Ultrasound at CMEF: Overseas Market Slowdown, Rise of China's Medical Ultrasound Diagnostic Equipment Market

This article is from CMEF China International Medical Equipment Fair, and the copyright belongs to the original author.

With the sustained and stable economic development, the increase in per capita disposable income, population growth, population aging, and the increase in demand for high-level medical care, the global medical device market is booming.According to statistics, in 2014, the global market size of medical ultrasound diagnostic equipment reached about US\$6.2 billion, and it is expected to reach US\$7.4 billion in 2019, with a compound annual growth rate of 3.6%.

Although China's ultrasound industry started late, after years of development, it has initially formed an industrial system with complete professional categories, a complete industrial chain, and a strong industrial base. The scale of the domestic ultrasound imaging equipment industry has been growing year by year, and China has become the world's third largest color ultrasound market after the United States and Japan.It is estimated that the market size of medical ultrasound diagnostic equipment in China will reach 9.1 billion yuan in 2019, with a compound annual growth rate of 5.7%.

Overseas market slowdown

Ultrasound diagnosis has advantages such as non-invasiveness, high sensitivity, wide application, low cost, and easy operation, and most clinicians can operate and understand it. Using ultrasound diagnosis, arbitrary cross-sectional images of organs can be obtained, especially the movement of moving organs. Imaging is fast, diagnosis is timely, painless and safe, and it is a non-invasive examination.

Ultrasound diagnostic equipment uses the physical characteristics of ultrasonic waves and the differences in the acoustic properties of human organs and tissues to display the physiological state of diseases in the form of waveforms, curves, or images to assist in disease diagnosis. Because the equipment is not as expensive as CT or MRI equipment, and arbitrary cross-sectional images of organs can be obtained, its clinical application is very popular, especially in the field of soft tissues.

According to QYResearch statistics, in 2016, the global market size of medical ultrasound diagnostic equipment reached US\$6.7 billion, equivalent to 45 billion yuan, and it is expected to reach US\$7.4 billion, equivalent to 50 billion yuan, in 2019. The compound annual growth rate from 2016 to 2019 is 3.4%.

From a regional perspective, the ultrasound equipment layout in developed countries overseas started early, and the market is basically saturated. The growth momentum mainly comes from the replacement of existing equipment, and the growth rate has gradually slowed down. Emerging markets are still in the growth stage. On the one hand, they are driven by the increase in demand brought about by population aging and increased awareness of diseases, and on the other hand, the integration of ultrasound technology with other medical imaging and technological innovations in application scenarios have created new market demands.

In terms of market competition, GE and Philips still maintain a high market share, with a market share of over 20% in 2015. However, Siemens has continued to weaken due to various reasons such as company operations, and its market share has gradually declined, being surpassed by Japanese ultrasound companies Toshiba and Hitachi. Domestic companies, represented by Mindray and Edan, have already entered the top ten in the world ultrasound market, with Mindray and Edan ranking sixth and tenth respectively.

The Rise of the Chinese Market

With a population of 1.3 billion, and with the increase in aging, changes in disease patterns, and the rapid increase in medical needs, the prospects of the ultrasound market in China are higher than overseas, becoming a gold brick market where the contenders compete. According to IHS data, in 2016, the domestic ultrasound diagnostic equipment market revenue reached 8 billion yuan, and it is expected to reach 9 billion yuan in 2019, with a compound annual growth rate of 5.7% from 2014 to 2019.

From the perspective of market revenue, the growth rate is not outstanding compared to the international market. The main reason is that domestic ultrasound sales are still dominated by low-end and mid-to-low-end ultrasound. The Price of imported high-end ultrasound is about 2 to 3 million yuan, while the Price of domestic mid-to-high-end ultrasound is between 600,000 and 1.2 million yuan, and the unit Price of domestic low-to-mid-end ultrasound is about 100,000 to 300,000 yuan. Due to the advantage of cost performance, mid-to-low-end products have shown a significant upward trend in sales volume, but due to the rapid decline in Price, the sales revenue has slowed down.

In terms of specific products, the demand for specialized ultrasound equipment is gradually strengthening. The sales volume and sales revenue of gynecological color ultrasound have grown rapidly, with a growth rate of 39% and 38% respectively from 2016 to 2017, leading the growth of the ultrasound market; while the demand for cardiac ultrasound is also increasing, with sales revenue and sales volume growing by 14% and 18% respectively.

In terms of market competition, in recent years, domestic equipment has gradually squeezed the market share of imported Brands with excellent Price-performance ratio, which is particularly evident in sales volume. In 2015, domestic Brands Mindray and Edan ranked first and third with market shares of 18% and 12% respectively. The rise of domestic Brands and the implementation of import substitution policies have caused foreign Brands to retreat to the high-end product market, and low-to-mid-end markets have lost competitiveness. Domestic Brands started to break through from the low-to-mid-end market in the initial stage of import substitution, winning with Price-performance ratio and obtaining high sales market share.

However, from the perspective of sales revenue, GE, Philips, and Siemens maintain their dominant position, with a total market share exceeding 60%. Domestic Brands Mindray, Edan, and Shantou Ultrasound ranked fourth, fifth, and seventh respectively with market shares of 10%, 7%, and 2%.

American and European Brands are in a monopolistic position at home and abroad, which can be analyzed from a technical perspective. American companies are more adept in digital electronics technology and computer fields, while Japanese companies are strong in analog electronics technology, discrete components, and optics. As ultrasound shifts from analog to digital, Japanese Brands have gradually declined, while American and European Brands have become stronger, therefore GE and Philips occupy a large market share with superior performance.

Today, C-home editor will introduce two leading companies in the field of domestic medical ultrasound equipment: Shantou Ultrasound and Shenzhen Wisonic, which are about to unveil their high-end new products at the 82nd China International Medical Equipment (Autumn) Fair.

From "Made in China 2025" to the "Healthy China 2030 Planning Outline", in recent years, frequent policies related to medical devices have emphasized the localization of high-end medical devices. The new round of medical reforms proposes to reduce the increase in unnecessary medical service and examination fees, which undoubtedly provides huge development opportunities for domestic enterprises with high cost performance. Industry audiences with research and procurement plans should not miss it!

Shenzhen Wisonic Medical Technology Co., Ltd.

Shengzhen Wisonic Medical Technology Co.,Ltd

Shenzhen Wisonic Medical Technology Co., Ltd. (Wisonic) is a high-tech enterprise engaged in medical equipment, providing solutions in three areas: life information support, intelligent ultrasound imaging, and cloud medical services. It has established joint technology laboratories and clinical training centers for new technologies with Michigan State University in the United States, Tsinghua University, and Peking Union Medical College Hospital. In 2015, Wisonic was recognized as a "national high-tech enterprise", and in 2017, it was officially listed on the NEEQ. To date, Wisonic products have entered more than 50 countries and regions and more than 200 Class-A hospitals in China.

Full-digital Internet portable color ultrasound - Clover

Clover is a high-end portable Internet color ultrasound launched by Wisonic for primary care applications. It adopts an innovative holographic HOLO platform, customized features tailored to clinical needs, and optimized hardware architecture. At the same time, it accurately grasps the pulse of the times, equipped with a powerful Wisonic cloud system, realizing real-time remote consultation, and bringing users an unprecedented ultimate experience.

Remote diagnosis using ultrasound has always been a challenge and pain point in telemedicine, as the quality of ultrasound images heavily relies on the user's skill and experience. To ensure high-quality remote consultations, real-time communication between doctors at different levels is necessary, which poses significant challenges to the real-time and stability of data transmission. The 5G ultrasound solution achieves ultra-high-speed and ultra-low-latency data transmission, enabling real-time synchronization and interoperability of images, voice, and scenes. This allows tiered medical treatment to be implemented effectively.

ou Institute of Ultrasonic Instruments Co.,Ltd.

Shantou Institute of Ultrasonic Instruments Co., Ltd. (SIUI), established over four decades ago, has always been committed to the innovative development of human health and safety, adhering to independent research and development.

In 1983, successfully developed China's first B-type ultrasound diagnostic instrument;

In 2003, a comprehensive digital upgrade and replacement began, starting to replace imported products comprehensively;

In 2008, pioneered real-time three-dimensional (4D) ultrasound imaging technology domestically;

In 2011, pioneered medical ultrasound elastography technology domestically;

In 2013, the "Hongyun" series of products were launched, ushering in the era of cloud ultrasound;

In 2016, the "Maili" series of products were launched, leading the world's ultrasound into the intelligent era;

In 2018, SIUI's Wanji new factory intelligent factory was officially put into use, opening a new chapter for artificial intelligence.

Full-digital color Doppler ultrasound diagnostic system  Apogee 5T

Apogee 5T is the world's first intelligent trolley-type color ultrasound. The world's medical ultrasound has evolved from analog to digital, and from digital to cloud technology, over several decades. The successful launch of Apogee 5T now marks the entry of the world's medical ultrasound into a new era of intelligent ultrasound.

"Maili" is the first intelligent ultrasound system in China. It was developed based on an in-depth understanding of the core needs of ultrasound doctors. Through active learning, data accumulation, and intelligent computing, it has become the best intelligent brain and assistant for ultrasound doctors.

SIUI's color ultrasound users can send "online guidance" requests through the Maili doctor APP to ask experts for online guidance. Experts can see the operator's operation and the ultrasound images on the screen in real-time, achieving remote guidance and consultation.

Full-digital color Doppler ultrasound diagnostic system  Apogee 6800

Apogee 6800 uses Hongyun platform 2.0 and Acoustic Amplifier acoustic coding amplification technology. By intelligently encoding and amplifying the extracted echo signals, it enhances the original weaker detail information. It possesses Hongzhen image processing technology and automatically enhances the output of effective information based on this, improving overall uniformity and greatly enhancing image resolution. Through intelligent software to identify and control the front-end echo signals, and to control the gain based on the different densities of the medium, it achieves the effect of improving contrast resolution. It has the world's leading technology shear wave elastography, which can analyze and judge the elasticity imaging of organs, assisting in the differential diagnosis of benign and malignant tumors.

It has complete clinical application functions, multi-disciplinary intelligent measurement and intelligent lesion identification, and is equipped with ultrasound teaching software and efficient workflow.

 Intelligent "cloud" function module: Ultrasound equipment realizes data interoperability with various mobile terminals through cloud servers, solving problems related to ultrasound diagnosis regional collaboration and telemedicine services.

Intelligent Breast Whole-Volume Ultrasound System IBUS BE3

IBUS BE3 is a new and cutting-edge breast ultrasound instrument, representing a major breakthrough in the field of ultrasound imaging and diagnostic modes. It is mainly used for whole-volume breast ultrasound, with supplementary applications in small organs, peripheral blood vessels, abdomen, urinary system, obstetrics and gynecology, and interventional procedures. It features safety and comfort, high image resolution, and effective reduction of missed diagnoses, making it particularly suitable for Asian women's breasts.

Intelligent breast whole-volume imaging obtains multi-slice, multi-angle, and multi-directional information, especially coronal plane scanning. Coronal plane images intuitively display the anatomical information of breast tissue when the patient is supine during surgery, giving coronal images higher clinical value and assisting surgeons in more accurate surgical planning.

Overall, judging from the current market situation, the ultrasound market is expected to experience rapid growth in the near future. In terms of competition, the leading company effect will become increasingly prominent. On the one hand, leading companies have already obtained favorable conditions such as Brand, cost, and scale effects, and have the ability to "exchange price for volume" in the low-end market. On the other hand, the high-end market has formed technical and reputation barriers, making it difficult for small and medium-sized enterprises to share the market.