Vision 2025: "2025 China Medical Device Industry Panorama" (with market status, competition pattern and development trend, etc.)

Core data: medical device market size; High value medical consumables market size; Low value medical consumables market size

Industry profil

——Definition

According to the latest Regulations on the Supervision and Administration of Medical Devices issued by The State Council in March 2021, medical devices refer to instruments, equipment, appliances, in vitro diagnostic reagents and calibrators, materials and other similar or related articles directly or indirectly used in the human body, including required computer software; Its effect is obtained mainly by physical means, not by pharmacological, immunological, or metabolic means, or although these means are involved but only play an auxiliary role; Its purpose is to:

          Figure 1: Purpose of medical device

          -- Industrial chain analysis: The industrial chain involves many links

The technological progress, enterprise growth and market expansion of the medical device industry have a close relationship with the upstream and downstream industries. The scientific and technological progress of the upstream industry will directly affect the technical direction of medical devices. The upstream industry of the medical device industry is the manufacturing of medical device components, involving electronic components, raw materials, software systems, emerging technologies and other fields. The electronic components industry provides electronic components, circuit boards, chips and other electronic parts for large medical equipment; The raw material industry provides special materials for the production of medical equipment industry. The processing and manufacturing capacity of upstream industries such as rubber, plastics, electronics, steel, fasteners, non-ferrous metals and other basic industries determines the quality, technical level and cost of raw materials or semi-finished products of medical devices. At the same time, artificial intelligence, Internet of Things and blockchain technology have also injected fresh blood into the development and innovation of the medical device industry.

The midstream industry of the medical device industry is related to the research and development, manufacturing, sales and service of medical devices.

The downstream industry of medical devices is the medical and health industry, which is the sum of the elements, activities and relationships that provide medical and health service products for the whole society, and its most important basic function is to cure and prevent diseases, protect the health of the whole people, and improve the physical quality of the whole people. The main body of China's medical and health service industry is all kinds of medical and health institutions at all levels, including hospitals, centers for Disease Control and Prevention (CDC), family planning agencies, patriotic health movement agencies and medical and health research institutions, among which the most important subject is all kinds of hospitals at all levels.

In the upstream field of the industry, the representative enterprises are mainly Crystal Optoelectronics, Sumitomo Rico, Weining Health, Lepu Medical and other enterprises, the midstream enterprises are mainly Medtronic, Abbott and other international enterprises and Mindray Medical, Yuyue Medical and other domestic enterprises, the downstream industry chain is mainly medical institutions, public health institutions, other medical institutions and third-party inspection/physical examination institutions.

Industry development history: At present, it is in the stage of high-quality development

In 2000 years ago, under the background of the transformation and adjustment of China's medical device industry in the 1950s to the 1960s, China's medical device industry has developed greatly, experienced the process from scratch, and painted a thick brush in the early days of the founding of New China. During 2000-2015, China's medical reform policy led to the need for health institutions to replace and supplement equipment and equipment, stimulating the rapid growth of low-end products and technologies in China. However, the high-value medical device market is occupied by imported products. After 2015, China's medical device innovation policy has been frequent, and the head enterprises have actively arranged, and innovative medical devices have mushroomed. In addition, in order to accelerate the substitution of domestic products, China has issued relevant policies; Some provinces, such as Jiangsu Province, have banned imported products from bidding in public institutions.

Industry development statu

——Overall industry situation: The overall market size exceeded 1.2 trillion

According to the "China Medical device Industry Blue Book (2024)" statistics, 2016-2023 China's medical device industry market size showed an upward trend year by year, 2023 China's medical device industry market size reached 1032.8 billion yuan, an increase of 5.07%, 2016-2023 compound growth rate of 16.12%.

According to the preliminary statistics of the medical device supply Chain branch of the China Federation of Logistics and Purchasing, the market size of China's medical device industry will exceed 1.2 trillion yuan in 2024.

From the perspective of market segmentation structure, in 2023, China's medical equipment industry occupies the largest proportion of the market size of the midstream segment products of China's medical device industry, reaching 630.2 billion yuan, accounting for 61.02%.

——High value medical consumables: the market size exceeds 160 billion yuan

Benefiting from the improvement of the economic level and the increasing demand for health, China's high-value medical device market has also ushered in a huge development opportunity. In recent years, China's high-value medical device market has maintained steady growth. According to the "China Medical Device Industry Blue Book (2024)" data, the market size of China's high-value medical consumables industry in 2023 is 156.1 billion yuan, an increase of 3.04%. Preliminary statistics for 2024 will exceed 160 billion yuan.

Note: The data for 2024 is preliminary and subject to official release.

——Low-value medical consumables: the market size exceeds 130 billion yuan

Low-value medical consumables refer to disposable medical materials of low value commonly used in hospitals in the process of medical services, including disposable syringes, infusion sets, blood transfusions, drainage bags, drainage tubes, indent needles, sterile gloves, surgical sutures, surgical needles, surgical blades, gauze, cotton swabs, medical masks, etc.

Affected by the global spread of the epidemic, the low-value medical consumables market in 2020, especially emergency prevention and control consumables such as masks and protective clothing, has a demand of more than ten times the outbreak in a short period of time. After the end of the epidemic, the market size of low-value medical consumables in China still maintains growth, but the growth rate has declined. According to the "China Medical Device Industry Blue Book (2024)", the market size of low-value medical consumables in China in 2023 is about 128 billion yuan, an increase of 5.26%, and the compound growth rate of 2016-2023 is 16.18%. Preliminary statistics will exceed 130 billion yuan in 2024.

Note: The data for 2024 is preliminary and subject to official release.

--Medical equipment: The market size is close to 700 billion yu

Medical equipment refers to instruments, equipment, appliances or other articles used on the human body alone or in combination, and also includes required software. Medical equipment is the most basic element of medical, scientific research, teaching, institution, clinical discipline work, that is, including medical equipment, including home medical equipment.

In the post-epidemic era, the policy emphasizes speeding up the weak board of medical resources, continuously increasing the weight of new medical infrastructure, and the release of financial discount policy, further releasing market demand, the medical device field has entered a new round of expansion cycle, and the market size has maintained rapid growth. According to the Blue Book of China's Medical Device Industry (2024), the market size of China's medical equipment in 2023 reached 630.2 billion yuan, an increase of 6.78%, and the compound growth rate from 2016 to 2023 was 17.01%. According to preliminary statistics, it will reach 700 billion yuan in 2024.

Note: The data for 2024 is preliminary and subject to official release.

——IVD(in vitro diagnostics) : The market segment size exceeds 130 billion yuan

Benefiting from China's aging population, rising health expenditure year by year, and positive factors such as innovative marker discovery and diagnostic technology update iteration, the in vitro diagnosis industry continues to develop steadily. More than two years after the global pandemic, the novel coronavirus testing market has experienced explosive growth, and the demand for large-scale nucleic acid testing is strong, which has become an important growth point to drive the market size of the in vitro diagnosis industry. According to the "China Medical Device Industry Blue Book (2024)" data, China's in vitro diagnostics (IVD) market size grew from 43 billion yuan in 2016 to 118.5 billion yuan in 2023, with a compound annual growth rate of 15.58%. Preliminary statistics will exceed 130 billion yuan in 2024.

Note: The data for 2024 is preliminary and subject to official release.

Industry competition pattern

——Regional competition pattern: Guangdong Province has the largest number of enterprises

According to the data of the State Medical Products Administration, by the end of 2024, the number of medical device manufacturers in China has exceeded 34,000, mainly distributed in Guangdong, Jiangsu, Shandong, Zhejiang, Hebei and other places. Among them, Guangdong related enterprises more than 5,000 enterprises, accounting for more than 15%.

——Enterprise competition pattern: divided into domestic brands and foreign brands

The competitive factions of China's medical device industry are mainly divided into domestic brands and foreign brands, and the domestic brands are represented by the medical device brands of Mindray Medical, Healthy Medical, Yingke Medical and other enterprises. Foreign brands are represented by medical device brands of Johnson & Johnson, Siemens Medical, GE, Philips and other enterprises.

In the first three quarters of 2024, the operating income of Mindray Medical, Dean Diagnostics, Xinhua Medical, Inke Medical and United Image Medical ranked TOP5 among listed enterprises. Among them, Mindray Medical is far ahead of other enterprises with 29.485 billion yuan.

Industry development prospect and trend forecast

——The market size may exceed 1.8 trillion yuan by 2030

The medical device industry is an important part of the development of China's national economy, which is closely related to China's macroeconomic development, the future with the continuous development of China's medical system, the medical device industry market size or will continue to rise. Based on this, it is estimated that the market size of China's medical device industry will exceed 1.8 trillion yuan in 2030, and the compound growth rate will reach 7.53% in 2025-2030.

——Six development trends of China's medical device industry

Compared with developed countries, China's medical device industry has the characteristics of late start, small scale and single product. However, after the rapid development in recent decades, China's medical device industry has become a sunrise industry with relatively complete industrial categories, continuous enhancement of innovation ability and strong market demand. With the continuous deepening of national policy support and optimization, medical reform, aging population, consumption power and health awareness, China's medical device industry, especially the domestic medical device leading enterprises, has entered a golden period of development. The domestic medical device market, in both capital and technical advantages of the international medical giants under the green, the industry competition is fierce, opportunities and challenges coexist, the future of China's medical devices or the following development trends: