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Analysis of After-sales Market of Medical Devices in China


According to CNII, the scale of medical device market in China from 2001 to 2016 was as shown in the table below:
With reference to the data in the Overview of Global Device Market in 2017 and Forecast for Global Device Market in 2022 published by evalsuate MedTech and sorted out by Mr Lai Zhicheng with GDMV, the pie chart for global medical devices is as follows:

The above percentages add up to 53%, that is, 47% of medical devices require after-sales maintenance.

Among the medical devices imported in 2013, the medical devices requiring no after-sales services include medical equipment (19%), medical dressings (12%), and health-care rehabilitation equipment (22%), totaling 53%. The remaining medical devices require after-sales services, accounting for 47%.

Here I would like to give a generally accepted average of 3%, that is, if the total assets of all medical devices maintainable in a hospital are worth CNY 100, the annual maintenance cost will be CNY 3.

Next, let's try to calculate the total volume in after-sales service market in 2016. We need to understand that maintainable medical devices are all durable products. Generally speaking, they have a life cycle of 7 - 15 years. We take an average number.

Assuming that all medical devices have a lifespan of 10 years, the devices sold in 2006 would be still in use in 2016, at which time they still need maintenance although they will fall into disuse very soon. Therefore, in early 2016, the total volume of maintainable medical devices is the sum of the volume of maintainable medical devices of each year from 2006 to 2015, totaling CNY 728.3 billion. Multiplied by 3%, the total volume of after-sales service market for medical devices in China in early 2016 was CNY 21.8 billion. On this basis, it is calculated that the total volume of after-sales service market from 2016 to 2019 is as follows:

In this way, the total volume of after-sales service market for medical device in 2017 would be CNY 26.7 billion.

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