Medical Technology Market Overview
Medical technology market involves the use of technology to develop cure-based systems that are used in hospitals. The medical technology market comprises players supplying health devices and instruments, diagnostic equipment and reagents, bionics, implants, disposables, and consumables.
India appeared to be a profitable destination to major global players, owing to increase in income levels, private sector participation in healthcare, an aging population, and growth of medical tourism. The market is at a nascent stage and fragmented, dependent on imports and limited capabilities for indigenous manufacturing.
The rapidly evolving technology landscape, conducive financial mechanism, and governmental thrust through Make in India initiatives are projected to expedite market growth during the 2021 – 2025 period.
It is estimated to reach INR 1,674.63 Bn by 2025, expanding at a compound annual growth rate (CAGR) of ~22.75% during the forecast period. Major players in the market include Opto Circuits Limited, Philips India Limited, Siemens Limited, TTK Healthcare Limited, and Appasamy Associates.
Impact of COVID-19
The pandemic has put an enormous burden on the market by creating a supply-demand gap. While the demand for personal protective equipment rose steeply, the supply side was massively constrained due to lockdown measures. The revenue fell sharply in the first quarter of FY 2021 due to a drop in sales volume for Non-COVID-19 items.
The players adopted various strategies to boost production capacities, collect payment from creditors, and address the changing demand to maintain business.
Market segment insights
The market is segmented into instruments and appliances, diagnostic imaging, consumables and implants, and patient aids and others. The instruments and appliances segment dominated the market, accounting for 33.72% of the total revenue in 2020. Patient aids and others is expected to be the fastest-growing segment during the forecast period.
Key growth drivers of the market
• An increase in demand for new applications has led to the growth of medical technology market. For instance, improved surgical techniques and new implant materials for joint replacement (e.g., hybrid replacement method used in hip replacement surgery) are factors driving the growth of the orthopedic segment
• In India, non-communicable diseases (NCDs) are a major health problem. Diseases including cancer, obesity, and diabetes are on the rise as a result of factors such as a sedentary lifestyle and high stress levels. By 2025, NCDs would account for 75% of the disease burden in India. The significant increase in non-communicable diseases is driving demand in some key segments of the medical technology Market
Key deterrents to the growth of the market
Shortage of healthcare professionals and infrastructure is a significant reason behind the under-penetration of the market. According to the World Bank, in 2019, India had only 0.9 physicians per 1,000 patients.
Besides, the healthcare sector faces a significant challenge in terms of infrastructure. India has an estimated 1.1 beds per 1,000 people, which is far behind the 3.5 beds per 1,000 people suggested by the WHO (World Health Organization) for better health infrastructure.
• Opto Circuits Limited
• Philips India Limited
• Siemens Limited
• TTK Healthcare Limited
• Appasamy Associates
• BPL Medical Technologies Private Limited
• Forus Health Private Limited
• Hindustan Syringes & Medical Devices Limited
• Nidhi Meditech Systems
• Trivitron Healthcare Private Limited