Chinese medical device market to burgeon beyond US$50 billion by 2020
LONDON, UK: The Chinese medical device market is set to rise from US$27.7 billion in 2014 to an estimated US$50.8 billion by 2020, expanding at a strong compound annual growth rate (CAGR) of 10.6 per cent, international research and consulting firm GlobalData has reported. According to the company, this substantial increase will be driven by various factors, including the increasing prevalence of metabolic syndrome and chronic diseases, an ageing population, as well as government investment.
Adam Dion, Senior Industry Analyst at GlobalData, stated that these factors are all linked, as an ageing population will lead to an increased incidence of chronic diseases, such as respiratory disease, cancer and cardiovascular disease. This will provide medical device manufacturers with opportunities for growth.
The leading device companies in China that will benefit are Siemens Healthcare, GE Healthcare, Philips Healthcare, Medtronic and Roche. “The dominant player in terms of revenue in China is Siemens, which has a best-in-class portfolio of ultrasound and medical imaging solutions,” Dion commented. “As an emerging market, China offers Siemens a significant opportunity for growth, particularly in the diagnostics space. Factors driving this growth include the increasingly elderly population, increased awareness of medical conditions, the availability of treatment options, and higher incomes.”
GlobalData’s report further states that China’s diagnostics market will experience the largest growth of all medical device segments, rising from US$9.3 billion in 2014 to US$20.1 billion by 2020, representing a CAGR of 13.8 per cent. This is due to the increasing use of in vitro diagnostic (IVD) products. The current rate of use of IVD products is low in China; however, it is growing steadily. According to the report, the benefits of early diagnosis are expected to drive adoption rates for IVD products, which will provide an opportunity for multinational players in China.