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    Opportunities and Development Prospects for China's Medical Device Industry

    Source:Zhejiang Jinhua HUATONG MEDICAL Appliance Co.,Ltd.Release time:2023-04-01

    1. According to China's demographic statistics, it is projected that from 2010 to 2040, China's elderly population (over 65 years old) will increase by 224 million people in total, with an average annual growth rate of 3.62% and an average annual net increase of 7.46 million, and the aging level is expected to reach 23.84% by 2040. In addition, as China's urbanization rate continues to increase, the urban elderly population will account for 32.0% of the population in 2040, which will lead to increasing demand and spending on medical health care, which in turn will rapidly promote the upgrade of medical equipment lines.

    2. The implementation of medical reform in public hospitals, the full abolition of drug markup, strict control of the drug ratio, promote the release of medical equipment in the hospital end; the state promulgated the policy of graded diagnosis and treatment, to achieve the primary care at the grassroots level, major diseases do not leave the county, driving the upgrading of medical equipment in local hospitals at the second level and below.

    3. Strong support from national policies, the formation of national innovation center for high-performance medical devices and the development of high-end products. At present, China's medical device innovation development is still facing development bottlenecks in basic materials, core devices and components, advanced processes, intelligent systems, etc. The National Innovation Center for High Performance Medical Devices is based on the Shenzhen National Institute of High Performance Medical Devices Co., Ltd. and its shareholders include Myriad Biologicals, United Imaging Medical, First Health Technology, Shenzhen Institute of Advanced Technology of the Chinese Academy of Sciences, Harbin Institute of Technology and other industry backbone units. The Innovation Center will focus on the demand for high-performance medical devices in the fields of prevention, diagnosis, treatment and rehabilitation, focus on the key directions of high-end medical imaging, in vitro diagnosis and vital sign monitoring, advanced therapy, implantation and interventional devices, rehabilitation and health information, focus on breaking the chain of research and development and industrialization of principles and technologies, key materials, key devices, systems and products, and promote the construction of an innovation system in the field of medical devices. Upgrade China's high-end medical equipment manufacturing and overall industrial level.

    4. With the provinces and cities in the "Made in China 2025" in their respective regions of the transformation, upgrading and development of medical device enterprises to make important arrangements, and put forward their own 2020 and 2025 domestic devices big development goals. Therefore, in the rapid growth of the industry scale, the proportion of domestic devices, especially in county hospitals, will be greatly enhanced.

    5. Strengthen industry regulation, expel bad money, industry environment to improve: the state regulation of the industry more and more strict, non-standard enterprises are eliminated, the industry market environment will gradually improve; after 2018 policy compliance control continues to increase, standardized operation and financial become a test of the traditional marketing model, to combat monopoly, administrative intervention, commercial bribery policy continues to force. Compliance is the hope for the future, illegal enterprises will be gradually eliminated, and the industry environment will gradually improve.

    Based on the above five reasons, the medical device industry will be expected to continue to maintain a good trend of rapid growth and achieve the process of import substitution from low-end to high-end products, and the market size of China's medical devices is expected to exceed 2,200 billion yuan in 2030, an increase of nearly 200% relative to the 778.93 billion yuan in 2020!

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