In the vast industry chain of in vitro diagnostics (IVD), the upstream reagent raw material market is undergoing a complex and challenging development stage. On the one hand, the industry continues to expand. From 2015 to 2019, the size of the domestic in vitro diagnostic market increased from approximately 42.75 billion yuan to 80.57 billion yuan, with an annualized compound growth rate of 17.2%. It is expected to climb to 288.15 billion yuan by 2030, and its market share in domestic and foreign markets will increase to 33.2%. On the other hand, the upstream IVD reagent raw material market is plagued with chaos, and if enterprises want to win steadily in this red sea, creating distinctive features in segmented fields is the key.

bicine buffer

Current situation of upstream IVD reagent raw material market

Currently, the upstream IVD reagent raw material market may seem lively, but in reality, there is a hidden crisis. From the perspective of enterprise structure, according to the "List of IVD Reagent Raw Material Suppliers (2024)" compiled by IVD Research Society, there are over 300 domestic raw material enterprises. Most domestic enterprises cluster in the mid to low end market, with serious product homogenization, generally small enterprise scale, insufficient R&D investment, and difficulty in breaking through technical barriers. In terms of market supply and demand, the problem of core raw material dependence on imports is prominent. Imported raw materials are expensive and the supply chain is unstable, which not only increases the production costs of midstream reagent enterprises, but also leads to their dependence on imported raw materials, further squeezing the survival space of domestic raw material enterprises and seriously hindering the localization process.

The need to create distinctive features in segmented fields

1. Breaking homogeneous competition: Homogeneous competition makes it difficult for enterprises to stand out. Focusing on niche areas allows companies to concentrate resources and conduct in-depth research on specific raw material requirements.

2. Meet diversified market demands: The IVD industry has a wide range of application scenarios, covering clinical diagnosis, disease screening, health management, etc. Different scenarios have different requirements for reagent raw materials. Clinical diagnosis requires high accuracy and stability, screening may focus more on sensitivity, and health management requires convenient and low-cost testing solutions. Enterprises can create segmented field characteristics and develop raw materials for specific application scenarios. In the field of POCT (point of care testing), develop fast, convenient, and accurate testing materials to meet the needs of grassroots, home testing, and other scenarios, and explore new market space.

How to create distinctive features in segmented fields

1. Accurately select segmented fields: Enterprises need to establish a scientific market research and judgment mechanism to evaluate segmented fields from dimensions such as technicality, market demand, and industry matching. Conduct in-depth research on market size, growth trends, competitive landscape, and customer needs to identify high potential tracks that align with one's own strengths. The enterprise itself has accumulated experience in biological enzyme technology and may consider focusing on the subdivision of enzyme raw materials in IVD reagents, such as biochemical diagnostic enzymes, molecular diagnostic enzymes, etc. Based on market demand, if it is found that the market supply of a specific enzyme in a certain type of diagnosis is insufficient or its performance needs improvement, it can be identified as a key development direction.

2. Increase R&D investment and enhance technological strength: After determining the segmented fields, enterprises should establish a stable R&D investment mechanism and continue to use a specific proportion of revenue for breakthroughs in new technologies, processes, and materials. Improve innovation incentive mechanisms, stimulate the innovation vitality of technical talents, and provide talent support for sustained innovation in segmented fields for enterprises.

3. Strengthen market promotion and expand customer base: To create segmented fields, enterprises also need to strengthen market promotion. Participate in professional industry exhibitions and academic conferences to showcase the company's technological achievements and product advantages in specific fields. Utilize online platforms to publish professional technical articles and product application cases, enhancing the brand awareness of enterprises in the industry. Establish a professional sales and technical service team, deeply understand customer needs, provide personalized solutions for customers, improve customer satisfaction and loyalty, gradually expand customer base, and increase market share.

Product packaging

In the current complex market environment, upstream IVD reagent raw material enterprises need to create segmented field characteristics as the only way to achieve stability and victory. Hubei Xindesheng, as an upstream IVD reagent raw material supplier, has been deeply involved in the industry for many years and has formed distinct characteristics in segmented fields. Focusing on biological buffering agents, chromogenic substrates, luminescent reagents and other raw materials, achieving differentiated competition through technological innovation. TOOS color substrate purity exceeds 99%, with sensitive color development and stable signal. With a strict quality control system and customized service capabilities, Xindesheng has established cooperation with numerous IVD enterprises at home and abroad, becoming an influential raw material supplier in the segmented field. If you have any purchasing needs, please feel free to contact us at any time!