The Survival Truth of China's Trillion-Yuan Medical Device Market: Insights from VBEF 2025

As the segment with the highest technical barriers in the medical device industry, the medical imaging sector is poised for a rebound after hitting rock bottom.

Looking back at the data for the first quarter of 2025, the market size of medical imaging equipment in China increased by 78.43% year-on-year. Among them, CT and ultrasound equipment achieved a double increase in market share and sales scale. The market share of CT increased by 1.38% year-on-year, and that of ultrasound equipment increased by 1.12%. In terms of sales, the sales amount and quantity of CT increased by more than 90% and 86% respectively year-on-year, while ultrasound equipment followed closely with growth rates of over 88% and 83% (data from Yizhuang Shusheng).

The market’s embrace of innovative domestic medical imaging solutions is already evident, but as the industry approaches a new tipping point, three core questions must be clarified: How are industry trends evolving? How should participants seize this opportunity? And where lie the opportunities for collaboration within the sector?

At the VBEF Medical Device Design and Manufacturing Conference, enterprises from the upstream, midstream, and downstream segments of the industry chain, along with investment institutions and research institutes, shared their insights on industry development. They also engaged in in-depth discussions on the R&D pathways for innovative solutions, providing answers to the aforementioned challenges.

As a key player in China’s medical device industry, Li Chenxi from Ansure Family Office analyzes industry transformation and opportunities from an investment perspective, revealing how to navigate market cycles through strategic positioning and uncover truly valuable growth sectors.

Ansure Family Office Partner, Li Chenxi

Li Chenxi noted that China’s medical device industry is undergoing an unprecedented period of transformation. The continued advancement of centralized procurement policies, the normalization of anti-corruption efforts in healthcare, and the restructuring of global supply chains have accelerated industry consolidation amid short-term growing pains. Nevertheless, amidst a complex policy and market environment, China’s medical device market has demonstrated strong resilience: its compound annual growth rate (CAGR) of 10.9% over the past four years far exceeds the global average of 6.6%. For long-term investors, clear value propositions are emerging within this challenging landscape.

For example, upstream core components have become a strategic battleground for domestic substitution. In fields such as CT X-ray tubes, ultrasound transducers, and medical sensors, domestically produced alternatives are transitioning from “backup options” to “mainstream choices.” In the past, downstream original equipment manufacturers (OEMs), preferring the stability of imported components, maintained a long-term wait-and-see attitude toward domestic suppliers. However, under the pressure of centralized procurement, industry leaders such as United Imaging and Neusoft have begun to deeply integrate with local supply chains, establishing a positive cycle of “technological iteration–cost advantage–economies of scale.” As the market for large-scale equipment such as MRI and CT scanners enters a phase of “competition among giants,”Micro-innovations in Niche Scenarios Become the Key to Breaking Through。

The investment logic in the medical device industry is essentially a bet on the dual trends of upgrading China’s essential healthcare needs and the global shift in industrial capacity. For investors, only by focusing on core technologies and clinical value, and strategically positioning themselves in the deep waters of domestic substitution and the new blue oceans of globalization, can they navigate through cyclical uncertainties and share in the era’s dividends as China transitions from a major manufacturing hub to an innovation powerhouse in the medical device sector. Ansure Family Office adheres to the principle of “investing early, investing in small ventures, and investing in innovation,” with a particular focus on core components of medical devices and the field of medical-engineering research and innovation. It believes that through early-stage incubation, resource integration, and operational involvement, it can help portfolio companies achieve rapid growth and maximize value. In particular, addressing unresolved clinical pain points through micro-innovations based on foreign products will provide enterprises with differentiated competitive advantages.

Focusing on niche scenarios, a clear trend in domestically produced medical imaging is thatImaging Bottlenecks of Traditional CT Are Continuously Being Broken。

This year, not only Neusoft MedicalPhoton-Counting CTHaving entered the NMPA’s Innovative Medical Device Review Program, domestic ultra-high-end CT manufacturer Nanovision has also restructured its imaging logic and launched"Phased-Array CT"technology. Meanwhile, Sinovision, which specializes in large-bore specialized CT systems, has launched its new offering by leveraging innovations in high-definition imaging chain technology.256-Slice Smart 3D Bullseye CT……

Silently, China has taken its place at the forefront of CT technology.

At the conference, Song Qi, Secretary of the Party Committee at Neusoft Medical, pointed out that China’s medical equipment industry has moved beyond a long-term catch-up model, achieving generational breakthroughs by leveraging accumulated technological expertise and talent concentration. Throughout this process, the localization of core components is particularly critical. The industry needs to establish a closed-loop technology system ranging from basic materials to complete device integration, further solidifying the competitive advantages of domestically produced equipment in terms of cost-effectiveness and R&D efficiency, while simultaneously driving technological innovation. Furthermore, internationalization is an essential path for Chinese enterprises transitioning toward value-led growth. On one hand, Neusoft Medical has broken through technical barriers and achieved technological leadership with high-end products such as photon-counting CT scanners. On the other hand, it has deeply cultivated overseas markets, including those along the “Belt and Road” initiative, developing adaptive solutions tailored to regional healthcare needs, thereby promoting the upgrade of Chinese medical equipment from mere product exports to the co-construction of technical standards and service ecosystems.

Song Qi, Secretary of the Party Committee of Neusoft Medical

Ma Xiaodong, Vice President of Marketing at Sinovision, proposed that CT technological innovation must closely address clinical pain points, while the development of high-end imaging requires a collaborative innovation ecosystem involving industry, academia, research, and healthcare institutions, as well as efficient coordination and support from relevant government departments. Guided by this logic, Sinovision has actively responded to the national call for supply chain self-reliance by engaging in deep cooperation with domestic aerospace research institutes, achieving key breakthroughs in the R&D of core CT components such as X-ray tubes and detectors. In response to the dual demands of cost reduction, efficiency improvement, and high-quality development in the healthcare sector, Sinovision has extended the application of CT technology from standalone diagnostic functions toward an integrated “diagnosis-treatment” model. In terms of collaborative innovation among industry, academia, and research, the company has jointly established technical breakthrough platforms with leading institutions such as Peking Union Medical College Hospital and Beihang University, accelerating the translation of frontier technologies—including AI-based scanning protocols and robot-assisted surgery—from the laboratory to clinical settings. Sinovision’s practices demonstrate that upgrading manufacturing processes across the entire industrial chain, from core component and chip R&D to complete system assembly, combined with clinical demand-driven product design thinking, is reshaping the technological development paradigm of CT equipment.

Ma Xiaodong, Vice President of Marketing at Sinovision

Liang Jun, Marketing Director at Nanovision, shared the disruptive innovation pathway for domestically produced high-end imaging equipment. He pointed out that traditional spiral CT technology has approached the physical limits of X-ray tube-detector rotation speed and detector width, making it difficult to achieve revolutionary breakthroughs in image quality by relying solely on iterative improvements of core components. In this context, global manufacturers of high-end imaging equipment are forming two major innovation paths: either innovating detector materials or reconstructing imaging logic to find a second path that breaks through the existing physical limits of CT. Nanovision uniquely integrates these dual-path innovations by embedding an arrayed ring of 24 integrated X-ray tube sources and an arrayed ring of 64 detector modules. By precisely controlling the X-ray sources in the array with sequential electronic timing for pulsed exposure to complete data acquisition, they have created phased-array CT. This upgrades the mechanical rotation of spiral CT scanning to optical rotation, achieving a leapforward improvement in both temporal and spatial resolution of CT.

Liang Jun, Marketing Director at Nanovision

At the hardware level, breaking through the bottleneck of core components in domestically produced medical imaging equipment is imperative. Currently, not only are domestic original equipment manufacturers (OEMs) independently developing core technologies from the ground up, but many upstream suppliers of core components have also achieved technological breakthroughs.

The Debate Over Detector Rows Has Persisted Throughout the Development of CT Technology.From the clinical commercialization of 4-slice CT scanners in 1998 to the achievement of sub-second whole-body scanning with 256-slice CT systems in 2008, the fundamental advancement has been the systematic improvement of both temporal and spatial resolution through the expansion of the physical width of detector arrays. However, the development of CT detectors faces multiple challenges, including the need for high performance, high precision, high reliability, long service life, and low cost. Not only must stringent standards be met throughout the design and manufacturing processes, but the technical difficulties also stem from the interdisciplinary nature of the technology and the extensive industry-specific know-how required. It can be said that breakthroughs in CT detector technology demand long-term technical accumulation and continuous innovative exploration.

Shang Haiming, founder of Xinsheng Jiechuang, shared insights based on his own experienceStrategies for Breaking the DeadlockFirst, reject the “Me Too” approach and rebuild competitive barriers through differentiation. Second, reconstruct the value chain by shifting from merely selling products to helping customers achieve profitability. Shang Haiming believes that if customers cannot generate profits from equipment, the commercial loop for upstream suppliers will be difficult to sustain. Therefore, technological innovation must address customer pain points—such as reducing usage costs with low-dose imaging technology and enhancing clinical value with high-resolution capabilities—enabling customers to establish differentiated competitiveness in the end-market. Meanwhile, as the industry returns to the long-term logic of paying for value, customers will ultimately pay for technologies that genuinely improve efficiency and create clinical value, rather than compromising solely for lower prices.

Shang Haiming, Founder of Xinsheng Jiechuang

Certainly, CT X-ray tubes have also been a key focus of intensive R&D efforts by Chinese manufacturers in recent years. Among these, CT X-ray tubes based on liquid metal bearings represent the most advanced technological achievement of today’s global imaging giants. Chinese manufacturers such as Zhishu Technology have achieved breakthroughs, obtaining the first medical device registration certificate for a domestically produced liquid metal bearing CT X-ray tube and realizing mass production. Meanwhile, the company’s independently developedLiquid Metal Bearing X-ray TubeIt has also obtained certification for integration with domestically manufactured CT systems, addressing the bottleneck issue of imported CT X-ray tubes.

Hu Yinfu, Founder and General Manager of ZhiShu Technology, believes that the domestic CT X-ray tube market is undergoing a transition from low-end to mid-to-high-end segments. Mid-to-high-end models (above 64 slices) have established clear technical benchmarks for X-ray tube performance—including power output, heat dissipation efficiency, dynamic focal spot control, and tolerance to gantry rotation speeds—creating a technological divide. Among these, thermal management represents the core engineering challenge in X-ray tube development. Liquid metal bearings, with their three major advantages of zero-wear operation, superior heat dissipation, and low vibration and noise, have resolved this challenge and become an essential pathway for mid-to-high-end products. In the future,Domestic enterprises must break free from low-end, red-ocean competition, focus on overcoming core technological challenges such as liquid metal bearings, and simultaneously promote deep collaboration across the upstream and downstream supply chains as well as breakthroughs in policy barriers.

Hu Yinfu, Founder and General Manager of Zhishu Technology

Within the medical imaging equipment supply chain, upstream core components are witnessing a revolutionary breakthrough in “X-ray source” technology, beyond just detectors. XinHong Electronics’ independently developed carbon nanotube “cold cathode” distributed X-ray source technology offers a novel technical pathway for the medical imaging field through its unique structural design and material innovations.

This technology leverages the field emission properties of carbon nanotubes to achieve electron emission at room temperature without heating. The emitted electrons are accelerated by a high-voltage electric field and bombard a metal anode target to generate X-rays. Compared with traditional thermionic cathode technology, carbon nanotube “cold cathode” X-ray sources offer significant advantages, including transient response (microsecond-level switching), no heating requirement, low power consumption, long service life, and ease of integration. Furthermore, arrayed cathodes with multi-focal arrangements enable rapid multi-angle scanning imaging, providing novel X-ray source components for equipment such as CT and DR systems, thereby delivering high-definition, rapid three-dimensional imaging. However, due to the considerable challenges and high costs associated with material preparation, field emission performance, and process integration, few companies achieved technological breakthroughs in this area before 2015. Currently, XinHong Electronics in China has taken the lead in overcoming technical hurdles related to carbon nanotube material stability and vacuum encapsulation, achieving large-scale mass production. This has validated the advantages of carbon nanotube cold cathode X-ray sources in terms of high definition, rapid imaging, low dose, compact size, and energy efficiency.

Jin Xin, General Manager of Xinhong Electronics, provided a detailed overview of the company’s breakthrough pathway. He noted that, akin to how LEDs disrupted incandescent lighting, cold cathode technology has achieved milestone advancements in response speed, energy efficiency, and lifespan. Furthermore, its multi-focus design can be likened to an upgrade from a single light bulb to a programmable LED matrix. Xinhong Electronics has developed carbon nanotube cold cathodes into “light-strip-style” distributed X-ray sources, enabling densely packed arrangements with millimeter-level spacing and high-precision control. This makes it the only enterprise globally capable of R&D and mass production of distributed X-ray sources featuring meter-scale lengths and millimeter-level focal spot distribution. Marking the establishment of its industrialization advantages, the company rolled out its 1,000th cold cathode multi-focus distributed X-ray tube during its 10th anniversary celebrations. Looking ahead, the company aims to collaborate with upstream and downstream partners to leverage its X-ray source technological strengths and drive the development of China’s medical imaging equipment industry.

Jin Xin, General Manager of Xinhong Electronics

Ultrasonic transducers have been widely used in the medical field due to their non-invasive and real-time characteristics. Among these applications, ultrasonic transducers not only assist doctors in performing precise operations during surgery but also play an important role in postoperative rehabilitation. Their core advantage lies in the ability to penetrate deep into tissues and provide high-resolution images, helping doctors better understand the patient's condition and formulate treatment plans.

Innovative Applications of Wuxi Yisheng Micro-Nano’s Focused Ultrasound Transducers in Treatment and Rehabilitation. In this regard, Cheng Peifeng, founder of Wuxi Yisheng Micro-Nano, shared in-depth insights into the innovative applications of ultrasound transducers. The company’s 10F, 8F, and 6F miniature transducers deliver superior performance comparable to international products, meeting the demands of endoluminal and intravascular procedures while providing high-resolution imaging. Beyond supplying transducers, the company is committed to offering full-chain solutions that seamlessly integrate with clients’ surgical equipment. Furthermore, ultrasound transducers play a significant role in rehabilitation monitoring, sports medicine, and other fields. Yisheng Micro-Nano looks forward to collaborating with more partners to jointly advance ultrasound technology and contribute to the healthcare industry.

Cheng Peifeng, Founder of Wuxi Yisheng Micro-Nano

In the field of sensors, Liu Yongcan, founder of Wuxi Hongxin Sensing, shared key applications of sensors in medical devices, particularly in ventilators. Liu stated that Wuxi Hongxin Sensing focuses on the research and development of sensors for medical equipment, HVAC systems, and automotive electronics, covering types such as infrared, pressure, flow, and thermal conductivity sensors. The performance of its pressure sensor HX6295 is comparable to foreign competitors, with errors within the same order of magnitude, and it has been successfully launched into the market with shipments exceeding 500,000 units. In terms of flow sensors, the company has undergone more than ten years of research and development, overcoming multidisciplinary challenges in mechanical structure, fluid dynamics, and electronic circuits, successfully entering the ventilator industry and achieving mass production.

Liu Yongcan, Founder of Wuxi Hongxin Sensing

In addition to the innovative upgrades of hardware facilities, soft applications have also become a key driver in continuously pushing the technological boundaries of current medical imaging infrastructure.

In his speech, Wu Jian, a Qiushi Distinguished Professor at Zhejiang University, provided an in-depth analysis of innovative explorations and practical achievements in the field of medical artificial intelligence (AI). He pointed out that medical imaging encompasses multiple modalities and systems, providing a rich data foundation for AI. In this domain, Professor Wu’s team has also achieved notable results. Their exploration has revealed the evolutionary trajectory of medical imaging AI: progressing from optimization of single-task algorithms to systematic breakthroughs in multi-modal data fusion, few-shot learning, and clinical interpretability. With the large-scale application of Class III certified products and the refinement of industry standards, AI is upgrading from an “auxiliary diagnostic tool” to core infrastructure for smart hospitals. In the future, key challenges for transitioning this field from the laboratory to deep clinical integration will include breaking down cross-institutional data barriers, enhancing generalization capabilities for complex cases, and balancing technological innovation with ethical and regulatory compliance.

Wu Jian, Qiushi Distinguished Professor at Zhejiang University

In his speech, Li Jingyuan, Chief Technology Officer of MathWorks China, elaborated in depth on the pivotal role of model-based design in innovating high-end medical imaging equipment, offering new perspectives for the medical imaging industry to break through homogeneous competition.

Li Jingyuan pointed out that against the backdrop of intensifying homogeneous competition in medical imaging equipment, Model-Based Design (MBD) is becoming the key to breaking through. This technology drives full-process development through virtual models, achieving two core breakthroughs: a leap in R&D efficiency and enhanced safety and compliance. In imaging devices such as CT, MRI, and endoscopes, MBD is fostering innovation in three major scenarios: rapid validation of real-time image processing algorithms, optimization of AI computing power with breakthroughs in real-time performance, and cost control at the chip-level design. Li Jingyuan believes that the R&D of medical imaging equipment is shifting from the traditional model of “manual coding + physical prototypes” to a new paradigm of “model-first + digital twins.” This transition can further help Chinese manufacturers narrow the technological gap with international giants while enabling an upgrade from selling single devices to empowering comprehensive diagnostic and treatment solutions.

Li Jingyuan, Chief Technology Officer of MathWorks China

At a critical juncture in the accelerated localization of domestically produced medical devices, two roundtable forums focused on the medical device sector have revealed the core logic for breaking through industry bottlenecks.

At the roundtable forum titled “Independent R&D and Manufacturing of Medical Devices Amid New Opportunities,” Song Qi from Neusoft Medical, Ma Xiaodong from Synovis Imaging, Shang Haiming from Xinsheng Jiechuang, and Hu Yinfu from ZhiShu Technology engaged in in-depth discussions on market trends in the medical imaging industry, corporate responses to centralized procurement and domestic substitution policies, frontier innovation strategies, supply chain collaboration, and global expansion.

Attendees pointed out that, in the context of centralized procurement policies, the medical imaging equipment market holds significant potential and clear growth prospects over the next three to five years. Market development will be driven by a dual engine comprising key hospitals and county-level centralized procurement. Enterprises need to control costs, optimize their supply chains, and strategically position themselves in both the high-end and low-end market segments. Regarding industry development opportunities, the low level of localization for core components presents domestic manufacturers with opportunities for import substitution, as original equipment manufacturers (OEMs) pursue higher quality and profits. Price pressures will further drive companies to optimize their supply chains while simultaneously enhancing product quality.

How to implement this specifically? In terms of strategic layout at the innovation frontier, enterprises should focus on innovation leadership and autonomous controllability, prioritizing key areas such as magnetic resonance imaging (MRI) and angiography systems. Emphasis should be placed on medical-engineering collaboration to address critical clinical pain points, working closely with original equipment manufacturers (OEMs) to drive cutting-edge technological innovation. Furthermore, innovative outcomes must meet end-user needs and align closely with national policy directions. Regarding supply chain management, companies can vertically integrate upstream and downstream supply chain scenarios through cooperation and investment, emphasizing resource integration and synergy, while leveraging mechanisms such as the “open competition mechanism” (Jiebang Guashuai) to promote technological breakthroughs. Facing the international market, there are broad opportunities for global expansion. Enterprises should implement a high-end breakthrough strategy, deeply cultivate key regions, expand overseas markets through localized operations, and leverage platforms such as the Belt and Road Initiative (BRI) to grow their business. Chinese domestic enterprises can follow OEMs in going global, build a global service network, capitalize on the demand for autonomous controllability, and establish a global supply chain.

At the afternoon roundtable forum, three industry representatives—Jin Xin from Xinhong Electronics, Liu Yongcan from Hongxin Sensing, and Cheng Peifeng from Yisheng Micro-Nano—engaged in an in-depth discussion on technological breakthroughs and industrial practices in the independent innovation of medical devices.

Focusing on the technological frontier, panelists reached a consensus that artificial intelligence will reshape R&D paradigms. XinHong Electronics proposed that AI should be deeply embedded within imaging systems rather than serving as an add-on module, thereby achieving end-to-end intelligence from data acquisition to diagnostic conclusions. Yisheng Micro-Nano explored AI applications in optimizing material formulations and quality control; while wary of the “fake data” trap, the company acknowledged AI’s value in accelerating technological iteration. The entire discussion highlighted the triple logic underlying independent innovation in medical devices: defining technological value based on clinical needs, addressing international uncertainties through supply chain resilience, and expanding growth boundaries via cross-disciplinary integration. This provides practical models for the industry to break through bottlenecks in critical core technologies.