Zhongjin: Which growth points in the global medical device industry are worth paying attention to?

CICC published a research report stating that based on factors such as aging population, increasing prevalence of chronic diseases, medical technological advancements, policy support, and continuous improvement of medical service systems, the global medical device market size could reach $862.6 billion by 2030, with a CAGR of 5% from 2025 to 2030. The core reason for valuation differentiation is market expectations for future growth and technological barriers/sustainable advantages in the relevant sectors. Major companies focus on eight sub-sectors such as electrophysiology, RDN, complex vascular intervention, structural heart, neuroscience, Siasun Robot&Automation surgery, endoscopy, and blood glucose management. Key points from CICC: Steady growth in the global medical device market According to QY Research data, based on factors such as aging population, increasing prevalence of chronic diseases, medical technological advancements, policy support, and continuous improvement of medical service systems, the global medical device market size could reach $862.6 billion by 2030, with a CAGR of 5% from 2025 to 2030. In 2025, the market situation will be as follows: North America/Europe/China/Asia Pacific/Latin America/Middle East and Africa will account for 32%/25%/8%/19%/11%/5% respectively; high value consumables/low value consumables/medical imaging equipment/in vitro diagnostics/others will account for 32%/12%/12%/13%/31% respectively. Valuation system: Growth quality determines premium The research attempts to sort out the main business, growth rates, and valuation of the top 15 global medical device companies and finds that cardiovascular, medical imaging, surgery, orthopedics, blood glucose management, and neuroscience are the sub-sectors that many companies focus on. Valuations show significant stratification, with high-growth sub-sectors leaders enjoying a 31-57x 2025 P/E, while mature platform companies typically have valuations of 13-18x 2025 P/E. The main reason for valuation differentiation is the market's judgment of the strength of future growth expectations and the technological barriers/sustainable advantages in the relevant sectors. Innovation drives growth, 8 sub-sectors worth focusing on The research found that many major companies mention eight sub-sectors: electrophysiology, RDN, complex vascular intervention, structural heart, neuroscience, surgery Siasun Robot&Automation), endoscopy, and blood glucose management. The research suggests that these areas may experience procedure upgrades/product iteration optimization or open up untapped blue ocean markets through new technologies, possibly leading to commercialization climax in the future. The research believes that on one hand, sub-sector leaders can enjoy a certainty premium based on high growth and high barriers to entry, while on the other hand, some traditional giants can boost performance growth and valuation through significant single-product volume. Risks Risks include R&D failures, overseas business operation risks, goodwill impairment risks, and product recall risks.