03.13.14
Strong demand is predicted during a span of five years for ultrasound equipment in China thanks to the positive impact of the nation’s healthcare reform, pushing the ultrasound gear market for that vast East Asian country to a billion-dollar industry, according to a new report from Englewood, Colo.-based analytics firm IHS. Revenue for ultrasound equipment in China is forecast to top $1.5 billion by 2017, up a sizable 65 percent from $908.8 million in 2012.
“The impact of the Chinese government’s 2012 healthcare reform plan on the ultrasound market will be the largest growth driver for the Chinese market,” said Benjamin Niu, IHS medical imaging analyst and author of the report. “Plans to construct a new network of Tier 2 county-based hospitals, paired with the replacement of ultrasound systems in metropolitan Tier 3 hospitals, also will figure in the robust growth equation, driving annual revenue expansion above 10 percent for the next four years.”
Another key market development is the shift in product mix. Previous health reform programs in China focused mostly on equipping rural healthcare clinics with low-end basic ultrasound equipment. However, the newest reform plans to improve county-based services by equipping hospitals with higher-specification equipment. As a result, revenue growth in the midrange, high and premium segments is predicted at between 15 and 25 percent annually between 2012 and 2015.
The clinical use of ultrasound in China also is undergoing some changes. Currently, most hospitals in China have an ultrasound department where all ultrasound scans are conducted and system procurement is managed. This differs from most other global healthcare markets, where ultrasound routinely is found in more than 20 clinical departments. But while China may lag at present, the report predicts a significant change in ultrasound use within the country during the five-year period that began in 2012.
“We see significant future growth in demand for ultrasound in new clinical applications outside of the hospital ultrasound department,” Niu said. “Increased demand for specific systems in surgery, the emergency room and intensive care will be the first adopters, especially with the expanding range of specialist compact systems that become available. However, the low number of trained ultrasound users in other departments will act as the main limiting factor in the short and midterm, so the traditional ultrasound department will continue to have a significant role.”
The combination of new government investment, diversifying clinical use and changing product mix will drive future growth of the ultrasound equipment industry in China, study authors predicted. In addition, improvements in the quality of healthcare services in rural and metropolitan areas alike will shower positive benefits on the market. Ultrasound revenue growth in China is set, therefore, to far outstrip that of other global territories, most of which will struggle to top an annual increase of 5 percent in the same period.
“The impact of the Chinese government’s 2012 healthcare reform plan on the ultrasound market will be the largest growth driver for the Chinese market,” said Benjamin Niu, IHS medical imaging analyst and author of the report. “Plans to construct a new network of Tier 2 county-based hospitals, paired with the replacement of ultrasound systems in metropolitan Tier 3 hospitals, also will figure in the robust growth equation, driving annual revenue expansion above 10 percent for the next four years.”
Another key market development is the shift in product mix. Previous health reform programs in China focused mostly on equipping rural healthcare clinics with low-end basic ultrasound equipment. However, the newest reform plans to improve county-based services by equipping hospitals with higher-specification equipment. As a result, revenue growth in the midrange, high and premium segments is predicted at between 15 and 25 percent annually between 2012 and 2015.
The clinical use of ultrasound in China also is undergoing some changes. Currently, most hospitals in China have an ultrasound department where all ultrasound scans are conducted and system procurement is managed. This differs from most other global healthcare markets, where ultrasound routinely is found in more than 20 clinical departments. But while China may lag at present, the report predicts a significant change in ultrasound use within the country during the five-year period that began in 2012.
“We see significant future growth in demand for ultrasound in new clinical applications outside of the hospital ultrasound department,” Niu said. “Increased demand for specific systems in surgery, the emergency room and intensive care will be the first adopters, especially with the expanding range of specialist compact systems that become available. However, the low number of trained ultrasound users in other departments will act as the main limiting factor in the short and midterm, so the traditional ultrasound department will continue to have a significant role.”
The combination of new government investment, diversifying clinical use and changing product mix will drive future growth of the ultrasound equipment industry in China, study authors predicted. In addition, improvements in the quality of healthcare services in rural and metropolitan areas alike will shower positive benefits on the market. Ultrasound revenue growth in China is set, therefore, to far outstrip that of other global territories, most of which will struggle to top an annual increase of 5 percent in the same period.