The Situation and Future Predictions of Chinese Medical Monitor Market
Edited by Sharon Lai
February 23, 2012
Chinese government is paying more attention to the development of domestic medical industry to guarantee people’s basic demands for health and reflect superiority of socialism. A series of policies have been issued, e.g., Guidelines on Development of Medical Industry in Eleventh Five-Year Plan, Guidance on Preferential Development of Current High-tech Industrialized Key Areas (2007), Implementation Plans for Recently Emphasized Medicine and Health System Reform (2009-2011), which promoted the rapid development of medical monitor industry in China.
Expanding demands for medical monitors push the industry forward
Ever since a long time ago, the demand for medical devices put emphasis on use in hospitals and treatment. However, with the constant improvement of people’s life and aging in recent years, the medical monitor extends its simple function (i.e., diagnosis) to multi-functions (e.g., rehabilitation, physiotherapy, health protection and strengthening etc), and the market also expands from the medical institutions to family medical care and health protection. The expanding market demand brings new growth point of consumption for the monitor market.
Persistent Increase in Cost Promotes Demand for Monitors
The total and per capita health expenditure in China persistently rose due to the increase in income and strengthened sense of health. From 2000 to 2008, the total medical and health expenditure in China increased from RMB 458.66 billion to RMB 1453.54 billion with compound growth rate to 15.5%.
In despite of persistently strong growth trend of total medical expense, the absolute data still has a long way to go compared with many western developed countries. In 2006, the total medical expense accounted for 4.6% of GDP in China ($ 216 per capita) and 15.3% of GDP in USA ($ 6179 per capita), respectively. The per-capita health expenditure in USA was 28.6 times that in China, which showed a growth space for medical and health expenditure. It will promote the elevation of medical devices level in Chinese medical institutions, therefore to drive the development of monitor market.
Predictive Analysis on Future Market Demand for Medical Monitors in China
With the rapid economic development, people’s demand for healthy life keeps improving and Chinese medical and health system also continuously develops. Until 2009, there were 4.41 million beds in the medical system. In order to deepen the construction of the entire medical and health system, the State Council issued Implementation Plans for Recently Emphasized Medical and Health System Reform (2009-2011) (hereinafter called ”Plans”) in 2009, which urged to “fully advance the construction of basic medical insurance system, complete the basic medical and health service system, and promote the gradual equalization of basic public health service”. Plans focused on supporting the construction of basic medical and health institutions including hospitals at the county and township level as well as community health service centers and village clinics. It is predicted that the beds in Chinese medical institutions will maintain at a compound growth rate of 8% in 2015.
Data from Chinese Medical Device Industry Association showed that the popularization rate of medical monitors in China was only 20% in 2009, reversely; it was to 80% in USA. The popularization rate of medical monitors had a positive correlation to people’s life level. Statics from International Monetary Fund (IMF) indicated that the per capita GDP in China in 2009 was $ 3678, which was only 1/12.6 of that in USA over the same period. In terms of compound rate of per capita GDP during the past 20 years in China, it needs at least 18 years to reach the same life level in USA. Hereby, it is calculated that the annual compound growth rate of popularization rate of Chinese medical monitors is approximately 8.01%.
From the application of medical monitors in current market in China, the proportion of high-end products to routine products was 4:6. Taking the up-date circle of product technology into account, it is predicted that the above ratio will maintain relatively stable in the next 5 years. However, from the view of long-term development of industry, the high-end products will gradually become the mainstream with the further improvement of industry research and development as well as the further completion of Chinese medical insurance system.
pd:February 23, 2012 | md:February 23, 2012