乐博

The medical device industry involves many industries such as medicine, machinery, electronics and plastics. It is a multi-disciplinary, knowledge intensive and capital intensive high-tech industry. The basic characteristics of high-tech medical equipment are digitization and computerization. It is the crystallization of multi-disciplinary and cross domain modern high technology. Its products have high technical content and high profits. Therefore, it is the commanding point of competition between major scientific and technological countries and large international companies, and the intervention threshold is high. Even in the sub industries with low gross profit margin and low investment, products with high technical content will continue to appear, and some enterprises with strong profitability will be bred. Therefore, the overall trend of the industry is high investment and high return.

 

1. Development status of medical device industry

With the continuous improvement of people's living standards, the selection of medical devices will be more and more advanced, the product structure will be continuously adjusted, the functions will be more diversified, and the market capacity will be continuously expanded.

 

Market scale of China's medical device industry from 2010 to 2014 (100 million yuan)

 

Related report: the Research Report on China's medical device Market Research and development trend from 2016 to 2022 released by Zhiyan consulting shows that from 2005 to 2010, the average annual compound growth rate (CAGR) of China's medical device industry sales revenue was 27.4%. The sales volume of medical devices industry in China is expected to reach about RMB 110 billion by 2015.

 

In 2015, the total sales of medical devices in China was 56.858 billion yuan, an increase of 4.93% over last year. From 2011 to 2015, the compound growth rate (CAGR) of total sales of medical devices in China was 17.53%.

 

Total sales of medical devices in China from 2011 to 2015

 

The top 10 provinces and regions in terms of sales of medical devices in 2015 are Guangdong, Henan, Beijing, Zhejiang, Anhui, Shandong, Sichuan, Shanghai, Heilongjiang and Hunan. The proportion of the sales of the top 10 provinces and regions in the total sales of the country is 13.39%, 10.10%, 6.94%, 6.92%, 5.90%, 5.75%, 5.48%, 5.21%, 4.53% and 4.50%.

 

Top 10 provinces and regions in terms of sales of medical devices in China in 2015

 

Most medical device enterprises are concentrated in East China, South China and North China, and 44% of enterprises are concentrated in East China.

 

2. Development prospect of medical device industry

China's medical device industry started late, but with the development of economy and the improvement of people's health awareness, from the allocations of high-end medical devices in hospitals to convenient household medical devices will usher in a high demand growth, which will bring broad development prospects for the domestic medical device industry. In particular, the 13th five year development plan for the pharmaceutical industry and medical health has been basically completed, and high-performance medical devices have been identified as one of the key breakthrough areas, which will undoubtedly bring benefits to the future development of China's medical device industry.

 

（1） The process of "localization" was accelerated

From the perspective of national policy promotion, the medical device industry is ushering in a rare policy intensive "promotion period". It is understood that since 2013, 18 policy documents have been issued by relevant ministries and commissions to encourage and support the development of medical device industry, such as measures for the administration of medical device registration, measures for the administration of in vitro diagnostic reagent registration, regulations on the administration of instructions and labels of medical devices, etc, In particular, the release of the new version of the regulations on the supervision and administration of medical devices (hereinafter referred to as the "new version of the regulations") implemented in June 2014 has relaxed the policy of the medical device industry to a certain extent, which is expected to boost the development of the domestic medical device industry to a new level. Various signs indicate that since 2015, the government hopes to promote the "localization" process in the field of medical devices, especially high-end medical devices.

Since the overall market expansion and the rapid improvement of localization rate are the two core logics for the benefit of domestic medical device enterprises, from the perspective of the improvement of localization rate, there is still huge room for improvement in the field of high-end imaging diagnostic equipment and in vitro diagnosis with low market share of domestic enterprises, and the stimulation of relevant policies will accelerate its localization process.

（2） Increased demand in the domestic consumer market

Under the guidance of national policies and the needs of upgrading the equipment of domestic medical and health institutions, medical devices will have a huge domestic consumer market. Relevant data show that at present, China's medical device market has exceeded 100 billion yuan, with an average annual growth rate of about 23%. Compared with the share of foreign medical devices accounting for 42% of the total scale of the pharmaceutical market, the share of domestic medical devices only accounts for 14% of the total scale of the pharmaceutical market, and there is still much room for improvement.

In 2013, the Ministry of science and Technology issued the "12th Five Year Plan" for medical devices, and the Ministry of industry and information technology issued the "12th Five Year Plan" for new material industry. The "Research Report on healthy China 2020 strategy" issued by the Ministry of health clearly points out that for independently developed drugs, medical consumables, medical devices and large-scale medical equipment, the Ministry of health will launch 10 billion yuan of major special projects for the national health industry. The acceleration of economic development has driven the comprehensive upgrading of the demand for medical services, leading to the overall increase in the demand for health services. The gradual opening of the medical service market has accelerated the speed of domestic and foreign capital investment in China's medical service industry, which directly leads to the increase in the demand of the domestic medical device market.

（3） Industry mergers and acquisitions become the main direction in the future

As the basic supporting industry of health service industry, medical devices show great development potential and space. At present, there are many and scattered manufacturers in China. There are about 1800 enterprises with a scale of 50 million, and about 20000 smaller ones. The average output value of each enterprise is about 1 million.

In recent years, the average annual transaction volume of merger and reorganization among medical device enterprises has reached tens of billions of dollars. This trend leads to the continuous optimization of the industrial structure of medical devices and the emergence of large-scale enterprises. Generally speaking, medical devices are indeed a direction dominated by M & A, and domestic enterprises have been doing M & A. According to the analysis of the business format of the medical device industry, the characteristics of the single variety and non extensibility of the technology of the device company lead to the bottleneck of the endogenous development of the company. In the future, to break through this bottleneck and build a multi category platform company, industry M & A is an effective way to quickly break through the bottleneck.

 

3.Key development points of medical device industry in the 13th five year plan

Since the 11th five year plan, the state has paid more and more attention to the development of medical devices. During the 12th Five Year Plan, the state will incorporate medical devices into its strategic development. During the 13th five year plan, medical devices are ready for development.
During the 13th Five Year Plan period, China's medical device industry will focus on five areas, including digital diagnosis and treatment equipment, tissue repair and renewable materials, molecular diagnostic instruments and reagents, artificial organs and life support equipment, and health monitoring equipment. In addition, it will focus on pension, health, disability and other aspects.

Among the five key development areas, digital diagnosis and treatment equipment will be the first of the key projects of the 13th five year plan. During the 13th Five Year Plan period, the state has high support for medical devices and medical equipment. The medical device industry has the important function of stimulating domestic demand and improving people's livelihood. At the same time, it can drive the interdisciplinary integration and the development of scientific and technological innovation and manufacturing level. It is the strategic guiding point for China's national economic transformation and structural adjustment.

In terms of high-end medical imaging industrialization, it is obvious that the mainstream high-end imaging equipment, high-quality, high-resolution, multiple functions and new imaging equipment are still the key parts of the 13th five year plan. The integration of diagnosis and treatment is an important trend. The planning under the guidance of image is also a key development field in the 13th five year plan, especially the combination of high-end image. Renewable tissue repair materials and absorbable implant materials are also very important trends.

Intelligent medicine helps to solve the problem of uneven distribution of medical resources, but developing terminals or software systems or hardware terminals with medical information monitoring, health information monitoring, evalsuation and regulation is a top priority in the medical device industry. The miniaturization of a large number of intelligent detection of health information needs the efforts of our whole industry.

 

4.General development trend of medical device industry

The economic crisis in the world's developed countries has led to the overall decline in the cost of public health services. In order not to be lower than the original medical standard, the products of middle and low-end equipment and low-value consumables originally purchased from developed countries have to be "replaced" by the products of developing countries. Therefore, in the future, medical devices from developing countries will still become the main import destination of developed countries.

At present, medical devices, high-end equipment and cutting-edge technologies, such as cloud diagnosis, are mostly controlled by developed countries. They are relatively easy to enter emerging markets by relying on the advantages of technical funds and market channels, and have a considerable voice. They will play a positive role in the import and localization of high-end equipment and technologies in emerging markets.

 

China's imports of medical devices from 2009 to 2015

 

The imported products of medical devices are mainly high-end diagnosis and treatment devices

 

In the world medical device industry, small and medium-sized enterprises account for an absolute number. In particular, small and micro medical device technology companies are the main force in the research and development of new medical device products and become the key acquisition objects of large companies. Relatively mature enterprises and leading enterprises in a certain field can better become the object of M & A of multinational corporations, so as to eliminate competitors, expand the market sales share in a certain country through private brand marketing strategy, and realize the unique strategy in this field by ending the influence of the original brand while continuously enhancing the influence of private brand marketing.

The digitization and informatization of medical imaging equipment provide reliable help for telemedicine diagnosis and treatment with the help of Internet technology, and improve the level of medical diagnosis and treatment in remote and backward areas. At the same time, it can also implement remote operation with the help of surgical robot (300024) or guide the operation of precursors through modern communication, Implement immediate surgical solutions to improve the high-level medical technology that can not be solved locally or can not visit the site due to space distance. In contrast, the wide application of the Internet provides a more realistic possibility for postoperative patient follow-up and preoperative disease diagnosis, and also provides a basis for service outsourcing worldwide.

At present, modern medicine is accelerating its development towards early detection, accurate quantitative diagnosis, micro non-invasive treatment, individualized diagnosis and treatment, intelligent services and other directions, and constantly puts forward new demands for the innovative development of the field of medical devices. In the process of transforming from disease-centered to health-centered medical model, health status identification and regulation, disease early warning, health management, rehabilitation and health care for grass-roots, families and individuals are becoming new research hotspots, which further puts forward new demands for the innovative development of medical devices.

It is expected that in the next five to ten years, China's medical device industry will be more closely related to the world medical device market, which is bound to have a great impact on China's medical device manufacturing process, new material application, R & D level and marketing network, and promote the transformation of China's medical device products from medium and low-end to high-end products with high added value. The R & D and investment of key products such as imaging, immunization, vaccine, biochemistry, hemodialysis, monitoring, high-end consumables, implantation and home rehabilitation products will break through the bottleneck constraints.

The medical device industry is a sunrise industry in China. If enterprises can seize the first opportunity in the linkage process of future medical development direction, international market environment, domestic market policy and their own development strategy, they will become the leader of the industry.

Source: China industry information