【EXPERT Q&A】What are the characteristics of the medical device industry?

June 23, 2025  Source: drugdu 119

Drugdu.com expert's response:

 

The medical device industry is characterized by its interdisciplinary nature, knowledge-intensive and capital-intensive requirements, stringent regulation, substantial market potential, low industry concentration, and fierce competition. The details are as follows:

Interdisciplinary Nature: It encompasses disciplines such as engineering, medicine, physics, biology, materials science, computer science, human-computer interaction, and aesthetics, resulting in a high R&D threshold.

Knowledge-Intensive and Capital-Intensive: It is a typical technology-intensive industry, with its development highly reliant on continuous technological R&D and innovation, necessitating significant capital investment. For instance, the initial funding for a medium-sized medical device project can reach as high as 30 million yuan.

Stringent Regulation: It is subject to strict laws and regulations. The R&D, production, distribution, and use of medical device products must comply with relevant national standards, industry standards, and regulatory requirements, with complete and traceable records required throughout the product lifecycle.

Substantial Market Potential: Driven by factors such as population aging, heightened public awareness of health and wellness, improved living standards, and the advancement of new healthcare reforms, the demand for medical devices continues to grow.

Low Industry Concentration: The industry is marked by a large number of small-scale enterprises, resulting in relatively low overall industry concentration. Domestic medical device enterprises primarily focus on low-end and mid-range medical device sectors.

Fierce Competition: The industry is characterized by multi-level and regional competition, with a continuous increase in imported products, intensifying market competition. China spends a significant amount of foreign exchange annually on importing a large quantity of medical equipment from abroad. Except for some simple consumable materials, domestic tertiary hospitals generally use imported equipment exclusively, while secondary hospitals also rely on imports for two-thirds of their equipment.

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