Analysis of Social Needs and Medical System Support in the In Vitro Diagnostic Industry

Population structure changes give rise to rigid demand

The elderly population aged 60 and above in China has exceeded 280 million, and the per capita medical expenditure of this group is 3.2 times that of young adults, directly promoting the expansion of the chronic disease testing market at a compound annual growth rate of 18%. In the field of diabetes management, the market scale of blood glucose monitoring products reached 9.5 billion yuan, and the market penetration rate of CGMS rapidly increased from 5% in 2020 to 17% in 2023.

The adjustment of the birth policy brings structural opportunities. In 2023, the sales of prenatal screening reagents increased by 31% year-on-year, and the genetic disease testing projects for newborns have covered more than 200 diseases. It is worth noting that the tumor early screening market has shown explosive growth, with sales of 800 million yuan in the first year of the launch of multi cancer joint detection products based on NGS technology.

Upgrading health consumption drives market segmentation

The per capita healthcare expenditure of residents has increased to 8.7% of consumption expenditure, giving rise to three major consumption trends:

1. Precise testing demand: The number of users for personalized drug genetic testing services has exceeded 5 million

2. Convenience demand: the annual growth rate of the household self-test product market reached 45%, and the COVID-19 antigen test continued to increase after normalization

3. Preventive testing: The penetration rate of cancer early screening products in the 35-50 age group has increased to 12%

The upgrading of consumption is also reflected in the improvement of testing quality requirements. Third level hospitals require a coverage rate of 92% for the traceability ability of testing items, and as a result, the market size of quality control products maintains an annual growth rate of over 20%. In terms of payment ability, the number of testing projects covered by commercial health insurance has increased from 87 in 2019 to 215 in 2023, significantly expanding the high-end testing market space.

Structural opportunities brought by healthcare system reform

After the deepening implementation of the hierarchical diagnosis and treatment system, the number of testing projects carried out in primary medical institutions will increase by 38% year-on-year in 2023, promoting the continuous expansion of the POCT equipment market. The construction of medical consortia has led to the rise of regional testing centers, with 70% of county-level medical consortia achieving mutual recognition of testing results, driving the sinking of high-throughput testing equipment into the market.

The DRG payment reform has forced medical institutions to optimize their testing processes. By 2023, the average testing turnover time (TAT) of tertiary hospitals will be reduced to 2.1 hours, an increase of 40% in efficiency compared to before the reform. This transformation directly stimulates the demand for automated assembly lines, with an annual increase of 65% in the installed capacity of laboratory automation systems (LAS) in China, and the maximum number of connected modules in a single laboratory reaching 12.

Innovation in the Mode of Third Party Inspection Services

The market concentration of ICL (Independent Medical Laboratory) continues to increase, with the top three companies accounting for 68% of the market share. There are three major development trends in the industry in 2023:

1. The proportion of special testing services has increased to 35%, with tumor gene testing and rare disease diagnosis becoming growth engines

2. Digital service upgrade, 88% of ICLs achieve mobile report query and intelligent interpretation

3. Extension of the industrial chain, leading enterprises begin to lay out accompanying diagnostic centers and precision treatment alliances

Breakthroughs have been made in the construction of regional testing centers, with an average daily testing volume of over 100000 items in 23 provincial-level regional testing centers. The economies of scale have reduced the cost of single testing by 28%. In the field of emergency detection, the establishment of a pathogen monitoring network in 78 cities has shortened the response time for detecting new infectious diseases to 48 hours.

Deep integration of technological innovation and clinical needs

The clinical demand-oriented research and development model has achieved significant results:

In the field of severe illness, the detection time of early diagnostic indicators for sepsis is advanced to 4 hours after the onset of symptoms

Chronic disease management: the dynamic monitoring system based on wearable devices increased the compliance rate of diabetes control by 25%

Tumor diagnosis and treatment: MRD (minimal residual lesion) detection technology achieves a recurrence monitoring sensitivity of 0.01%

The collaborative innovation mechanism between medical institutions and enterprises is gradually improving. In 2023, 27 "Medical Engineering Cross Union Laboratories" will be established to promote the clinical translation of 15 innovative testing technologies. In terms of standard construction, the latest 23 industry standards, including the "Expert Consensus on Clinical Application of Liquid Chromatography Mass Spectrometry," have paved the way for the application of new technologies.

Hubei Xindesheng Material Technology has built a comprehensive solution covering the entire diagnostic process, focusing on core products such as blood collection tube additives, biological buffering agents, and chromogenic substrates. Assist medical institutions in addressing the challenges of DRG payment reform. By continuously providing cost-effective raw material products, enterprises are becoming a solid support for the development of inclusive healthcare.