Competition Status of Orthopaedic Implant Device Market in China
▍ The upstream of the industrial chain depends on overseas imports
Chinese orthopaedic implant instruments belong to the upstream and midstream parts of orthopaedic instruments. The upstream part is mainly divided into medical metal and medical non-metal. Medical peek and other materials in medical nonmetals are mostly ordered by Invibio Ltd and Evonik Resource Efficiency GmbH. Absorbable polylactic acid is generally ordered from overseas enterprises such as Johnson & Johnson and carpenter. Bioceramic materials such as ceramic ball heads and ceramic liners are obtained from Ceream Tec, Germany.
In general, there is a high dependence on overseas imports, the bargaining power of domestic manufacturers is weak, and the delivery time and price are affected by shipping and the manufacturer’s research and development progress. There are also manufacturers trying to replace domestic raw materials, but the larger capital input in the pre period and the requirement for the process are high, at the same time the market trust is low, and all the above factors make the domestic material market has not been opened. The most important titanium alloys in medical metals are mainly purchased from domestic military industrial areas, such as Shaanxi, Shenyang, Shanxi and other provinces that were originally strong military industrial areas, and have the technology and equipment to produce large quantities of medical grade titanium alloys.
▍ In the finished product market, foreign capital occupies the market and technological advantages
Orthopedic implant devices belong to the middle reaches of the industry chain. At present, the market competition pattern is clear. 40% of the market share is occupied by the top five companies. Among them, there are four foreign giants, namely Johnson & Johnson 13.11%, Zimmer Biome 8.67%, Stryker 6.56%, Medtronic 5.14%, Wego Orthopedics 4.6%.
In terms of market segments, the localization rate of trauma and joint orthopedic devices is relatively high. The relatively high localization rate of trauma products is mainly because the technical barriers of such products are relatively low, and the market share gap between leading companies is relatively small. At present, domestic companies occupy a dominant position in joint products. First, the market is affected by the increasingly serious aging problem, and the market scale is expanding year by year, far exceeding the spine and trauma products. Spine is currently highly monopolized by foreign capital, mainly because of the high technical barriers of such surgery, high risk of performing surgery, and very high requirements for doctors and materials. Therefore, foreign capital with a long development time occupies the main advantage.
In general, the domestic market can be divided into three camps.
The first camp : Representative companies are Johnson & Johnson, Zimmer Biomet, Stryker, Medtronic, Smith & Nephew, etc.
The second camp: Representative enterprises are Wego Orthopedics, Double Medical and other comprehensive enterprises and subdivided leading enterprises such as Chunli Medical, Sanyou Medical, etc.
The third camp: The representative enterprises are local small and medium-sized enterprises, with a single product matrix, no technical advantages, weak market competitiveness, and easy to be acquired by leading enterprises.
Local enterprises are developing continuously, among which the agglomeration effect of industrial parks deserves attention. The region with the largest number of medical devices in China is in Jiangsu Province, and Changzhou is the city with the largest increase in the three types of high-value medical device products. The agglomeration effect of the medical device industry is mainly affected by the favorable policy support of the local government and the developed economy.
[Source：Siyu Medical Equipment Observation]
BradyKnows has elite teams for our clients with the full participation of project managers, regulatory/clinical/quality consultants, and technical engineers. The elite team will accompany our clients in the entire product life-cycle and help them overcome challenges and achieve every milestone in China. Please feel free to reach out to us at info@bradyknowsmedical.com.
