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4.2 Gradually Increasing Industry Concentration

In terms of the market share, the biochemical industry in the international market is highly concentrated. The “four giants” (Roche, Beckman, Siemens, and Abbott) have occupied more than 80% of the market share in the international market by virtue of their first-mover advantage. Domestically, many companies enter the IVD field due to low market entry barrier and high gross profit margins of biochemical reagents, so there are numerous enterprises. However, due to low technical barriers and serious homogeneity of related products, industry profits continue to decrease with the increasing number of companies.

In terms of the development trend of the biochemical diagnosis, it is mainly the competition in the stock market and an increasing market concentration is the development trend. After the intervention of the national administrative department and market governance, the industry has gradually improved, and the companies can improve the import substitution of fully automatic biochemistry analyzers and the coverage of biochemical diagnostic products in primary medical institutions through R&D advantages, brand effects and platform construction, to further promote the improvement of industry concentration. The listed companies take advantage of the financing and leverage advantages of the capital market to gradually open up the upstream and downstream chains of the industry and accelerate the pace of industrial integration through acquisitions and mergers, innovative technologies and capital combination, and the integration of channels, service providers, and suppliers. With industrial upgrading, standardized management and scientific and technological improvement, backward enterprises will be gradually eliminated in the industrial upgrading, and leading enterprises with core competitiveness will become the mainstream for the development of China’s in vitro diagnostic industry. In the future, companies with high-cost performance and strong channel capabilities are expected to win and the market concentration will gradually increase.

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