China’s Medtech Market Growth to Exceed Global Average Over Next Decade

Despite the many challenges facing China’s medtech market, the industry will nevertheless outpace global market growth over the next nine years.

The global medical devices market is expected to grow 4.2% annually through 2033, but the Middle Kingdom’s medical devices sector is forecast to expand 5% during that same period despite some challenges, according to GlobalData.

“The key drivers of growth in China’s medical devices market include the country’s aging population, an increasing number of chronic conditions, rising penetration of medical devices at all levels of healthcare, and growing coverage by Chinese health insurance funds,” GlobalData Principal Medical Device Analyst Tina Deng said.

The overall economic slowdown in China has tightened healthcare budgets, a strain that could negatively impact medical devices market growth as hospitals and healthcare institutions struggle to manage costs. While volume-based procurement (VBP) aims to improve efficiency and reduce costs in healthcare spending, it also poses challenges for manufacturers that could affect the long-term landscape of China’s medical devices.

Global supply chain issues, which were exacerbated by geopolitical tensions and the COVID-19 pandemic, hinder production and distribution. Additionally, China’s increasing protectionist policies are aimed at bolstering its domestic medical device industry, which poses challenges for international companies.

“Multinational companies need to consider differentiated strategies to reduce operational cost and offer affordable products in China. It is essential to emphasize the overall value of products rather than just their price. Highlighting superior quality, reliability, and post-sales support can differentiate products in a competitive landscape,” Deng concluded. “Additionally, multinational companies can collaborate with local companies or distributors to enhance their market knowledge, navigate regulatory environments, and improve access to procurement opportunities. Flexible pricing models that can adapt to different procurement requirements and buyer preferences can also be developed, ensuring competitiveness in various segments.”