China’s Medical Device Market Will Burgeon Beyond $50 Billion by 2020

The Chinese medical device market is set to rise from $27.7 billion in 2014 to an estimated $50.8 billion by 2020, expanding at a strong Compound Annual Growth Rate (CAGR) of 10.6%, says research and consulting firm GlobalData.
 
According to the company’s latest report, this substantial increase will be driven by a number of factors, including the increasing prevalence of metabolic syndromes and chronic diseases, an aging population, as well as government investment.
 
Adam Dion, MSc, GlobalData’s Senior Industry Analyst, states that these factors are all linked, as an aging population will lead to increased incidences of chronic diseases such as respiratory diseases, cancers and cardiovascular disease. This will provide medical device manufacturers with opportunities for growth.
 
The leading device companies in China who will benefit are Siemens Healthcare, GE Healthcare, Philips Healthcare, Medtronic and Roche.
 
Dion commented, “The dominant player in terms of revenue in China is Siemens, which has a best-in-class portfolio of ultrasound and medical imaging solutions.
 
“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,” he added.
 
GlobalData’s report also states that China’s diagnostics market will experience the biggest growth of all medical device segments, rising from $9.3 billion in 2014 to $20.1 billion by 2020, representing a CAGR of 13.8%.
 
Dion continued, “The rate of use of in vitro diagnostics (IVD) products for diagnosis is currently low in China but is growing steadily. The benefits of early diagnosis are expected to drive adoption rates for IVD products, which will provide an opportunity for multinational players in China.”