CHINA MEDICAL DEVICES MARKET

KEY FINDINGS

• handsix Chinese manufacturers among the top 50 global medical device companies. The Chinese government will continue to support the growth of domestic companies in various forms, including granting subsidies and tax deductions.

• Chinese hospitals are encouraged to upgrade their medical equipment through discounted loans, for which they pay an interest rate of only 0.7 per cent within two years. The loan incentive policy was applauded by medical device makers, as major beneficiaries of the government initiative.

• According to NHC, there are 17,294 hospitals located in counties across China. Upgrading medical facilities in counties will significantly boost the country’s medical device market.

• China’s medical device market is already large, making up 25% of the market value in Asia-Pacific and 8.3% of the global total.

• The country currently imports 80% of its high-end medical devices. Domestic manufacturers tend to focus on class I devices, which have the lowest level of risk and complexity.

• China is largely dependent on foreign powers with high prices for their most advanced medical procedures. 

• Mergers and acquisitions will also accelerate the growth of Chinese companies. Mindray Medical International Co., Ltd. China’s biggest medical device manufacturer by sales revenue, is now the number four ultrasound vendor in the world.

• The market has grown, so have the pitfalls. Registration that was relatively easy five years ago in China is now a lot tougher and slower, and requires much more documentation. 

• A huge pitfall in doing business in China today is the increase in tenders and volume based procurement (VBP).

• There's significant demand for advanced medical devices such as diagnostic imaging equipment, surgical robots, and minimally invasive devices.

• The IVD market is particularly promising, driven by advances in technology and growing awareness of preventive healthcare.

• As set out in recent policy, it seeks to raise domestic medical device use in higher class hospitals to 70% by 2025 and 95% by 2030. 

• China is utilizing 3D printing technology more and more in the production of medical devices. With 3D printing technology, China is manufacturing artificial limbs and other body parts. 

CHINA MEDICAL DEVICES MARKET OVERVIEW

China has become the world’s second largest medical device market with an average growth of 20 per cent year-on-year. However, this rapid growth has not kept up with strong demand driven by an increasingly aging population and a growth in the number of affluent consumers who seek better quality medical services.

China’s medical device market has grown tremendously over the last five years. Accounting for about 20% of the world’s population, wealthier upwardly mobile citizens demanding better healthcare, and more efforts by the Chinese government to provide healthcare to its citizens, there is no end in sight to this market growth.

However, as the market has grown, so have the pitfalls. Registration that was relatively easy five years ago in China is now a lot tougher and slower, and requires much more documentation. A dramatic increase in the number of tenders and volume based procurement (VBP) has reduced prices significantly. 

Reimbursement of new products takes time, has bureaucratic barriers, and is generally geared to locally made products only. Finally, while intellectual property issues have gotten better, it is still not easy for foreign companies to win in China’s court system.

While VBP of devices has been primarily focused on the cardio and orthopedic sectors to date, there is no way to determine how many other device products will encounter huge price drops in the future. To avoid such situations, foreign device companies need to focus their business in China on new state-of-the-art medical technologies that the Chinese people need. Registering these new products on a timely basis is crucial to success.

China also encourages the development of private insurance. Given the reality that reimbursement for many products and services is very low, it is advisable to consider cooperating with private insurance companies that have enrolled a lot of wealthy people and families whose healthcare needs are obviously higher than those of the average person in China.

Given the size and growth rate of the Chinese medical device market, there are still plenty of opportunities for foreign companies to make profits. Some foreign companies are increasing their exports or are setting up manufacturing or joint venture manufacturing operations to make products in China, for the Chinese market.

The real danger for the foreign players is that local rivals steal a march on them. Hospitals withholding orders thanks to the anti-corruption reform may limit Western firms’ ability to keep introducing new device updates to maintain their competitive lead, allowing others to catch up. Domestic brands, which have historically lagged in the advanced end of the medical device market, took the whole of last decade just to hike their share from around 20% to 30%.

INTRODUCTION TO CHINA MEDICAL DEVICES MARKET

Any object intended for medical use is, in general, considered a medical device. These tools aid in patient diagnosis and treatment, enhancing quality of life and assisting patients in overcoming disease or illness

There are possible hazards involved with the use of medical devices and thus these goods must be proved to be safe and effective with restrictions put in place by organizations and governments around the world.

The amount of testing that is typically necessary before a gadget is authorized to be used increases in proportion to the risk that the item poses. However, it is also true that the potential benefit to the patient increases with risk.

China is one of the world’s largest medical device manufacturing hubs, and foreign multinational companies dominate the market, with China currently importing over 70% of medical devices.

There are three general classifications for medical devices in ChinaClass I: “low risk” medical devices, which are safe and effective when administered routinely (e.g., surgical clothing and caps).Class II: “medium risk”(e.g., thermometers, and electrocardiogram (ECG) machine).Class III: “high risk” medical devices, (e.g., implants, ultrasound scalpel, hemodialysis machine).

Regulation for the Supervision and Administration of Medical Devices, following which a number of implementation regulations have been issued by the China Food and Drug Administration (CFDA), the key regulator of China’s pharmaceutical and healthcare industry. These include the Provisions for Supervision and Administration of Medical Device Manufacturing, the Provisions for Supervision and Administration on Medical Device Distribution and the Provisions for Administration of Medical Device Registration.

Through the intensification of its Healthy China 2030 strategy, the Chinese government is continually working to improve the health of its citizens. International businesses are encouraged to ship to China their cutting-edge medical technologies and equipment for disease prevention and treatment that local MedTech enterprises are unable to offer.

Since April 2021, the Chinese government has worked on a medical technology five-year plan (2021–25), aiming to make at least six Chinese companies reach the top 50 revenue-making medical device companies globally. Currently, there are four Chinese companies in the top 100, but none in the top 50.

CHINA MEDICAL DEVICES MARKET SIZE AND FORECAST

The China Medical Devices market accounted for $XX Billion in 2023 and is anticipated to reach $XX Billion by 2030, registering a CAGR of XX% from 2024 to 2030.

CHINA MEDICAL DEVICES MARKET TRENDS

Soaring Demand for Digital Health Solutions

• Telemedicine:Integrating remote patient monitoring and virtual consultations is transformed healthcare delivery, especially in rural areas.
• AI-powered Diagnostics:Advanced algorithms are aided in faster and more accurate diagnoses, impacting areas like cancer detection and chronic disease management.
• Wearable Devices:Fitness trackers and health monitoring wearables have fostered preventive healthcare and personalized medicine.

Embracing High-end Technologies

• Surgical Robots:Minimally invasive surgery using robots is gained traction, offered improved precision and patient outcomes.
• 3D Printing: Custom medical implants and prosthetics are being created with unparalleled precision, enhancing personalized care.
• Gene Editing: Advances in CRISPR technology hold immense potential for treating genetic diseases, attracting significant investment.

Focus on Localization and Innovation

• Government initiatives:China is actively supporting domestic medical device manufacturing, aiming to reduce dependence on imports and foster innovation.
• Rise of local champions:Chinese companies have increased developing and commercializing high-quality, affordable medical devices, competing with established players.
• Openness to collaborations:Global medical device companies have partnered with local players to leverage their expertise and navigate the market, leading to knowledge transfer and joint ventures.

CHINA MEDICAL DEVICES MARKET NEW PRODUCT LAUNCH

• Johnson & Johnson: Launched the Vercuil Surgical System, a next-generation robotic surgery platform offering enhanced dexterity and 3D visualization. It hasArticulated robotic arms with a broader range of motion, mimicking natural human movements for improved surgical control. High-definition 3D vision system offering surgeons immersive views of the operative field, enhancing spatial awareness and decision-making. Streamlined console design with touch-screen controls and voice recognition for smooth, hands-free navigation.

• Siemens Healthiness: Unveiled the Accustom NX3 ultrasound system, featuring AI-powered image optimization and workflow automation for improved diagnostic accuracy. It hasAutomatic tissue characterization and noise reduction for clearer, sharper images. Guided exam protocols and automated measurements reducing scan time and improving reproducibility.

• Medtronic: Introduced the Hugo Robotic-Assisted Surgery System, designed for minimally invasive colorectal procedures with improved ergonomics and control. It has an Articulatingsurgeon console offering natural posture and optimal access to the surgical field. Intuitive wristed instruments mimicking natural hand movements for increased precision and dexterity and high-resolution 3D camera system providing immersive views of the surgical anatomy.

CHINA MEDICAL DEVICES MARKET SEGMENTATION

China Medical Devices Market ByHigh-End Devices

• Surgical robots
• Advanced imaging equipment
• Minimally invasive devices

China Medical Devices Market By In-Vitro Diagnostics (IVD)

• Testing
• Diagnosis
• Monitoring

China Medical Devices Market By Digital Health

• AI
• Telemedicine 
• Wearable devices 

China Medical Devices Market By Consumables and DisposablesSyringes

• Catheters
• Bandages
• Surgical instruments

CHINA MEDICAL DEVICES MARKET COMPANY PROFILE

• Medtronic
• Johnson & Johnson
• Siemens Healthineers
• GE Healthcare
• Mindray Medical
• Micro-Tech Medical Devices
• Yuyue Medical
• Lepu Medical
• WeDoctor
• iKang Healthcare

THIS CHINA MEDICAL DEVICES MARKET REPORT WILL ANSWER FOLLOWING QUESTIONS

1. What are the key drivers of growth in the Chinese medical device market, and how are they likely to evolve in the next 5-10 years?
2. How is the aging population of China impacting the demand for different types of medical devices?
3. What are the biggest challenges facing the Chinese medical device market, and how are companies overcoming them?
4. How is the Chinese government's focus on domestic production and innovation affecting the market landscape?
5. Which market segments offer the most promising opportunities for growth, and why?
6. What are the biggest unmet needs in specific healthcare areas, and how can medical devices address them?
7. How is the digital health revolution impacting the Chinese medical device market, and what are the key trends to watch?
8. What are the opportunities for foreign companies to enter the Chinese medical device market, and what are the considerations they need to keep in mind?
9. How is the regulatory environment for medical devices evolving in China, and what are the implications for companies?
10. How is competition shaping the Chinese medical device market, and what are the strategies companies are using to succeed?
11. What are the intellectual property concerns for foreign companies entering the Chinese market?
12. How can companies navigate the complex distribution channels and procurement processes in the Chinese healthcare system?
13. What are the key technological advancements that will shape the future of the Chinese medical device market?
14. How is the role of AI and other digital technologies expected to evolve in healthcare delivery?
15. What are the ethical considerations surrounding the use of medical devices in China, and how are they being addressed?
16. How will the Chinese medical device market contribute to shaping the global healthcare landscape in the future?