“In 2022, the global IVD market is expected to exceed US $74.6 billion (excluding covid-19 test), and the global POCT market will exceed US $30 billion.” Ren Fang, deputy director of the medical device Department of the chamber of Commerce for import and export of China Meheco Group Co.Ltd(600056) health products, said that due to the spread of mutated viruses and repeated epidemics in some countries, the global market demand for medical devices such as in vitro diagnosis is rising, which provides a stable basis for the international development of medical devices in China.
In 2021, affected by the high base and changes in international market demand, the growth rate of China’s medical device export decreased year-on-year. The normalized response to the epidemic, the relative sufficiency of materials in various countries and the adjustment of epidemic prevention policies in some countries with serious epidemic previously led to the cessation of panic procurement of medical dressing products, including masks, protective clothing and other protective products, and thus reduced the export growth of medical devices as a whole. According to the statistics of China Medical Insurance chamber of Commerce (according to the eight digit code statistics of China Customs, some codes cover chemical, textile, rubber and other non-medical products, while some ten digit code medical products are not covered), the import and export volume of China’s medical devices in 2021 was US $144087 billion, a year-on-year decrease of 16.87%. Among them, the export was US $99.409 billion, a year-on-year decrease of 24.73%; Imports reached US $44.678 billion, a year-on-year increase of 8%.
Despite fluctuations in exports, China’s exports of medical devices are still characterized by further structural optimization. Ren Fang introduced that in 2021, Chinese medical device products such as oxygen generator and pre filled vaccine syringe were favored by the international market. With the large-scale export of Chinese vaccines and the continuous improvement of vaccination rate in the international community, orders for pre filled syringes made in China continue to increase, and the international market share and brand influence continue to increase.
The export performance of covid-19 testing products is also very strong. In vitro diagnostic products represented by covid-19 test are still in strong demand after the normalization of the global epidemic. Among them, covid-19 antigen self-test products have the best export performance. Thanks to the attention of enterprises to overseas certification and the accumulation of relevant experience, the international market recognition and market share of Chinese products have been further improved. According to the statistics of the medical insurance chamber of Commerce, according to the three types of HS code data of main diagnostic reagents, China’s export of main diagnostic reagents was US $13.093 billion in 2021, a year-on-year increase of 135.37%.
At the same time, the “residential economy” has driven the continuous growth of exports of household oxygen generators, oximeters, massage appliances and other products. Among them, the export of massage and health care appliances has achieved a good trend of simultaneous increase in volume and price. In 2021, China’s export of massage and health care appliances reached US $6.412 billion, a year-on-year increase of 47.44%, a year-on-year increase of 4.85 percentage points, and the export reached a new record.
There has also been a breakthrough in the export market layout of medical device products. In 2021, the United States, Germany, the United Kingdom and Japan were the main export markets of China’s medical device products. China’s demand for one belt, one road, has increased rapidly, and has accounted for more than 30% of the share of China’s medical device exports. Among them, exports to Vietnam and Thailand increased by 40% and 88% respectively year-on-year, and the proportion is expected to be further expanded in the future.
In recent years, under the catalysis of China’s industrial development and the international environment, China’s medical device industry has entered the fast lane of development, and enterprises continue to strengthen the research and development of core parts and raw materials of high-end equipment. One belt, one road, has become a key market for enterprises. The hope is to expand overseas market channels, establish overseas branches and gather resources of China’s enterprises and embrace the sea.
The international market space of medical devices is huge, but Ren Fang reminded that in order to seize the market opportunities, enterprises must benchmark multinational enterprises, select the track, make differences and strengthen their advantages, and qualified enterprises can also expand international industrial cooperation opportunities. At the same time, in order to realize the steady development of the international market, enterprises also need to beware of relevant risks such as changes in international laws and regulations, coastal adjustment of supply chain, overcapacity, rise of protectionism and so on. For example, the new version of EU medical device regulation (MDR) has been implemented in 2021. It strengthens the traceability management of medical devices and improves the requirements for the safety, performance and relevant documents of medical devices, which will increase the cost and compliance risk of Chinese export enterprises and prolong the certification cycle. “If the overall development of the global epidemic becomes stable, China’s international trade in medical devices may not increase or decrease again, and it will return to a steady development trend.”
