Major Growth Factors
These 4 major growth factors are pushing China’s medical device industry into the world’s 2nd largest:
- As a sub-industry of the pharmaceutical industry, medical device industry accounted for 50% of the international pharmaceutical industry. According to statistics, China’s medical device industry accounted for less than 10% of the pharmaceutical industry in 2008. While in 2011, the proportion had increased to 14%. Compared to developed countries, there is a huge room for the growth of medical device market in China.
- The aged tendency of population in China has become the largest demand of medical device market. China has now basically entered the early stages of aging society. With the increase of the aged population, it will be an opportunity for to medical device industry to enlarge the market and increase the demand. The market capacity of domestic medical device industry will show a trend of rapid growth in the future. The demand for medical care and the expanding of numbers and sizes of medical institutions also contribute to this factor.
- With the increase of Chinese residents’ income, the expanding of coverage of medical insurance system, and the promotion of the demands for disease diagnosis, prevention and health management, the per capita medical and health care expenditure of urban and rural residents had been increasing steadily. For example, the per capita medical and health expenditure of urban residents was less than two thousand yuan in 1990, but it was more than 10 thousand yuan in 2011. And with the further reform of medical system, the drug price addiction policy will be gradually abolished, the profit model of hospitals will be transformed from ” drugs selling ” to “service + subsidy”, which can partly solve the problem of “high cost of getting medical treatment”, release the medical demand of the residents on the one hand, promote the formation of diversified hospital income patterns and the further opening of medical market on the other hand.
- The overall equipment levels of medical devices of China’s medical institutions are still very low. About 15% of the medical devices and equipment in national primary health care institutions were made in 1970s, about 60% of them were made before mid-1980s. The process of product update is also a process of demand release, it will guarantee a rapid development of China’s medical device market in the next 10 years or even longer period of time.
In conclusion, China’s medical device industry has shown great development potential, and China will take the place of Japan to be the world’s second largest medical device market in the next 5-7 years.
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