Cancer, also known as malignant tumor, is a collective term for more than 100 related diseases. According to the data released by the National Cancer Center in 2019, deaths from malignant tumors in China accounted for 23.91% of all causes of death among residents, and cancer has become the number one cause of death in China. With the growth in the number of cancer patients in China, the demand for oncology medical services in China has also grown, fueling the growth in the size of China's oncology treatment market.
Of these, the contradiction between supply and demand for oncology treatment is prominent in the third-tier and following cities, and in order to alleviate the contradiction between supply and demand, oncology treatment in the third-tier and following cities will develop rapidly. In the future, the development potential of private hospitals in the tumor treatment industry is large.
China's Cancer Becomes the First Cause of Death
According to the data released by the National Cancer Center in 2019, deaths from malignant tumors in China accounted for 23.91% of the total causes of death of the population, and cancer has become the first cause of death in China. The number of cancer cases in China has been increasing year by year, from 3.95 million cases in 2015 to 4.57 million cases in 2020, according to the World Health Organization's International Agency for Research on Cancer (IARC).
Growth in cancer prevalence fuels growth in oncology treatment market size
With the growth in the number of cancer patients in China, the demand for oncology healthcare services in China has also grown. According to Frost & Sullivan data, China's oncology medical services market size increased from 231.4 billion yuan to 371 billion yuan in 2015-2019, with a compound annual growth rate of 12.53%. According to Frost & Sullivan's forecast, China's oncology medical service market size is expected to increase to 700.3 billion yuan from 2020-2025 at a CAGR of 11.54%.
Third-tier and lower cities will develop rapidly
Third-tier and lower cities in China have a higher demand for oncology treatment. According to Frost & Sullivan data, in 2019, China's third-tier and following cities oncology medical services market size accounted for the largest proportion, amounting to 57.4%, the market size is growing year by year. In terms of the number of incidence, China's cancer incidence is largest in third-tier and lower cities, accounting for 75.1%.
The contradiction between supply and demand of tumor treatment in third-tier and following cities in China is prominent. From the point of view of tumor treatment equipment, China's tumor treatment equipment is mainly distributed in first-tier and second-tier cities.In 2019, the ratio of radiotherapy equipment per million population in China's third-tier and following cities was lower than that in first-tier and second-tier cities, at 22.4%. In the future, the tumor treatment industry in third-tier and lower cities will develop rapidly to cope with the growth in demand.
Private hospitals have greater development potential
In recent years, affected by a series of policies issued by the state to limit the expansion of public hospitals and encourage the social running of medical services, the development of private specialty hospitals has obvious advantages. For example, in 2019, the National Health and Health Commission's Circular on the Issuance of Opinions on Promoting the Continuously Healthy and Standardized Development of Socially-Run Medical Care proposed to strictly control the number and scale of public hospitals, leaving enough space for the development of socially-run medical care.
In 2019, China's public hospital oncology medical service revenue was 336.7 billion yuan, and private hospitals were 336.7 billion yuan. Although public hospitals dominate the oncology medical service market in terms of revenue share, private hospitals are growing faster in terms of revenue growth.
In 2015-2019, the compound annual growth rate of oncology medical service revenue of private hospitals in China was 23.7%, compared with 11.7% for public hospitals. In the future, private hospitals in China's oncology treatment industry have greater potential for development.
--For more data, please refer to the China Anti-tumor Drug Industry Market Outlook and Investment Strategy Planning Analysis Report by Prospect Industry Research Institute.