In the next five years, medical equipment will enter the shuffle competition

Release time:

2018-08-08

In recent years, China's medical device market demand is strong, and it has become a hot investment field favored by the capital market in the health industry. It is worth noting that the China Pharmaceutical Industry Information Center recently released the "Blue Book of China's Health Industry (2015 Edition)" (hereinafter referred to as the "Blue Book"), which outlines the development of my country's medical device industry through detailed data, and optimistically predicts: In the future, China's medical device industry will further grow, and a large number of innovative products will be launched; domestic medical equipment will further replace imported products; internet healthcare will become a new booster for the growth of the medical device market; the market size will reach 600.3 billion billion yuan in 2019.

5The market has more than doubled in the year, and a large number of innovative products will be available.

After the launch of my country's new medical reform in 2009, various localities have significantly increased their investment in the infrastructure construction of primary medical and health service institutions. At the same time, the number of medical and health services in various places has been increasing. This makes China's medical device market ushered in an unprecedented era of rapid development.

Blue book with statistical data gives the answer: 2010~2014, China's total medical device market from 128.4 billion yuan to 276 billion yuan, the average annual compound growth rate of up to 20.8 percent, equivalent to 5 years the market size has more than doubled.

The data analysis results from the China Pharmaceutical Industry Information Center also show that among many medical device products, medical imaging diagnosis and treatment equipment, in vitro diagnosis and inspection products, high-value medical consumables and implants are the main products in my country's medical device market. In 2014, these three types of medical devices accounted for 19%, 16% and 13% of the total sales of medical devices in China.

It is worth noting that the center predicts that in the next few years, my country's medical market and medical device market will maintain high growth momentum; by 2019, my country's medical device market will reach 600.3 billion billion yuan, and the average annual compound growth rate is expected to be about 16.8%.

During this period, as government departments further increase the control of medical expenses, price negotiations in the medical device market will be fierce, and cost-effective medical device products will have greater competitive advantages. At the same time, more innovative medical device products will enter the market.

OldNew forces coexist in the pattern, and the survival of the fittest is becoming more and more intense.

China's medical device industry started late, for many years the production enterprises exist small scattered, lack of innovation. With the rapid development of China's medical device market, whether the old industrial pattern has changed.

The Blue Book makes an objective analysis of this: At present, there are nearly 16000 medical device manufacturers in my country, and there are more than 2600 high-risk third-class medical device manufacturers and operators. Based on the total medical device market of 276 billion yuan in 2014, the average income of medical device manufacturers is only about 17 million yuan.

This means that at present, most medical device manufacturers in China are small and medium-sized enterprises, and the technical level is low, mainly in local areas of the regional market for product sales. However, after the rapid development in recent years, a number of medical device enterprises with considerable scale and competitiveness have emerged in China's medical device industry.

According to the analysis results of China Pharmaceutical Industry Information Center, the top three medical device enterprises in China in 2014 were Shandong Weigao, Shenzhen Meirui and Xinhua Medical.

Representative enterprises in the medical equipment industry include Neusoft Medical, Shenzhen Mindray, Shanghai Machinery Group, Xinhua Medical, etc;

Representative enterprises of high-value medical consumables and implants industry include Shanghai Minimally Invasive, Shandong Weigao, Lepu Medical, etc;

Representative enterprises in the low-value consumables industry include Shandong Weigao, Zibo Mountains and Rivers, Jiangxi Hongda, etc;

Representative enterprises of in vitro diagnostic and testing products include Kehua Biology, Daan Gene, etc;

In addition, companies such as Yuyue Medical have also achieved considerable development in other medical device sectors.

For medical device companies, mergers and acquisitions are a necessary means to expand the scale or cross-border into new market segments. Blue Book analysis pointed out that in 2014, China's medical device mergers and acquisitions active. As the vast majority of enterprises in China's medical device industry are still small and medium-sized enterprises, it is expected that future mergers and acquisitions are still inevitable.

Some medical device companies with low technical content and too small scale may be eliminated in the market competition; on the contrary, some local medical device companies with sufficient scale will have the opportunity to join international cooperation and try more to open up the international market.

CountryProduction to further replace imports, the Internet triggered an investment boom.

For the future development situation of domestic medical devices, the blue book's prediction is also positive: under the guidance of the state vigorously advocating the use of domestic medical equipment in health and family planning institutions, focusing on promoting the application of domestic medical equipment in tertiary hospitals, and with the increasingly mature technical level of China's local medical device manufacturers and the increasingly perfect marketing system, the substitution of domestic medical device products for imported products will become an indispensable development process.

Today, the integration of the Internet and medical devices in the field of development has shown a mushrooming momentum. "According to the characteristics of medical device products, medical devices are the most easy to integrate with the Internet in the health industry."

Analysts from the China Pharmaceutical Industry Information Center pointed out that with the rise of Internet medical care, some new medical devices, such as wearable devices and medical devices, may become new investment hotspots in the medical device industry and become a new booster to promote the growth of the medical device market.

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