2020 Medical Device Industry Chain Analysis: Relatively Mature Upstream Development of Medical Devices

Medical devices refer to instruments, equipment, appliances, in-vitro diagnostic reagents and calibrators, materials, and other similar or related articles, including the necessary computer software, used directly or indirectly on the human body.

Their efficacy is primarily achieved through physical means, not through pharmacological, immunological, or metabolic means, or even if these means are involved, they only play a supporting role.

The purpose is the diagnosis, prevention, monitoring, treatment, or alleviation of diseases; the diagnosis, monitoring, treatment, alleviation, or functional compensation of injuries; the testing, replacement, regulation, or support of physiological structures or processes; the support or maintenance of life; pregnancy control; providing information for medical or diagnostic purposes by examining samples from the human body.

Medical Device Industry Chain

Currently, China's medical device industry has formed a relatively mature industrial chain. The upstream industry includes the supply of medical device components, medical raw materials, processors, and third-party services, involving industries such as electronics manufacturing, machinery manufacturing, biochemistry, and materials; the midstream industry is the production of medical devices, including the production of medical medical devices, household medical devices, and medical consumables. Downstream applications include various hospitals, physical examination centers, community medical centers, and home customers.

Medical Device Industry Chain Diagram

Source: Compiled by the China Business Industry Research Institute

Upstream Development of Medical Devices is Relatively Mature

The development of the medical device industry is inseparable from the support of upstream component manufacturing, and the technological development of the upstream industry will also promote the development and progress of the medical device industry. The electronics industry provides electronic components, circuit boards, chips, and other electronic components for large medical equipment; the biochemistry industry provides the medical device industry with support for bioinformation detection technology and reagent production; the materials industry provides special materials for the production of medical device equipment.

The upstream industry mainly provides the medical device industry with basic products such as components and raw materials. The scale of suppliers varies, and the industry is developing rapidly and is relatively mature, providing good basic support for the medical device industry.

Numerous Midstream Manufacturers

From the perspective of medical device manufacturers: Although the number of medical device manufacturers in China decreased in 2015 due to changes in the regulatory environment, it has maintained an increasing trend over the past decade. Data shows that as of 2018, there were 17,236 medical device manufacturers in China, an increase of 1,112 from the previous year.