Research Areas

Home / Press Releases / Medical (InMedica) / Surge in Demand for Colour Ultrasound in China

Press Releases

Surge in Demand for Colour Ultrasound in China
Date: 21 June 2012

Extensive reform to healthcare services and improved local supplier offerings  is driving demand for colour ultrasound equipment to new heights, according to a new report from InMedica, a division of IMS Research (recently acquired by IHS Inc. (NYSE: IHS)), The Chinese Market for Ultrasound Equipment – World – 2012.

The report observed colour ultrasound equipment revenues increasing by 10 percent from 2010 to 2011; by 2015, market revenues for colour are forecast to grow by more than 80 percent. While some growth is attributable to increased uptake of compact ultrasound equipment, most demand is being recorded in the low-end and mid-range cart segments (products less than $60,000).  

Current demand for colour ultrasound equipment is being driven mostly by large metropolitan (Tier 3) and county based (Tier 2) hospitals. “Use of colour equipment provides higher fees of reimbursement for healthcare providers”, commented Owen Tang, market analyst at InMedica. “This offers a better return on investment for colour equipment compared to black and white.” 

Black and white systems are predominantly installed and used in Tier 1 health centres and family clinics in China. These institutions benefitted from strong investment in 2009 and 2010 as part of the Chinese healthcare reform. Now, reflecting rapid changes in demand, many low-end Chinese suppliers are entering the colour market.

“Government support of Chinese black and white ultrasound suppliers prevented multinational suppliers competing on price in the entry level and low-end market,” commented Stephen Holloway, senior analyst at InMedica. “Yet rising demand for higher specification colour systems in Tier 2 hospitals is causing a convergence of interest for local and multinational suppliers, increasing the intensity of competition.”    

Consequently, a dramatic shift is forecast for the China market, with colour ultrasound equipment set to dominate. “Cost will remain a significant factor in tender bidding” added Tang, “although brand and feature sets of ultrasound products are becoming increasingly important”. Furthermore, with more than 3,000 Tier 2 hospitals and 28,000 Tier 1 healthcare centres and clinics in China, the potential for growth remains high. “The market in China is far from saturated”, continued Holloway. “We project double-digit revenue growth from 2013, as the bulk of investment in equipment replacement is implemented. Longer-term, the potential of the Tier 1 market could drive even stronger growth.” 

Share this Press Release

Share
Contacting Us

Jonathan Cassell
Senior Manager, Editorial
jonathan.cassell@ihs.com
Direct: + 1 408 654 1714
Mobile: + 408 921 3754

Or

IHS Media Relations
press@ihs.com
Direct: +1 303 305 8021

About IHS Inc. (www.ihs.com)

IHS (NYSE: IHS) is the leading source of information, insight and analytics in critical areas that shape today’s business landscape. Businesses and governments in more than 165 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS is committed to sustainable, profitable growth and employs more than 6,000 people in 31 countries around the world.

IHS is a registered trademark of IHS Inc. All other company and product names may be trademarks of their respective owners. Copyright © 2013 IHS Inc. All rights reserved.

©2013 IHS. All Rights Reserved