China’s Orthopedic Medical Device Market Overview

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China’s Orthopedic Medical Device Market Overview

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OMD markets growing by 15% each year in China

In China Orthopedic Medical Devices (OMD) are viewed as high value supplies with high technical content within the medical device industry. OMD makes up roughly 6% of the entire medical devices market.  From the perspective of treatment, OMDs can be classified as trauma, spine, joint, and ankle types. Research reports show that over the past few years the OMD market has grown by more than 20%, with its compound annual growth rate (CAGR) at about 15% as of 2018.  The market size can attain 21 billion yuan with the largest increase in joint and spine OMDs, reaching more than 20% CAGR.

Market share of trauma OMD remaining the largest

Specifically, the overall market share of trauma OMD is 32%, remaining the largest.  But its growth has slowed down due to the deceleration of the national construction industry and stricter drunk driving control in China.  According to the PICO report, China’s trauma implants market revenue increased from 2 billion yuan in 2009 to 3.8 billion yuan in 2013, a CAGR of 17.6%. 2014-2018 is expected to continue to grow at a CAGR of 16.9% (the data may be biased towards optimism) and will reach 8.6 billion yuan in 2018.

Joint and spine OMD needed for China’s aging population

On the other hand, as China evolves into an aging society, the growth of the joint and spine OMD has sped up. In 2009-2015, the average annual compound growth rate of joint OMD reached over 20%. In 2015, the market share of joint implants was 4 billion yuan.  2015-2018 is expected to continue to grow at a compound annual growth rate of 23.5%, with up to 7.6 billion yuan in 2018.  In terms of spine products, the revenue from the Chinese spine implant market increased from 1.7 billion yuan in 2009 to 3.3 billion yuan in 2013, with a CAGR of 18.7%.  2014-2018 is expected to continue to grow at a CAGR of 18% or so, with up to 7.8 billion in 2018.

Domestic manufacturers benefit from China’s localizing OMD production

With China’s focus on localization of OMD, the domestic manufacturers’ market share has been increasing, with 2009-2014 market share at 40%. It is understood that only foreign manufacturers like Xerox completed their 15-year plan sales targets, while other manufacturers have not achieved the intended sales target.

Among all the different types of OMD, the trauma product has the highest localization rate in China.  The trauma OMD by domestic manufacturers basically can reach the similar level of imported manufacturers in quality, and therefore a lot of hospitals are dominated by domestic manufacturers.  On the other hand, joint and spine products are still mainly provided by foreign manufacturers, especially in the first-tier cities, since many domestic products are still not comparable to imported products in quality.

 

China Med Device, LLC, provides turn-key solution for medical deivce/IVD companies with commercialization, CFDA regulatory & CRO services. Our services include: China market assessment and due diligence, distribution qualification and management, CFDA premarket approval, legal representation and CRO.