What's The Difference Between China And The United States In Jumping The Second Largest Medical Equipment Market?
After 30 years of sustained and rapid development, China's medical equipment industry has initially built an industrial system with complete professional categories, complete industrial chain and strong industrial foundation.China has overtaken Japan to become the world's second-largest market for medical devices.
According to the 2018-2020 China health industry investment research report data: since entering the 21st century, China's medical equipment industry as a whole into the rapid growth stage, the sales total of 17.9 billion yuan, from 2001 to 2014, or about 255.6 billion yuan,
increased by 14.28 times.From 2010 to 2016, the domestic medical device market grew from 126 billion yuan in 2010 to 370 billion yuan in 2016, with a compound annual growth rate of 19 percent.67%. In 2017, China's medical device market has exceeded 400 billion yuan.
Although the sales scale of the domestic medical device market has increased rapidly, the consumption proportion of drugs and medical devices in 2015 was only 1:0.33, well below 1:0.The global average of 7 is lower than 1 in developed countries.At the level of 02:1, the domestic medical device market has a broad prospect and the market is far from saturated.
I. four major problems in Chinese medical device enterprises
1. Low-price bidding strategy for domestic brands.Lack of strategic positioning, lower than the standard of high-end products, with the agent synchronous compression of profits.
In the competition, we are at a disadvantage. We do not have enough profits to continue research and development and lack financial support.
2. It is difficult for a single technological breakthrough to form platform advantages.Lack of long-term technology portfolio, diluted customer development costs, not dare to invest in the cultivation and development of customers.
3. There is a technical detail gap in the process of simple imitation.Similar in shape but not in spirit, different in quality, with the production of imported products localization, domestic enterprises should truly master technology and product research and development ideas.Key raw materials, high precision processing equipment and technical mastery can significantly shorten the gap.
4. Higher requirements for quality control.The safety of medical devices comes before benefits. The r&d and technical change of products should be repeatedly verified and confirmed. The system must ensure the stability of the batch of products and continuous improvement.According to the official website of the state food and drug administration, the "administrative measures on the conditions and records of clinical trials of medical devices", which have been published since January 1, 2018, has been put into effect.
2. The disadvantages and advantages of Chinese medical devices compared with foreign ones
There is a certain gap between the size of China's medical device market and that of foreign countries, but the growth rate is amazing:
Global medical device market size in 2016 was $406.3 billion, America's largest market, at $208.4 billion, while China's market size is 370 billion yuan, accounting for 1/6 of the global market, the growth rate of medical equipment in the United States only 6.China's growth rate is at 19 percent.About 67%.
Medical devices account for 42% of the global medical market, while Chinese medical devices account for 9% of the total.16%, China's medical device industry still has a lot of room to grow.
China's medical device companies have a huge gap in revenue compared with the U.S. but are growing much faster than the U.S. and the global average.Revenues at the TOP10 Chinese medical device companies rose 30 per cent in 2016 from a year earlier, compared with just 6 per cent in the us.84%.
Both absolute and relative investment are far behind that of the United States:
In 2016, the r&d investment of the TOP10 U.S. medical device revenue enterprises totaled 10.4 billion us dollars, accounting for 8 percent of the total revenue.14%.In the same period, the r&d investment of the TOP10 enterprises in China's medical device revenue was 18.6 billion yuan, accounting for 5 percent of total revenue.35%.
The research and development gap at home and abroad is mainly reflected in: insufficient volume, originality of products, technical details, core materials and key components.The cooperative r&d mode of domestic industry and clinical demand is gradually becoming mature, and the original products are relatively scarce.
3. In the next three years, the market for in vitro diagnosis, neurology and cardiac devices is full of imagination
In vitro diagnosis continues to lead medical devices, accounting for 13 percent of the industry's total sales.1%. In vitro diagnosis will remain the largest sub-market in the medical device market by 2020.
Cardiac devices came in second place, followed by traditional strengths such as diagnostic imaging, orthopedics and ophthalmology.
Neurology is the fastest-growing submarket for medical devices.The rapid growth of medical device market is also because many diseases are difficult to be solved with drugs. Therefore, medical diagnosis and neuromodulation will contribute to the diagnosis and treatment of diseases.
On the whole, investment in medical innovation technology will be the future trend.China's future market, domestic import substitution is the general trend, the national policy is also tilting towards domestic equipment.Overseas, cost-effective Chinese manufacturing will challenge international brands at an early date on a global scale.Worldwide will break through the bottleneck of medical equipment level of development, deep tillage clinical research, new material, new technology and other basic subjects, and connecting with the emerging disciplines such as artificial intelligence, speed up technology iteration.