company news about 2024 Report Reveals China Med Device Industry Growth: 1.31 Trillion Yuan Revenue, 10% CAGR, Global #2; YRD Strength Detailed

The 2024 Report on China's Medical Device Industry Development, released by the Southern Medical Economic Research Institute of the National Medical Products Administration (NMPA), shows that in 2023, the total operating revenue of China's medical device industry reached 1.31 trillion yuan. The industry's Compound Annual Growth Rate (CAGR) from 2014 to 2023 was 10%, significantly higher than the overall growth rate of the pharmaceutical industry, solidifying its position as the world's second-largest market. In the first three quarters of this year, the output value of Shanghai's biomedical manufacturing sector reached 140.9 billion yuan, with the medical device segment contributing 38.9 billion yuan.

According to the 2024 Report on China's Medical Device Industry Development, the number of Chinese medical device enterprises has shown an upward trend on both the production and distribution sides. By the first half of 2024, the number of Class II and Class III medical device distributors nationwide exceeded 1.42 million, while Shanghai had 35,153 such distributors.

Where does the value of operating a Class II or III medical device business lie? Simply put, the higher the classification number, the stricter the qualification approval process for the enterprise. Companies must establish more rigorous quality management systems to ensure products comply with national standards and technical requirements. For enterprises, "higher" qualifications translate to greater competitive advantages in the market and facilitate business expansion.

The industry's vigorous development is also reflected in the steady growth of product registrations/filings. Over the past five years, the CAGR for the number of initial registrations of domestic Class II and Class III medical devices in China reached 17.9% and 14.3% respectively. Medium-to-high-end products, in particular, are increasingly attracting capital investment. Shanghai's key focus areas include passive implantable devices, active surgical instruments, and medical imaging equipment.

Participants at the event generally agreed that as China's medical device industry continues to make new strides and achieve new results in high-quality development, upstream and downstream players in the industrial chain should strengthen collaborative efforts. They should continuously integrate resources and strive to build a "direct express lane" for integrated development, promoting mutual advancement between technological innovation and industrial needs.

The Yangtze River Delta (YRD) region is one of the most dynamic areas for medical device industry development in China, characterized by high concentration, a high degree of internationalization, and strong innovation capabilities, with advantages in industry-academia-research integration. The Research Report on Medical Device Industry Development in the Yangtze River Delta, jointly released by the NMPA's Southern Medical Economic Research Institute, the NMPA Medical Device Technical Evaluation and Inspection Sub-Center for the Yangtze River Delta, the Shanghai Municipal Medical Products Administration, and the Jiading District, shows that as of the end of September 2024:

• Higher Education: 124 universities/institutions in the YRD offer medical device-related programs, accounting for 19.05% of the national total.

• Clinical Trial Institutions: The YRD has 288 medical device clinical trial institutions, representing 21.87% of the national total.

• Animal Testing Institutions: The YRD has 631 animal testing institutions, accounting for 31.33% of the national total.

A responsible official from the NMPA Medical Device Technical Evaluation and Inspection Sub-Center for the Yangtze River Delta stated that the center will continue to enhance communication and exchange with regional drug regulatory authorities, academic societies, research institutes, and medical institutions. The aim is to pool resources in supporting and serving regional industrial innovation and development, and to explore the establishment of a collaborative mechanism to promote innovation within the YRD's medical device industry.