General Hospitals in China - Industry Market Research Report

The General Hospitals industry in China has developed at a stable rate in recent years due to China's large population base, and the increasingly affluent urban and rural residents benefiting from China's rapid GDP growth. Industry revenue volatility is low due to the relatively steady number of annual hospital patients. General hospitals generated 71.2% of the total hospital revenue in China in 2021, and 53.1% of the total revenue in China's healthcare sector. Industry profitability is low as most general hospitals are under government control and generally do not operate to maximize profits. Industry profit is estimated to account for 4.0% of industry revenue in 2023. Although barriers to entry in the industry are high, increased private capital is entering the industry through medical mechanism reforms. This trend is also expected to improve hospital productivity, efficiency and profit in future years. Due to the COVID-19 pandemic, the number of patients visiting hospitals decreased. Industry revenue is expected to increase at a CAGR of 5.3% over the five years through 2023, to total $506.1 billion. Revenue is anticipated to rise by 5.7% in the current year. Industry revenue is forecast to grow at a CAGR of 4.3% over the five years through 2028, to total $625.3 billion. This steady growth will mainly come from further reforms to the medical system. Driven by the COVID-19 pandemic, internet diagnosis and treatment and internet hospitals have ushered in a new stage of development, and the demand for online medical consultation has shown an unprecedented growth trend. In addition, during the COVID-19 pandemic period, telemedicine, online precise appointments and big data analysis have played an irreplaceable role in improving treatment plans, reducing crowd contact, and supporting pandemic prevention decision making. Information construction investment is expected to increase and smart hospitals will be an important development trend.

Trends and Insights

• The ageing population generate higher demand for medical service.
• This is expected to drive continual demand for general hospitals. Inpatient services contribute the largest revenue.
• The share has decreased due to medical care improvement and shorter hospital stays. Distribution of general hospitals is closely related to economy development and population number.
• The well-developed and populous regions have more general hospitals. There exists intense competition between hospitals.
• The general hospitals mainly compete on hospital grades, eligibility for social insurance units, resources & facilities, geographic accessibility and price.

Industry Overview

Industry revenue has grown at a CAGR of 5.3 % over the past five years, to reach an estimated $506.1bn in 2024.

Trends and Insights

The number of outpatients and inpatients maintains overall growth As people's needs for medical and health services have been better met and guaranteed, the number of outpatients and inpatients have been increasing on the whole. In the five years to 2023, the number of outpatients and inpatients is estimated to increase at a CAGR of 1.4% and 1.8%, respectively.

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

• The growing ageing population drive huge demand for medical service
• The birth rate has been decreasing from the highest record of 14.57‰ in 2012 to 6.77‰ in 2022. Despite the implementation of the two-child policy and the third-child policy, the birth rate is expected to continue the decreasing trend in the future.