The Indian Diagnostic Imaging device market is on an upswing. Research by India Watch reveal that the market will reach USD 2.2 Billion by 2026, growing at a CAGR of 17.7%. The size of the current market is USD 977 million.
Although still a small market compared to other major economies such as the USA, UK and Japan; the industry will continue to grow at a sustainable pace. Large population base, growing health awareness, steady rise in investments in healthcare infrastructure, expansion in insurance coverage, etc are some of the major growth drivers in the industry.
The general shift in healthcare services, wherein there is a lot more focus on prevention rather than cure will also dovetail the market in a positive direction. The industry will also great a positive thrust from the Ayushman Bharat Yojna, the universal healthcare plan by the Government of India (GOI) to cover ~ 40% Indian population. Offering affordable and effective preventive diagnostic services is integral to the plan and this will help in the accelerated growth of the diagnostic device market in the country.
In 2014, under the flagship of Make in India, 100?I has been allowed in medical device manufacturing through an automatic route. Despite favourable incentives, India still lacks indigenous manufacturers and is mostly reliant on international imports.
GE manufacturers CT scanners at its Bangalore facility and Voxelgrids, another Bangalore-based manufacturer have recently forayed into affordable and light-weight MRI machine manufacturing. However, due to the capital-intensive nature of the business and the limited availability of O&M suppliers in the country, the overall diagnostic device ecosystem is fragile in India.
The higher cost of the imported devices has affected the diagnostic imaging market in India, especially in smaller towns and rural geographies. Despite growing demand for quality diagnostic services, mostly the smaller hospitals and diagnostic centres are unable to afford expensive machinery. This necessitates the need for capacity building in domestic manufacturing that can offer quality devices at affordable prices.
In future, the surge in demand and growth in domestic capabilities should synergize each other. The availability of affordably priced devices will help diagnostic services penetrate the hinterlands of the country. This, in turn, will strengthen the overall ecosystem, boost investment, and make domestic manufacturing profitable.
The Ayushman Bharat scheme will also drive growth for the diagnostic imaging market in India. Under the scheme, the government has planned to offer 40% Indian population health insurance up to INR 5 Lacs (~ USD 7,000). As preventive diagnostic is a crucial part of the plan, it will help the industry to grow further.