What is the market capacity of medical devices in China? Development prospect and trend forecast
Market capacity of medical devices
In 2020, in the primary medical market, the “upgrading” and “filling the gap” of equipment and consumables are still 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 also promising 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 China has reached 1025543. The growth in the number of various medical and health institutions has promoted the demand for medical devices and greatly promoted the development speed of the medical device industry.
From 2019 to 2021, driven by the rapid growth of medical device market demand, China’s medical device manufacturers achieved a leap from 16000 to 25000，with a year-on-year increase of nearly 40%. Among them, 15924 enterprises can produce class I products, 13813 enterprises can produce class II products and 2202 enterprises can produce class III products. From the perspective of regional distribution, by the end of 2020, there were 4553 medical device manufacturers in Guangdong Province, accounting for the highest market share of provinces, cities and autonomous regions in China (17.9%), followed by Jiangsu Province (11.9%), Shandong Province (9.9%) and Zhejiang Province (8.2%).
Development prospect and trend forecast of medical device Market
With technological progress, China continues to adopt high and new technologies, which greatly improves the sensitivity, applicability, early diagnosis, microanalysis, specificity and effectiveness of diagnosis and treatment of medical devices. This is bound to promote the early retirement of a large number of old products and trigger the market demand for new medical devices. In 2020, China’s economy recovered from the turbulence of the epidemic, and the overall investment and financing growth trend in the medical and health field was significant under the abnormal economic cycle brought by the epidemic. The average annual compound growth rate in the next five years (2022-2026) is about 14.41%, and it is predicted that the scale of China’s medical device market will exceed trillion yuan to 1401 billion yuan in 2025.
In China, M &A cases of medical equipment have increased significantly. From M &A of similar products, M & A of industrial chain to platform acquisition, the tide of industry integration has come, and new leading enterprises will continue to emerge.
Internet Medical + intelligent devices – big data platform and intelligent devices (including wearable devices and medical robots) will be the biggest development direction of medical device services in the future. It will be a general trend for medical device manufacturers to expand medical informatization, health big data and chronic disease management platforms in the future.
By the end of December 2020, the number of effective products of medical devices in China had reached 187062 (excluding imported and cancelled products), an increase of 29.69% over the end of 2019. Among them, there are 107284 class I products, 68715 class II products and 11063 class III products. According to the statistics of CCCMHPIE, in 2020, the import and export trade volume of medical devices (including epidemic prevention materials) in China was 103.72 billion US dollars, of which the export volume of medical devices (including epidemic prevention materials) was about 73.204 billion US dollars, a year-on-year increase of 72.59%.
Article from：Zero Power Intellence
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