China’s medical device market exceeds 900 billion yuan and may become the world’s largest medical device market in the future

China’s medical device market exceeded 900 billion yuan in 2022 and is expected to exceed 2200 billion yuan (320 billion U.S. dollars) in 2030, according to a report titled Status Quo and Trend of China’s Medical Device Industry released by international management consulting firm Roland Berger. China may become the world’s largest market for medical devices.

Chen Hongyan, secretary-general of the Medical Goods and Medical Cooperation Branch of China International Travel Healthcare Association, told People’s Daily Health App: “Chinese local medical device companies are gradually being accepted and recognized in the global market. Policy support will accelerate the construction and expansion of public hospitals at all levels.

“Part of the low-end medical equipment to achieve domestic substitution trend has arrived.” In an interview with the People’s Daily Health App, Qiu Jie, the president-elect of the Medical Physics Branch of the Chinese Society of Biomedical Engineering and the head of the Medical Engineering Department of Peking Union Medical College Hospital, said that domestic medical devices have two main advantages. One is price; On the other hand, the R&D and production of these medical devices are mostly completed in China, which makes these medical devices/R&D and features more suitable for the diagnosis and treatment needs of domestic medical institutions and patients, and the improvement and iteration speed will be faster for the problems found in domestic clinical practice, so as to achieve targeted customized R&D.

According to the Blue Book of Medical Devices, China’s medical device industry can be divided into four subdivisions: medical devices, high-value consumables, low-value consumables and in vitro diagnosis. “Medical devices refer to instruments, equipment, utensils, in vitro diagnostic reagents and calibrators, materials and other similar or related articles, including required computer software, that are directly or indirectly used in the human body,” Chen told People’s Daily Health App.

According to the China Medical Device Industry Report 2021, China’s medical device market size doubled to 629 billion yuan in 2019 from 308 billion yuan in 2015. With the continuous development of China’s medical device market, the number of local companies in the market has also increased. According to Deloitte Consulting, the share of domestic brands in the high-end medical consumables segment has increased from about 20% to about 30% in the past 10 years.

In Chen Hongyan’s opinion, the sustained growth of China’s medical device market is affected by multiple factors, “First, the number of chronic diseases; The second is the proliferation of medical clinics and hospitals. According to data released by the National Health Commission, by the end of October 2021, there were 36,000 hospitals in China, including 12,000 public hospitals and 24,000 private hospitals. Third, with the improvement of public health awareness, the demand for medical care services continues to increase.

The report shows that in 2022, the operating revenue of Chinese medical device manufacturers above designated size accounted for more than 60% of the total industry.

In the future, domestic brands have great potential for development, Chen Hongyan explained: “On the one hand, thanks to the recent favorable policies of the industry, Chinese policies support the import substitution of middle and high-end medical devices.

The goal of Made in China 2025 is to increase the proportion of medium and high-end medical devices to 70%. On the other hand, domestic medical equipment has gradually broken through a number of technical barriers, and some implantable consumables, monitors and biochemical diagnostics in the field of in vitro diagnosis have basically realized import substitution (domestic accounted for more than 50%).”

China is encouraging China end uses for more domestic products in latest years. Thus, more and more overseas manufacturers are planning localization in China. BradyKnows localization team has extensive experiences in facility establishment, audit, supplier evaluation, manufacturing, registration, and marketing in China. Pls feel free to let us know any questions on China entry via info@bradyknowsmedical.com

Data:People’s Daily Health APP

Translated & edited : Bradyknows