China's medical equipment and equipment market is expected to reach 53.7 billion US dollars

According to market research firm Frost & Sullivan, the entire medical device and equipment market in China is expected to more than double to 53.7 billion U.S. dollars from now until 2015. This value includes everything from patient monitors to stents, but most of the growth is likely to come from MRI scanners and CT scanners, both of which are highly profitable. At the same time, the economic downturn has caused a long-term depression in the US medical equipment market.

In the coming years, General Electric and Philips expect their medical equipment business in China to see double-digit growth, and Siemens said its goal is to increase the sales of medical imaging equipment in China above the market's projected annual growth rate (10 %). GE said that in the medical field, its revenue in China last year reached US$1 billion, including equipment sales, parts sales and maintenance. It declined to disclose sales figures in the United States, but according to market research firm Frost & Sullivan, the US medical imaging equipment and services market shrank by a third last year, from $14.4 billion to $9.7 billion.

GE is still the largest seller of medical imaging instruments in the world and in China, but Siemens and Philips are both stepping up their market share in China. In order to cater to the needs of smaller, more remotely located hospitals, the three companies have set up more sales and service offices in mainland China. They are also expanding the product line of cheaper, lower-end imaging devices.

GE expanded its product line of low-cost Brivo imaging equipment and added a CT scanner to its X-ray machine. This scanner is about 30% cheaper than its more expensive models. GE said that since its launch in March, it has sold 70 Brivo scanners in China.

Companies are also using supernormal methods to compete for business. Despite their refusal to disclose prices, analysts said they all had significant discounts to compete for rural hospitals.

Siemens spent $40 million to build a medical industrial park in the suburbs of Shanghai. A huge digital map of China in the park monitors Siemens equipment installed in hospitals across the country. If one of the devices has a technical problem or shows signs of possible problems, the map will alert and a red light will flash on the screen. Company technicians can maintain this machine overnight and even perform remote maintenance in some cases. At General Electric and Philips, customer sales and service departments and remote monitoring services are also widely used.

Bernd Ohnesorge, president of Siemens Medical Systems China, said that he cannot be passively served. China has very few CT scanners, so it is used very frequently. In general, a Chinese device scans up to 100 patients a day, which is more than three times the average use rate of German hospitals. For Chinese hospitals with CT scanners, this is also a major source of income, with a profit contribution rate of up to 30%.