MedTech company and industry leaders gathered at the MedTech Conference 2024, one of the major global events in the medical technology industry, on 15-17 October. Key market experts set positive tones for the future of the medical devices market in China.
According to a GlobalData analysis, while the global medical devices market is forecast to grow at a compound annual growth rate (CAGR) of 4.2% through 2033, China's medical devices market is set to expand at a faster CAGR of 5.0% over the same period. The key drivers of growth in China's medical devices market include the country's ageing 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.
The overall economic slowdown in China has resulted in tighter budgets for healthcare expenditures. This financial strain may negatively impact the growth of the medical devices market 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 poses challenges for manufacturers that could affect the long-term landscape of the medical devices market in China. 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 costs and offer affordable products in China. It is essential to emphasise 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. 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.
