Import substitution+high incidence of cancer, high prosperity of endoscopic diagnosis and treatment equipment industry

Jan 03, 2023

Endoscope is a monitoring instrument integrating optics, ergonomics, precision machinery, modern electronics, mathematics, software, etc. It is one of the direct and effective medical devices for medical personnel to observe the pathological tissues inside the human body. It has the advantages of high image definition, simple operation, etc. Endoscopy and minimally invasive treatment were carried out late in China, but their popularity was very fast, and the market size of medical endoscopes grew rapidly.

The global market for endoscopic diagnostic and therapeutic instruments grew steadily by 5%, and the domestic market grew rapidly by about 23%

The rapid growth of the endoscope market has driven the increasing demand for consumables of endoscopic diagnostic and therapeutic instruments. In 2019, the global endoscope market was about 24 billion dollars, with a compound growth rate of about 10% from 2015 to 2019, about 4 percentage points higher than the global medical device compound growth rate. According to the forecast data of FROST&SULLIVAN, the domestic endoscope market will grow at a compound rate of 9.25% from 2018 to 2022, which will drive the rapid growth of endoscopic diagnostic and therapeutic instruments used in conjunction with endoscopes.

According to the statistics and forecast data of Boston Scientific, the global market size of endoscopic diagnostic and therapeutic equipment consumables is about 6 billion dollars, and the compound growth rate is expected to be 5% in 2017-2020. The domestic endoscopic diagnosis and treatment market started late, but the growth rate is higher than the global growth rate. It is conservatively estimated that the current domestic endoscopic diagnosis and treatment device market size is about 4-5 billion yuan, and the compound growth rate in 2017-2020 is about 23%.

The global endoscopic diagnostic and therapeutic equipment market is highly concentrated. From the perspective of the competitive pattern, Boston Science, Olympus and Cook City account for 83% of the market. The market share of Chinese manufacturers is far from that of overseas manufacturers. The market share is expected to further increase in the future with technology upgrading and price advantages.

The localization rate of domestic endoscopic diagnosis and treatment consumables market is low, and the import substitution market will be broad in the future. According to statistics, the market share of each manufacturer in 2015 was: Olympus accounted for 25%, Cook 22%, Boston Science 28%, Nanwei Medical 7%, Hangzhou Jiuhong 5%, Hangzhou Anrui 4%, and other manufacturers 9%.

The incidence rate of digestive tract cancer is high in China, and endoscopic diagnosis and treatment is the gold standard for early cancer screening

The interventional diagnosis and treatment rate of domestic digestive endoscopy is low, and there is great room for market penetration improvement

Compared with Europe, America, Japan and other countries, the development rate of gastroscopy in China is relatively low: 1664 cases/100000 people have gastroscopy, which is relatively sufficient compared with Europe, America and Japan, but only 1/5 of Japan; 436 cases of enteroscopy were carried out per 100000 people, less than 1/8 of the United States;

The implementation rate of RCP (endoscopic retrograde cholangiopancreatography) is significantly lower than that of developed countries in the world. In addition, the average cost of digestive endoscopy in China is significantly lower than that in European and American countries. In the future, the penetration rate will be closer to that of developed countries, driving the growth of the use of endoscopic diagnosis and treatment consumables.

Endoscope manufacturers need a high standard production environment

1、 The natural environment and sanitary conditions around the location are good, at least there is no source of air or water pollution, and it should be far away from the main roads and freight yards.

2、 The ground and roads in the plant area shall be flat and free from dust. It is advisable to reduce the exposed soil area through greening or take measures to control dust. Garbage and idle articles should not be stored in the open air. In short, the environment of the factory should not pollute the production of sterile medical devices.

3、 The overall layout of the plant area should be reasonable and should not have a bad impact on the production area of sterile medical devices, especially the clean area.