Imports covers 75% of the Rs.26,048 crore market
The Indian MedTech market may see twofold rise as its size in value terms to Rs.55,040 crore by 2020 from the current level of Rs.26,048, growing at a compounded annual growth rate (CAGR) of 15% against the expected global industry growth of 4-6%.
However, the Medtech sector, which is an indispensible part of the Indian healthcare industry, is at a nascent stage with most of the indigenous manufacturing restricted to medical consumables, according to an ASSOCHAM-MRSSIndia.com joint paper.
Imports still constitute over 75% of the current medtech market.
India is looking to improve self-sufficiency in medtech as a part of the “Make in India” initiative. The rapidly expanding sector presents immense opportunities to global players, stated the study titled, ‘Medical Technologies,’ jointly conducted by ASSOCHAM and MRSSIndia.com.
Diagnostic imaging represents the second-largest segment of the medical devices industry in India, constituting 31% (Rs.8,075 crore) of the industry in 2015-16.
It is expected to grow at a rate of 13% over 2015–2020. Building on the existing installed base of electro-diagnostic and radiation apparatus, imaging parts and accessories are expected to lead this segment, growing at a CAGR of 15% over the next few years.
Syringes, Needles and catheters form major part of consumables and disposables. Consumables and Disposables are the only trade surplus segment of the medical device sector with domestic players having a larger market share.
Key players include Hindustan Syringes, Lotus Surgicals, Sutures India, B Braun, Beckton Dickinson.
Most of the requirements are met through domestic manufacturing. Consumables and implants constituted 19% (Rs.4,949 crore) of the industry in 2015-16. It is expected to grow at a rate of 14% over 2015–2020. Implants segment is expected to grow faster than the other segments in the medical device industry.
Patient aids and other products is the fastest growing segment of the medical devices industry in India and constituted 16% (Rs.4,168 crore) of the total industry size in 2015-16.
It is expected to grow at a rate of 19% over 2015–2020.
Hearing aids and Pacemakers form major part of the Patients Aids segments and constitute 70% of the market collectively.
Patient aids segment is basically an import driven segment with most products primarily sourced from Ireland, USA, Australia, Singapore, China and South Korea.
Key Players include St Jude Medical, Shree Pacetronics, Medisafe International, Medtronics.
The global MedTech market is expected to grow from nearly US$371 billion in 2015 to almost US$529.8 billion in 2022, reflecting a seven-year compound annual growth rate (CAGR) of 5.2%, noted the joint study.
The growth in the medical devices industry will be driven by the rapid expansion of the emerging markets, allied with steady growth in mature markets as the effects of the economic crisis begin to fade.
Currently there are 800 medical device manufacturers in India of which close to 65% of companies have turnover of over Rs.10 crore (US$1.5 million) and 2% companies with a turnover of more than Rs.500 crore (US$73 million).
With upcoming changes in the regulatory and policy Medical Technologies: A Roadmap for Unlocking Future Growth Opportunities for India 18 framework and inherent growth potential of the industry, this sector is expected to undergo a phase of consolidation, said the report. fii-news.com
