Domestic endoscopes have exploded, Olympus is really anxious

The endoscope market is really going to change!

In terms of domestic endoscopes, sales have surged, technological breakthroughs have been made, new products have been launched, and investment and financing have increased... Under multiple factors, domestic endoscope companies in China have been shouting the slogan of "domestic substitution" for many years, and finally achieved phased results in the first half of 2024.

On the contrary, the market share of overseas giants such as Olympus in China's domestic endoscope market continues to decline. As shown in Olympus' previously released 2024 financial report, its sales in China decreased by 10% year-on-year during the reporting period due to factors such as product recalls, pharmaceutical anti-corruption, and delayed bidding activities.

Olympus is really in a hurry. In response to challenges such as the rise of domestic Chinese brands and policy support for purchasing domestically produced products, Olympus has built a new endoscope component factory in Suzhou and launched new products such as disposable ureteroscopes, ultrasound endoscopes, and AI assisted diagnostic systems. In late July, Olympus announced continued investment in the Chinese market.

On one hand, there is the rise of domestic endoscopes, and on the other hand, Olympus continues to invest in the Chinese market. It can be foreseen that domestic endoscope companies and overseas giants such as Olympus will fight a smokeless war in the domestic market. From multiple perspectives, the domestic endoscope has completely exploded and no one can stop it.

Breaking through the blockade, domestic endoscope sales surge

For a long time, the domestic endoscope market in China has been monopolized by overseas companies, such as Olympus, Pentax, and KARL STORS, which continue to occupy about 90% of the market share.

But in the first half of 2024, the market share of domestic endoscopes will increase significantly and show a trend of surpassing imported brands.

It is worth mentioning that domestic innovative enterprises have also achieved great results in emerging markets such as disposable endoscopes, confocal microscopy endoscopes, and ultrasound endoscopes.

The disposable ureteroscope was the first to be widely used in the disposable endoscope market. It is reported that in 2023, the sales of disposable ureteroscopes in China will reach about 150000 units. Among them, domestic manufacturers such as Ruipai Medical, Hongji Medical, and Happiness Factory have all achieved mass sales, and some enterprises occupy advantageous positions in multiple provinces across the country, ranking high in market share.

In addition, the industry expects that disposable endoscopes will completely explode in 2024, and other departments besides urology will also apply disposable endoscopes on a large scale.

The endoscopic ultrasound market has been monopolized by foreign companies such as Olympus, Fuji, and TAG Heuer in the past. But now, domestic enterprises have not only broken the monopoly, but also successfully entered the forefront of the market. According to statistics from the Medical Equipment Department, in the first half of 2024, the sales of medical ultrasound endoscopes ranked third, followed closely by domestic companies such as Anglo American Medical and Le Pu Zhi Ying.

Nowadays, domestic enterprises have broken through barriers in many segmented fields such as soft endoscopes, hard endoscopes, disposable endoscopes, confocal microscopy endoscopes, and ultrasound endoscopes, achieving a certain degree of domestic substitution. With policy support, product promotion, and technological iteration, domestic endoscopes will further seize the market and improve localization rates.

Investors bet that endoscopes are about to explode

In the first half of 2024, the global investment and financing market is still in a downward trend. However, there has been no decrease in investment and financing in the field of endoscopy in China.

As industry uncertainty becomes increasingly apparent, investors turn their attention to projects with greater certainty. Endoscopy is one of the directions that domestic investors are collectively optimistic about.

Why are investors collectively betting on endoscopes during a downturn in the capital market? We can see some common characteristics from these companies that have obtained financing.

Firstly, technological breakthroughs have led to the launch of globally pioneering and leading innovative products. For example, Yingsai Feiying Medical, which has obtained financing, has launched diagnosis and treatment solutions with portable and mobile advantages such as wireless endoscopy and wireless ultrasound.

Secondly, break through key milestones and complete commercial validation or have successfully commercialized. For example, after the clinical benefits of disposable endoscopes were fully demonstrated, domestic disposable endoscope companies successfully achieved commercialization.

Thirdly, the product has differentiation advantages and is recognized or favored by the market. Compared to the common 4K endoscopes and fluorescence endoscopes in the market, endoscope companies such as Bosheng Medical, Zhuowai Medical, and DPM have launched endoscope systems that integrate 4K, 3D, and fluorescence functions.

Overall, in the context of domestic substitution, domestic endoscope brands are accelerating their development under the advantages of differentiated products, cost, performance, market promotion, and policy support, seizing the market share originally occupied by overseas enterprises. And investors may have seen this trend and collectively entered the endoscope field.

Is there any new surprise for the endoscope industry as giants cross boundaries and enter the market?

Nowadays, the domestic endoscope market in China has undergone significant changes, and domestic brands are accelerating their rise. This has also ushered in the cross-border entry of other domestic giants in the field of endoscopes.

These cross-border giants either have financial advantages, channel advantages, or technological advantages. Their entry may add another flame to the already booming endoscope market.

In addition to the entry of giants, China's domestic endoscope industry has also shown another trend: domestic endoscopes are accelerating their overseas expansion and counterattacking the international market.

Overall, with domestic enterprises breaking through technological barriers and smoothly entering the market, the rise of domestic endoscopes is unstoppable. Nowadays, domestic endoscopes are accelerating their expansion into overseas markets. From multiple perspectives such as policies, capital, products, and commercialization progress, it is expected that domestic endoscopes will achieve a major breakthrough in the short term and seize more market share.