The annual growth rate of the medical device market will remain at 20% in the next few years

As the fourth largest medical equipment market in the world, China has a market size of more than RMB 60 billion, of which the medical imaging diagnostic market is over RMB 22 billion. With the arrival of the age of urbanization and aging, opportunities will emerge in the medical device industry. In the coming years, the Chinese medical device market, including medical imaging, will continue to maintain a 20% growth rate.

In order to turn this inspiring data into reality, TCL Medical must first solve the problem of how to face competition from international giants such as GE. Zero2IPO statistics show that the basic composition of China's medical device market in 2010 was: high-end products accounted for 25%, and low-end products accounted for 75%. The average level in the international medical device market is: the share of high-end products is generally 55%, and the low-end products are 45%. China's medical device industry as a whole tends to middle and low end, and the polarization is more obvious.

Medical and health industry analysts believe that the main reason for the convergence of the medical device industry to mid-to-low-end devices is that some large hospitals have imported medical devices. It is difficult for local medical device companies to succeed in the high-end market. At the same time, due to the problems in the medical industry itself, the competition of medical device companies is not only reflected in the product quality, but also in the expansion of channels with the hospital. Another reason why the top-three hospitals choose to purchase foreign equipment is because the equipment providers bear the risk of medical accidents. In the event of a problem with the equipment, the manufacturer will pay the payment, regardless of the hospital. In contrast, none of the local medical device companies can bear this risk. The price war and getting through the hospital relationship are the most passionate things for medical device companies, which has led to the difficulty of obtaining approval from high-end customers for local medical devices. China's medical device market accounts for 14% of the total pharmaceutical market, which is a large difference from the global level of 42%. In addition, compared with the global per capita consumption level, China’s medical device market has 5-6 times the per capita consumption level. upside potential. The first-tier cities of the top three generally choose imported equipment, while the top-three cities in the second and third-tier cities do not have sufficient funds to purchase imported equipment. This brings opportunities to local medical device companies.

"Local companies mostly follow the road and quality is not competitive. TCL Medical will mainly be technology-led and will not participate in price wars." Industry experts told reporters that TCL Medical had purchased medical images from a Silicon Valley company in the United States. In terms of technology, the future company's own funds will be mainly used for purchase, R&D technology and channel construction.