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Forecast and analysis on market scale and development prospect of China's low value medical consumables industry in 2021

release time:2021-04-21|reading:

Stimulated by the global epidemic, medical health has become one of the hottest tracks, especially the medical equipment industry. At the beginning of the epidemic, the demand for low value medical consumables such as masks and protective clothing doubled; With the gradual expansion of the scope of nucleic acid detection, the IDV (In Vitro Diagnostics) industry, which has risen rapidly in recent years, is growing again. At the same time, Alibaba, Tencent, Lenovo Group, Midea and other cross industry giants have expanded their business and stepped into the tide of the medical device field. Famous enterprises in the industry, such as Kangzhong Medical and Xintong Medical, have also been listed recently.

The huge market demand and the active layout and innovation of enterprises have helped the rapid development of China's medical device industry. According to the Medical Device Blue Book: China's Medical Device Industry Development Report (2019), the main revenue of China's medical device manufacturers is expected to exceed trillion yuan from 2021-2022, and the compound growth rate in the next 10 years will exceed 10%.

  医疗听筒与医疗机械臂(图1) 

Low market concentration of trillion yuan, domestic substitution is on the way

  There are many kinds of medical devices, which are generally divided into four categories: high value medical consumables, low value medical consumables, medical equipment and IVD. From the perspective of the global market, the medical device industry has an obvious head focus. According to the statistics of independent analyst Evaluate MedTech, the sales of the world's top 20 medical device categories reached 342 billion US dollars, accounting for 54.5% of the total market size of medical devices. However, the market share of the top 20 listed companies in China is only 14.2%, which is relatively low in concentration. There is a lot of room for development. The domestic medical equipment industry started late, and in the early years, high-end racetracks were imported, leading to no enterprises in the industry that can compete with foreign giants. According to the data of Prospective Industry Research Institute, 25% of China's medical device market is high-end product market, of which 70% is occupied by foreign capital. Most of them focus on areas with high technical barriers such as medical imaging equipment and in vitro diagnosis. However, in recent years, with the development of new materials and microcomputer technology, medical devices have developed towards intelligence and security, and the core technology breakthrough is relatively stable. At the same time, domestic enterprises have increased their R&D level, so they have achieved domestic substitution and even independent innovation in many subdivided areas.

  Take IVD and high-value consumables, which are actively replaced by domestic products, for example, the proportion of IVD localization is close to 40%; Among the high value consumables, domestic cardiovascular interventional devices account for about 40%, including 80% coronary stents and 50% orthopedic implant consumables. The localization of other fields is relatively limited, and the CT, MRI, DSA (digital subtraction angiography) of medical equipment are still dominated by foreign capital. In the future, with the gradual improvement of the overall ecological chain, technological breakthroughs are only a matter of time.

Demand upgrading and technology iteration drive the long-term development of the industry

  Reviewing the development of the medical device field in the past 15 years, the market size has increased by 23 times, with CAGR of 23.3%. This is inseparable from both the demand side and the supply side. On the one hand, China's population base is huge, the degree of population aging is deepening, and the industry demand continues to rise.

  The policy support has also created a good industrial environment for the development of domestic medical devices. In 2015. China's hierarchical diagnosis and treatment policy made substantial progress. The sinking demand for diagnosis and treatment and the rising demand for procurement of medical equipment at the grassroots level have promoted the sales volume of domestic medical equipment. Since 2014. the state has introduced policies to set up special approval channels for innovative medical devices, which greatly encouraged innovation in relevant fields.

  On the other hand, the technical iteration of the subdivided fields has brought better performance experience and lowered the threshold of product configuration, so that the products can be continuously upgraded in large-scale clinical applications. For example, in the field of medical imaging equipment, AI+imaging assisted doctors in rapid diagnosis, improving the accuracy and efficiency of diagnosis. During the epidemic, Sunrise Medical helped hospitals to make auxiliary diagnosis and judgment by donating intelligent solutions for lung diseases to Wuhan. For another example, in the field of gene sequencing, the first generation sequencing technology is PCR technology. The second generation sequencing technology, NGS, not only greatly reduces the cost of sequencing, but also improves the speed of sequencing and maintains high accuracy. External demand and internal technology upgrading provide the core power for the long-term development of medical devices, and the support of the capital market is another source.

With the help of funds, the pace of domestic medical devices has been accelerated

  In recent years, the rapid development of the medical device market also complements the attention of the capital market. The new crown epidemic in 2020 will fully stimulate the capital "heavy warehouse" layout of this industry. In 2020. the number of medical device financing in China reached the highest in nearly three years: 293 in total, representing an increase of more than 30% compared with 2019. The investment layout has also expanded from IVD and ventilator to high-value consumables such as cardiovascular intervention, orthopedic implantation and medical robots. In the field of IVD, well-known enterprises in the industry such as Huada Intelligent Manufacturing, Cayodi, Kingkey Gene, Hept Pharmaceutical, Nuovo Health have successively raised funds, and there are 62 financing events in the sub field of gene testing alone; In the field of medical robots, a total of 37 private financing events occurred in 2020. including hard tissue surgical robot enterprises such as Lancet Robot and Rosenberg, and soft tissue surgical robot enterprises such as minimally invasive medical robot and Jingfeng Medical.

  Many investment institutions also gained a lot in 2020. Taking Lenovo Star, an angel investment institution under Lenovo Holdings, as an example, their investment in orthopedic AI enterprise Changmu Valley, cerebrovascular disease intelligent diagnosis and treatment enterprise Qianglian Zhichuang, AI imaging enterprise Shenrui Medical, and molecular diagnosis enterprise Kayudi have successively completed the next round of financing. At the same time, the invested company Firestone Medicine was also listed on NASDAQ in the United States on June 12. 2020. bringing nearly 80 times of returns to Lenovo Star. Lenovo Star has accompanied Firestone Medicine since its inception, and has also taken this opportunity to lay its first nail in the gene field. Since then, it has invested in more than 10 projects in this field, such as Cayodi, Aijitaikang Biology, Judo Technology, Qihan Biology, Jiayin Biology, and Ruifeng Biology, Gradually form an investment layout in the gene field. Junlian Capital, another investment institution under Lenovo Holdings, has also made a deep layout in the medical and health field, investing in a series of device diagnostic enterprises such as Jinyu Medicine, Berry Gene, Mingde Biology, Kangzhong Medical, Axonics (AXNX), Nuohui Health, Jiangeng Medicine, Xingtong Medical, Guoke Hengtai, Jinfo Gene, Bxin'an, Hemu, Shanghai Aohua, Herui Technology, etc. On February 1. Kangzhong Medical, a medical imaging technology enterprise, was successfully listed on the Science and Technology Innovation Board. Junlian Capital led the investment in Kangzhong Medical twice in 2010 and 2017. and is an important investor of the company. Junlian Capital has held hands with Kangzhong Medical for more than ten years, and Lenovo Star has accompanied Firestone Medical for six years. The long time span is a typical feature of the medical field, especially the investment in high-end medical devices.

  As a track with high technical barriers, long R&D cycle and huge market demand, policy encouragement, capital market support and market demand are indispensable for the development of the medical device industry. The policy guarantees the benign development environment of the industry; The continuous input of capital market funds and resource support will help enterprises to increase R&D efforts, expand production capacity and improve channel construction; The vast market space and demand in China provide endless fertile ground for the continuous innovation of domestic medical device enterprises. In the future, domestic substitution and independent innovation of high-end medical devices are expected to go hand in hand, enabling the industry to create a golden age.


Shandong Zhushi Pharmaceutical Group Co., Ltd., founded in 2003, has more than 5000 registered employees. After years of development, it has developed into a diversified industrial cluster integrating medical devices, polymers, cosmetics, health food, daily necessities and biological reagent production, enterprise management consulting and training, real estate economy, pharmaceutical transportation, pharmaceutical printing, etc.


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