A medical endoscope is a medical device that is about 200 years old and is mainly used to provide access and illumination during diagnosis and treatment, and to observe or manipulate body cavities, hollow organs, and body tubes. Such a device usually consists of a flexible or rigid tube that can enter the body, a lens imaging system for capturing and transmitting images of tissues and organs inside the patient, an image processing system that digitizes the captured images, a display system that presents the digitized images to the operator or observer, and a light source system that transmits light to improve the visibility of the area being examined. In some cases, it will also include an additional working channel to provide access to the instruments used during the procedure.
01
Device classification
Medical endoscopes are usually accessed through the body's natural orifice or through small incisions in minimally invasive surgery to help doctors diagnose diseases, or through biopsies of lesions for pathological diagnosis. It can also be used for surgical treatment or to assist in the implantation of therapeutic artificial products. According to the principle of imaging, medical endoscopes can be divided into optical endoscopes and electronic endoscopes; According to the number of uses, it can be divided into disposable endoscopes and reusable endoscopes. According to the field of application, endoscopy can be divided into digestive endoscopy (including gastroscopy, colonoscopy), respiratory endoscopy, general surgical endoscopy, urological endoscopy, thoracic surgery endoscopy, gynecological endoscopy, etc. According to the degree of hardness and softness of the mirror body and the application scenario, endoscopes can be divided into soft and hard scopes, among which the common hard scopes are hysteroscopy, thoracoscopy, proctoscopy, hysteroscope, etc., and the soft ones are digestive endoscopy and respiratory endoscope. Gastroenterology is the most important department of clinical application.
(Source: Bidding Network Data Center)
02
Application scenarios
A medical endoscope is a medical device used for clinical treatment, including laparoscopes, arthroscopes, otoscopes, nasolaryngoscopes, hysteroscopes, and cystoscopes (rigid scopes), among others. These endoscopes have been widely used in the treatment of different departments and diseases. Among them, gastroscopes and colonoscopes belong to flexible endoscopes, which can be bent at will through the natural orifices of the human body, such as the esophagus and intestines. On the other hand, laparoscopes and arthroscopes belong to rigid tube endoscopes, which need to be inserted into the human cavity or potential cavity through a poke hole, and cannot be bent. From the perspective of department distribution, soft endoscope is mainly used in gastroenterology and respiratory department; Rigid endoscopes are widely used in general surgery, urology, thoracic surgery, and gynecology.
(Source: Bidding Network Data Center)
03
Industrial structure
The upstream of the endoscope industry is dominated by component manufacturers, who provide the raw materials, components, and machinery required for the midstream production of endoscopes, such as image sensors, optical lenses, and mechanical devices. Due to the high technical content of endoscope products, some upstream materials have a great impact on product quality and function, so upstream innovation can promote the improvement of midstream product performance and innovative research and development. At present, the domestic endoscope market is dominated by foreign capital, but domestic brands continue to develop and gradually increase their market share. The lower end of the industrial chain is mainly terminal medical institutions, and the sales model includes distribution, direct sales and OEM/ODM. From a policy perspective, the government has issued a number of policies to support the development of the endoscope industry. In October 2019, the National Development and Reform Commission (NDRC) listed electronic endoscopes as an encouraged project to support its priority development. In December 2020, the National Health Commission adjusted the management level of optical/electronic endoscopes from Class III to Class II, indicating that the state will increase its support for local medical device companies. With the implementation of policies and the rise of domestic endoscopes in technology, academia and market, the domestic substitution process of the endoscope industry is expected to accelerate.
(Source: Bidding Network Data Center)
04
Market size
According to the statistics of the winning results of medical endoscopes in the first half of 2024, the total number of transactions increased by 9.38% compared with last year, and at the same time, the number of merchants participating in procurement has also increased significantly, more than doubling compared with last year, and the total number of transactions has also shown an upward trend. The medical endoscope market is showing an overall expansion trend in 2024.
(Source: Bidding Network Data Center)
05
Regional markets
From the perspective of procurement demand, there are certain differences in different provinces. In the medical endoscope market in the first half of 2024, Guangdong Province has the most outstanding performance, accounting for 11.4% of the country's total turnover, with a total purchase value of about 480.31 million yuan. Secondly, Shandong Province also performed well in the market in the first half of 2024, ranking second with 253 bidding projects, accounting for 7.17% of the country's total turnover. The third, fourth and fifth places are Jiangsu Province, Zhejiang Province and Sichuan Province respectively. The top 10 provinces accounted for 57.78% of the country's total turnover.
(Source: Bidding Network Data Center)
06
Industry distribution
It can be seen from the proportion chart of the classification of bidding units that the units with more procurement needs in the medical endoscope market are still dominated by tertiary medical institutions, with the largest transaction volume, accounting for 59.13% of the total turnover. However, the demand for low-level hospitals should not be underestimated, with the continuous increase of the state's support for primary medical and health undertakings, county-level hospitals have also received more policy and financial support, and the upgrading of medical equipment has accelerated, which is also a market opportunity that cannot be ignored.
(Source: Bidding Network Data Center)
07
Market demand
According to the statistics of the winning results of medical endoscopy in the first half of 2024, compared with the first half of 2023, the demand for diagnosis and treatment of ENT, respiratory system, joints, and digestive system is showing an upward trend in the market. Among them, the transaction value of arthroscopy and bronchoscopy increased by more than half year-on-year, and in the coming period, the market for bronchoscopy, arthroscopy, endoscopic systems and otolaryngology will continue to be optimistic, and suppliers should pay attention to the development of these market segments and may need to increase corresponding production and inventory to meet market demand.
(Source: Bidding Network Data Center)
08
Brand analysis
According to the statistics of the winning results of medical endoscopes in the first half of 2024, among the top 10 brands, Olympus, which ranks first, is far ahead of other brands with 682 bids and a total transaction value of 853.06 million yuan. KARL STORZ ranked second with a total turnover of 370.94 million yuan. The total transaction value of the top ten brands accounted for 49.16% of the total transaction value in the first half of 2024, accounting for half of the medical endoscope instrument market.
(Source: Bidding Network Data Center)
09
Single-item analysis
According to the statistics of the bidding results of medical endoscopes in the first half of 2024, among the top 10 popular models, the total turnover of Olympus products accounted for 43.42% of the total turnover of the TOP10.
(Source: Bidding Network Data Center)
10
Supply and demand
(Source: Bidding Network Data Center)
Olympus is an optical and imaging company from Japan, and its business gradually expanded from the field of microscopy to cameras, endoscopes, etc., and eventually became a world-renowned giant in the optical industry. In 2019, the company launched the "Transform Olympus" transformation program, which aims to adapt and optimize the business structure. In line with this strategy, Olympus sold its camera business in 2020 and spun off its scientific business to a wholly owned subsidiary, Evident Corporation, in 2022 to focus more on the medical business. Today, Olympus plays a leading role in the global endoscope industry, especially in the soft endoscope market, which ranks first in the world and the rigid endoscope market. According to the business analysis for fiscal 2024, Olympus' business structure consists of two main parts: the endoscopy business and the therapeutic solutions business, which account for 63% and 36% of the total business, respectively. In the endoscopy business, the proportion of digestive endoscopy is 55%, that of surgical endoscopy is 10%, and that of repair services is 35%.
As domestic enterprises have increased their R&D investment in recent years, they have begun to gradually break through the monopoly of foreign-funded enterprises, such as Olympus, in the field of soft mirror technology. For example, the 4K flexible microscope and the endoscopic ultrasound prescription launched by Aohua are both remarkable results. From the perspective of market share, Olympus' share of the Chinese market has declined significantly, and its market is almost divided between two local companies, Aohua and Kaikai. Looking ahead, it is expected that the trend of import substitution will continue to advance in the field of soft mirrors. Still, Olympus has a clear early stage advantage in physician education and after-sales service networking. If domestic enterprises want to achieve greater success in this field, they not only need to continue to make efforts in product quality, but also continuously strengthen their sales capabilities and supporting service capabilities to achieve all-round competition.
The gap between domestic brands and international brands in terms of technology and product performance is gradually narrowing, and because of their high cost performance, these brands have an advantage when opening up the grassroots market. In addition, due to the geographical advantage, domestic companies are able to quickly adjust their products based on clinical feedback, which makes their R&D efficiency higher and faster response. This flexibility and rapid response capability enable domestic enterprises to provide a better after-sales service experience.