In the China Industry Information Network from 2001 to 2016, the market size of China's medical devices is as follows:

As we know, there are 44 categories of medical devices according to the latest classification standards, and not all medical devices need to be repaired, for example, many medical consumables with high or low value, medical dressings, and some health and rehabilitation medical devices do not need to be repaired. The main medical equipment that needs to be repaired is diagnosis and treatment equipment, such as CT,MR, nuclear medicine, ultrasound, ECG monitor, etc. Radiotherapy equipment and so on.

So what percentage of all medical equipment needs to be repaired? Citing the data in the "2017 Global Medical Device Market Overview and 2022 Global Medical Device Market Forecast" published by EvaluateMedTech, organized by Mr. Lai Zhicheng of Guangdong Medical Valley, the proportion of global medical devices is as follows:

As can be seen from the above figure, cardiovascular department (12%), orthopedics (9%), plastic surgery (5%), wound treatment (3%), diabetes-related (3%), general medical consumables (3%), these are mainly consumables, do not need to repair after sale; For other categories of medical devices, we roughly estimate that half (8%) do not require repair. In the IVD industry is relatively special, usually the sales of reagents and instruments accounted for about 3:1, so a rough estimate of the IVD industry does not need after-sales service accounted for 10%.

The above percentages add up to 53%, that is, 47% of medical devices need to be repaired. How accurate is this estimate? In order to verify this proportion, I found a data from the wechat public account of Shenwan Investment Health, saying that the import structure of medical devices in 2013 is as shown in the following figure:

In the medical devices imported in 2013, medical devices that do not need after-sales service accounted for 19% of medical consumables, 12% of medical dressings, 22% of health and rehabilitation devices, the total is 53%, that is, medical devices that need after-sales service accounted for 47% of the total. It can be seen that this approximate proportion should be relatively reliable.

So I think that in all medical devices, about 50% of medical devices need to be after-sales. Based on this ratio, I estimated the market size of medical devices requiring after-sales service from 2006 to 2018, and made a chart as shown in the following figure:

Were you surprised when the calculations came in?

With the above data, can we indirectly calculate the size of China's medical device after-sales service market? There is also a lack of key data, that is, on average, what is the percentage of the cost of after-sales service in the amount of medical device purchase?

This is not an easy thing, generally speaking, high-end equipment or key equipment (such as CT,MR) after-sales costs account for a high proportion, and commonly used and low-value equipment (such as blood glucose meter, blood pressure meter, etc.) after-sales costs account for a very low proportion, so the average in the end, may be related to the composition of the hospital's medical equipment.

Here I give a generally accepted average of 3%, that is, if a hospital has a total of 100 repairable medical equipment assets, the annual maintenance cost is 3 dollars. Some friends will ask, is this figure reliable? How did you get it? I will not expand here, interested friends can search on the Internet "medical equipment maintenance cost analysis and management" and "Various types of medical equipment maintenance cost analysis" and other related articles.

Next, let's try to estimate the total amount of after-sales service market in 2016, we need to understand that these medical devices that can be repaired are durable goods, usually the life cycle is 7-15 years, we take an average, assuming that the life of all medical devices is 10 years, so in 2016, the machine sold in 2006 is still in use. Although soon to be eliminated, but also maintenance, so at the beginning of 2016, the total amount of repairable medical devices in China is the sum of the total number of repairable medical devices sold from 2006 to 2015, that is, 728.3 billion yuan. Multiply by 3% to get the total amount of China's medical equipment after-sales service market at the beginning of 2016 was 21.8 billion yuan. The total volume of after-sales service market from 2016 to 2019 can be calculated as follows:

In this way, the total medical equipment after-sales service market in 2017 was 26.7 billion yuan.

Is this nearly 30 billion market size big or small? First of all, we can see from the above table that the size of this market is growing rapidly. Secondly, we are looking at the market size of one year now. After-sales service is very sticky, once customers buy the service contract, they may continue to buy it. As a medical equipment after-sales service engineer can have a lot of opportunities to shine.