Exploring the segmentation and growth drivers of the Medical Devices Market in India
Healthcare is one of the largest sectors in India both in terms of employment and revenue. And, it has been experiencing a bullish growth over the years. This has also led to the growth of the medical devices market in the country, since both of the industries are dependent on each other.
Medical Devices Market is one of those industries where quality cannot be compromised. They offer several advantages to patients by helping healthcare providers treat and diagnose patients. It also helps in improving their quality of life. The rising geriatric population, the growing presence of chronic diseases accompanied by the growth in surgical procedures and complex surgeries and the rising awareness of healthcare among consumers are expected to boost the growth of the Medical Devices Market in India.
The medical devices market is segmented into Diagnostic Imaging equipment and instruments, Consumables and disposables, IV diagnostics, Patient Aids, Orthopaedics and Prosthetics and Dental Products. Apart from diagnostic imaging segment, significant shares in the market is held by medical consumables and disposables and patient aids.
Equipment and Instruments
This segment is the largest in the medical devices market and is majorly dependent on imports. It is dominated by MNCs like Phillips Healthcare, Roche Diagnostics, GE Healthcare and the likes. MRI machines, ultrasound machines, CT scanners, dental x-ray machines are some examples of the key products that constitute this segment.
Consumables and Disposables
The medical consumables and disposables sector contributes to the second largest share of the market. It mainly consists of products such as plastic syringes, blood bags, IV fluid sets and others. Since these products has low technology requirements, this segment is dominated mainly by the domestic players in the country.
A major part of the patient aid segment is formed by hearing aids and pace makers. Most of the products in this segment is imported. Some of the key players in this sector are Abbot Healthcare, Medisafe International and Medtronic among others.
According to a report published by Research on Global Markets, the medical devices market is expected to grow at a CAGR of 15.27% till 2023. This is good news for any device manufacturer in the market, more so because this sector is primarily import-dependent.
The Indian government has allowed 100% Foreign Direct Investment in Medical Devices Market. This has provided a lucrative opportunity to the key players in the market to set up their manufacturing bases in India.
The Government has also taken various initiatives like the Make in India plan which aims at making India a manufacturing hub for medical devices of international standards, which can cater to the domestic and the overseas market.
The increase in the disposable income of the consumers, increased spending in healthcare both by public and private players, the shift in disease burden from acute to chronic due to lifestyle changes and ageing are also major factors driving the growth of the market.
India ranks among the top twenty global devices market. But the existing regulatory framework for the Medical Devices Market in India is inadequate for a billion dollar industry. The world perspective about the devices manufactured in India is expected to change as the market and manufacturers mature.