China’s medical device market has become the second largest in the world
According to the report of the Development Status and Trends of China’s Medical Device Industry released by Roland Berger, an international management consulting company, on the 22nd, the size of China’s medical device market is expected to reach 958.2 billion yuan (RMB, the same below) in 2022, with a compound growth rate of about 17.5% in the past seven years, and has jumped to the second largest market in the world outside the United States.
The report shows that while the industrial scale is growing steadily and high, the concentration of the medical device industry is also increasing. In 2022, the operating revenue of Chinese medical device manufacturers above designated size accounted for more than 60% of the total industry. Among them, there are more than 163 listed medical device companies, nearly double the number of three years ago.
From the perspective of field division, China’s medical device industry is divided into four subdivisions: medical equipment, high-value consumables, low-value consumables and in vitro diagnosis. Among them, medical devices (referring to instruments, equipment, appliances, materials, etc., used in human body alone or in combination) occupy the largest market share. In 2021, medical devices account for about 60% of the total market size of China’s medical devices, with the overall market size exceeding 500 billion yuan.
From the perspective of industry development trend, the report points out that multiple factors will drive technological innovation of Chinese enterprises, and domestic substitution will remain the main theme of the industry in the future. In terms of policies, a number of policies have been introduced nationwide and around the country to provide a large number of policy supports for the innovation and research and development of local medical device enterprises. In terms of technology upgrading, Chinese medical device enterprises have been increasing R&D investment in recent years to improve their technological innovation ability. In recent years, the annual R&D investment of China’s top 10 medical device enterprises has maintained an increase of more than 20%.
With the development of the epidemic in recent years, local Chinese medical device companies have gradually been accepted by the global market, the report said. In 2021, China’s total export of medical devices to overseas was $84.73 billion, down 36.44% year on year, which was still a significant increase compared with before the epidemic. The main reason was that in 2020, overseas countries’ insufficient production capacity led to the peak of procurement demand, which boosted the export data. “We expect China’s import and export of medical devices to accelerate in 2023.” Roland Berger relevant person in charge said.
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Source: MedWorld
Translated & edited : Bradyknows
