2022 Development Prospect and Trend Analysis of China's Medical Device Industry
What are the advantages of China's medical device market? What is the development prospect of the medical device industry? With the development of China's medical device industry, several medical device industry clusters and manufacturing development belts have been formed across the country. The region and the three major regions around the Bohai Bay in Beijing and Tianjin have become the domestic medical device industry agglomeration areas. According to incomplete statistics, the total output value and total sales of medical devices in the three major regions account for more than 80% of the national total. Because of the different conditions in each region, the three major industrial agglomeration areas have different regional characteristics.
From the perspective of the product structure of my country's medical device market, imaging diagnostic equipment occupies the largest market share; next is in vitro diagnosis, accounting for 14% of the market; low-value consumables occupy 13% of the market; the remaining market share is dominated by cardiovascular and orthopedics and other types of equipment. Judging from the market share of subdivisions, the subdivisions with a high market share are basically high-end medical device fields with strong innovation, high R&D investment, and relatively high industry barriers, such as molecular diagnosis in in vitro diagnosis. , sub-field products of point-of-care testing (POCT), implanted interventional devices such as stents and pacemakers in the cardiovascular field, large-scale imaging equipment in the imaging field, and implantable high-value consumables in the fields of orthopedics and ophthalmology.
2022 Development Prospect and Trend Analysis of China's Medical Device Industry
In 2020, in the primary medical care market, the "updating" and "filling the gap" of equipment and consumables will still be the development trend. At present, the sales ratio of medical devices and drugs in China is about 0.25:1. In this round of "golden development period" of medical devices, it is hopeful that this ratio will reach or exceed the goal of 1:1 in developed countries in the future. As of October 2020, the number of various medical and health institutions in my country has reached 1,025,543. The increase in the number of various medical and health institutions has driven the demand for medical devices, which has greatly promoted the development speed of the medical device industry.
In recent years, the number of manufacturing enterprises in my country's medical device industry has continued to grow. From 2019 to 2021, boosted by the rapid growth of medical device market demand, my country's medical device manufacturing enterprises have achieved a leap from 16,000 to 25,000. By the end of 2020, the number of medical device manufacturers in my country reached 25,440, a year-on-year increase of nearly 40%. Among them, there are 15,924 companies that can produce Class I products, 13,813 companies that can produce Class II products, and 2,202 companies that can produce Class III products. From the perspective of regional distribution, as of the end of 2020, there were 4,553 medical device manufacturers in Guangdong Province, occupying the highest market share (17.9%) in all provinces, municipalities and autonomous regions in the country, Jiangsu Province (11.9%), Shandong Province (9.9%), Zhejiang Province (9.9%), Zhejiang Province Provinces (8.2%) followed closely. In these major medical device production provinces, industrial agglomeration advantages have gradually formed.
As of the end of December 2020, the number of valid medical device products nationwide reached 187,062 (excluding imported and cancelled products), an increase of 29.69% over the end of 2019. Among them, there are 107,284 Class I products, 68,715 Class II products, and 11,063 Class III products. According to the statistics of the China Medical Insurance Chamber of Commerce, the import and export trade volume of my country's medical devices (including epidemic prevention materials) in 2020 was 103.72 billion US dollars, of which the export value of medical devices (including epidemic prevention materials) was about 73.204 billion US dollars, a year-on-year increase of 72.59%.
China's medical device circulation market presents an overall decentralized and concentrated competition pattern. Medical device distribution enterprises use industrial funds, listing financing, and introduction of foreign capital to accelerate the pace of mergers and acquisitions, strive to improve the level of industry organization, and realize large-scale and intensive operations, which are the main lines of future industry reform and development. Large-scale medical device distribution enterprises can provide more comprehensive high-quality services for production enterprises and achieve scale effects. Compared with other countries, the number of medical device wholesale enterprises in China is relatively high. With the increasingly fierce market competition, the consolidation of the industry is the general trend. Many small-scale enterprises without competitive advantages will gradually withdraw from the market, which will increase the concentration of the medical device circulation industry. Due to the overall small and scattered pattern of domestic medical device companies, the industry concentration is still low. With the standardization of the industry, the integration and merger of domestic medical device companies around core businesses will become an inevitable trend of industry concentration. Profitability is expected to improve.
Prospects of the medical device industry
With the advancement of technology and the rapid development of China's economy, the accelerated pace of China's integration with international standards will promote the upgrading of domestic equipment and expand the market capacity of medical devices. With the advancement of technology, China has continuously adopted high and new technologies, which has greatly improved the sensitivity, applicability, early diagnosis, microanalysis, specificity and efficiency of diagnosis and treatment of medical devices, which is bound to promote the advance of a large number of old products. Decommissioning, triggering new market demand for medical devices. In 2020, China's economy will recover from the turbulence of the epidemic. Under the abnormal economic cycle brought about by the epidemic, the overall investment and financing growth trend in the medical and health field is remarkable. At the same time, the new "Regulations" for the first time put "guarantee the safety and effectiveness of medical devices, protect human health and life safety" and "promote the development of the medical device industry" in a parallel position, highlighting the importance of promoting the innovation and development of the medical device industry. In the next five years (2022-2026), the average annual compound growth rate is about 14.41%, and it is predicted that the scale of China's medical device market will exceed one trillion yuan in 2025, reaching 1,401 billion yuan.
Development Trend of Medical Device Industry
There are many subdivisions of medical devices, but it is very easy to touch the ceiling. Most of the subdivisions are in the billions, and platform development will be the mainstream. International giants such as Roche and Medtronic have grown through mergers and acquisitions. Domestically, the number of mergers and acquisitions of medical equipment has increased significantly. From mergers and acquisitions of similar products, industrial chain mergers to platform mergers, the tide of industry consolidation has arrived, and new leading companies will continue to emerge. The industry extends from device products to services.
With the business model of "product + service", it will be difficult for a pure production and sales enterprise to survive in the future. Only by continuously providing better services can it continue to grow. Single-point innovation of products promotes device companies to occupy market segments.
Internet medical treatment + smart devices - big data platforms and smart devices (including wearable devices and medical robots) will be the biggest direction for the development of medical device services in the future. The expansion of medical informatization, health big data, and chronic disease management platforms for medical device manufacturers will be the major trends in the future.
If you want to know more about the professional data analysis of the medical device industry, please click to view the "2022-2026 China Medical Device Industry Panoramic Survey and Development Strategy Research and Consulting Report" by the China Research Institute.