How Chinese Hearing Aid Startups Are Breaking the 95% Market Monopoly of the Global Big Five

As the global population grows and ages, hearing loss is rapidly increasing and has now become the fourth leading cause of disability worldwide. In 2022, the State Council issued the "14th Five-Year" National Health Plan, incorporating ear and hearing health initiatives into the Outline of the Healthy China 2030 Planning.

The hearing aid market is monopolized by the "Big Five," which account for over 90% of the market share in China. In contrast, Chinese brands and manufacturers primarily engage in OEM and trading services, lacking core technologies in DSP chips and algorithms, and hold only about 5% of the Chinese market.

Amidst the confluence of oligopolistic dominance, a rising prevalence of hearing loss driven by population aging, and favorable policy support, the hearing aid industry presents significant growth potential through domestic substitution and the fulfillment of unmet demand.

Despite the status quo of market monopolization by industry giants, slow innovation in chip technology, and steady sector development, the number of investment and financing events in the hearing aid field increased in 2022. Nearly ten companies secured funding, emerging hearing aid brands gained favor with capital, and tech giants such as Tencent and Alibaba entered the hearing assistance sector. What factors underlie the counter-trend rise observed in this field?

VCBeatOn Monday, March 27, companies and investment institutions in the hearing aid sector were invited to engage in discussions on key issues, jointly examining the current state and development trends of the hearing assistance field.

Li Peng

Aikesheng Hearing Aids | Founder

Founder of Aicosound Hearing Aids, Chairman of Hangzhou Aiting Technology Co., Ltd. He holds a Ph.D. in Biomedical Engineering from Zhejiang University and completed postdoctoral research in Instrument Science and Technology at the same institution. His primary research focus is on medical acoustic algorithms. He serves as the Head of the Zhejiang Provincial Hearing Assistive Devices R&D Center and as the Principal Investigator for a key project under the National Key R&D Program of the Ministry of Science and Technology. Additionally, he is a member of the National Committee on Hearing Aids and Cochlear Implants and a committee member of the Youth Committee of the Chinese Society of Biomedical Engineering.

Jiang Xianquan

Boyin Hearing | Chairman & General Manager

Member of the Hearing Rehabilitation Committee under the Rehabilitation Professional Committee of the Chinese Medical Association; Member of the Shanghai Mobile Internet Industry Promotion Committee; Head of the Intelligent Hearing Assistive Technology R&D Base at the China Assistive Technology Research Institute; Senior executive with 18 years of experience in multinational corporations within the hearing aid industry, deeply engaged in China’s hearing healthcare sector. Recipient of the “Star of Entrepreneurship” award in Minhang District, Shanghai; Winner of the “Most Influential Product Innovation Award” at the 2020 Financial Annual Awards; Winner of the “Excellent Innovation Project Award” at the 2020 Yangtze River Delta Innovation and Entrepreneurship Competition; Certified Senior Professional Manager; Nationally Certified Level-III Hearing Aid Dispenser.

Zhang Yan

DaoTong Investment | Investment Director

With over a decade of experience in the biopharmaceutical industry and investment, he holds a Ph.D. in Genetics from the United States. After completing his doctoral studies, he joined the Investment Department of BGI Genomics, where he participated in formulating investment strategies, conducting due diligence on investment projects, and introducing overseas technologies. Currently serving as Investment Director at DaoTong Investment, he primarily focuses on the biotechnology and medical device sectors. His investment portfolio includes Triastek, Heyuan Biology, Anaerobic Biotechnology, and ZhiTing Technology.

Aike Sheng’s “Aiting Technology” was founded in September 2011 by Dr. Li Peng, a specialist in Biomedical Engineering from Zhejiang University. It is a manufacturer of mid-to-high-end fully digital hearing aids, specializing in the research and development of domestically produced digital hearing aid chips and possessing proprietary algorithmic intellectual property rights. Hangzhou Aiting Technology currently holds more than ten core patents for fully digital hearing aids, along with multiple software copyrights for hearing aid algorithms. The company has been recognized as a National High-Tech Enterprise and a Zhejiang Province “Double-Soft” Enterprise (software product and software enterprise certification). It also serves as a Hangzhou High-Tech R&D Center, ranks among the Top 500 Chinese Enterprises in Charity and Public Welfare, was named one of China’s Top Ten Caring Enterprises Supporting Persons with Disabilities in 2021, and is a World Health Organization-approved hearing aid supplier in China. Furthermore, it collaborated with the China Assistive Technology Center to establish the Aiting Intelligent Hearing Assistive Devices Research Center under the China Assistive Technology Research Institute. In early 2022, the company secured tens of millions of RMB in Series A financing.

Boyin Hearing Technology (Shanghai) Co., Ltd. is a national high-tech enterprise primarily investing in the health industry, specializing in the integrated design, R&D, manufacturing, and sales of “AI-powered smart hearing aids + Hearing Expert Centers.” In June 2019, Boyin Hearing established its national operations center in Shanghai, commencing independent R&D of hearing aid-related products and building a domestic brand.

Boyin Hearing has always adhered to its corporate mission of “product satisfaction, technical satisfaction, and service satisfaction,” while establishing its foundation on “consumer satisfaction, partner satisfaction, and employee satisfaction.” This approach has enabled the company to develop a comprehensive and unique one-stop service system encompassing hearing assessments, customer experience, and after-sales support. As of October 2022, Boyin Hearing had obtained 11 national patents and 22 software copyrights.

Daotong Investment focuses on early-stage investments in the healthcare industry, with a particular emphasis on innovative medical technologies. It has served as an early investor in numerous pioneering technology projects in China. The core team at Daotong hails from the healthcare sector, with a proven track record of incubating early-stage startups and founding and managing public companies with market capitalizations exceeding RMB 10 billion. Committed to being not only a discoverer of value but also a creator of value, Daotong supports enterprise growth through comprehensive post-investment empowerment. The firm has repeatedly received accolades such as VCBeat’s Top 100 VCs and Top 20 in Medical Devices.

VCBeat, founded in 2014, is China’s leading research and media platform for the healthcare industry. Leveraging its five major brands—VCBeat (which includes VCBeat New Pharma and VCBeat Orange Fruit Bureau), Eggshell Research Institute, VB100, VCBeat Orange, and 35Dou—as well as Eggshell Capital, it has established business segments spanning media communication, industry research, brand events, investment and financing, and industrial resource matchmaking. These services provide innovation acceleration for innovative enterprises, large corporations, government industrial parks, and other stakeholders.

“VB Think Tank” is one of VCBeat’s flagship events, serving as a face-to-face platform centered on exploring solutions in the healthcare sector, with the mission to “focus on practical challenges and discuss industry trends.” The event conducts in-depth discussions, analyses, and exchanges on the current state of development around core themes, addressing specific difficulties, pain points, and obstacles. Meanwhile, it delves into the resource endowments of participating enterprises, fostering tangible collaborations through intellectual exchange.