The market for digital radiography (DR) equipment in China is expected to increase significantly over the next five years, according to a report by market research firm InMedica.
InMedica predicted that the overall market for x-ray equipment there will reach $1.32 billion by 2016, representing a compound annual growth rate of 9.5%.
Level II and level III hospitals already use DR but will make additional purchases as the volume of exams they perform increases, specifically with flat-panel DR systems, according to analyst Owen Tang. County-based hospitals will upgrade from analog to computed radiography or digital radiography systems.
Tang said that DR can help hospitals increase their revenue stream because of its ability to perform more exams during a specific time period than analog x-ray systems. In his opinion, return on investment is a critical factor for hospitals making a purchasing decision because current funding available from the Chinese government is not enough alone to merit a purchase decision.
Multinational healthcare equipment companies currently dominate the high-end DR equipment market, according to InMedica.
The report states that with the increase in DR shipments, sales of analog x-ray equipment are predicted to decline at a compound annual growth rate of -14.2%.
