Five factors drive the development of the medical device industry

Recently, CCID Consulting released the "China's Medical Device Industry Development Strategy Study (2014)". The report shows that China's medical devices have a vast market space. The increase in national policies, economic living standards and people's awareness of health care, population aging, product exports and product replacement all have a major impact on the development of the medical device industry.

National policy promotes industrial development

The report pointed out that in recent years, China’s emphasis on medical and health care has continued to increase, and investment in health care has also continued to increase. According to the "Healthy China 2020 Strategic Research Report," the next seven years will launch seven major medical system projects with a total amount of up to 400 billion yuan. Of the 400 billion yuan investment plan of the Ministry of Health, 109 billion yuan will be used for county hospital construction. It can be seen that there will be a huge market space for medical devices including basic medical care in China in the next few years.

Economic development and health awareness drive demand

While improving people’s living standards, they also require corresponding improvements in health care. According to reports, medical devices are an important component of medical care and are auxiliary devices for diagnosis and treatment of diseases. As a result, the demand for medical devices will also increase. In addition, people pay more attention to the prevention of diseases. Through sphygmomanometers, thermometers, blood glucose meters and other instruments, they can quickly grasp the physical indicators, so that the disease can be prevented and treated early.

Great potential for export demand

According to the report, domestic demand for medical devices has grown rapidly in recent years, and exports have also been growing. With the continuous improvement of the medical equipment technology level in China, the cost advantage gradually emerges, so it can be more competitive under the same quality conditions, prompting the sustained and rapid growth of exports.

According to the report data, in 2013, the total trade volume of medical devices in China reached US$34.31 billion, an increase of 14.13% over the same period of last year and an increase of 1 percentage point from 2012. Among them, the export volume was 19.335 billion U.S. dollars, a year-on-year increase of 9.92%, which was a decrease of 2 compared to 2012. Percentage points; Imports amounted to US$14.975 billion, which represented a year-on-year increase of 20.07%, an increase of 5.5 percentage points from 2012; a trade surplus of US$4.36 billion, a decrease of 14.8% from the same period last year.

Aging population expands the market

The report revealed that the aging of the population has led to a dramatic increase in the number of elderly people, and at the same time, higher demands have been placed on medical care for the elderly. Diseases related to the elderly, such as high blood pressure and diabetes, seriously plague people's lives. While improving pharmaceutical research and development, medical devices related to these diseases should also be used in conjunction with them. At present, the number of patients with diabetes and hypertension in China exceeds 100 million and 300 million respectively. Even if an average person needs a corresponding blood glucose meter and sphygmomanometer, the market is incalculable.

Obsolete products generate updated demand

China's medical equipment is in urgent need of replacement. According to statistics, about 15% of the medical equipment in China's primary medical and health institutions are products before and after the 1920s, and about 60% are products before the mid-1980s. The report stated that the replacement of products will generate a large demand for new medical devices, and this result will be gradually reflected in the next five to ten years.