The Potential Of The Shenzhen Healthcare Industry

While living standards in China have greatly improved, many challenges remain in the healthcare sector. Chief among these are (1) the rapid growth of lifestyle-related diseases, which now afflict approximately 300 million people, (2) the concentration of patients in large urban hospitals due to the quantitative and qualitative shortage of human resources (uneven distribution of medical resources), and (3) the burgeoning cost of healthcare that is growing towards a double-digit percentage of the GDP.

As a common solution to these issues, the Chinese government is focusing on the transformation of medical data (DX). Shenzhen-based DX companies are responding by utilizing their strengths in their respective areas of expertise (Tencent is using the data on its 1.1 billion WeChat users, Ping An Insurance is making use of the world’s largest insurance customer base and platform, and BGI is using genetic analysis technology).

Shenzhen has the potential to become the wellspring of the healthcare DX model and the stage of its social implementation.

The Shenzhen Model Of Healthcare DX

In addition to public policy responses, companies are also vitalizing their efforts. Companies in Shenzhen, a city that has been attracting attention as a business creation hotspot in recent years, are promoting healthcare DX with the aim of solving problems in the healthcare sector through the introduction and use of digital technology, and creating a major trend.

Shenzhen is also known as a center for the bio/medical device industry, as evidenced by the fact that it was recognized as one of China’s first national bio-industry bases in 2005. The Greater Bay Area development initiative (official name: Guangdong-Hong Kong-Macao Greater Bay Area development plan), announced in February 2019, is a regional innovation strategy aimed at developing the area by integrating the Hong Kong and Macao Special Administrative Regions and nine cities in Guangdong, including Guangzhou and Shenzhen. It is clearly intended to strengthen the bio/medical device industry through integration with Hong Kong. As the healthcare industry continues to evolve in this way, three companies headquartered in Shenzhen, Tencent, Ping An Insurance, and BGI, are all regarded as leaders in healthcare DX. Click here for more information of Shenzhen healthcare industry.

 

Covid-19 Impact Update - Medical Device Manufacturing Industry in China

In 2020, the outbreak of COVID-19 has had a significant positive impact on China's medical device manufacturing industry, boosting both domestic and foreign demand for epidemic-related products, such as ventilators, smart monitors, infusion pumps and other medical equipment. Sales volumes of these products have increased dramatically.

Medical Device Manufacturin in China industry trends (2015-2020)
- Average industry growth 2016–2021: 12.5%

Promoted by the growth of the GDP, higher levels of goods' consumption, the aging population, urbanization and the upgrading of consumption structure, sales revenue of China's Medical Device industry has increased rapidly. Moreover, Medical Device Manufacturing in China also presents product diversification and intelligence, especially the products with slow technology iteration. The Medical Device Manufacturing industry has developed rapidly over the five years through 2020, with revenue growing by an annualized 12.5% over the period. In 2020, revenue is set to grow by 18.2%, to reach $26.1 billion.... Click here for more infomation