Future growth of medical device market in India
The Indian healthcare industry is growing fast in the markets over recent years due to the latest developments. It is the 4th largest sector that contributes more to Indian economy because several hospitals are emerging a lot in various parts of the country. Not only that, the demand for medical devices is increasing day by day in order to satisfy the needs of patients in hospitals. With medical tourism is attracting a lot of foreigners, healthcare markets are expecting a high growth in the future. The growth of medical devices made India the best markets for investments.
The Indian medical devices market was valued at INR 338.62 Bn in 2017, and is expected to reach INR 794.29 Bn by the end of 2023, expanding at a compound annual growth rate (CAGR) of ~15.27% during the 2018-2023 period. It stands among the top 20 global medical devices market.
Knowing more about growth factors in healthcare
There are some market and non-market factors which determine the growth rate of medical device business in India. Some factors include the population, income base, ageing, and changing disease prevalence that primarily focus on detecting disease. Non-market factors such as favourable regulations, FDI inflow, R& D activities, and FDI inflow also contribute to the growth of healthcare industries in India. Disease patterns even changed the healthcare sectors that helped them to implement new technologies. The Indian medical device industry is growing steadily that will increase in the future.
What are the challenges involved in medical device markets?
Medical device markets also involve some challenges that most industries are not aware of them properly. The first challenge is the medical device regulation because it only applies to certain products. Another thing is that the weak rupee makes it difficult for some companies to make profits. Furthermore, a majority of manufacturers face high competition levels from Chinese, American, and European companies. In addition, they have to pay more taxes while selling products in the markets. Advertising and marketing costs are some other factors which influence the growth of medical device markets.
Future growth of medical device markets in India
The global size of medical device markets is expecting high growth levels in future. Apart from metropolitan cities, Tier I and Tier II cities are also getting more attention due to high growing population. In other words, the Indian healthcare industry is growing at high rates owing to strengthening coverage and services which will increase the quality of life to a large extent. In addition, the number of hospitals in India may emerge in large numbers. Also, the raising awareness of healthcare among customers will expand the markets even in small cities. This will help industries to generate high revenues significantly.
Some of the growth factors in Healthcare
Market Factors – Growing population, ageing, income base and associated disposable income, increasing socio-economic inclusion of rural and deprived in mainstream economy, heightened manufacturing innovation to create customized products to meet the needs of all income segments, changing disease prevalence and growing awareness among the middle class to focus on early detection and disease prevention.
Non-market Factors – Development of infrastructure, favorable regulations, FDI inflow, outsourcing of manufacturing and R&D activities to India, government initiatives to improve healthcare access through insurance schemes such as RSBY (Rashtriya Swasthya Bima Yojana), Aarogyasri, etc.
Disease patterns in India:
India has earned the dubious distinction of becoming the world’s capital of coronary heart disease and diabetes. According to the World Congress of Cardiology, it is estimated that by 2020, heart diseases will be the cause of over 40 per cent deaths in India as compared to 24 per cent in 1990. According to World Health Organisation (WHO) estimates that nearly 200 million people all over the world suffer from diabetes and this number is likely to double in the coming years. In India, there are nearly 50 million diabetics.
Coronavirus disease can impact India’s medical devices industry
The spread of Covid-19 cases is likely to affect India’s heavily import-dependent medical product supply chain resulting in the shortage of critical medical devices, suggests data and analytics company, GlobalData.
The Indian medical devices market, which accounted for more than 13% of the Asia-Pacific (APAC) medical devices market in 2019, is expected to grow at a compound annual growth rate (CAGR) of 7.5% through 2025, according to the company’s research.
India imports a variety of consumables, disposables and capital equipment including orthopaedic implants, gloves, syringes, bandages, computed tomography and magnetic resonance imaging devices from China.
The huge dependency of the Indian medical devices industry on China for raw materials and electronic components needs to be reduced, says the report.
“Currently, medical device manufacturers across India are struggling to get important raw materials and electronic components from Chinese factories, which were shut for weeks to contain the coronavirus outbreak. Even as some of the factories have reopened, shortages of some critical electronic parts and raw material still persist,” says Rohit Anand, Medical Devices Analyst at GlobalData.
Over the last few months, the shortage has started impacting the margins and profitability of Indian companies importing medical devices and small components to manufacture finished products.
The company urges domestic manufacturers to look for alternative sources to import raw material and electronic components.