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China: Medical device market status and forecast in 2020

China: Medical device market status and forecast in 2020

 
China: Medical device market status and forecast in 2020. As the aging trend intensifies, there is a large gap in medical demand; with the improvement of living standards, people’s requirements for medical care and quality of life are gradually increasing, which has transformed into a huge demand for medical devices, and the acceptance of high-end medical devices has gradually increased .

China’s medical device market has great potential. Encouraged by multiple policies, the industry is in a period of rapid development.

The growth rate of Chinese medical devices far exceeds the global growth rate. According to the calculations 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%, which is close to four times the global medical device growth rate. China Commercial Industry Research Institute predicts that China’s medical device market will reach 776.5 billion yuan in 2020.


Low market concentration

In the context of market demand stimulus and medical reform, the important position of medical devices in the entire medical industry has become increasingly prominent, and the medical device market will continue to grow. In terms of industry concentration, China’s medical device industry is fragmented and the market concentration is low.

According to data from China Medical Equipment Association, there are 7 multinational companies among the top 10 companies in China, and 13 multinational companies among the top 20 companies. There is a big gap between Chinese medical device companies and foreign companies in scale and efficiency. .

There is a big gap between Chinese medical device companies and foreign companies in scale and efficiency, and the scale of corporate income and market value is relatively small.

Low-end products occupy the mainstream market

In terms of a variety of low- and medium-end medical device products, China’s output ranks first in the world; in the field of high-end medical devices, although Chinese-made devices have achieved import substitution in a few areas such as monitors, most of them are at the stage of import-dominated.

The high-end medical device industry is a strategic emerging industry that China focuses on supporting. With the rapid development of economy and technology, the future growth potential is huge.

Medical equipment market accounts for nearly 60%

From the perspective of market segments, in 2018, the medical equipment market was the largest segment of China’s medical equipment market, with a market size of approximately 301.3 billion yuan, accounting for 56.80%; followed by the high-value medical consumables market with a market size of approximately 104.6 billion yuan, accounting for 19.72%.

In the Chinese orthopedic implants (consumables) market, the top five manufacturers are all foreign manufacturers, namely Johnson & Johnson, Zimmer, Stryker, Medtronic and Xerox, occupying 13.11%, 8.67%, 6.56%, and 5.14% respectively , 4.40% market share;

The scale of Chinese manufacturers is relatively small. Weigao shares and Dabo Medical have market share of 4.05% and 2.86%, respectively. Other Chinese domestic manufacturers are smaller regional manufacturers.