Analysis of China's Orthopedic Implant Device Market Segment

Orthopedic implants belong to the category of high-value medical consumables, which are different from developed countries. The application of orthopedic implants in China started late, and the penetration rate and residents' medical expenditure consumption level are far behind those of developed countries. The industry structure is in the adjustment stage. At present, the market share of trauma, spine, and joint implant devices is similar. The penetration rate of each segment of the domestic orthopedic implant device market is low, less than 5%, far lower than the 40%-70% in the United States.

However, trauma implants have basically achieved domestic substitution, and will develop in the direction of improving quality in the future; the main market for spine and joint products is currently occupied by foreign varieties, but with the improvement of domestic enterprises' competitiveness, there is more room for future development.

1. The scale of China's orthopedic implanted medical device market is developing rapidly

Orthopedic medical devices are one of the largest sub-industries in the medical device industry. Among them, orthopedic implants are the most important category of orthopedic devices. They usually refer to implantation into the human body through surgery to replace, support, locate, or repair bones, joints, and joints. The devices and materials of cartilage and other tissues are of high value and have an important impact on human life and health, and their production and use must be strictly controlled. Therefore, orthopedic implants are generally classified as high-value medical consumables.

According to the data from the "Blue Book of China's Medical Device Industry (2020)" jointly released by the Chinese Society for Drug Administration, the Medical and Health Research Center of the Old Association for Science and Technology of Tsinghua University, and the Social Sciences Literature Press, the market size of my country's orthopedic implant consumables from 2015 to 2019 Presenting a trend of year-on-year growth, thanks to the acceleration of my country’s population aging process and rising medical demand, the orthopedic implant market has been growing in recent years.

In 2019, the market size of our orthopedic implant consumables was approximately 30.4 billion yuan, a year-on-year increase of 16.03%. Prospects Based on the development of China's orthopedic implanted medical device market in recent years, it is predicted that the size of China's orthopedic implanted medical device market in 2020 will be approximately 35.5 billion yuan.

2. There is little difference in the scale of China's orthopedic implanted medical device subdivision products

The orthopedic implant market can be divided into trauma, spine, joints, and others. According to the "Medical Device Blue Book: China Medical Device Industry Development Report (2020)" data show that in 2019, spine orthopedics is the number one in the orthopedic implant market. A large market, the market accounted for 28.95%. The joint market came from behind, surpassing the trauma market to become the second segment of orthopedic implants. It is estimated that the joint market will account for 29.58% in 2020. On the whole, the domestic orthopedic implant device market is different from that of developed countries. At present, the market share of trauma, spine, and joint implant devices is similar.

The main reason is that the application of orthopedic implanted devices in China started late, the penetration rate and the level of residents' medical expenditure consumption are far from those of developed countries, and the industry structure is in a stage of adjustment. In the future, with the improvement of the consumption power of Chinese residents, the improvement of the domestic medical insurance system, and the overall improvement of the treatment level of clinicians, the market share of spine and joint consumables products in my country will further increase.

On the whole, the scale of various subdivided products of China's orthopedic implanted medical devices continues to grow from 2015 to 2020, and there is little difference in market size between subdivided products. Among them, the market size of spinal orthopedics implanted medical devices in 2019 is about 8.8 billion yuan, an increase of 15.8% over 2018. It is initially estimated that it will grow to 10.3 billion yuan at a compound growth rate of 17% in 2020.

The sales scale of the joint market is about 8.7 billion yuan, an increase of 19.2% over 2018, and it will be about 10.5 billion yuan in 2020. The market size of traumatic orthopedic implanted medical devices was 8.5 billion yuan, an increase of 13.3% compared with 2018, and it will hit approximately 9.7 billion yuan in 2020.

3. Trauma implantable devices have basically realized domestic substitution

From the perspective of competition in the orthopedic implant market segment, the highest localization rate is still in the trauma market. Domestic trauma products account for 67.85% of the market share, basically realizing domestic substitution; followed by the spine market. With the continuous development of import substitution of spine products, Domestic spine products are expected to gain more than 50% of the market share in recent years; the joint market has the lowest localization rate. Although domestic joint products are developing rapidly, there are still differences with imported products, and it takes time to catch up.

At present, the penetration rate of each segment of the domestic orthopedic implant device market is less than 5%, which is far lower than the 40%-70% in the United States. There is huge room for development, and the orthopedic implant device is expected to maintain a relatively high growth rate.

Trauma implantable devices have basically achieved domestic substitution, and will develop in the direction of improving quality in the future; spine and joint products are currently occupied by foreign varieties in the main market, and there is a lot of room for future development.