Driven By The Medical And Defense Equipment Industries, The Demand For Cadmium Telluride Has Entered A New Long-term Growth Phase.

London, January 28th (Argus) - As medical and defense equipment manufacturers accelerate their transition from traditional detector technologies to advanced nuclear imaging systems, the demand for cadmium zinc telluride (CdZnTe or CZT) is entering a new growth phase. CZT is increasingly being used in single photon emission computed tomography (SPECT) and CT medical scanning equipment. Its high energy resolution and high efficiency characteristics enable higher-quality imaging with lower radiation doses. In 2018, General Electric Medical Systems was the first to introduce CZT-based SPECT systems, marking the beginning of a widespread transition from traditional technologies. Since then, imaging companies Spectrum Dynamics in the United States and Siemens Medical Solutions have also launched systems based on CZT. The CZT producer Kromek in the UK is supplying materials for multiple platforms and reports that its revenue in the first half of the 2025-26 fiscal year soared from £3.7 million a year ago to £15 million (US$20.72 million). This growth was mainly driven by the initial delivery under a $37.5 million agreement for producing CZT detectors for SPECT scanners, with the client being Siemens Medical Solutions. Kromek's report stated that through continuous deliveries under cooperation contracts and component supply agreements, customers include Analogic and Spectrum Dynamics. Kromek's Chief Operating Officer Arnab Basu said in a quarterly earnings call this week: "Most market participants have now shown their interest and proved through product launches that CZT is gradually becoming a more mainstream detector, replacing the traditional detectors in existing traditional systems." Although SPECT applications led this transformation, CT is now following a similar trajectory. Siemens Medical Solutions launched a photon-counting CT scanner in 2023, marking the first commercial deployment of CZT in the CT field. Basu said: "When I observe the CT market, it is undergoing a completely similar transformation... although it is a few years later than the application cycle of SPECT." With Canon Medical Systems of Japan and other original equipment manufacturers starting to introduce CT systems using CZT last year, this development momentum has accelerated, expanding the potential market beyond a single supplier. Kromek's CT business segment is expected to account for the majority of future demand, with the company estimating that the annual demand for CZT in the CT field will reach $320 million by 2030, while the demand in the SPECT field is between $80 million and $85 million. In a total market of $4 billion, Kromek is expected to meet approximately 40% of global demand, which is $120 million to $160 million per year. The company is positioned as a vertically integrated original equipment manufacturer supply chain and an independent commercial supplier outside of the Chinese market. The growth in demand is driving capacity expansion. After reaching a supply agreement with Spectrum Dynamics in 2019, Kromek had previously invested £10 million to expand its capacity. Currently, its two factories in Sedgefield, UK, and Pittsburgh, Pennsylvania, operate 174 CZT units. Basu said that Kromek is currently not operating at 100% capacity and still has some idle capacity available for short-term expansion to fulfill some early contracts.