China’s medical device market status and market size 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 various policies, the industry is in a period of rapid development.
The growth rate of China’s medical devices far exceeds the global growth rate. According to the calculation of the Institute of Medical Devices, the size of the medical device market in 2018 was about 530.4 billion yuan, a year-on-year increase of 19.86%, which was close to four times the global growth rate of medical devices. China Commercial Industry Research Institute predicts that the medical device market will reach 776.5 billion yuan in 2020.
Data source: “China Medical Device Blue Book”, compiled by China Commercial Industry Research Institute
Low market concentration
Under the background of market demand stimulation and medical reform, the important position of medical devices in the entire medical industry has become more 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 the 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 domestic medical device companies and foreign companies in scale and efficiency. There is a big gap between domestic 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-end medical device products, China’s output ranks first in the world; in the field of high-end medical devices, although domestic devices have achieved import substitution in a few areas such as monitors, most of them are at the stage of import dominance. 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.
The 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%.
57% of medical equipment, 20% of high-value medical consumables, 12% of low-value medical consumables, 11% of in vitro diagnostics
Data source: “China Medical Device Blue Book”, compiled by China Commercial Industry Research Institute
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% of the market share; while domestic manufacturers are relatively small, Weigao shares and Dabo Medical have market share of 4.05% and 2.86%, respectively, and other domestic manufacturers belong to smaller regional manufacturers.
Source: China Commercial Industry Research Institute
