Medical Device Marketand Sectors One of the results of last year’s reform will be an expand

Medical Device Marketand Sectors

One of the results of last year’s reform will be an expanding medical device market. China’s medtech industry will exhibit strong growth of about 15 percent per year through 2011, according to industry experts. The medical device market in China currently ranks fourth in the world and is estimated at approximately $7.5 billion. China’s device market is about one-third the size of Japan’s $25 billion device market, but the Japan device market is not growing significantly. Of the $125 billion provided by the recent reform program, more than $10 billion reportedly has been allocated solely for medical device purchases by hospitals and clinics in China.

Diagnostic Imaging

The diagnostic imaging market in China occupies about 43 percent of the total medical device market at the moment. A growing number of Chinese have attitudes that emphasize preventive healthcare with technological support. Thus, diagnostic imaging will become an even more important sector for medical device growth. New hospitals built under the 2009 reforms will purchase more diagnostic imaging equipment. Specifically, expanded healthcare plans include detailed requirements for specific hospitals and clinics to have a number of devices such as MRIs and X-rays.

Disposables

Today, the disposables market in China is approximately 18 percent of the total medical device market. Similar to diagnostic imaging devices, China will require new hospitals and clinics to be supplied with certain disposable products. In addition, as Chinese hospitals slowly discontinue the use of the same product multiple times, the disposables market is anticipated to experience double-digit growth through 2011.

Implants

Although less directly affected by the 2009 reforms, the implants sector recently has experienced the strongest growth in China’s medical device sector. Most of this increase can be attributed to the changing lifestyles in China that are leading to medical conditions such as heart disease. Currently, the implants market is approximately 17 percent of China’s overall medical device market. Implants include devices such as stents and pacemakers.

Cardiovascular

Cardiovascular technology is roughly 10 percent of the country’s total device market—yet another beneficiary of last year’s reform. This sector includes equipment such as electrocardiograms, which will need to be purchased by newly established hospitals and clinics. For example, at least one electrocardiogram will be required by all clinics in rural areas. Hospitals in rural areas and other facilities in secondary urban areas will be required to have the same amount or even more.