Innovation Forum on Medical Device Design and Manufacturing Industry
To assist and meet the procurement and industry learning needs of medical device manufacturing enterprises,12month20day-21day, byInforma MarketsSponsored “MedtecInnovation Forum on Medical Device Design and Manufacturing Industry-and2022The Annual Exchange Conference •Suzhou Station for Medical Device Design and Manufacturing Industry was successfully held. The event aimed to gather hundreds of enterprises from upstream and downstream of the medical device design and manufacturing industry chain, promote industry exchanges and business cooperation, efficiently connect with market demands, and drive the innovative development of the industry.
Frost & SullivanFrost & Sullivan,Mao Hua, Partner and Managing Director of Frost & Sullivan's Greater China Region, was invited to attend the event and delivered a speech on the current situation and development trends of China's medical device industry.
Partner and Managing Director of Frost & Sullivan Greater China fattening
Mao Hua first briefly analyzed the current situation of the medical device industry from three perspectives: market data, relevant policies, and the investment and financing market. According to him, China has currently become the world's second-largest medical device market, with a market size second only to that of the United States, but per capita spending on medical devices is still far below that of the US. 2021The market scale of medical devices in China in1,308billions, but per capita expenditure on medical devices is only92.6US dollar, per capita medical device expenditure in the United States695.5The US dollar, of course, is China's7.5times.
Mao Hua pointed out that the Chinese medical device market is characterized by a large number of enterprises, small scale, and low market concentration. There are also a lack of giant companies with multi-product layouts. 2021The market share of the top ten medical device companies in terms of revenue in China in12.8%, and among them3home isMNCThey are Siemens, Philips, and Roche, respectively.
Looking at the segmented fields, affected by the COVID-19 pandemic, the top two segments accounting for the largest share of the medical device market in China and globally areIVD, exceptIVDIn addition, the global market tends towards high-value specialized devices. The top market segments include in vitro diagnostic instruments, medical imaging equipment, cardiovascular devices, orthopedic devices, etc. In the Chinese market, in vitro diagnostic instruments, low-value medical consumables, medical imaging equipment, and medical information systems account for a larger proportion.
From the policy perspective, the '14th Five-Year Plan' Implementation Plan for the Construction of a High-Quality and Efficient Medical and Health Service System proposes to establish a comprehensive, well-structured, clearly divided labor, functionally complementary, closely coordinated, efficiently operating, and resilient integrated medical and health service system;2022year9month7Proposed at the executive meeting of the State Council held on "Financial interest subsidy policy": Provide phased financial interest subsidies for loans for equipment renewal and transformation in certain sectors, and increase credit support for social service industries.
The new infrastructure policy will continue to drive hospital construction./With the implementation of upgraded projects, medical institutions will enter a new round of expansion, which is beneficial to the overall medical device market. On the other hand,2020 - 2022High-value consumables for the yearIVDThe decline in centralized procurement prices has slowed down, pricing has become more rational and scientific. It is expected that centralized procurement will shift from fierce 'bidding' to an orderly 'price cap' model. The competitive landscape and market scale will become more controllable, bringing development space for enterprises.
From the perspective of the investment and financing market, China has a high level of activity in medical device investment and financing.2021Year-end2022In the first half of the year, compared with pharmaceuticals and healthcare services, the number of medical device investment and financing transactions was the highest, reaching1,928Pens, and a large number of investment and financing transactions are focused on the early stage. Medical devices are in the angel round andAThe number of wheel's investment and financing transactions reached1,207pen.
At the same time, China's medical device M&A transactions are also very active.2021The number of medical device M&A transactions reached46pen, relatively2020annual growth rate58.6%, with transaction amounts reaching52billion US dollars, compared to2020Year-on-year growth100.0%Although affected by the COVID-19 pandemic,2022In the first half of the year, the number of domestic transactions decreased. However, with the adjustment of China's epidemic prevention policies, it is expected that the trading market will soon recover.
Looking at the entire medical device industry, Mao Hua believes that its future development will show the following trends:
1, The high-value specialty device industry will accelerate domestic substitution.
Data shows that currently, the domestic substitution of medical devices in China mainly focuses on low-value areas such as passive implantable devices and healthcare care instruments. However, the localization rate in most high-end areas remains low. In the future, driven by multiple favorable factors such as technological advantages, model upgrades, policy support, and digitalization, the domestic substitution of medical devices is expected to accelerate from low-value to high-value products, from diagnosis to treatment, and from general-purpose to specialized applications.
2, Local enterprises are actively going global, achieving global sales of their products
Companies in the 'industry chain' category go global through product launches, while those with independent brands do so through product access and production./Entering overseas markets through localization sales, mergers and acquisitions, etc., Chinese medical device companies are currently active in the fields of equipment and consumables overseas. Leading global companies in the industry have made overseas arrangements, fully demonstrating that the overseas expansion strategy is the development direction for Chinese medical device companies today and in the future.
3,MNCAccelerate the domestic industrial layout
In recent years, the combined improvement in centralized procurement and R&D capabilities of local enterprises has compressedMNCMarket share. In the future, strengthened cooperation with local enterprises and new technologies and products will contributeMNCDomestic layout, and at the same time, corporate mergers and acquisitionsM&A) and localized production will becomeMNCAccelerate the domestic industrial layout mainly through
Finally, Mao Hua introduced to the guests present the business coverage of Frost & Sullivan in the field of life sciences. Recently20Over the years, Frost & Sullivan's healthcare team has provided financing and financial advisory services to hundreds of outstanding domestic and international biopharmaceutical, medical device, and healthcare service companies.IPO listingIndustry consulting, strategic consulting, management consulting, and other services. In the medical device sector, Frost & Sullivan has served well-known companies such as Lepucent, NewMed, Qiming Medical, Baxin'an, Mindray Medical, Rendu Biotech, Xintong Medical, and Novogene Health.
