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Shandong Kangli Medical Equipment Technology Co., Ltd.

Industry News

Many giants are competing across industries in the medical device market

2019-04-20 14:03:50

Tencent and Huawei have recently entered the medical device industry through strategic cooperation and changes in business scope. Earlier this year, Baidu also announced its entry into the competition. The reporter learned that after years of rapid growth, China's overall medical device "plate" has jumped to second place in the world, and primary medical institutions are short of equipment, so the giants came to dig for gold.

Three "big guys" started selling medical devices

Recently, Philips (China) Investment Co., Ltd. and Tencent reached a strategic cooperation, committed to R&D cooperation in the field of smart medical care. Immediately afterwards, Tencent reached a strategic cooperation with Novartis Pharmaceuticals, aiming to integrate innovative drugs, artificial intelligence and social platforms to provide services for patients with chronic diseases.

Also not long ago, Huawei officially changed the company's business scope and added new businesses such as medical device sales, which means that it has officially entered the medical device industry. Tianyancha information shows that Huawei Terminal Co., Ltd. changed the company's business scope on March 21 and added new businesses such as medical device (Class II medical device) sales.

Obviously, there are more than just the two giants interested in medical devices. In fact, also this year, Baidu Online Network Technology (Beijing) Co., Ltd. also changed its business scope, adding sales of Class II and Class III medical devices, and invested in Neusoft Medical on March 19.

High growth rate of medical device market

The reporter learned that in recent years, the growth rate of my country's medical device market has exceeded 20%, far higher than the growth rate of about 10% of my country's pharmaceutical market. China's market size in the field of medical devices has reached the second largest in the world. A recent research report shows that my country's medical device market size has reached US$75.9 billion in 2017, accounting for 18.8% of the global market size, and the growth rate has been higher than the global market size for six consecutive years.

There are still market gaps to be filled

On the one hand, the "cake" is getting bigger, and on the other hand, there are still market gaps to be filled. It is understood that with the advancement of my country's tiered diagnosis and treatment policy, the number of beds and the number of patients treated in primary medical institutions are continuing to grow, and the grassroots are just short of medical equipment. The vast grassroots market makes the giants feel that the prospects are promising.

According to the "Thirteenth Five-Year Plan for Deepening the Reform of the Medical and Health System", by 2020, we will strive to cover all community health service institutions and township health centers and 70% of village health clinics with traditional Chinese medicine service capabilities, and at the same time have corresponding medical rehabilitation capabilities.

"What does not match the vast market is precisely the production capacity. my country's medical device industry is still in a "small and scattered" state. The entry of Internet "big guys" with funds and technology may help the industry transform and upgrade." In the view of industry observers, my country's high-end medical equipment market is still dominated by foreign brands with greater voice and advantages, and there are many "scattered soldiers" in the mid- and low-end markets, and the market concentration needs to be improved.

Giants are expected to promote the development of the industry with funds and technology

It is understood that among my country's medical device companies, only four listed companies, Mindray Medical, Weigao Group, Xinhua Medical and Dian Diagnostics, had sales revenue exceeding 5 billion yuan in 2017. The total operating income of domestic listed companies was 83 billion yuan, less than one-fifth of my country's overall medical device market. Industry data shows that as of the end of 2017, there were 16,000 medical device manufacturers in the country.

"It seems that there are many manufacturers, but most of them are small in scale and poor in competitiveness, resulting in a large gap between the products and foreign giants in terms of technical content and humanized operation." The observer said that fortunately, my country's medical device industry has huge market potential and high profit margins, and there is policy support. If the capital crocodiles can fight a "prepared battle", the future market structure may be rewritten.

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