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General Instrument

General Instrument 5508, TOCOM 5508

Report of Chinese Medical Instrument Industry under International Financial Crisis, 2009

Although the largest medical instrument markets are America, Europe and Japan now in the world, China is generally acknowledged the hugest potential market. In the developed countries, the output values between medical instruments and manufacture are 1: 19. It is only 1: 5 in China. There is a huge potential for medical instrument market in China.

 

The direction of Chinese medical system reform is fundamentally clear. The government will increase the investment in the constructions of public hygiene systems, community systems in urban areas and rural grass-root medical hygiene systems. It can be predicted that Chinese medical instrument market will be in a period of rapid growth in two to three years.

 

At present, the overall world faces the serious strikes of financial crisis. But investment opportunities still exist under international financial crisis. Because the developed countries are affected by the international financial crisis, they are bound to reduce the public welfare budgets and they have reached the agreements to find excellent quality and reasonable price substitutes, which provides growth opportunities for Chinese medical instruments.  

 

From the part of previous history, medicine industry showed their resistance to reduction in the economic depression period because of its fixed consumers. China was a large production and export country of medium and low quality diagnostic equipments, medical dressing and low and medium valued consumables in the world. Many varieties occupied comparative advantages in the international market. Some products had dominated a certain market share in the international market. It was impossible to replace them with substitutes from other countries in a short time. So far, Chinese medicine industry is comparatively steady under the influence of international financial crisis, keeping comparatively high profits in medical instrument industry. It is predicted that more attentions from domestic and international investors will be paid to Chinese medical instrument industry.

 

The author of this report paid attention to the development of Chinese Medical Instrument Industry for a long time and investigated into Chinese Medical Instrument Industry to write this report citing abundant valuable second -hand information.

 

More following information can be obtained in this report:

- Production of Chinese Medical Instrument Industry

-Analysis on the Domestic Demands of Chinese Medical Instrument Industry

- Imports and Exports of Chinese Medical Instrument Industry

- Development of Sub-sectors in Chinese Medical Instrument Industry

- Competitions in Chinese Medical Instrument Industry

- Major Competitive Manufacturers and Their Operations of Chinese Medical Instrument Industry

- Influences of International Financial Crisis on Chinese Medical Instrument Industry

- Development Trends of Chinese Medical Instrument Industry

 

Summary

At present, Chinese medical instrument industry is in its fast growth period, annual growth speed higher than the whole development level of medicine industry. China has been the third largest medical instrument market after America and Japan. In 2008, the market scale of Chinese medical instrument industry was about 10 billion USD, the annual growth speed past 10%, in which the sales growth speed of high quality medical instruments was over 20%.

 

But the market scale of Chinese medical instrument only accounts for about 10% of the whole medical manufactures, much lower than the international average level of 40%. Chinese medical instrument manufacturers are 13 thousand, most of which are medium and small companies. 

 

From the end of 2008, Chinese government increased the investments in basic public hygiene networks. Undoubtedly, it would bring development space for medical instrument producers. Government policies are preferential to fundamental medical organizations. Demands for low and medium quality medical instruments were rising by. The major points of medical reform were the perfection of fundamental medical hygiene service systems, speeding up the constructions of rural township clinics, county clinics and community hygiene service organizations in the cities. With more diagnostics in the community hygiene service organizations in the cities, the problems of difficulty and high cost of getting medical could be solved.

 

In recent years, not only patients but also medical sources would transfer from hospitals to community hygiene service centers and township clinics, driving the demands for low and medium quality medical instruments. During 2005-2008, the number of community hygiene service centers realized the growth speed of more than 20% under the circumstances of reduction in the total Chinese medical organizations. 

 

Under the circumstances of international financial crisis, diagnostic and cure instruments, as the major Chinese medical export instruments, kept a fast growth in 2008. The total export revenues of Chinese medical instruments were 11.07 billion USD with a YOY growth of 31.5%.

 

Medical products belong to inelastic consumption products. Generally speaking, they are comparatively less influenced by macro-economy, especially in developed countries, such as European Union. Most medical costs are paid by state revenues and social commercial insurance. Therefore, the demands for Chinese diagnostic and cure equipments are still high in the international market.

 

In 2008, the total import and export revenues of Chinese medical instruments reached to 16.28 billion USD, rising by 28.21% year on year. The export revenues were 11.067 billion USD, increased by 31.46%. The import revenues were 5.216 billion USD with a YOY growth of 21.81%. The medical instrument trade continually kept a trade surplus of 5.851 billion USD.

 

In 2008, Chinese medical instruments exported to 217 countries and regions. The top five trade partners of Chinese medical instruments were America, Japan, Germany, Hong Kong and Great Britain, accounting for 53.55%, turning down 1.58% compared with 2007. Among the top 20 export revenues of Chinese medical instruments in 2008, Brazil was the country with the largest export growth, reaching to 77.24%.

 

In 2008, China imported 5.216-billion USD medical instruments from 98 countries and regions, increased by 21.82% year on year. The import volumes from Europe were 2.009 billion USD, rising by 22.78% year on year. The import volumes from Asia were 1.545 billion USD with a YOY growth of 24.36%. The import volumes from North America were 1.543 billion USD, increased by 16.55% year on year. The import volumes from America were 1.5 billion USD, growing by 16.09%. The import volumes from Germany were 955 million USD, increased by 22.44%. The import volumes from Japan were 900 million USD, rising by 24.75%.

 

Among Chinese import medical instruments, the import volumes of 15 types were over billion USD, five more compared with 2007. 41 types passed the import volumes of hundred million USD, three more compared with 2007. China mainly imported high quality diagnostic equipments and lab equipments so as to fill the blank in Chinese high quality medical instrument market.

 

Chinese diagnostic and cure equipments, medical dressing and consumables had strong price advantages in the world market. In 2008, the export revenues of Chinese diagnostic and cure equipments reached to 3.616 billion USD, rising by 31.64% year on year. The export revenues of medical dressing were 3.113 billion USD, growing by 29.4% year on year. The export revenues of consumables were 1.854 billion USD, increased by 30.08% year on year.

 

Among the diagnostic and cure equipments, the export volumes over billion USD concluded: the export volumes of CT were 228 million USD, rising by 49.36% year on year. The export volumes of colored ultrasonic diagnostic apparatus were 203 million USD, increased by 51.54%. The export volumes of nuclear magnetic resonance therapy apparatus were 158 million USD, growing by 79.76%. The export volumes of type-B ultrasonic apparatus were 109 million USD, rising by 5.88%. The export volumes of patient monitoring apparatus were 154 million USD, rising by 26.39%.

 

To get more details, please visit Report of Chinese Medical Instrument Industry under International Financial Crisis, 2009

About the Author

Alice is an industry analyst in this field for more than 5 years with depth insight in the recent market trends. Based on the database, Interviews and research methods from China Research and Intelligence, she analyzes the development and opportunities in this industry clearly.

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