HEALTHCARE SECTOR OVERVIEW
Statistics, news & updates: everything you need to know about the Healthcare Industry in India
Summary/Snapshot
Healthcare Industry
- The Indian Medtech Industry was estimated to be $10.63 Bn in 2020 and is expected to reach $50 bn by 2025.
- The hospital industry in India, accounting for 80% of the total healthcare market, is witnessing a huge investor demand from both global as well as domestic investors. India has the world’s largest Health Insurance Scheme (Ayushman Bharat) supported by the government.
- Health insurance contributes 20% to the non-life insurance business, making it the 2nd largest portfolio. The diagnostics industry in India is currently valued at $4 Bn. The share of the organized sector is almost 25% in this segment (15% in labs and 10% in radiology).
- Life expectancy is going to exceed 70 years by 2025, hence more healthcare services required.
- Medical tourism has increased demand for healthcare and medical devices.
- The emergence of telemedicine, and government initiatives like e-health married with tax benefits and incentives are driving the healthcare market in India.
- By 2024, more than $200 billion will be spent on medical infrastructure. In 2021 157 medical institutions were being added across India. By 2025, the government intends to increase public health spending to 2.5 per cent of GDP.
Growth Drivers
- The Indian government now allows 100 per cent foreign direct investment (FDI) in the AYUSH (healthcare)sector projects for wellness and medical tourism and Greenfield and brownfield
- Medical tourism is growing at a rate of 22-25 per cent in India due to the relatively low cost of medical care. It contributes more than $2 billion to India’s healthcare sector
- Robotic process automation (RPA) to improve the efficiency of the healthcare workforce; reducing costs and creating the value proposition.
Sub industries
- Pharmaceuticals
- Biotechnology & Life
- sciences
- Medical Devices
- Medical Electronics
- Diagnostic Equipment
- Surgical Devices
- Medical Accessories
- Hospital infrastructure
Opportunities
- The medical equipment industry is predicted to expand to US$ 11 billion by 2022, owing to an ageing population, more medical tourism, and lower medical service costs.
- Many major firms, such as Apollo, VLCC, and Manipal Group, are opening wellness centers around India, focusing on traditional healthcare remedies.
- By 2022, the Indian government wants to expand healthcare spending to 3% of GDP
Challenges
- For a long time, India has had a shortage of well-equipped medical institutes due to a lack of adequate infrastructure.
- India has a severe shortage of medically qualified personnel, including doctors, nurses, paramedics, and primary healthcare workers.
- In India, health care is extremely expensive, especially for average-income people. Plus, the cost of many life-saving medications has risen.
- The rise of health facilities has been very unbalanced. Rural, hilly, and isolated portions of the country are underserved, but health facilities in urban areas and towns are well developed
How we can help you:
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Key Investment Opportunities
- Healthtech startups
- Medical devices
- The Telemedicine market is the maximum potential eHealth segment in India, which is expected to touch US $5.4 Bn by 2025, growing at a compound annual growth rate (CAGR) of 31%
- India’s surgical robotics market is estimated to expand at a CAGR of 20% (2017-25) to hit the size of US $350 mn by 2025
- AI expenditure in India is expected to reach US$ 11.78 billion by 2025 and add US$ 1 trillion to India’s economy by 2035. The AI in Healthcare Market is projected to grow from US$ 14.6 Billion in 2023 to US$ 102.7 Billion by 2028.
Recent Developments
- Consumer devices, wearables, and apps: Wearable devices continuously monitor patients’ critical parameters. Wearables include embedded medical devices (into patients’ bodies) and other devices worn on a person’s body. These devices provide healthcare workers real-time information on patient data while they remain at home.
- Robotic surgery is a relatively new procedure for minimally invasive surgery. However, robotic-assisted surgery has become the standard treatment for prostate and is fast pervading other organs and diseases.
3D printing technology reduces the cost of manufacturing prototypes, prosthetics, tissue & skin, and even pharmaceuticals. - AI (Artificial Intelligence) & ML (Machine Learning): AI can manage patient admissions, scheduling, and billing. AI can analyse and decode complex data, provide exceptionally potent data for efficient & precise diagnostics. As a result, AI will probably broaden and bring down healthcare costs and let doctors and staff focus on patient care.
Blockchain: As a database technology, Blockchain uses encryption and various other security procedures to store data, linking it to augmented security and usability. This innovation facilitates many facets of healthcare, including patient records, supply & distribution, and research.
- Remote care: Relying on the IoT’s convenience in transferring data between devices, remote care offers comfort with quality. Remote patient monitoring and telehealth are possible through video conferencing, big data, and wearable technology. As a result, physicians can monitor and diagnose patients miles away.
- Telemedicine: COVID-19 has undoubtedly accelerated the delivery of telemedicine, and experts affirm that telemedicine is here to stay. Many patients prefer it.
Key Players in India
National
- Apollo Hospitals Enterprise Limited
- Thyrocare Technologies Limited
- Fortis Healthcare Limited
- Dr Lal PathLabs
- Max Hospitals
- AIIMS
- Piramal Enterprise
- Serum Institue of India
- Cipla
- Sun Pharma
International
- Medtronic
- UnitedHealth Group
- CVS Health Corp.
- McKesson Corporation
- Cardinal Health
- Cigna Corp.
- Elevance Health (ELV)
- Pfizer (PEE)
- Centene Corp. (CNC)
Map Clusters
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