Clinical Lab Market In China Booming Despite Recession

Diagnostic companies looking for growth in a tough economy can still find a vibrant market for their products in China, says a leading healthcare market research publisher. IVD markets in China will grow to more than $1.5 billion in 2009, making it the world's sixth largest IVD market. The last few years have seen market growth of 15-20%. With about 575 new hospitals opening each year and a government plan to open more than 20,000 health clinics, the lab market is booming, according to a new report, "Who is Who in Clinical Diagnostics in China (Manufacturers and Distributors Profiles, Market, Industry Overview)," from Kalorama Information, in partnership with IVD market research firm McEvoy & Farmer.

Even with the current world economic problems, China's economic growth is estimated by non-government sources to be even higher than the government's official report of about 10%. The country is urbanizing and modernizing faster than any other has in history. With greater levels of prosperity, the citizens of China will continue to seek better health care and diagnostics. According to Kalorama's current estimates, China spends around $1.00 per person annually on diagnostics compared to $22-28 in Europe and the US -- clearly China's IVD market has a great future.

In January 2009, China's State Council announced a major new 850 billion Yuan ($123 billion US) healthcare spending program to bring a minimum standard of medical insurance coverage to 90% of the urban and rural population. IVD companies should note that the plan also aims to upgrade hospitals and improve health centers in rural and remote areas, which will likely lead to a boom in small instrument placements at thousands of clinics and health centers across the country. China is already the world's number two market for automated IVD instrumentation. Now a significant but completely new market for smaller, more robust instrumentation appears likely to take shape.

"China is not growing as fast as they would like, and maybe is not growing to the big expectations set by recent years, but the IVD market there shows solid growth compared to other regions," says Bruce Carlson, publisher of Kalorama Information. "With new hospitals and labs opening at breakneck speed and a concerted effort by the government to modernize its healthcare system, the future looks bright."

Kalorama Information's new report, "Who is Who in Clinical Diagnostics in China (Manufacturers and Distributors Profiles, Market, Industry Overview)," produced jointly with the firm McEvoy & Farmer, is the product of on-the-ground primary research on Chinese labs conducted in fall and winter 2008. An industry overview and market size estimates are followed by profiles of 42 international diagnostic companies, 130 domestic diagnostic companies and 24 local distributors.

Source
Kalorama Information