Medical Equipment Sector in India
The Indian Medical Electronics industry is currently valued at around USD 1 billion and has been growing at an average rate of 17% for past couple of years. It is strongly believed that growth will outperform the pace, resulting in the Indian Medical Electronics market reaching close to USD ~6.5 billion by the year 2020.
There are varied understandings of what constitute “Medical Electronics”. Medical electronics encompasses a wide range of healthcare products (personal medical devices, bio-physical monitoring, life support systems, implants, bionics in rehabilitation of physically challenged, embedded technology in neuro sciences (ASIC and Stroke Recovery) and cardiac sciences and lately telemedicine) which require some external energy source to be operational. In this section the current industry size, the major market segments and product categories are highlighted.
Various sources expect the Medical Electronics industry to reach around USD 2+ Billion in 2015 growing at a CAGR of 17% for the last five years from a size of USD 850+ Million in 2009. It is believed that the growth will not only sustain but increase beyond 17%. The hypothesis is based on positive market and non-market factors as listed below:
- Market Factors: Growing population, ageing, income base and asscoiated disposable income, increasing socio-economic inclusion of rural and deprived in mainstream economy, hightened manufacturing innovation to create customized products to meet the needs of all income segments, changing disease prevalence pattern (e.g. early onset of diabetes and heart diseases) and growing awareness among the middle class to focus on early detection and disease prevention.
- Non-Market Factors: Development of infrastructure, favorable regulations, FDI inflow, outsourcing of manufacturing and R&D activities to India, government, initiatives to improve healthcare access through, insurance schemes such as RSBY (Rashtriya Swasthya Bima Yojana), Aarogyasri, etc.