According to industry estimates, an average annual growth rate of global medical X-ray imaging market will be around 5%, security X-ray imaging equipment market 7% and industrial X-ray imaging about 5%.

Financial statements review January-December 2017

According to Detection Technology’s estimate, the global market for security X-ray equipment grew by approximately 7% during the review period, which corresponds to the forecasts made by market research institutes. Homeland Security Research Corporation (HSRC) estimates that the annual growth rate will be 6.7% (CAGR) in 2017-2021. According to HSRC, this growth is the result of a global increase in security risks. In addition to increased growth in the X-ray device base, HSRC expects an acceleration in the pace of renewal for the old device base. HSRC has not identified viable competing technologies for screening needs in the security market, and it considers the price-quality ratio of X-ray imaging equipment to be overwhelming. (Source: HSRC May 2017 edition, X-ray baggage, cargo, people, container & vehicle screening market 2017-2021).

Detection Technology estimates that the annual growth rate in the industrial X-ray imaging device market is approximately 5%. The company expects growth in the security and industrial markets to remain at a good level and, in particular, it expects growth in the critical infrastructure, vehicle and industrial market segments. The European Civil Aviation Conference Standard 3 (ECAC3) that takes effect in 2020 will increase demand for computed tomography (CT) equipment at European airports.

According to industry estimates, the global medical X-ray imaging market growth is around 5% per year. Detection Technology estimates that the market for medical computed tomography (CT) grew at an annual pace of about 3-5% in the fourth quarter of 2017. Market growth was strongest in Asia, and demand has also developed positively in North America. The company expects the global medical X-ray imaging market to develop favourably.

Detection Technology expects sales for security and industrial applications to increase slightly in 2018. In terms of medical applications, the company estimates that sales will increase in the first half of 2018 and decrease in the second half of the year when a key customer stops manufacturing a device that uses one of DT’s products. Price competition will be tougher in all of the company’s markets in 2018. The company will continue to develop its business in order to gain new customers and projects, and it considers the growth outlook in both business units to be good in the longer term.

Detection Technology’s medium-term business outlook is unchanged. Detection Technology aims to increase sales by at least 15% per annum and to achieve an operating margin at or above 15% in the medium term.