Four Major Developments in China’s Medical Device Industry in 2025

Review of 2024 and Outlook for 2025

I. Review of 2024

In 2024, the medical device industry made significant progress in policy, technology, and market development, while also facing challenges from normalized volume-based procurement and anti-corruption efforts in healthcare.

Normalized volume-based procurement:

The fifth batch of consumables procurement was implemented, leading to significant price reductions for cochlear implants and peripheral vascular stents. The government also strengthened supervision of procurement implementation to ensure medical institutions complete purchases on schedule.

Technological innovation and market expansion:

China achieved breakthroughs in high-end equipment, such as ultra-high-end CT systems, and AI integration, improving diagnostic efficiency. The market size was expected to exceed RMB 1.2 trillion, with exports growing significantly.

Healthcare anti-corruption and industry regulation:

The Central Commission for Discipline Inspection intensified investigations into corruption in medical device bidding and procurement, promoting industry standardization and accelerating sector consolidation.

Primary-level medical equipment upgrades:

Policies supported the renewal of medical equipment at primary healthcare institutions, which is expected to generate RMB 60 billion in procurement demand.

II. Outlook for 2025

In 2025, the medical device industry is expected to enter a new growth cycle, with technological innovation and international expansion becoming core drivers.

Implementation of procurement results and medical insurance optimization:

The selected results for cochlear implants and peripheral vascular interventional consumables are expected to be implemented in March and May 2025, respectively. Direct medical insurance settlement and prepayment systems will be further promoted.

Technological innovation and market expansion:

Localization of high-end equipment will accelerate, while AI applications will deepen and drive intelligent upgrades of medical devices. The market size is expected to exceed RMB 1.8 trillion.

International expansion:

Export markets will continue to expand, emerging markets will show strong growth, and the global competitiveness of Chinese brands will further improve.

Policy support and regulatory implementation:

The Medical Device Administration Law is expected to come into effect, while the government will continue to support R&D of high-end equipment and the development of primary healthcare infrastructure.

Summary

In 2024, China’s medical device industry achieved notable progress in technological innovation and market expansion, while facing challenges from normalized volume-based procurement and healthcare anti-corruption efforts. In 2025, the industry is expected to enter a new growth cycle, with technological innovation and international expansion serving as its main growth drivers.