Healthcare is one of the three major livelihood issues. As a crucial support point of the healthcare system, the medical device industry has received increasing attention. With the growing emphasis on urbanization, the medical device market has been tapped.

　　Currently, the scale of China's medical device market has exceeded 100 billion yuan, with an average annual growth rate of approximately 23%. It is estimated that by 2015, the market size will reach 340 billion yuan. However, it is noteworthy that compared to the global medical device market's 42% share of the total pharmaceutical market, China's share is relatively low at only 14%.

　　Pharmaceutical industry analysts point out: With the continuous acceleration of urbanization, it will bring an incremental increase of 200 billion yuan to the demand for medical services, and an incremental increase of approximately 250 billion yuan in medical service supply driven by the government. Coupled with the Ministry of Health's commitment in August 2012 to annual medical system special funds exceeding 10 times the 2008 level, under the impetus of numerous favorable factors, the medical device industry may achieve rapid development.

　　From a policy perspective, after the release of the "Twelfth Five-Year Plan" for Medical Device Science and Technology Industry, the "Healthy China 2020 Strategic Research Report" was also released, mentioning that seven major medical system projects totaling 400 billion yuan will be launched in the next eight years. This has invigorated investors focusing on the medical device industry.

　　Previous medical reforms and the prioritized urbanization are complementary. Because the urbanization process naturally involves the construction and upgrading of the medical system, the benefits to medical devices are only natural. Now, domestic and foreign medical device manufacturers are all eyeing the county hospital construction market.

　　From a trend perspective, the aging trend ensures a continuously expanding market for certain medical devices such as oxygen concentrators and blood glucose meters. Secondly, medical reforms; the State Council's "Twelfth Five-Year Plan" for medical reform mentions that by 2015, the number of beds and service volume of non-public medical institutions should reach 20% of the total number of medical institutions. Against the backdrop of increasing medical security, the addition and purchase of medical devices by private medical institutions will also effectively drive industry development. Furthermore, the new GMP plan; for example, the new GMP has high requirements for aseptic preparation enterprises, requiring all to pass by the end of 2013. Finally, substitution; currently, the vast majority of high-end medical devices are imported from abroad, but with the gradual upgrading of technology, domestically produced high-end medical devices have gradually gained the ability to substitute.

　　According to the "2013-2017 China Electronic Medical Device Industry Analysis and Research Report": If we use "urbanization" and "medical reform" as opportunities for exploration, the generally benefiting listed companies can be divided into three categories: engineering, chain, and equipment. In addition, the medical device industry, besides the normal growth of market size, also has two major opportunities: import substitution and upgrading and transformation.