Domestic substitution accelerates the development of the orthopaedic implant device industry with a strong momentum

With the development of the global economy and the growing aging of the population, the potential of the medical and health market has been further stimulated
.
The development of the medical device market is closely related to the medical and health industry
.
From the perspective of subdivisions, the market size of orthopedic implant devices accounts for about 9% of the total size of the global medical device market, ranking fourth
.
Based on the huge population base in China, the accelerated social aging process, and the rising demand for orthopedic medical care, the orthopedic implant device industry has developed rapidly in recent years, and there is still a broad market prospect and huge room for growth
.
According to the forecast of evaluateMedTech, a research institute in the medical industry, the global orthopedic medical device market will reach approximately US$47.
1 billion in 2024 and will continue to grow steadily
.
Although China's orthopaedic implant device industry is still in its infancy, with the deepening of the aging population and the growth of per capita health care consumer spending, the overall size of the orthopaedic implant device market has grown rapidly
.
According to the data released by Minet and Guangzhou Punctual Medicine Information Co.
, Ltd.
(hereinafter referred to as Punctuation Information), the market sales revenue in this field has increased from 16.
4 billion yuan in 2015 to 30.
8 billion yuan in 2019, with a compound annual growth rate of 17.
03%.
, higher than the overall growth rate of the global orthopaedic implant device market; it is estimated that by 2024, the size of China's orthopaedic implant device market will reach 60.
7 billion yuan (see Figure 1 for details)
.
China's orthopedic implant device industry has a large market development space and will continue to maintain a rapid growth trend
.
Domestic advantages in subdivision fields are highlighted Most of the orthopaedic implant devices are clinical orthopaedic medical materials used to replace and support human bones or to locate and repair bones, joints, cartilage and other tissues, and belong to high-value medical consumables
.
According to the different parts of use, orthopedic implant devices can be divided into four categories: trauma, spine, joint and other four categories
.
Trauma products have always occupied the largest share of the orthopaedic implant device market in my country.
The market technology is the most mature, the development is the most complete, the localization rate is the highest, and the trend of industrial integration is obvious.

.
According to the data released by Minenet and Punctuation Information, the domestic trauma product market scale reached 9.
2 billion yuan in 2019, a year-on-year increase of 19.
48%, and the compound annual growth rate from 2015 to 2019 was 15.
76%; The device market size will reach 17 billion yuan
.
The growth rate of the spine product market is consistent with the overall growth rate of the orthopedic implant device market
.
The data released by Punctuation Information shows that from 2015 to 2019, the sales revenue of the spinal implant device market has increased from 4.
7 billion yuan to 8.
7 billion yuan, with a compound annual growth rate of 16.
58%; The device market size will reach 17.
1 billion yuan
.
The joint implant device market has the fastest growth rate
.
The data released by Punctuation Information shows that from 2015 to 2019, the sales revenue of China's joint implant device market has increased from 4 billion yuan to 8.
6 billion yuan, with a compound annual growth rate of 20.
65%; The market size of imported devices will reach 18.
7 billion yuan (see Figure 2 for details), and will continue to develop at a relatively fast growth rate
.
Artificial joints are mainly divided into artificial knee, hip, elbow, shoulder, finger and toe joints, among which knee joint and hip joint products account for 95% of the artificial joint market
.
The artificial joint market in China started late, with small volume, immature production technology and expensive products
.
With the development of production technology and the implementation of the centralized procurement policy, the price of artificial joints will drop significantly, and the market growth rate is expected to further increase in the future
.
According to the data released by the Chinese Medical Doctor Association, in 2018, there were about 439,300 total hip replacement surgeries in China, about 249,200 total knee replacement surgeries, and about 11,200 knee unicondylar replacement surgeries
.
Based on the difference in the number of patients at home and abroad, the market penetration rate of artificial joints in China is currently far lower than that of developed countries and regions, and there is a large room for development
.
In recent years, the domestic artificial joint market has developed rapidly, and the growth rate is much higher than that of imported artificial joint products.

.
With the advancement of the medical insurance cost control policy, the improvement of people's living standards and the change of consumption concept, the domestic artificial joint market is expected to maintain a high growth trend
.
It is worth noting that compared with trauma implantable devices, there are still many technical problems to be overcome in the market of spine and joint products
.
With the continuous investment in R&D funds of domestic production enterprises and the continuous improvement of R&D and innovation capabilities, the gap between domestic and foreign production technology is gradually narrowing
.
Industry penetration continues to increase China's orthopedic market concentration is relatively scattered, and import companies occupy the vast majority of the market share
.
According to the statistics of the Institute of Medical Devices, in 2018, in China's orthopedic implant device industry market, the top 20 manufacturers in terms of market share accounted for a total of 57.
3% of the market share
.
Among them, 6 imported brands accounted for 38.
8% of the market share, and 14 domestic brands accounted for 18.
5% of the market share
.
From the perspective of subdivisions, the production technology of joint implant devices is the most difficult, the market share of domestic enterprises is the lowest, and the domestic alternative space is the largest
.
In recent years, the reform of centralized procurement of high-value medical consumables has continued to advance, and the penetration rate of the orthopaedic implant device industry has further increased
.
In July 2019, the General Office of the State Council issued the "Notice on Printing and Distributing the Reform Plan for Governing High-value Medical Consumables", which made it clear that volume procurement should be explored in the field of high-value medical consumables
.
Among them, orthopedic implant consumables are high-value medical consumables widely used in clinics, and various localities are actively exploring their procurement methods
.
In September 2021, the state organized the centralized procurement of artificial joints to open bids in Tianjin.
This time, the centralized procurement of artificial joints included the primary replacement artificial total hip joint and the primary replacement artificial total knee joint
.
It is worth noting that many import companies actively participated in this centralized procurement bidding, and the quotations of some imported products were lower than those of domestic products.

.
However, considering that the production and service costs of imported enterprises are higher than those of domestic enterprises, domestic brands are expected to maintain a better level of distribution and follow-up services through the profit margin after centralized procurement and price reduction, and achieve better clinical use effects as a whole.
gain greater market share
.
Strong demand promotes high-quality development of the industry At present, the problem of aging is becoming more and more serious, and the incidence of orthopedic diseases has increased significantly
.
According to data from the National Bureau of Statistics, from 2013 to 2020, the proportion of China's population aged 65 and over continued to grow.
At the end of 2020, there were about 191 million people, accounting for 13.
5% of the total population, an increase of 3.
8 percentage points from 2013
.
At the same time, according to data released by the National Health Commission, the average life expectancy of Chinese residents has increased from 74.
8 years in 2010 to 77.
3 years in 2019
.
The number and life expectancy of the elderly population is increasing, and the incidence of orthopedic diseases is highly age-related, so the demand for orthopedic implants in the elderly population will continue to grow
.
At the same time, with the rapid growth of China's economy, the per capita income level and per capita health care consumption expenditure continue to increase, and residents' willingness to seek medical treatment and health care expenditure continue to increase
.
Data from the National Bureau of Statistics shows that from 2013 to 2020, the per capita disposable income of Chinese residents has risen from about 19,300 yuan to about 32,100 yuan; per capita health care expenditure has increased from 912 yuan to 1,843 yuan
.
Rising per capita disposable income and healthcare consumer spending form an important driver for the growth of the orthopaedic implant device market
.
Due to the small scale of most orthopaedic implant device manufacturers in China, the industry competition pattern has always been relatively fragmented
.
Today, domestic medical device companies are stepping up technological catch-up and constantly narrowing the gap with international giants
.
At the same time, in the increasingly strict regulatory environment, fierce market competition accelerates the rise of high-quality enterprises and promotes the survival of the fittest in the industry
.
In addition, major players in the market have integrated resources through mergers and acquisitions, which provides a good development opportunity for enterprises with considerable scale
.
In the future, investment and mergers and acquisitions in the field of high-end orthopedic medical devices will further increase, and the broad market space will provide a strong driving force for the development of enterprises
.
(All pictures and texts are provided by Siyu Medical Equipment Observation)