Development status of the global medical device market
According to "World Preview 2018, Outlook to 2024", 2017 The annual global medical device market sales were US$405 billion, an increase of 4.6% year-on-year; sales are expected to reach US$594.5 billion in 2024, with a compound growth rate of 5.6% from 2017 to 2024.
The status of the global medical device market segment. In 2017, the IVD field was still the top sales field in the medical device segment, with sales reaching 52.6 billion US dollars, accounting for 13%; cardiovascular, imaging, orthopedics, and ophthalmology ranked second to fifth respectively.
Development Status of China's medical device market in 2018
Benefiting from the development of the economy and the increasing demand for health, China's medical device market has ushered in a huge development opportunity. According to the calculation of the Institute of Medical Devices, the size of China's medical device market in 2018 was about 530.4 billion yuan, a year-on-year increase of 19.86%.
According to the classification of the Medical Device Research Institute, medical devices can be divided into four categories: high-value medical consumables, low-value medical consumables, medical equipment, and IVD (in vitro diagnostics). Among them, according to different uses, the high-value medical consumables market can be divided into nine majors: orthopedic implantation, vascular intervention, neurosurgery, ophthalmology, stomatology, blood purification, non-vascular intervention, electrophysiology and pacemaker, and others. class.
According to the calculations of the Medical Devices Research Institute, in 2018, the medical equipment market is still the largest segment of China’s medical equipment market, with market size of approximately 301.3 billion yuan, accounting for 56.80%; followed by the high-value medical consumables market, with market size of approximately 1,046 100 million yuan, accounting for 19.72%.
Data and trends of the China medical device industry
China medical device market size and enterprise-scale
The development of the medical device industry in China will gradually shift from focusing on quantity and output in the past to focusing on quality and brand. The market structure will undergo a fundamental change. Innovative enterprises with strong scientific research capabilities and brand influence will be the mainstream of the market. According to statistics, from 2014 to 2018, the size of the mainland medical device market increased from 255.6 billion yuan to about 530 billion yuan. It is estimated that in 2022, the scale of China medical device market will exceed 900 billion yuan, with an annual growth rate of about 20%.
According to the calculations of the Medical Equipment Research Institute, in 2018, in the mainland medical device market segment, the medical equipment market scale was about 301.3 billion yuan, accounting for 56.8%; the medical consumables market was about 168.7 billion yuan, of which high-value medical equipment The consumables market is about 104.6 billion yuan, accounting for 19.7%; the low-value medical consumables market is about 64.1 billion yuan, accounting for 12.1%; the IVD market is about 60.4 billion yuan, accounting for 11.4%.
According to the information released by the China State Drug Administration, as of the end of November 2018, there were 17,000 medical device manufacturers in the mainland, of which 7,513 were capable of producing Class I products, and 9,189 were capable of producing Class II products. 1997 companies were producing Class III products; there were 511,000 Class II and Class III medical equipment operating companies across the China. On the whole, mainland medical device companies are still small and scattered, but in the course of development, several high-quality companies with a certain scale and innovative capabilities have continuously appeared in the capital market.
Reasons for the development of the China medical device industry
1. Policy environment:
To encourage the development of the China medical device industry, the mainland has issued a series of encouraging policies, from different aspects and perspectives that regulate the bidding and procurement of drugs and medical devices, comprehensively implement the hospital information disclosure system, and accept social supervision. These policies are introduced, It provides a good development environment for medical equipment manufacturers.
2. Market environment:
The demand for medical equipment in China is not only directly driven by the investment of medical and health institutions, but also affected by residents' demand for medical services. From the perspective of investment in medical and health institutions, driven by policies, the number of private hospitals and primary medical institutions will continue to grow rapidly in the next few years; from the perspective of demand for medical services, as per capita disposable income and medical insurance coverage The increase in medical expenditure and reimbursement ratio, the increase in the payment ability of the people seeking medical care, and the increase in residents’ awareness of health care, these factors have caused the continuous increase in medical expenditures and the continuous increase in the demand for medical equipment.
Disadvantages of the development of China medical device market
Although the development prospects of China medical device market are broad, there are still factors restricting its development, such as:
Complicated international competition situation:
In recent years, the China medical device industry has been affected to a certain extent by the advanced technology of the United States, Germany, Japan, and other countries; in terms of labor cost advantages, the mainland medical device industry has been affected by countries such as India and Brazil. Although the products provided by domestic enterprises have greater competitive advantages in terms of function, quality, and price, on the whole, they are more affected by fierce international competition.
Technology and talent barriers:
Medical devices are a technology-intensive industry that integrates multiple disciplines. The disciplines of science, engineering, and medicine penetrate each other. Although China medical device industry has developed over the years, there is still a big gap in core technology compared with foreign medical devices. At present, mature medical device companies already have efficient R&D teams. With their rich R&D experience and product clinical use experience, they can keep up with and even lead the technological innovation of products. It has to be said that China medical device industry urgently needs cutting-edge R&D talents and advanced R&D technologies.