2020/10/1 – CRI Report

Vaccine Market in India 2020 – Focus on COVID-19

admin — Thu, 26 Nov 2020 05:22:25 +0000

In the past decade, the demand for vaccines has surged in India, fuelled by increased awareness of health and hygiene. Furthermore, support extended by the Indian government to enhance vaccination coverage has aggravated market growth. In terms of revenue, the vaccine market in India was valued at INR 72.44 Bn in 2019, and is estimated to reach INR 267.31 Bn by 2025, expanding at a compound annual growth rate (CAGR) of ~26.82% during the 2020-2025 period.
Segment insights:
The vaccine market in India is segmented into public and private vaccine sectors. In 2019, public vaccine sector, which mainly consists of vaccines procured by the Indian government, dominated the overall market holding a share of ~53.69%. Sales volume of the vaccines sold in the public segment through Universal Immunisation Programme (UIP) is much higher than that of the private segment; however, the price per dose of vaccine is higher in the private segment.
The revenue of the private sector, which is also known as the domestic trade market, is anticipated to surpass the public segment by 2021. Increasing demand for multivalent vaccines such as hexavalent and pentavalent vaccines, along with vaccines for Zoonotic diseases is likely to drive the private vaccine market. Furthermore, the introduction of the COVID-19 vaccine in the coming years is anticipated to support the growth of the private vaccine market.
COVID-19 vaccine progress:
India being the largest vaccine producing country in the world, is actively engaged in the development and testing of COVID-19 vaccines through extensive research and innovation program. As of September 21, 2020, the Union Minister of India announced that three COVID-19 vaccine candidates are in the advanced stages of phase I, II, and III of clinical trial, and four in the advanced stages of pre-clinical trial.
The three vaccines in advanced stages of clinical trial are COVAXIN by Bharat Biotec International Ltd., ZyCoV-D by Cadilla Healthcare Ltd., and Covishield or AZD1222 by Serum Institute of India Pvt. Ltd. (developed by Oxford University and AstraZeneca plc). Among these three candidates, COVAXIN and ZyCoV-D are the two indigenous vaccine candidates.
Players in the vaccine market are aiming to seize the underlying opportunities of the COVID-19 vaccine market by scaling up production capacities, strengthening supply chain, and upgrading cold chain infrastructure. On the other hand, the Indian government is also preparing a road map to ensure fair and reasonable distribution of the vaccines. The government has formed a national expert group and is planning to use UIP for the COVID-19 vaccination program.
Impact of COVID-19:
The pandemic interrupted the routine immunization programs across the country, especially in the first quarter of FY 2021, owing to stringent lockdown measures and supply chain disruption. However, the market bounced back in the second quarter of FY 2021, with recovery in the sale of paediatric vaccines.
The pandemic is expected to bring about significant changes in the Indian vaccine market, by gaining attention from investors and government agencies. It is expected to drive vaccine manufacturers to focus on research and innovation and attract the entry of biotech companies in the market. Furthermore, the projected spurt for COVID-19 vaccine demand is anticipated to bolster the involvement of contract manufacturers in the production process.
Companies covered
• Cadila Healthcare Ltd. (Zydus Cadila)
• GlaxoSmithKline Pharmaceuticals Ltd.
• Panacea Biotec Ltd.
• Pfizer Ltd.
• Sanofi India Ltd.
• Bharat Biotech International Ltd.
• Indian Immunologicals Ltd.
• Merck Sharp & Dohme Corp.
• Serum Institute of India Pvt. Ltd.
• Vhb Life Sciences Ltd.

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Life Insurance Market in India 2020

admin — Thu, 26 Nov 2020 05:22:22 +0000

The financial services sector is segmented into capital market, insurance (life and non-life), and non-banking financial companies (NBFCs).

Life Insurance Market Overview

The life insurance market in India was valued at INR 5,081.32 Bn in FY 2019, and is expected to reach INR 9,553.30 Bn by FY 2025, expanding at a compound annual growth rate (CAGR) of ~11.09% during the FY 2020-FY 2025 period.

As of FY 2020, the total assets held by life insurance companies in India amounted to INR 37,756.9 Bn, with INR 6,636.37 Bn in equity (at market value), and INR 30,704.04 Bn in fixed income (at book value)

Currently, there are 24 life insurance players in India, comprising one public sector and 23 private sector players. The life insurance market in India is exhibiting immense growth, next to banks, for mobilized savings, and is a formidable part of the Indian capital market. India’s insurance penetration increased slightly to 3.70% in FY 2019 as compared to 3.69% of FY 2018

Life Insurance Corporation of Indian is the sole public sector life insurance company in India. However, private life insurance companies have been penetrating the market since 2000, mainly by innovating their product lines and engaging in unique customer services. Nonetheless, the share of private players in the life insurance industry is expected to decrease from 33.58% in FY 2019 to 31.30% in FY 2020, whereas the market share of LIC is expected to increase from 66.42% in FY 2019 to 68.70% in FY 2020.

Impact of COVID-19
The COVID-19 pandemic in the country has changed the way businesses used to operate across all sectors and the Indian life insurance industry is no exception. The extension of the lockdown pushed insurance companies to depend heavily on digital infrastructure to carry out businesses, from settling claims to selling new policies. Sales went down in March, which is deemed as the productive month for life insurance companies, by ~30%. However, business is expected to recover in the second quarter of FY 2021.However, insurance companies are taking necessary steps to accelerate online sales. In March 2020, Policybazaar reported a 20% increase in the online sale of life insurance products. In the wake of the pandemic, life insurance players need to focus on developing paperless web-based processes to ensure greater efficiency and productivity, which can be capitalized when things get back to normal.

Key growth drivers of the market
With an increasing internet user base, the online distribution channel is likely to gain prominence in the Indian insurance industry. India’s young population with greater purchasing power and inclination toward security products is also growing. However, the penetration of life insurance in India is shallow, compared to the advanced and emerging economies of the world. In a way, life insurance companies are utilizing the opportunity of penetrating the Indian market, thereby taking advantage of its expanding economy and rising individual income level.

Key deterrents to the growth of the market

High lapse ratio, due to low persistency, is hindering the overall business of insurers. This is because insurance policy lapse has a negative effect on customer retention, product performance, pricing factors, product image, and workforce planning.

Companies covered
• Life Insurance Corporation of India
• HDFC Life Insurance Company Limited
• ICICI Prudential Life Insurance Company Limited
• SBI Life Insurance Company Limited
• Aditya Birla Sun Life Insurance Company Limited
• Bajaj Allianz Life Insurance Company Limited
• Max Life Insurance Company Limited
• PNB Metlife India Insurance Company Limited
• Reliance Nippon Life Insurance Company Limited
• Tata AIA Life Insurance Company Limited

The Global Business Health Insurance Market Forecast To 2019-2030

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Healthcare Information Technology (IT) Market in India 2020

admin — Thu, 26 Nov 2020 05:22:20 +0000

The thriving private healthcare sector, coupled with the expanding network of specialty hospitals is driving the healthcare information technology (IT) market in India. Healthcare IT has improved process and data management, as well as patients’ experiences. In terms of revenue, the healthcare IT market in India was valued at INR 66.99 Bn in 2019, and is estimated to reach INR 98.21 Bn by 2025, expanding at a compound annual growth rate (CAGR) of ~6.46% during the 2020-2025 period.
Segment insights:
The healthcare IT market is segmented into IT hardware, IT services, and IT software. In 2019, the IT hardware segment dominated the market, accounting for 54.95% of the overall revenue. The computerization of basic operations such as patient registration and billing was the primary driving factor for the growth of the segment in the past decade.
In terms of revenue, IT services was the second-largest segment, followed by IT software, in 2019. Outsourcing of IT services regarding implementation and maintenance of enterprise resource planning (ERP), customer relationship management (CRM), and hospital information system (HIS) has attributed to the segment’s growth. IT software is estimated to be the fastest-growing segment of the healthcare IT market, expanding at a CAGR of ~9.12% during the 2020-2025 period. Adoption of e-prescription, electronic health and medical records, and health information exchange, especially among hospitals located in tier II and tier III cities, is likely to bolster the growth of the IT software segment.
Impact of COVID-19:
Although various industries are trimming down their discretionary IT budget due to reduced economic activities, the healthcare industry is leveraging IT to optimize operations and productivity. Healthcare providers have embraced IT solutions to deal with the high volumes of patients while complying with social distance norms.
The rapidly spreading contagion has triggered the demand for IT consulting in areas including analytics, strategy, security, and risk assessment. Furthermore, the demand for electronic health record system has proliferated to manage the gamut of COVID-19-related data generated every day. Indian healthcare providers such as Apollo Hospitals Enterprise Ltd., Medanta (The Medicity), Wockhardt Hospitals, Fortis Healthcare Ltd., and All India Institute of Medical Sciences (AIIMS) have scaled up their technical expertise in order to continue seamless business operations.
Companies covered
• Wipro Ltd
• Allscripts (India) LLP
• Cerner Healthcare Solutions India Pvt. Ltd.
• Dell Technologies India Pvt. Ltd.
• Hewlett Packard Enterprise India Pvt. Ltd.
• IBM India Pvt. Ltd.
• Intel Technology India Pvt. Ltd.
• Oracle India Pvt. Ltd.
• SAP India Pvt. Ltd.
• Siemens Healthcare India Pvt. Ltd.

The post Healthcare Information Technology (IT) Market in India 2020 first appeared on CRI Report.

E-learning Market in India 2020

admin — Thu, 26 Nov 2020 05:22:19 +0000

Technological innovations have disrupted India’s traditional education system, and the shutting down of schools and universities in the wake of the COVID-19 pandemic has impacted more than 500 Mn students in India. Online learning platforms are rapidly growing in all educational segments – primary, secondary, higher education, test preparation, and casual learning. India’s e-learning market is highly fragmented, with a few niche players operating in the various segments, and several start-ups with innovative offerings are gradually gaining ground.
The e-learning market in India was valued at INR 65.00 Bn in 2019 and is expected to reach a value of INR 498.26 Bn by 2025, expanding at a compound annual growth rate (CAGR) of ~36.88% during the 2020-2025 forecast period.
Market Segmentation
Based on the category, the online reskilling and certification segment dominated India’s e-learning market, whereas online primary and secondary supplemental education is estimated to be the largest segment by 2025. Moreover, the higher education market is currently experiencing a lack of clarity on regulations. Similarly, the test preparation market, language, and casual learning segment are expected to expand rapidly during the forecast period.
Market Influencers
Lower-cost, ease of access, growing demand for industry-relevant training, and surge in the number of Internet subscribers have propelled the market growth. However, lack of awareness and user engagement, absence of formal recognition and accreditation, shortage of digital infrastructure, and abundance of free content are major hurdles to the industry growth.
Impact of COVID-19 and the way forward:
In the second week of March 2020, the Indian government temporarily closed all educational institutes across the country as a precautionary measure to contain the spread of the novel coronavirus. This had caused complete disruption India’s education system, affecting learners from school-going children to postgraduate students. With no immediate solution to curtail the spread of the virus, the shutting of schools and universities affected the continuity of learning.
To continue education, institutions are focusing on e-learning methods and are shifting towards online classes. Users of e-learning platforms, both free and paid users in the K-12 (K-12 comprises students from classes 1 to 12 and post K-12 segments, rose exponentially, increasing from 45 Mn in 2019 to 90 Mn in April 2020. E-learning players have also witnessed a 50% surge in the time spent on e-learning platforms, which has gone up from 60 minutes in 2019 to 90 minutes in April 2020.

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Cold Chain Market in India 2020

admin — Thu, 26 Nov 2020 05:22:18 +0000

Cold chains provide storage and distribution services for products that are temperature-sensitive. Depending on the nature and purpose of storage application, cold chains have been categorized as frozen (< -18℃), chilled (ranging between 0℃ and 10℃), mild chilled (ranging from 10℃ to 20℃), and normal (>20℃) storage.
Market insights:
The cold chain market in India was valued at INR 1.32 Trn in 2019 and is expected to reach INR 4.93 Trn by 2025, expanding at a compound annual growth rate (CAGR) of ~25.29% during the 2020-2025 period. Increased demand for cold storage facilities from the food, healthcare, and retail sectors, and evolving lifestyle of consumers, mainly in terms of food habits and wellness awareness, are the significant factors fueling the growth of the cold chain market in India. Moreover, several initiatives undertaken by the Indian government to develop and improve cold chain systems in India have also provided an impetus to the market. In 2019, the Indian government approved the development of 281 new cold chain facilities in the country. Further, in 2020, the Indian government approved 27 integrated cold chain development projects under the Pradhan Mantri Kisan SAMPADA Yojana. However, high operating costs of cold chains and lack of standardization in the market are some of the factors hindering market growth.

Segment insights:
Based on market component, India’s cold chain market is segmented into cold chain storage and cold chain logistics. As of 2019, the cold chain storage segment dominated the market, accounting for 56% of the total market share. By the end of 2025, the cold chain storage segment is expected to hold a share of around 56.70% of the overall market. Owing to the constant rise in demand for temperature-controlled storage and transportation from the retail and healthcare industries, the market shares of both the segments are expected to change marginally during the forecast period. Some of the leading players in the market, operating and managing both cold chain storage and logistics operations include Snowman, Kool-ex, Coldstar, Gati Kausar, and DHL Logistics.

Impact of COVID-19:
The contagion has been beneficial for the cold chain market in India. The fear of the disease, and the increasing demand for healthcare products and perishable food items are influencing the cold chain market in India. Fruits and vegetables, dairy products, and animal products are the other market segments likely to have a moderate impact on the cold chain market in India.
Companies covered:
• Snowman Logistics Limited
• Coldstar Logistics Private Limited
• Gati Kausar India Limited
• Gubba Cold Storage Private Limited
• Kool-ex Cold Chain Limited
• Seabird Logisolutions Limited
• DHL Logistics Private Limited
• Kuehne + Nagel Private Limited

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Artificial Intelligence (AI) in Indian Manufacturing Industry 2020

admin — Thu, 26 Nov 2020 05:22:17 +0000

The manufacturing industry in India is edging toward a digital overhaul, with the adoption of industry 4.0 technologies. Several Indian manufacturing companies have been investing in artificial intelligence (AI)-based factory automation solutions to improve product quality and design, reduce labor costs, minimize manufacturing cycles, and monitor real-time condition of machines. AI has helped companies such as Blue Star Ltd., TVS Motor Company Ltd., JK Tyre & Industries Ltd., and Asian Paints Ltd., to enhance efficiency and productivity in their manufacturing units.
The contribution of AI in manufacturing to India’s gross value added (GVA) was valued at INR 1,227.46 Bn in 2019, and is expected to reach INR 4,845.64 Bn by 2025, expanding at a at a compound annual growth rate (CAGR) of ~27.41% during the forecast period (2020-2025). AI is being implemented for factory automation, quality monitoring, predicting equipment failure, order management, delivery management, and demand forecasting.
Market trends:
Indian manufacturing companies are utilizing AI-enabled predictive maintenance systems for self-monitoring and reporting malfunctions in real time. IBM has developed its cognitive computing platform, Watson for manufacturers to reduce errors and improve product quality. Similarly, Qualitas Technologies has developed the Eagle Eye Inspection System, which uses an AI-based vision controller to check the quality of products.
Players in the Indian manufacturing sector have been keen on the use of collaborative robots that leverage AI and analytics. Collaborative robots are capable of handling additional cognitive tasks and making independent decisions based on real-time data. Blue Star Ltd. is using AI-enabled collaborative robots (offered by Universal Robots A/S) to optimize the task of copper tube expansion and minimize stress risks associated with it.
Impact of COVID-19:
The unprecedented turmoil caused by the pandemic has changed the business landscape of the manufacturing sector. Frontier technologies such as AI have become the key to maintain resilience against the multi-pronged effect of the pandemic. Manufacturing units that struggled with significant labor shortage during the lockdown, adopted AI-based solutions to continue production. Government initiatives such as the Atmanirbhar Bharat mission and production linked incentives (PLI) are expected to drive the adoption of AI in the manufacturing industry amid the pandemic.
Global players are aiming to divest in China and considering India to be a preferred destination to shift their manufacturing base. The Indian players can seize this opportunity and leverage AI to create a safe, inter-connected, intuitive, and interactive manufacturing environment.
Companies covered
• Abee Research Labs Pvt. Ltd.
• EroNkan Technologies Pvt. Ltd.
• Flutura Business Solutions Pvt. Ltd.
• LivNSense Technologies Pvt. Ltd.
• Universal Robots (India) Pvt. Ltd.
• Altizon Systems Pvt. Ltd.
• IBM India Pvt. Ltd.

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