OBJECTIVES: The purpose of this study was to provide an analysis of the current and future trends of the CT and MRI activity in Cyprus, which can be used as a tool for strategic decision making in the field. Cyprus is leading in numbers of CT and MRI scanners per 100,000 inhabitants (3.4 CT and 2.1 MRI scanners vs 2.2 and 1.2 the EU mean respectively). It can easily be argued that this market is fully saturated; however no data exists to support this claim. The only existing data in Eurostat database involves only public sector activity showing disproportionately low usage. METHODS:  Literature research, international databases and field research were used. Fifteen interviews with key stakeholders were conducted. This approach enhanced extraction of as much as possible information which was cross-checked with two or more interviewees. RESULTS:  The annual activity of MRI was estimated approximately to 50,000 examinations (89% in the private sector and 11% in the public) while the corresponding activity of CT was approximately 123,000 examinations (23% private and 77% public). The MRI market is dominated by the private sector as the public sector possesses only one MRI scanner (leading to long waiting lists), whereas for CT examinations the demand is met mostly by the public sector. The use has been estimated to be slightly higher than the EU mean, showing an underutilisation of the diagnostic imaging in private sector. CONCLUSIONS: The diagnostic imaging sector is unregulated, working without monitoring and control mechanisms, referral protocols and guidelines, leading among others to clinically unjustified examinations. It is driven mostly by prices and by referrals made by cooperating doctors, who in some cases receive a fee for this purpose. There are indications of an overuse caused mainly by provider’s induced demand.