[Edaily Reporter Na Eun-kyung] #CoreLineSoft is rapidly expanding its contracts with local hospitals following the launch of Germany’s national lung cancer screening program. CoreLineSoft, which signed 10 new hospital contracts in Germany last year, has expanded its cumulative number of contracts to 44 from January through May of this year.

In particular, CoreLineSoft secured 21 new contracts in May alone, more than doubling its annual performance from last year. Analysts suggest that demand for artificial intelligence (AI) adoption among hospitals is growing rapidly as Germany’s lung cancer screening program begins full-scale operation within the national health insurance system.

21 Contracts in May Alone… Expansion Accelerates Following Launch of Germany’s National Screening Program

According to CoreLineSoft on the 14th, the company’s new contracts in Germany—measured by the number of hospitals—increased from 10 for the entire year last year to 11 in the first quarter of this year, followed by 12 in April and 21 in May. The cumulative number of contracts from January through May this year totals 44, which is estimated to be 4.4 times last year’s annual figure. Specific data on the number of AI-interpreted cases is expected to become available as early as the third quarter of this year. The number of contracts, a leading indicator, is expected to translate into revenue based on actual usage as the year progresses into the second half.

This goes beyond mere sales performance; it also represents a structural shift tied to the implementation of Germany’s lung cancer screening program. On April 1, Germany officially launched low-dose computed tomography (LDCT)-based lung cancer screening within its statutory health insurance (GKV) system. Analysts suggest that as high-risk smokers can now receive screening with insurance coverage, hospitals building screening infrastructure are accelerating their adoption of AI.

The reason Germany is drawing attention is not merely because it is one of Europe’s largest healthcare markets. Germany has effectively established the use of AI-based computer-aided diagnosis (CAD) and a dual-reading system as the standard in its lung cancer screening process. By combining specialist interpretation with AI analysis, the accuracy of screening is enhanced. The medical AI industry views this as an example of AI moving beyond being a selective辅助 tool to becoming a core component of the public healthcare system.

“Operational Capability Over AI Accuracy”…Securing References from Tertiary Care Hospitals

Lung cancer screening in Germany does not end with simply detecting lung nodules. The actual operational process requires △dual reading △quality assurance (QA) △long-term follow-up management △data management in accordance with the General Data Protection Regulation (GDPR) △multi-center reading workflows, among other elements.

CoreLineSoft is addressing these needs with its lung cancer screening AI solution, AVIEW LCS PLUS, and its operational platform, AVIEW HUB. AVIEW LCS PLUS can analyze not only pulmonary nodules but also chronic obstructive pulmonary disease (COPD) and coronary artery calcification (CAC). AVIEW HUB supports multi-center interpretation, quality assurance, and data integration.

The quality of its client portfolio is also noteworthy. CoreLineSoft has secured major German tertiary hospitals as clients, including Charité University Hospital—regarded as one of Europe’s leading medical institutions—as well as Heidelberg University Hospital and MHH. The medical AI industry views these hospital partnerships as a benchmark that will drive future adoption among private and regional hospitals.

In particular, demand at Charité and MHH is reportedly growing so rapidly that most lung cancer screening appointments for this year were booked well in advance. This is seen as a sign that Germany’s national lung cancer screening program is moving beyond the pilot phase and into full-scale operation.

Global market research firm Market Research Future forecasts that the medical imaging software market in Germany will grow to approximately $254.1 million (about 390 billion won) by 2035. Another market research firm, Grand View Research, predicts that the market for AI-based medical imaging analysis will grow at a compound annual growth rate (CAGR) of 35.9% through 2030.

Contracts Are Leading Indicators… PPU Revenue Expected to Expand in the Second Half of the Year

What deserves attention is not the increase in contracts itself, but how the revenue structure will change in the future. In the German lung cancer screening market, usage-based billing (PPU) revenue is generated based on the actual number of screenings conducted after the system is installed in hospitals. The current increase in contracts is seen as a leading indicator for future growth in recurring revenue.

In fact, Coreline Europe’s revenue for the first quarter of this year grew by 477% compared to the same period last year. Coreline Soft expects that as hospital adoption expands following the implementation of lung cancer screening in Germany, the proportion of usage-based revenue will gradually increase.

Kim Jin-guk, CEO of Coreline Soft, stated, “While we aim to more than double total revenue this year compared to last year (4.3 billion won), the more important change is the quality of revenue rather than its scale.” He added, “This is a significant year as it marks the first step in transitioning from a structure centered on one-time license sales to one focused on usage-based revenue tied to national lung cancer screening programs and recurring revenue from Software-as-a-Service (SaaS).”

He continued, “Our success in Germany does not simply mean an increase in the number of contracts; it signifies that we have been the first to enter the phase where AI is shifting from an optional feature to an operational infrastructure in the European lung cancer screening market.” He added, “We expect actual screening operations and usage to ramp up in earnest as we move into the second half of the year.”