Source: Southwest Securities
China's medical device growth rate exceeds global growth rate, but the concentration and the proportion of domestic ratio are low.
In 2017, the global medical device market was US$405 billion, an increase of approximately 4% year-on-year. It is expected to reach US$595 billion in 2024, with a compound growth rate of approximately 5.6%. From the perspective of sub-sectors, the proportion of in vitro diagnosis is still the largest, followed by cardiovascular, imaging equipment, orthopedics.
In 2017, the size of China's medical device market was 442.5 billion yuan, a year-on-year increase of 20%, more than four times the growth rate of the global market. In terms of market share, the market share of medical imaging, in vitro diagnostics, low-value consumables, and cardiovascular device consumables is high. Compared with the global market, China's market share of orthopedics, ophthalmology and endoscopy is relatively low.
Compared with global medical device giants, China’s medical device companies are small in both revenue and market capitalization.
From the perspective of industry concentration, the global medical device market is highly concentrated, mainly by multinational giants occupying the market.
In 2017, the top 20 medical device companies in the world accounted for 55% of total global sales, and the other 20,000 medical device companies accounted for only 45%.
China's medical device industry is fragmented. In 2016, the number of production enterprises reached 15,343. Among the top 10 companies, there are 7 multinational companies. Among the top 20 companies, there are 13 multinational companies. There is still huge room for domestic medical device import substitution.
Domestic medical devices have achieved import substitution in a few sub-segments such as biochemical diagnosis, cardiac stent, orthopedic traumas, monitors, etc. Most fields are still dominated by importing companies such as chemiluminescence, blood analysis, endoscopy, ultrasound, orthopedic joints, pacemakers and other fields accounted for more than 50%.
China's medical device market has great potential, and many factors have driven the rapid growth of the industry.
Reprint: medworld Medical World