Increased adherence to quality system requirements and the rising cost of labour and raw materials will lead China’s medical device manufacturers and associated supply chain to shift its focus to the production of higher value medical products. Currently, local industry primarily churns out unsophisticated products using low-end technology, according to IBISWorld, which has published a report titled, Medical Supply Manufacturing in China.
In addition to simple economics, a burgeoning middle class demanding more advanced medical services is helping to drive industry’s upward mobility. “With the development and implementation of healthcare reforms and a new social security system, a growing number of Chinese people are able to afford medical services, creating a larger potential market for medical materials and supplies,” write the authors of the report.
The size of China’s middle class is estimated to number about 474 million people, representing approximately 36% of the total population, according to an article published in MD+DI on China’s medtech market.
IBISWorld also forecasts medical industry concentration to gradually increase in the years ahead, as more small businesses enter the marketplace.
China’s medtech market is projected to grow in the neighbourhood of 20% annually through 2018, according to BMI Espicom.