Rising Emphasis on Medical Tourism Improves MRI Market Potential in Egypt

The utilization of cutting-edge medical imaging devices in the private sector to attract medical tourism has stabilized the growth of the Egyptian magnetic resonance imaging (MRI) market. Even though lethargic political transition will limit demand in the short-to-medium term, the market will be sustained by replacements. Once the political situation eases, procurement backlogs will fuel sales.

New analysis from Frost & Sullivan (Mountain View, CA, USA), an international growth consultancy company, revealed that the market gained revenues of USD 35 million in 2012 and estimates this to reach USD 66.7 million in 2019 at a compound annual growth rate (CAGR) of 9.4%. The research encompasses low field, high field, and ultrahigh-field MRI systems.

“Egypt has a high concentration of private radiology practices that utilize latest technology and high-end MRI equipment as a strategy to stay ahead of the competition,” said Frost & Sullivan healthcare research analyst Kudzai Moyo. “The use of high-field systems, in particular, will increase owing to their ability to facilitate multiple, noninvasive examinations and generate large amounts of information.”

The emphasis on medical tourism will additionally encourage private healthcare institutions in the country to adopt large-scale, high-end clinical care. Private hospitals are looking to upgrade their radiology facilities to offer highly effective and efficient healthcare services, allowing them to compete with other countries in the region, while expanding market potential.

However, current MRI market revenues are however low, as several private hospitals anticipate the political transition in Egypt before proceeding with their investments. Similarly, uptake in the public sector is apt to be restrained in the short-to-medium term, as the state budget for healthcare remains limited. Nevertheless, the long-term impact of this restraint will reduce as pressure groups advocate for a budget increase.

“In this competitive landscape, forming alliances with government entities and private businesses will assist MRI equipment manufacturers to secure healthcare project contracts in Egypt,” reveals Frost & Sullivan healthcare research analyst Shalena Naidoo. “Partnerships will also enable the standardization of medical imaging modalities, which is a key criteria for end users.”

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