2016 China's medical device industry development trend

2016 China's medical device industry development trend

After experiencing the price cuts in 2015, the medical device industry has “trauma”, but its potential remains the same. There is still room for improvement in the future. In 2016, the safety of medical equipment products may become the focus of the FDA, and financing will become an important theme in the medical machinery industry.

The domestic medical machinery industry has great development potential

In 2004-2014, the compound growth rate of the medical device industry revenue reached 25%, much higher than the global growth rate of 7%-8%. In 2014, the sales volume of China's medical device industry exceeded 200 billion yuan, accounting for the global sales of medical devices. 7%, there is still room for improvement in the future.

2016 China's medical device industry development trend

Four drivers drive high growth in the industry

We believe that under the trend of industry consolidation and import substitution acceleration, population aging (upgraded health care consumption demand), grassroots market volume, private sector development and technological innovation and upgrading will be the four carriages that directly drive the accelerated development of the medical device industry.

(1) Increased demand for aging health care:

According to the Statistical Bulletin of the National Bureau of Statistics on National Economic and Social Development in 2014, at the end of 2014, the number of people aged 60 and over in China was 210.42 million, accounting for 15.5% of the total population; the number of people aged 65 and over was 13.755 million, accounting for 13.55 million. More than 10.1%, breaking through 10% for the first time. China has entered an ageing society (when a country or region has an elderly population over 60 years old, accounting for 10% of the total population, or an elderly population over 65 years old, accounting for 7% of the total population, which means that the population of this country or region is aging. Social), and the trend is still intensifying. It is estimated that in 2025 China's population over 60 years old will exceed 300 million.

The rising proportion of the elderly population and the increasing awareness of people's health care will increase the demand for medical resources, especially for medical high-value consumables and home smart medical equipment . The coverage of medical insurance coverage and reimbursement will further provide demand protection. .

2016 China's medical device industry development trend

(2) The demand for primary medical institutions:

1. Stock demand: As of the end of November 2014, there were 922,000 primary health care institutions in China, including 34,000 community health service centers (stations), 37,000 township health centers, and 649,000 village rooms. Clinics (laboratory) 19.0 million. According to the relevant plan of the new medical reform, the Ministry of Health and the National Development and Reform Commission will invest 100 billion yuan to support the construction of about 2,000 county hospitals, 5,000 central health centers and 2,400 community health service centers nationwide, and the equipment allocation in primary health care institutions. Carry out centralized procurement of medical equipment. Under the price-performance advantage and policy orientation, primary medical institutions tend to give priority to purchasing domestic medical devices.

2. Incremental demand: As the state takes the lead in implementing zero-complementation of drugs in primary medical institutions and increasing the proportion of reimbursement for grass-roots medical treatment, the number of visits to primary-level medical institutions has gradually increased. In addition, the "CPC Central Committee's Decision on Comprehensively Deepening Reforms on Several Major Issues" mentioned that China will deepen the comprehensive reform of grassroots medical and health institutions, improve the operational mechanism of networked urban and rural primary health care services, and improve the rational classification of medical treatment. We expect that the number of grassroots visits will accelerate in the future, which will drive the procurement needs of medical equipment at the grassroots level.

2016 China's medical device industry development trend

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