Thanks to the recent technological advancements, the Indian medical industry has observed a hike by leaps and bounds. To become an industry leader and gain an edge over the competitors, the manufacturers in the healthcare sector need to enter the markets strategically, while juggling with the factors of location and targeted audience.
The Indian Healthcare is the 4th largest sector, with Hospital and medical devices accounting for 91% of total market. The Indian medical industry consists of large multinationals that have extensive service networks and small to medium enterprises. India’s medical technology can be identified as a sunrise sector with major government focus on its development. The sector is expected to touch USD 9.6 billion in the year 2022.
The Indian medical device market is projected to be valued at 50Bn USD by the year 2025. Anticipated to grow at a CAGR of 9.6% and 8.8% respectively, the Orthopedics & Prosthetics and patient aids segments will be the two fastest-growing verticals by the year 2020. The Indian market for surgical robots is presumed to grow at a CAGR of 20%.
The Indian medical device industry is continuously changing its trends. Even the digital companies like Google, Amazon, IBM-Watson are investing a huge amount in the R&D of the medical devices usage trends in the future. Artificial Intelligence and Big Data analysis are being used in the new manufacturing devices to enhance better decision-making and improvement in the treatment outcomes. Big data and cloud computing companies are majorly used to design focused and better treatment solutions for its customers.
The usage of medical devices in India is not just limited to the commercial sector but extends beyond that. Even the Indian households have portable devices like Diabetes or BP apparatus or wearable steps counter. The changes in lifestyle and the differences in preferences have resulted in a growth in working-class population from 34% in 2011 to an assumed 40% in 2026; while the elderly population in the country is expected to double by the year 2026. The Medical Tourism industry is anticipated to reach 7.3Bn EUR by the year 2020, at a growth rate of 22%. Medical insurance penetration is assumed to grow from 18.7% in 2015 to 22% in the year 2020.
The Tier II and Tier III cities are under focus because of the growing population. 96% of the Indian population lives in non-metro regions, out of which 70% lives in rural areas. Due to the evident increasing demand of medical services in these areas, regional and national hospital chains are expanding their distribution network in under-penetrated Indian cities like Durgapur, Guwahati, Trichy, Nasik, Bhubaneshwar, Madurai, etc.
The Indian healthcare industry is growing at a high pace owing to strengthening coverage and services, increasing expenditure by public and private players, changes in regulations, etc. The number of hospitals in the country is expected to grow at a CAGR of 13% by the year 2020. The major growth in the sector is fueled by the growth in private hospitals and the northern zone of India.
Increasing awareness of healthcare paired with the growing per capita income has resulted in a demand for better quality of health care services in the country. The diseases caused due to the adopted lifestyle in the country and the growth in the elderly population have resulted in an increased demand for healthcare equipment and devices. The medical tourism has grown at a remarkable rate with the increasing presence of well-educated, English-speaking medical staff in the state-of-the-art private hospitals in the country. The medical tourism market in India was valued at US$ 3.0Bn in size in 2017 and is expected to double this year. The evident data is influencing major healthcare giants to invest in the Indian medical device and equipment sector with the help of entry consulting from top healthcare consulting firms in the country.
Catering to the demand for medical equipment and devices in the country, the Indian government has allowed 100% FDI via automatic route in the hospital and medical devices sector. The global private equity players and leading healthcare providers are looking forward to enter the Indian market through Indian business consulting firms in order to grow sustainably in the Indian market, considering that these factors drive growth for the services in the country. The Indian healthcare industry is expected to grow by a CAGR of 18% until the year 2020. Hospitals in the country acquiring the largest segment with a 64% share in the overall healthcare market.
India Management Consultants like Tecnova help major healthcare giants set up or expand their businesses and manufacturing units in the market that has a flooding demand and growth for medical equipment and devices.
[i] https://www.investindia.gov.in/sector/medical-devices
[ii] https://pharmastate.blog/2018/06/28/medical-devices-industry-india-a-paradigm-shift-to-be-noticed/
[iv] https://www.ibef.org/download/Healthcare-February-2018.pdf
