Features, Strategies and Promises of Medical
Imaging in South Africa
Opportunity Analysis of Five Key Device Segments
Shalena Naidoo, Research Analyst
Healthcare
19 March 2013
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2
Today’s Presenter
Functional Expertise
• Particular expertise in:
- Conducting scientific research into core diseases affecting the South African neonatal
population
- Designing and implementing vaccine-specific clinical trials
- Developing and implementing laboratory methods for solving and understanding complex
pathologies
- Data collection, analysis and the construction of scientific research reports
Industry Expertise
Experience in conducting market research in Ethiopia creating working relationships with key
industry participants in the pharmaceutical sector
Evaluation of market opportunities for medical imaging devices in South Africa
Career Highlights
• Awarded best oral presentation for academic research conducted in the field of pathology
(Faculty of Health Sciences, Stellenbosch University)
• Served a key role in the initiation and co-ordination of an international multi-collaborative pilot
study aimed at evaluating key health-related issues in South African infants
Education
• Master of Science in Medical Sciences (Medical Microbiology and Immunology) from
Stellenbosch University, Stellenbosch (South Africa)
• Bachelor of Science with Honours in Medical Sciences (Pathology) from Stellenbosch
University, Stellenbosch (South Africa)
• Bachelor of Science (Molecular Biology and Biotechnology) from Stellenbosch
University, Stellenbosch (South Africa)
Shalena NaidooResearch Analyst
Healthcare
Frost & Sullivan
Africa
Cape Town
Place photo here
Shadow Background
for effect
3
Focus Points
1. Occasion for the Analyst Briefing
2. Key Opportunities in Africa
3. South Africa in the Global Context
4. External Challenges: Drivers and Restraints
5. Growth of the South African Medical Imaging Market
6. Growth Opportunities for Key Device Segments
7. Overview of the Competitive Landscape for Medical Imaging in
South Africa
8. The CEO’s 360 Degree Perspective
9. Conclusion
`
4
The Occasion for the Analyst Briefing
This analyst briefing:
o Growth Opportunities
o Key Drivers and Restraints
o Competitive Landscape
o Key Purchasing Factors
o CEO’s 360 Degree Perspective
How you will benefit:
o Understand Market Forces
o Identify Opportunities for Growth
o Challenge your Current Growth
Strategy
o Identify the Leading Market
Participants
5
Africa 2020 – The Summary
Medical Devices:
$16 billionMedical imaging and
clinical diagnostics
Healthcare Expenditure:
US$200 billionTotal annual healthcare
expenditure will double
over the next decade
Pharmaceuticals:
US$23 billionAnnual market, includes
prescription and OTC
products
Risk Pooling:
US$2.5 billionMedical insurance investment
over the period 2010-2020
Private Healthcare:
>US$20 billionThe demand for Private
healthcare presents a growing
opportunity
Life Science: $800 millionLocal formulation and filling
Summary of Key Opportunities – Investment in
Healthcare 2020
South Africa in the Global Context
7
Global Perspective – Revenue Generation by
Geographical Region
USA5 392.323.1% Canada
365.51.6%
Brazil687.33.0%
Mexico268.11.2%
Rest of LATAM406.71.7%
Western Europe3 988.017.1%
CEE725.83.1%
South Africa122.60.5%
Turkey250.11.1%
Rest of ME&A392.21.7%
Russia1 215.05.2%
India479.92.1%
China2 845.912.2%
Japan4 065.117.4%
Australia645.32.8%
Rest of Asia1 446.16.2%
8
Global Perspective – Revenue Generation by Imaging
Modality
GXR3 539.515.2%
XRM914.83.9%
IXR3 158.713.6%
CT3 395.714.6%
US5 496.923.6%
MRI4 918.021.1%
NM973.04.2%
PET899.33.9%
External Market Challenges -
Drivers and Restraints
10
Competitive
Demands within
the Private Sector Hospital
Revitalisation
Initiatives
Implementation
of National
Health Insurance
Demand for
improved
technology
External Challenges – Market Drivers
11
External Challenges – Market Restraints
Skills shortage
within the
industry
Long Replacement
Cycles Specifically
within Public
Sector
Increasing
radiation
concerns
Growth of the South African Medical
Imaging Market
13
Market Segmentation
General X-rays Mammography
Total Medical Imaging Market
CT ScannersFluoroscopy MRI Scanners
Analogue Analogue
Digital
Less than16 slice
3.0 Tesla
1.5 Tesla16 slice
64 slice
128 slice
Analogue
Remote
Remote Digital
Digital
Less than1.5
Tesla
14
(15.0)
(10.0)
(5.0)
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
0.0
20.0
40.0
60.0
80.0
100.0
120.0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Revenue 46.6 60.4 64.9 69.6 75.1 80.8 87.1 94.1 102.0 110.7
Growth Rate (%) (10.3) 29.6 7.5 7.3 7.8 7.7 7.8 8.0 8.3 8.5
Gro
wth
Ra
te (
%)
Re
ve
nu
e (
$ M
illi
on
)
Year
Total Medical Imaging Market Revenue Forecast
CAGR: 7.9%
Growth Opportunities for Key Device
Segments
16
`
General X-rays
2011: $16.2 million
2018: $ 29.2 million
Key Device Segments - Growth Opportunities
CT Scanners
2011: $22.6 million
2018: $43.9 million
MRI Scanners
2011: $10.5 million
2018: $13.8 million
Fluoroscopy
2011: $10.2 million
2018: $14.1 million
Mammography
2011: $5.4 million
2018: $9.6 million
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Growth Forecast for Five Device Market Segments
0
5
10
15
20
25
30
0.0 2.0 4.0 6.0 8.0 10.0 12.0
CT Scanners
Fluoroscopy
General X-rays
MRI Scanners
Mammography20
11
Re
ve
nu
e $
mil
lio
n
% CAGR (2011-2018)
Device Segment Factor 1 Factor 2 Factor 3 Factor 4
General X-ray, Fluoroscopy, and
Mammograms
Quicker workflow, ease-
of-use
Price and
running cost
Improved
workload
Quality and
application
CT and MRI ScannersMulti-slice technology Functionality
High
throughput Image quality
Competitive Landscape for Medical Imaging
in South Africa
19
GE21.1%
Siemens20.6%
Philips16.1%
Toshiba12.0%
Shimadzu7.8%
Others22.4%
Competitive Analysis—Market Share
Tier Competitors
Tier 1 GE, Siemens, Philips, and Toshiba
Tier 2 Shimadzu, Hologic, K&S, and Stephanix
Tier 3 All other market participants
20
Competitor Analysis – Public vs Private Sector for
General X-rays
0.0
50.0
100.0
150.0
200.0
250.0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Un
its
Shimadzu Philips Siemens K&S Toshiba
0.0
20.0
40.0
60.0
80.0
100.0
120.0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Un
its
Shimadzu Philips Siemens K&S Toshiba
Public Sector
Private Sector
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CEO’s Perspective
2
Limited radiologists have increased
workloads. Ease-of-use and operational
efficiency are important factors to consider
when purchasing new technologies.
3
There is a trend towards less radiation
exposure, therefore, factors considered
during purchase include radiation dosage,
throughput, and speed of examination.
4
Public health institutions have budget
constraints. To overcome this, there is
greater preference for multi-functional
imaging systems.
5
Radiologists are continuously demanding
high resolution imaging machinery in order to
ensure effective diagnosis and treatment of
the patient.
1
Due to price sensitivity in the public sector,
pricing is important when making purchasing
decisions. A price-performance ratio is key to
featuring in this market.
Conclusions
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Three Key Market Predictions
Hospital
revitalisation
initiatives will serve
as the major driver
of growth for the
medical imaging
market in South
Africa.CT scanners will
serve as the largest
contributor to
revenue and the
market will have the
highest growth over
the forecast period.The need to be
competitive within
the private sector
will drive growth of
innovative
technology in this
sector
24
Next Steps
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For Additional Information
Christie Cronje
Corporate Communications
Africa
(+27) 21 680-3566
Shalena Naidoo
Research Analyst
Healthcare
(+27) 21 680-3201
Mani James
Regional Director
Growth Partnership Services
+27 21 680-3208
Danielle Kruger
Account Manager
Healthcare
+27 21 680-3262