China Ultrasound Market Predicted Set to Surge More than 60% within Five Years

Revenue for ultrasound equipment in China is forecast to top USD 1.5 billion by 2017, up a sizable 65% from USD 908.8 million in 2012. The year 2013, particularly, will mark an important watershed as the industry crosses the billion-dollar threshold, with continued rapid growth expected to occur until at least the end of the forecast time period, according to international market research company, IHS (Englewood, CO, USA), a global source of critical information and insight.

“The impact of the Chinese government’s 2012 healthcare reform plan on the ultrasound market will be the largest growth driver for the Chinese market,” said Benjamin Niu, IHS medical imaging analyst and author of the report. “Plans to construct a new network of tier 2 county-based hospitals, paired with the replacement of ultrasound systems in metropolitan tier 3 hospitals, will also figure in the robust growth equation, driving annual revenue expansion above 10 percent for the next four years,” Mr. Niu added.

Another critical market development is the change in product mix. Earlier health reform programs in China centered principally on equipping rural healthcare clinics with low-end basic ultrasound equipment. However, the newest reform plans to optimize county-based services by equipping hospitals with higher-specification equipment. Revenue growth, as a result, in the midrange, high, and premium segments is predicted at between 15% and 25% yearly for the period from 2012 to 2015.

The clinical use of ultrasound in China is also undergoing some changes. Currently most hospitals in China have an ultrasound department where all ultrasound scans are done and system procurement is managed. This is in glaring contrast to most other global healthcare markets, where ultrasound is typically found in more than 20 clinical departments. But while China may fall behind at present, the report predicts a considerable change in ultrasound use within the country during the five-year period that started in 2012.

“We see significant future growth in demand for ultrasound in new clinical applications outside of the hospital ultrasound department,” Mr. Niu remarked. “Increased demand for specific systems in surgery, the emergency room, and intensive care will be the first adopters, especially with the expanding range of specialist compact systems that become available. However, the low number of trained ultrasound users in other departments will act as the main limiting factor in the short and midterm, so the traditional ultrasound department will continue to have a significant role.”

The combination of new government investment, diversifying clinical use, and shifting product mix is all set to fuel strong future growth of the ultrasound equipment industry in China. Furthermore, improvements in the quality of healthcare services in both rural and metropolitan regions will provide positive benefits on the market.

Therefore, ultrasound revenue growth in China is set to greatly surpass that of other global territories, most of which will fight to top an annual increase of 5% in the same period. Given that the 2012 healthcare reform is seen by many in the industry as the basis for even additional investments, it may not be too much longer until China—currently the second-largest ultrasound market worldwide after the United States—rises to the top and becomes the world’s biggest.

Related Links:
IHS