The Chinese market for medical devices is substantial and expanding. In 2019, it recorded sales of RMB629 billion, up from RMB308 billion in 2015, representing a growth rate of almost twofold. Due to Covid-19, the demand for a variety of medical products, such as medical masks, nucleic acid test kits, and ECMO machines, increased dramatically in 2020. As a consequence, it was projected that the industry’s sales will surpass RMB800 billion in 2020. Since 2015, the sector has continuously exceeded the expansion of the economy, with an annual growth rate of over 20%.
China today has over 26,000 makers of medical devices, showing a growth of several small businesses. In 2019, medical equipment comprised around 57% of the market, followed by high-end consumables (20%), low-value consumables (12%), and in vitro diagnostics devices (IVDS) (11 percent ).
The domestic industry is concentrated in four significant regions: the Bohai Rim (focused on Beijing), the Yangtze River Delta (containing Shanghai), the Pearl River Delta, and Central China (including Wuhan, Chengdu and Chongqing). Local governments often assist the creation of medical device industrial zones by providing advantageous policies for establishing inside the zone, such as rent discounts, settlement incentives, and product registration bonuses. China Medical City in Jiangsu province is the biggest of these industrial parks (in terms of number of businesses) with over 110 medical equipment firms.
China currently accounts for around 20% of the worldwide market for medical equipment. It is a rising market that is anticipated to continue its ascent in the future due to the following factors:
1.An aging population causes a rise in the incidence of chronic illnesses.
2.Income growth resulting in higher per capita healthcare expenditures
3.The increase in the number of health care clinics and hospitals
4.Policies that result in reduced drug premiums
As the Chinese economy continues to expand, the emphasis of healthcare consumers will shift from treatment to prevention.