system is regarded as a massive milestone in medical imaging as the procedure is non-invasive, potentially harmless, and produces detailed images of the human body’s abnormalities. The use of imaging systems for diagnosis is increasing widely as the number of cancer and trauma cases is increasing globally.
For example, as per National Cancer Institute, by 2040, it is projected that the number of new cancer cases will increase by 29.5 million, and the number of cancer-related deaths to 16.4 million per year. Therefore, such an increase in the number suggests that using MRI as an imaging technique creates growth opportunities for the market.
Significant Decline in Magnetic Resonance Imaging Equipment Production amid COVID-19 to Hinder Market Growth Opportunities
The emergence of COVID-19 has impeded the demand for MRI due to decrease in the production of MRI equipment. Key players operating in the market recorded a significant decline in their revenues due to the COVID-19 pandemic. The reallocation of healthcare resources, declining patient visits, disruptions in supply chains, and other major parameters impacted the sales of MRI equipment, especially during the first half of 2020. Additionally, delayed purchases of MRI equipment and reconsideration of investment decisions due to widespread financial difficulty are the factors that imposed slow growth of the market during COVID-19.
MRI systems have been used for the primary detection of the COVID-19 infection, thus triggering a higher demand for MRI scans during the pandemic. However, the production of the MRI equipment was affected due to government regulations by various countries and imposed lockdowns. The major market players witnessed a significant decline in revenue generated during 2020.
Moreover, during Q3-Q4 2021, a significant increase in patient visits to the diagnostic centers and hospitals was observed due to the relaxation in imposed regulations by the government. In 2021, increasing patient visits to hospitals led to a higher demand for MRI equipment globally. Thus, the growth in equipment production was observed during 2021, which increased the revenues of key companies in the market. The revenues generated by Koninklijke Philips N.V. in H1 2021 increased by 3.6% compared to the revenues in H1 2020. Therefore, the resumption of services positively impacted the demand for magnetic resonance imaging equipment in 2021.
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Increasing Product Launches and Adoption of High Strength Equipment to Augment Growth
The increasing number of product launches in the high strength segment, coupled with the rising adoption of these systems of high strengths, is one of the key prevailing trends in the market. Technological advancements have led to the development and subsequent marketing of high-strength imaging equipment. In October 2020, Siemens Healthcare GmbH launched the Biograph Vision Quadra, a tomography/computed tomography (PET/CT) scanner, to create therapies and procedures to improve health outcomes.
Several advantages associated with higher strength equipment, such as better imaging qualities, are particularly beneficial to certain forms of imaging such as vascular imaging. The higher strength systems have superior imaging qualities such as increased image sensitivity and better visualization of physiological processes. For instance, as per Wainscot Media, in April 2021, Philips participated in an imperative research project to explore a potentially revolutionary use of this technology in cardiology.
Increasing Prevalence of Chronic and Serious Diseases to Fuel Growth for Market
There has been a consistently strong demand for medical imaging in the current modern medical scenario due to the increasing prevalence of almost all types of severe and chronic diseases. An effective and technologically advanced imaging technique is required to effectively diagnose, treat, and manage chronic illness. Due to its superior imaging properties and qualities, magnetic resonance imaging technology enables medical professionals to effectively use it as a means of treatment.
Imaging can be used for several disease indications such as anomalies in the brain and spinal cord, various types of cancers, injuries, certain types of cardiological problems, cysts, and tumors. Almost all of the above-mentioned medical conditions have exhibited a strong instance of incidence globally. In the emerging markets, the increasing introduction of effective and low-cost imaging is expected to boost the growth rate of the global market during the forecast period.
According to GLOBOCAN2020, it is estimated there were some 19.3 million cases of cancer in 2020 and 10 million cancer deaths. This data compares to just over 17 million cases in 2018 and 9.5 million deaths. For instance, breast cancer, one of the most prevalent forms of cancer worldwide, can be efficiently imaged with MRI equipment. This equipment also enables the efficient imaging of areas affected by strokes, a common neurological event. According to the Centers for Disease Control and Prevention (CDC), as of January 2020, an estimated 795,000 individuals in the U.S. suffer from strokes every year. At the same time, the increasing scope and application areas of this imaging technique are also boosting their adoption and, subsequently, propelling the magnetic resonance imaging market growth.
Technological Advancements to Drive Market Growth
A key driving factor that is expected to contribute substantially to the growth of the global market is the increasing technological advancements in imaging equipment. Some of the technological advancements include the launches of open MRI, which aid in the effective medical imaging of claustrophobic and overweight patients. The technological advances also involve improvements in field strength and computing power of the imaging equipment. These factors have led to faster imaging timings, better imaging quality, and higher spatial resolution due to advances in the equipment’s pulse sequences.
New and technologically advanced products from key market players such as Siemens’ product offering of MAGNETOM Terra, the first-ever 7T MRI system approved for clinical use, have also driven the market growth. These ultra-high-field systems are primarily concentrated in the developed markets of North America and Europe. Estimates published in 2020 by Elsevier stated that the number of 7T imaging systems in the world exceeds 70, with more installations expected over the forecast period. The above product launches and the need for cutting-edge medical imaging are further anticipated to boost the demand for these systems and fuel the global magnetic resonance imaging equipment market growth.
High Costs of MRI Equipment to Limit Market Growth
Despite the increasing demand for technologically advanced imaging systems for the efficient management and treatment of chronic diseases, certain critical limitations are restricting the growth of the global market. One of the significant factors limiting the market's development is the higher costs associated with the installation and maintenance of imaging equipment. Installation and proper care of these systems often require complex infrastructure and associated costs, which many medical institutions can often not undertake or provide. A significant number of the installed base of the MRI systems is located across countries in emerging markets such as Asia Pacific.
Thus, the high cost of MRI systems leads hospitals and diagnostic centers in developing regions to purchase refurbished MRI systems to meet their imaging needs. The refurbished systems are available at a substantially lower cost than installing a newer system. Hospitals and other healthcare institutions in developing countries often opt for these systems due to cost-effectiveness. At the same time, another critical limitation is the voluntary product recall of many imaging systems due to human error, which triggers a decline in market growth.
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1.5 T Segment Dominated Global Market Owing to Strong Installed Base
The global market is segmented into less than 1.5 T, 1.5 T, and more than 1.5 T based on strength.
The dominance of the 1.5 T segment is primarily due to the strong installed base worldwide of these systems. Several key market players such as GE Healthcare, Siemens, and Phillips have a strong product portfolio devoted to the imaging systems of this segment. It also possess product offerings with diverse application areas. For instance, in November 2021, CANON MEDICAL SYSTEMS CORPORATION launched an advanced productivity 1.5 T MRI system to expand its product portfolio in the market. Thus, this segment dominates the global market in terms of volume and is one of the highest shareholders in terms of value.
The segment attributing to more than 1.5 T is also anticipated to account for the highest CAGR due to increasing adoption of high-strength imaging systems. It has superior imaging qualities such as higher spatial resolution. For instance, in terms of volume and value share, the India market seems to be dominated by the 1.5 T and the more than 1.5 T segments.
The less than 1.5 T segment is expected to account for a lower market share in the magnetic resonance imaging equipment market forecast period due to refurbished systems in this segment and lower adoption of common strength systems.
Substantial Procedural Volumes Attributable to Musculoskeletal Application to Aid Dominance of the Segment
The market is segmented into musculoskeletal, neurology, cardiology, body imaging, and others in terms of application.
The musculoskeletal segment is expected to dominate over the forecast period due to large procedural volumes devoted to this application and the strong efficacy of MRI in soft tissue imaging.
The neurology segment is expected to be the second most dominant segment over the forecast period due to increasing incidence of neurological diseases globally and the usage of this imaging technique for imaging medical complications such as strokes. For instance, according to the World Health Organization (WHO), 15 million people worldwide annually suffer from strokes, and it is more common in people above 40 years.
These two segments are expected to dominate the market. According to the European Magnetic Resonance Forum (EMRF) estimate, more than 50% of the MR imaging procedures belong to the brain and spine in the parts of these two segments mentioned above.
The cardiology and the body imaging segments are anticipated to grow at comparatively lower CAGR despite the increasing usage of these imaging techniques in certain cardiological events such as the detailed imaging of the beating heart. Increasing application areas such as molecular imaging are expected to boost the growth of the others segment during the forecast period.
Rising Installed Base in Hospitals to Enable Dominance of the Segment
The market is segmented into hospitals, ambulatory surgical centers, and diagnostic centers based on end-user.
One of the critical factors for the dominance of the hospitals' segment is a large installed base of these systems. This is primarily attributed to hospitals are the only institutions that can provide the complex infrastructure needed to install and run these systems.
The diagnostic centers segment is anticipated to be the second most dominant segment as in multiple regions, such as India, many imaging examinations are conducted in these facilities.
The ambulatory surgical centers segment is estimated to grow at a comparatively lower CAGR due to the relatively smaller installed base in specific regions.
Asia Pacific Magnetic Resonance Imaging Equipment Market Size, 2021 (USD billion)
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Based on geography, the market can be categorized into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.
The market in the Asia Pacific is estimated to hold the highest share in the global magnetic resonance imaging equipment (MRI) market with the region's revenue standing at USD 3.05 billion in 2021. The market is growing with the highest CAGR compared to all the regions. The critical reasons for the region's dominance in the market are the increasing adoption of advanced systems, a strong potential patient base, and rising awareness regarding advanced diagnostics due to the rising prevalence of severe disorders. According to the Organization for Economic Co-operation and Development (OECD), the number of MRI systems in Japan per 1 million people was 111.5, making Japan one of the largest markets in terms of the installed base globally.
North America holds significant share in the global market. Some of the factors contributing to the region’s growth include increasing adoption of high-strength and expensive imaging systems, substantial healthcare expenditure and infrastructure, and high imaging procedural volume due to the rising prevalence of chronic diseases. Such factors coupled with a significant patient population, awareness toward new advances in diagnostics, and major medical imaging companies contribute to the region’s dominance in the global market.
The market in Europe is the second most dominant market globally. Some of the reasons for the European market’s dominance include the increasing volume of medical imaging procedures in the region, the growing healthcare expenditure, and the adoption of technologically advanced systems.
The market in Latin America is estimated to register a comparatively steady CAGR over the forecast period backed by increasing developments of the healthcare infrastructure such as diagnostics systems and the growing procedure volume for medical imaging.
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The Middle East & Africa is projected to register a smaller market share and lower CAGR since the market is still nascent. But, the increasing adoption of advanced healthcare systems backed by the rising patient awareness and developing economic parameters can drive the growth in this region during the forecast period.
Substantial and Diversified Portfolio of Magnetic Resonance Imaging Equipment to Help Companies Maintain Dominance
In terms of the competitive landscape, this market reflects a classical monopolistic market scenario, consisting of a wide and varied range of players such as established and emerging. The established companies have a robust revenue position and a diverse product portfolio comprising MRI systems of varying strengths and application areas. These companies also have a strong foothold in the key growth regions, and some of these established players include GE Healthcare, Siemens Healthineers, and Philips. For instance, GE Healthcare has an important range of imaging systems called the SIGNA, which has systems of the strengths of 1.5 T and 3.0 T.
Also, the competitive scene companies a comparatively smaller size with a limited number of offerings in their product portfolio, especially in terms of imaging systems of higher strengths such as 7.0 T. These companies possess a strong domestic presence such as Shenzhen Anke Hi-tech Co., Ltd., and Shenzhen Basda Medical Apparatus Co., Ltd. in China. These factors are expected to increase their market share over the forecast period.
An Infographic Representation of Magnetic Resonance Imaging (MRI) Equipment Market
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The global magnetic resonance imaging equipment market report provides a detailed market analysis. It focuses on key aspects such as market size & market forecast, critical regions from 2018-2029, cost of the procedure (key countries), and procedures conducted per year (key countries). It also focuses on the overview of technological developments, region-wise installed base imaging system for 2021, and distributor analysis for the significant companies.
Besides this, the report offers insights into the market trends and highlights, market statistics, key industry developments. In addition to the factors mentioned above, the report encompasses several factors that have contributed to the market's growth in recent years.
Value (USD billion)
By Strength, Application, End User, and Geography
Fortune Business Insights says that the global market size was USD 7.55 billion in 2020 and is projected to reach USD 12.25 billion by 2028.
In 2020, the market value stood at USD 7.55 billion.
Growing at a CAGR of 6.4%, the market will exhibit steady growth in the forecast period (2021-2028).
1.5 T segment is expected to be the leading segment in this market during the forecast period.
The rising prevalence of chronic diseases, increased demand for imaging, favorable health reimbursement, and launches of technologically advanced products are driving the market.
GE Healthcare, Siemens, Phillips are the leading players in the global market.
Asia Pacific dominated the market share in 2020.
Launches of technologically advanced products addressing the critical unmet needs of the market, such as pediatric imaging and lung imaging, are driving the adoption of magnetic resonance imaging equipment.
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