Therapeutic appliances and consumables are strengths of the Chinese Medical device Industry
Business potentials in China is no more an unknown fact to the world, representing 1/5th of the global population it is a treasure for businesses as workforce availability is the most. Being the most populated nation it also includes the senior most group thus paving way to the healthcare growth. Recently, there have been massive changeovers in the domestic policies which have flipped the medical industry towards betterment. The country had a medical device market of around $8-10 billion by the end of 2008 which rouse up to $16 billion by 2010. Though other industries were slashed to almost nothing during the 2008-09 global economic melt-down, Chinese medical device industry was among the select few which didn’t see the dark days.
The growth is SLOW but STEADY:
Although the Chinese medical device industry was one of the fastest growing businesses in the world, the pace of its growth has declined in the recent few years. The worldwide economic slowdown is cited as a reason for the same. The medical device sector of the region coming down below 13% for a span of first 7 months in the year 2009 was an indication. There are several levels of medical equipments in Chinese medical market such as the high-end range of mass-market devices segment. The mass market medical equipments are mostly the ones which are older technologies re-invented by the local manufacturers at a competitive price tag. On the other hand, high-end medical devices are the ones which are relatively new in the industry and are outcomes of the research works of international manufacturers.
There is a stiff contest between the local players and (Multinational Corporations) MNCs where the later is winning quite comfortably in the present scenario. Strong distribution network and service infrastructure are factors due to which the international producers fare better than the local manufacturing parties.
Even though the growth percentage has decreased, China is ought to overtake Japan and become the second largest medical device industry after USA by the end of 2015.
Latest relaxation of Chinese FDA policies has benefited overseas medical device suppliers
China is estimated to have an 18% of the elderly population (65 years+) out of the 1.45billion by 2020. This massive population growth will require proper support from the medical device and healthcare industries for population stability. Medical device market witnessed an above 15% yearly rise throughout the 1990’s, the current average stand around 18-20% per annum.
By the end of 2014, the Chinese healthcare sector was calculated to be $41.8billion, half of this rooted from the international medical devices imported from overseas MNCs.
Front running companies in medical device:
Latest high-tech medical devices have become common in the Chinese healthcare sector, devices such as the Magnetic Resonance Imaging (MRI) and Computed Tomography (CT) scanning machine are extensively in demands and monopolized by healthcare companies like Siemens, GE and Philips along with smaller investing MNCs in the healthcare industry.