Analysis of the Development Prospect of China's Medical Device Industry

The “Thirteenth Five-Year Plan” outline clearly points out that in the next five years, we will focus on the development of in vitro diagnostic equipment such as nuclear medicine imaging equipment, superconducting magnetic resonance imaging systems, non-invasive ventilators and other diagnostic equipment, automatic biochemical analyzers, and high-throughput gene sequencers. The development and application of medical accelerators and other therapeutic equipment and heart valve and pacemakers, interventional stents, artificial joints and other implant products, development and application of medical equipment with the advantages of traditional Chinese medicine.

Basic medical market is broad, home medical equipment is booming

The vast primary medical market can ensure the steady growth of medical device companies. As of November 2015, the number of private hospitals in China reached 14,049, and 922,000 basic medical and health institutions, of which 54,680 were government-run township health centers and community health service institutions. In the primary health care market, the government will give priority to the purchase of domestically produced medical devices, including mainly low-end and middle-end medical devices.

The disposable income of residents in our country continues to increase, consumer demand is gradually released, and the awareness of health care for urban and rural residents is significantly strengthened. Although China's home medical device market is in the early stages of development, the sales scale continues to grow rapidly. Data show that the global home medical device market from 2010 to 2014 increased from US$17.9 billion to US$22.9 billion, with a compound annual growth rate of 6.7% in the past five years; in 2010, the market size of home medical devices in China was 13.76 billion yuan, and the market in 2014 The scale is 37.64 billion yuan, and the compound annual growth rate in the recent 5 years is 29.8%. Home medical devices have the characteristics of low barriers to entry, high return on investment, and relatively low risks, and there is still room for improvement in market size.

Investment and mergers and acquisitions are active, and industry concentration is gradually increasing

China's medical device industry presents a large number of enterprises, small scale, low industry concentration, and low overall technical level, and faces issues such as product upgrading, industrial upgrading and integration. In recent years, the number of mergers and acquisitions in the medical device industry in China has continued to increase, and the degree of industrial concentration has increased. According to private equity statistics, during the first half of 2008-2015, there were 111 mergers and acquisitions in China's medical device industry. The amount of acquisitions reached 7.3 billion U.S. dollars, and the average cost of each merger and acquisition exceeded 40 million U.S. dollars. In 2015, the medical device industry disclosed more than 50 mergers and acquisitions cases. The company supplements product lines through horizontal expansion, enters subdivided areas, and enhances innovation capabilities. Through vertical integration, it improves the industrial chain, shifts to the upper reaches of the value chain, and strengthens its performance. It is expected that the merger and reorganization of the medical device industry will continue to be active in the next few years, and market terminal enterprises or innovative small businesses will usher in a good opportunity for development.

Industry development constraints

The global economy is sluggish, domestic products are less competitive

It is speculated that the global sales of prescription drugs and medical devices in 2015-2020 may experience bottoming out. Since 2008, the global market for prescription drugs and medical devices has seen a marked slowdown in sales growth, which has been affected by the international financial crisis and the European debt crisis. The global trade environment has tightened, the market entry threshold for importing countries has been relatively high, and the pressure on medical device export trade has become apparent. In recent years, with the increase in the cost of domestic labor and raw materials, the medical device industry in China has been impacted by other developing country manufacturers.

Shortage of resources, insufficient investment in research

The medical device industry is a knowledge-intensive industry. China's medical device industry lacks leading companies with international influence, strong product imitation capabilities, and faces challenges such as lack of high-end talent, insufficient R&D investment, and lack of innovation capability. In the field of high-end medical equipment, most domestic manufacturers cannot catch up with multinational companies in terms of product innovation and scientific and technological achievements.

Product added value is not high, the domestic market is fiercely competitive

There are numerous medical device manufacturers in China, which are concentrated in the middle and low-end products. Although regional industrial clusters have gradually taken shape, the vast majority of medical device manufacturers still remain in the extensive stage of scattered distribution and low-level vicious competition. As the international market continues to be squeezed, the low manufacturing cost of domestic small and medium-sized manufacturing enterprises has gradually weakened, the market is fiercely competitive, and it faces problems of survival and development.


Report details page: http://service.made-in-china.com/market-analysis/industry-analysis-report/684064.html
More reports: http://service.made-in-china.com/market-analysis/industry-analysis-report-1.html