CFDA data showed that the medical device market in 2018 continued the high growth trend of recent years. The average annual compound growth rate of revenue in China's medical technologies and medical device industry in 2011-2018 was up to 20.7%, far higher than the global average annual compound growth rate of about 3%.
China's medical device market scale reached about CNY 370 billion in 2018. China's medical device market scale is estimated to be about CNY 600 billion in 2019. Imaging devices, in vitro diagnosis and high-value consumables occupied the top three positions of the medical device market, accounting for 19%, 16% and 13% of total market scale respectively.
Policy, market and new technology still are three main factors affecting the development of China's medical device industry. Six investment directions of innovative medical devices include: imaging equipment sub-industry, in vitro diagnostic sub-industry, cardiovascular and cerebrovascular sub-industry, oncology-related device sub-industry, surgical and orthopedic device sub-industry, and medical artificial intelligence sub-industry.
Data of Research Report on Investment in China's Massive Health Industry 2018-2020:
Imaging Equipment Sub-industry
The medical imaging industry is mainly composed of medical imaging equipment and consumables and imaging diagnostic services. Medical imaging is also one of the leading segments in the scale industry of global medical devices. In 2012, the global medical device market reached $349 billion in sales, of which $36.1 billion was for diagnostic imaging products, ranking No. 3 in the global medical device market with a 10.3% market share. China is the fourth largest medical imaging market in the world, accounting for 12% of the global market share.
In Vitro Diagnostics Sub-Industry
In vitro diagnostic reagents cover several major aspects such as blood, biochemistry, immunology, molecular biology, bacteria, and POCT. China's in vitro diagnostic reagents industry has already had a certain market scale and foundation, and is stepping from the industry introduction period into the growth period, with good market prospects.
According to statistics, one-third of medical device related investment and mergers and acquisitions with a transaction size of $50 million from 2014 to 2015 involved in in vitro diagnostics. In 2016, the market size of in vitro diagnostics in China was about CNY 51 billion, and it was expected to maintain a growth rate of 15%-20% in the next 3-5 years, and that the market size would exceed CNY 85 billion in 2020.
Compared to mature foreign markets, the scale of China's in vitro diagnostic reagent industry is still relatively small. China has more than 1/5 of the world's population, but 4% of the world's in-vitro diagnostic reagents share. The annual per capita use of in-vitro diagnostic products in China is $1.5, while that in developed countries is $25 to $30. On the whole, China has a large in-vitro diagnostic reagent market with great potential. Therefore, in vitro diagnostic reagents are a hot spot in the investment and financing of medical device industry.
Cardiovascular and Cerebrovascular Sub-industry
There are 290 million patients with cardiovascular disease in China, and about 3.7 million people die of cardiovascular disease every year, accounting for 42% of the total national death toll. The cardiovascular medical device field has always been one of the largest segments in the global medical device market.
Against the background of aging and high incidence of cardiovascular and cerebrovascular diseases in China, the market demand for cardiovascular interventional devices is huge and the industry has good development prospects. However, there is still a huge gap between domestic enterprises of cardiovascular implantable medical devices in China and European and American competitors, and most of the market is in the hands of foreign-funded enterprises. The high-end interventional consumables and cardiac pacemakers, which occupy the largest market share, foreign enterprises such as Medtronic, St. Jude Medical, Boston Scientific, Abbott, account for 80% of the total market share. With the accumulation of technology and continuous investment in R&D, domestic companies have begun to make breakthroughs.
Oncology-related Device Sub-industry
According to IARC's prediction, the mortality rate of malignant tumors in China will be about 10% higher than the global average in the future, and there is a huge gap between the supply and demand of excellent cancer treatments. Three core tumor treatment methods used in internationally are: surgery, chemotherapy and radiotherapy. Radiotherapy is a kind of treatment irradiating cancerous tissues to inhibit and kill cancer cells, and is the adjuvant therapy for most tumors and the first choice for a few radiotherapy-sensitive tumors. More than 70% of cancer patients require radiotherapy, which means most patients undergoing surgery and chemotherapy also require radiotherapy as an adjuvant therapy.
The installed capacity of domestic gamma knife is insufficient. At present, linear accelerators which are the absolute mainstream in China's radiotherapy market are mainly manufactured by Elekta and Varian, expensive and have certain side effects. There are over 3000 linear accelerators in China. Unlike linear accelerators, gamma knives are mainly domestic brands, and less than 10% are imported. But the huge difference in the installed capacity of these two suggests that gamma knives have huge potential market.
Surgical and Orthopedic Device Sub-industry
Orthopedic devices are a segment that cannot be ignored in the medical device industry. About 6% medical devices are orthopedic devices which have maintained a compound growth rate of about 15.5% in recent five years, far exceeding the global growth rate of about 4.5%. In addition, the field of joint instruments and spinal instruments has grown greatly, by more than 20%.
Orthopedic devices are high value-consumables in the medical device industry, with higher technical content, higher product gross margin levels and huge market growth space, attracting a large number of domestic and foreign manufacturers. The domestic orthopedic device industry is still in the early stage of development. The enterprises are numerous but small and un-competitive.
Medical Artificial Intelligence Sub-industry
The new version of the Classification Catalogue for Medical Devices came into effect on August 1, 2018. The original 43 sub-categories were streamlined to 22 in the new Classification Catalogue. Of particular interest is its new category corresponding to AI-aided diagnosis, which is specifically reflected in the analysis and processing of medical images and pathological images.
(Excerpts from the article)
China's medical device market scale reached about CNY 370 billion in 2018. China's medical device market scale is estimated to be about CNY 600 billion in 2019. Imaging devices, in vitro diagnosis and high-value consumables occupied the top three positions of the medical device market, accounting for 19%, 16% and 13% of total market scale respectively.
Policy, market and new technology still are three main factors affecting the development of China's medical device industry. Six investment directions of innovative medical devices include: imaging equipment sub-industry, in vitro diagnostic sub-industry, cardiovascular and cerebrovascular sub-industry, oncology-related device sub-industry, surgical and orthopedic device sub-industry, and medical artificial intelligence sub-industry.
Data of Research Report on Investment in China's Massive Health Industry 2018-2020:
Imaging Equipment Sub-industry
The medical imaging industry is mainly composed of medical imaging equipment and consumables and imaging diagnostic services. Medical imaging is also one of the leading segments in the scale industry of global medical devices. In 2012, the global medical device market reached $349 billion in sales, of which $36.1 billion was for diagnostic imaging products, ranking No. 3 in the global medical device market with a 10.3% market share. China is the fourth largest medical imaging market in the world, accounting for 12% of the global market share.
In Vitro Diagnostics Sub-Industry
In vitro diagnostic reagents cover several major aspects such as blood, biochemistry, immunology, molecular biology, bacteria, and POCT. China's in vitro diagnostic reagents industry has already had a certain market scale and foundation, and is stepping from the industry introduction period into the growth period, with good market prospects.
According to statistics, one-third of medical device related investment and mergers and acquisitions with a transaction size of $50 million from 2014 to 2015 involved in in vitro diagnostics. In 2016, the market size of in vitro diagnostics in China was about CNY 51 billion, and it was expected to maintain a growth rate of 15%-20% in the next 3-5 years, and that the market size would exceed CNY 85 billion in 2020.
Compared to mature foreign markets, the scale of China's in vitro diagnostic reagent industry is still relatively small. China has more than 1/5 of the world's population, but 4% of the world's in-vitro diagnostic reagents share. The annual per capita use of in-vitro diagnostic products in China is $1.5, while that in developed countries is $25 to $30. On the whole, China has a large in-vitro diagnostic reagent market with great potential. Therefore, in vitro diagnostic reagents are a hot spot in the investment and financing of medical device industry.
Cardiovascular and Cerebrovascular Sub-industry
There are 290 million patients with cardiovascular disease in China, and about 3.7 million people die of cardiovascular disease every year, accounting for 42% of the total national death toll. The cardiovascular medical device field has always been one of the largest segments in the global medical device market.
Against the background of aging and high incidence of cardiovascular and cerebrovascular diseases in China, the market demand for cardiovascular interventional devices is huge and the industry has good development prospects. However, there is still a huge gap between domestic enterprises of cardiovascular implantable medical devices in China and European and American competitors, and most of the market is in the hands of foreign-funded enterprises. The high-end interventional consumables and cardiac pacemakers, which occupy the largest market share, foreign enterprises such as Medtronic, St. Jude Medical, Boston Scientific, Abbott, account for 80% of the total market share. With the accumulation of technology and continuous investment in R&D, domestic companies have begun to make breakthroughs.
Oncology-related Device Sub-industry
According to IARC's prediction, the mortality rate of malignant tumors in China will be about 10% higher than the global average in the future, and there is a huge gap between the supply and demand of excellent cancer treatments. Three core tumor treatment methods used in internationally are: surgery, chemotherapy and radiotherapy. Radiotherapy is a kind of treatment irradiating cancerous tissues to inhibit and kill cancer cells, and is the adjuvant therapy for most tumors and the first choice for a few radiotherapy-sensitive tumors. More than 70% of cancer patients require radiotherapy, which means most patients undergoing surgery and chemotherapy also require radiotherapy as an adjuvant therapy.
The installed capacity of domestic gamma knife is insufficient. At present, linear accelerators which are the absolute mainstream in China's radiotherapy market are mainly manufactured by Elekta and Varian, expensive and have certain side effects. There are over 3000 linear accelerators in China. Unlike linear accelerators, gamma knives are mainly domestic brands, and less than 10% are imported. But the huge difference in the installed capacity of these two suggests that gamma knives have huge potential market.
Surgical and Orthopedic Device Sub-industry
Orthopedic devices are a segment that cannot be ignored in the medical device industry. About 6% medical devices are orthopedic devices which have maintained a compound growth rate of about 15.5% in recent five years, far exceeding the global growth rate of about 4.5%. In addition, the field of joint instruments and spinal instruments has grown greatly, by more than 20%.
Orthopedic devices are high value-consumables in the medical device industry, with higher technical content, higher product gross margin levels and huge market growth space, attracting a large number of domestic and foreign manufacturers. The domestic orthopedic device industry is still in the early stage of development. The enterprises are numerous but small and un-competitive.
Medical Artificial Intelligence Sub-industry
The new version of the Classification Catalogue for Medical Devices came into effect on August 1, 2018. The original 43 sub-categories were streamlined to 22 in the new Classification Catalogue. Of particular interest is its new category corresponding to AI-aided diagnosis, which is specifically reflected in the analysis and processing of medical images and pathological images.
(Excerpts from the article)