The domestic medical device market maintains high-speed growth, and the industrial cluster effect is obvious

In recent years, global economic growth has been sluggish, but the medical device market has maintained steady growth overall, with the domestic medical device market expanding rapidly and full of development potential.

　　The US and Europe account for the majority of the global market share.

　　From the perspective of global medical device market development, the medical device industries in developed countries and regions such as Europe and the United States started earlier, with relatively higher levels of resident income and living standards, and higher requirements for the quality and service of medical device products. The medical device markets in these countries and regions are hugeand market demand growth is stable.

　　In 2017, the global medical device market size exceeded US\$400 billion; in 2018, the global medical device market size was US\$427.8 billion; it is expected that this figure will reach US\$451.9 billion by 2019.

　　From the perspective of various sub-sectors in the medical device industry,IVD) is the sub-sector with the highest sales in the medical device industry, achieving sales of US\$52.6 billion in 2017; followed by the cardiovascular industry, with sales of US\$46.9 billion; and the imaging equipment industry ranked third, with sales of US\$39.5 billion.

　　Domestic market size reached530.4 billion yuan

　　With the increase in disposable income of residents, the increase in medical needs brought about by an aging population, the expansion and deepening of medical insurance coverage, the demand for medical device products in China will continue to grow. At the same time, a series of policies encouraging medical device innovation have opened up a green channel for product innovation and promoted import substitution. The driving effect of demand-side and policy-side is expected to break the monopoly of foreign medical device products.

　　From 2014 to 2018, the scale of China's medical device market maintained a high-speed growth trend, and is expected to continue to grow. In 2014, the domestic medical device market size was 255.6 billion yuan, and in 2018 this figure reached 530.4 billion yuan. It is expected to exceed 900 billion yuan in 2022.

　　From the perspective of the medical device sub-market, the proportion of mid-to-low-end medical devices in the Chinese market is relatively large, while high-value medical consumables,IVD accounts for only 20% and 11% respectively, which is a significant difference compared with the global market situation, and there is a large room for development.

　　Among35 domestic listed medical device companies, 17 had main business income exceeding 10 billion yuan in the first half of 2018. It is worth noting that among these 17 companies, there are 8 listed companies of IVD medical devices.

　　The top ten companies among China's listed medical device companieshad a total revenue of 46.262 billion yuan in 2018, while Medtronic achieved revenue of US\$29.7 billion in 2017. In general, there is still a large gap between China's leading companies and international leading companies, and there is great potential for future development.

　　Significant industrial cluster effect

　　At present, China has formed four major medical device industrial clusters in the Pearl River Delta, the Yangtze River Delta, the Beijing-Tianjin-Hebei region, and central China.

　　According to incomplete statistics, the total output value and total sales of the above four medical device industrial clusters account for more than80% of the national total. At the same time, due to their different inherent conditions, the four major industrial clusters each show distinct regional characteristics.

　　Overall, China's medical device industry has initially taken shape in terms of regional industry and leading enterprises, but there is still a large gap compared with developed countries in the world in terms of technological level and layout of key sub-sectors, and there is huge room for development.