Diagnostic companies are finding China to be a vibrant market for their products, according to Kalorama Information, a Rockville, MD-based healthcare market research publisher. China’s market for in vitro diagnostic (IVD) devices will grow to more than $1.5 billion in 2009, making it the world's sixth largest IVD market. The last few years have seen market growth of 15 to 20%. And with about 575 new hospitals opening each year and a government plan to open more than 20,000 health clinics, the lab market is booming. All this according to the Kalorama report, "Who is Who in Clinical Diagnostics in China (Manufacturers and Distributors Profiles, Market, Industry Overview)."

As China prospers, citizens will seek better health care and diagnostics. Currently, China spends just $1 per person annually on diagnostics as compared to $22 to $38 in Europe, showing a huge potential for growth.

China's State Council recently announced an 850 billion Yuan ($123 billion US) healthcare spending program to bring a minimum standard of medical insurance coverage to 90% of the urban and rural population. IVD companies should note that the plan also aims to upgrade hospitals and improve health centers in rural and remote areas, which will likely lead to a boom in small instrument placements at thousands of clinics and health centers across the country. Already the number two market for automated IVD instrumentation, China’s new market for smaller, more robust instrumentation appears likely to take shape.