With economic development, aging population and people’s awareness of healthcare continues to increase, the global medical device market demand continues to grow rapidly. The medical device industry is the world’s fastest growing industry. However, the medical device markets of Europe, US and other developed countries will be reaching stable stages in the near future, focusing on product upgrades and service qualities.
In contrast, with the rapid development of key emerging technologies in the field of medical devices and the rapid expansion of the medical device consumer markets in Asia, led by China and India, the Asia region has become the most promising market for growth in the world. In the future, with the gradual improvement of living standards of populations in Asian countries, the demand for medical devices is expected to increase significantly, providing the impetus for sustained and rapid development of the global medical market.
Through 30 years of development, China’s medical device industry has established a strong industrial base covering a broad band of fields. It has become an important pilot area and one of the pillar industries in China’s national economy. During 2005-2015 China’s medical device industry reached a compound annual growth rate for more than 20%. Contribution of value from the medical device industry added to the national GDP steadily increased year by year, the same as China’s global market share in medical device industry.
China’s Medical Device Market Size and Growth 2005 – 2015 (in 100M RMB)
In recent years, with the country’s strong support and encouragement to the medical equipment industry, all kinds of corresponding policies are also introduced, China’s medical device industry is entering a period of rapid development with the proportion of domestic medical equipment gradually increased. According to China Pharmaceutical Industry Materials Association, China’s medical device industry in 2014 reached a total sales of 2,556 billion yuan, an increase of up to 20% YOY, higher than the same period the pharmaceutical industry’s overall sales revenue growth at 13%. The future average growth rate of the medical device industry is expected to continue to outpace the pharmaceutical industry in China.
Despite of rapid expansion of China’s medical device market and increase in its production output, the industrial foundation is still not quite solid due to relatively short development time in China. For example, the field of high-end technology-intensive medical devices still rely heavily on imports from foreign manufacturers.
With the sustained growth of Chinese national economy as well as the continued improvement of the living standard, increase in health care expenditure by the government, society and individuals, we believe there is tremendous potential in China’s medical device market. Many international medical device giants look to increase their presence in China through mergers and acquisitions, set up subsidiaries in China or move R&D centers to China in order to capture the rapid growth of Chinese medical device market.
China’s Health Expenditure and Percentage in National GDP (in 100m RMB)
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