Now, with the continuous growth of the people’s demand for medical services, the further deepening of the reform in the field of medical and health care, and the increase of government investment in the medical industry, the medical device industry will take “strong market demand and strong development momentum” as the main theme for development for a long time in the future. Medical device research report points out: medical device professional exhibition as a good platform for medical device enterprises to release new products and exchange technology, but also a vane for the development of the medical device industry. Let’s take a look at the medical device market demand analysis.
Strong market demand and bright prospect
With the improvement of people’s self-care awareness and the accelerating process of population aging, the demand for medical services is increasing, and the demand for medical equipment for disease diagnosis and treatment is also increasing. Taking the aging population as an example, it is estimated that the proportion of China’s population over 65 years old will increase to 13.6% by 2020 and 23.7% by 2050. The demand for medical equipment related to aging will also continue to grow.
In the future, there is a huge space for the development of China’s medical device industry. At present, there is still a big gap between China’s medical device industry and developed countries. The overall standard of medical devices in China is relatively low, and the configuration is unbalanced. However, the development speed of China’s medical devices has attracted the attention of the world. Since 2001, the compound annual growth rate of medical device sales in China has reached 29%.
It can be predicted that in the next few years, China will surpass Japan and become the second largest medical equipment market in the world, with a predicted market of more than 600 billion yuan. In 2008, the sales volume of medical equipment was about 70 billion yuan. According to UBS, the total scale of China’s medical device Market (including consumables and reagents) will reach 100 billion yuan, accounting for nearly 5% of the global medical equipment market. It is expected that with the implementation of national investment in the medical industry this year, the performance of enterprises in the medical device industry will be greatly improved.
In the face of the huge Chinese market, medical device manufacturers in various countries have also accelerated the development of the Chinese market. Although the global economic crisis has also spread to China, foreign medical enterprises are still optimistic about the Chinese market and local industries, said Sandra Roslan, who is in charge of public relations of the German exhibition group of the 21st China Med. German medical equipment enterprises attach great importance to the Chinese market. Despite the impact of the economic crisis this year, the scale of the German exhibition group did not shrink.
The new policy of medical reform will certainly bring about the overall expansion of China’s medical device market, among which the low-end medical equipment will face huge demand and become the first industry to benefit. With the deepening of reform and opening up, the comprehensive national strength of the country has been strengthened, and the state’s investment in the medical industry has been increasing. In early 2009, the State Council deliberated and approved in principle the opinions on deepening the reform of the medical and health system and the implementation plan for deepening the reform of the medical and health system from 2009 to 2011.
According to the plan, in order to ensure the implementation of the reform measures, governments at all levels are expected to invest 850 billion yuan in three years, with an additional 170 billion yuan in 2009 alone. On November 23, 2008, the Ministry of Health issued a notice, in the national new 100 billion yuan central investment arrangement, the special investment of 4.8 billion yuan was arranged to support the construction of rural health service system. The new rural medical device investment of “4.8 billion new investment in 2008” increased by 1.5 billion, and the new rural medical device investment of “2006” 67. 7.1 billion, with a total increment of 82. 7.1 billion. 82% of the increment.
7.1 billion mainly invested in rural medical equipment procurement, mainly in 2008-2010. On July 3, 2009, the Ministry of Health held a press conference on the centralized procurement of medical devices. Zhao Zilin, director of the planning and Finance Department of the Ministry of Health, said: “The Ministry of Health and the national development and Reform Commission have launched a plan to improve the construction of primary medical and health service system. By 2011, the total planned investment will be about 100 billion yuan.”
Medical device enterprises are undoubtedly the leading role in this market. In China’s medical device market, the high-end hospital market is dominated by foreign enterprises with technological advantages, and the competitors in the low-end hospital market include nearly 10000 local enterprises. With significant cost advantages, strong market recognition, and their own efforts, local enterprises are also growing day by day. Not only maintain a huge share in the low-end market but also accelerate the penetration of the high-end market. According to the statistics of the organizers of China Med 2009, the proportion of exhibitors from domestic medical device enterprises has been increasing. This year, the proportion of domestic enterprises accounted for 72%, up from 69% last year.
Capital is playing a huge role in today’s world, and the injection of capital undoubtedly brings a stronger impetus to the medical device market. Although the world is still under the shadow of the financial crisis, the investment boom in the medical industry has quietly risen, and mergers and acquisitions in the industry are also large. At present, the profit margin of high-end medical equipment manufacturers remains above 25%, and the profits of medium and low-end equipment manufacturers will not be less than 13%.