Market Development Prospects of the Medical Device Industry

Medical devices includes medical forceps, medical cannulas, needle holders, medical suture scissors, etc. They are the most basic element of medical treatment, scientific research, teaching, institutions, and clinical subjects. Today we will focus on the market development prospects. of the medical device industry.

 

On October 21, 2019, the "Medical Device Blue Book: China's Medical Device Industry Development Report (2019)" jointly issued by the Chinese Society for Drug Administration and the Social Sciences Literature Press pointed out that although medical device production and operation enterprises are "many, small, low", the industry's R&D investment is significantly lower than that of multinational medical device companies, but the industry's development prospect is still good.

 

According to the report of the Prospective Industry Research Institute, the statistical data of medical devices in the past years shows that the growth rate of the added value of the medical device industry is significantly higher than that of the pharmaceutical industry. The total operating income of 50 listed companies in 2018 was 94.25 billion yuan. Comprehensive analysis and judgment show that in 2018, the main operating income of medical device manufacturers in China is about 638 billion yuan, and the main operating income of medical device manufacturers is expected to exceed one trillion yuan in 2021-2022.

 

 

1. The Medical Device Industry in China Lacks Competitiveness.

Although China has certain medical device manufacturing capabilities, there are still structural gaps in medical device products, such as gaps in technology, materials, equipment, and process levels. The new concepts lack of independent innovation technology makes it difficult to manufacture high-value-added products that conform to medical technology trends, some key core component technologies have not yet been completely overcome, some subdivisions need to be improved in the specialization, and some industrial structures are too fragmented. At the same time, high-end manufacturing equipment and product quality testing instruments rely on imports and lack the right to speak in the advanced medical device market.

 

More than 90% of medical device manufacturers are small and medium-sized enterprises, with an average annual revenue of 30-40 million yuan. Compared with the 300-400 million yuan of domestic pharmaceutical companies, there is still a huge gap.

 

The data shows that from 2008 to 2018, the number of Type I and Type II production companies increased rapidly, with compound annual growth rates of 6.8% and 2.4% respectively. Among them, the number of Type I production companies grew the most rapidly, and the number of Type III production companies is on a downward trend in the past four years. The compound annual growth rate is -0.3%. It is mainly because of the lower technical requirements for the Type I and Type II medical device companies and the smaller capital, while the Type III medical device companies have high technical requirements and higher capital requirements. Since 2014, medical device supervision has become stricter and access standards have increased higher, which is also an important reason.

 

 

2. In the Next Ten Years, China's Medical Device Industry Will Continue to Develop Rapidly.

With the gradual establishment of a legal environment and the rapid growth of the industry, China's medical device market has become the second largest market in the world.

 

Especially in recent years, the Party Central Committee and the State Council have attached great importance to the development of medical and health undertakings, and issued a series of policies to encourage the innovation of medical devices. The National Medical Products Administration has conscientiously implemented the spirit of the documents of the Party Central Committee and the State Council, and issued a series of documents to continuously encourage the development of innovative medical devices, such as disposable needle holders, high flow nasal prongs, etc. While deepening the reform of the review and approval system, they pay more attention to the supervision of medical devices, and strive to ensure the safe and effective use of medical devices by the public. In the future, it will still be a golden period for the development of the medical device industry.

 

Belle Healthcare is mainly engaged in the production of surgical speculum, medical tape scissors, nasal cannula, forceps medical instruments, etc. For 11 years, hospitals and medical institutions have trusted us to provide high-quality surgical instruments that meet the stringent standards of surgeons. Not only is our ability to develop and produce new and desirable surgical instruments such as ophthalmology, but our surgeon satisfaction is assured - our team of experienced surgical instrument specialists saves time and money for thousands of organizations and individuals each year. If you normally find suitable medical equipment suppliers, please contact us.