Chinese IVD Raw Material Market is Growing Rapidly and Enterprises Are Favored by Capital

China's IVD industry has developed rapidly in recent years, and China's market capacity has reached the level of 100 billion yuan. According to the data, the scale of China's IVD market has increased from 42.75 billion yuan in 2015 to 80.57 billion yuan in 2019, with a compound annual growth rate of 17.2%. It is estimated that by 2030, the scale of China's IVD market will reach 288.15 billion yuan, becoming the world's largest IVD product consumer country.

1. The rapid development of the Chinese market for IVD raw materials

IVD raw materials, that is, materials used to prepare IVD products, mainly include antigens and antibodies, enzymes and coenzymes, probes, primers, microspheres, etc. The quality of raw materials has a significant impact on the performance and detection accuracy of IVD products, so the upstream links have a strong voice in the IVD industry chain.

However, the production of IVD raw materials has long been a bottleneck in China's IVD industry. The demand for IVD raw materials continues to grow, but the core technology has not progressed to the same extent. Due to the great difficulty in research and development of IVD raw materials, there is still a gap between China's domestic IVD raw materials and imported raw materials in terms of production technology, purity, and quality.

As China's IVD raw material companies invest a lot of money in basic research and development, their R&D innovation capabilities and raw material process quality continue to improve.

Currently, the overseas new crown pneumonia epidemic situation is still relatively severe, and the import cycle of IVD raw materials has become longer. Chinese IVD manufacturers gradually realized the importance of mastering the core industrial chain and started to reserve resources of domestic suppliers to establish a more secure supply chain step by step. In addition, many IVD manufacturers in China have begun to penetrate upstream of the industrial chain by acquiring or establishing raw material companies to solve the problem of raw material supply.

2. The development scale of IVD raw material enterprises

In recent years, IVD raw material companies have also been favored by capital. China's IVD raw material industry took more than ten years to develop from a niche market with little money to a scale of 10 billion yuan.

According to data released by a research institute, the market size of China's IVD raw materials field has increased from 3.3 billion yuan in 2015 to 8.2 billion yuan in 2019, with a compound annual growth rate of 25.8%. It is estimated that by 2024, its market size will reach 20 billion yuan.

Although imported IVD raw materials still dominate the market from the market structure perspective. With the improvement of the technical level of Chinese enterprises and the emphasis on the localization of the industrial supply chain, China's IVD raw material industry is developing rapidly, and it is expected to realize import substitution gradually. According to the released data, from 2015 to 2019, the compound annual growth rate of China's domestic IVD raw material market scale was 30.6%, higher than the growth rate of imported products.