India Set To Secure 10-12% Share Of Global MedTech Market

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India is on track to solidify its position as a key player in the global medical technology (MedTech) market, with projections indicating a market share of 10-12% within the next 25 years, according to a report by EY India. The industry’s growth is driven by a confluence of increasing healthcare needs, advanced technological integration, and proactive government policies aimed at fostering a robust MedTech ecosystem.

Current Landscape and Growth Potential

As of 2023-24, India’s MedTech industry is valued at approximately $12 billion, representing 1.65% of the global market. This is set to surge to $50 billion by 2030, thanks to heightened innovation, increased investments in R&D, and a burgeoning digital health ecosystem. Chronic disease prevalence, an aging population, and the rise of digital healthcare solutions are key factors accelerating this growth.

Government of India Support as a Catalyst

The Indian government has been instrumental in facilitating this transformation through:

Regulatory Reforms: Policies like the Medical Device Rules and National Medical Device Policy have streamlined the sector.
Incentive Programs: Initiatives such as the Production Linked Incentive (PLI) scheme for medical devices and the promotion of MedTech parks are encouraging domestic manufacturing and innovation.
R&D Focus: Programs like MedTech Mitra and PRIP are fostering research and development.

These initiatives have not only reduced barriers to entry for local companies but have also attracted global MNCs to invest in India’s MedTech sector.

Trade Dynamics and Innovation

While India exported $3.8 billion worth of MedTech products in 2023-24 (with the US as the primary market), it remains heavily reliant on imports, which totaled $8.2 billion, accounting for 80-85% of medical devices sourced internationally. Local manufacturers are targeting these gaps, particularly in price-sensitive and import-dependent segments.

Innovation is a cornerstone of India’s MedTech evolution. Indian start-ups and global MedTech companies are focusing on digital integration, AI-driven diagnostics, and affordable healthcare solutions. Notably, 79% of start-up innovations are MedTech-focused, with 63% of these incorporating digital technologies.

A Strategic Roadmap to Global Leadership

To achieve its ambitious targets, India must focus on five strategic priorities:

Manufacturing Competitiveness: Enhance cost-effectiveness while maintaining high quality.
Supply Chain Resilience: Strengthen local production capabilities to reduce dependency on imports.
Digital Innovation: Leverage India’s IT expertise to drive advancements in AI, data analytics, and software-integrated medical devices.
Market Accessibility: Embrace value-driven pricing models to cater to diverse markets.
Collaboration: Encourage partnerships between domestic and international stakeholders for knowledge and resource sharing.

Performance of Indian Medtech Company in FY23-24

Indian MedTech companies have demonstrated notable progress in recent years, leveraging both domestic and global opportunities to strengthen their position in the healthcare ecosystem.

Market Growth and Exports: The Indian MedTech industry, valued at $12 billion in 2023-24, is projected to reach $50 billion by 2030. Exports have reached $3.8 billion, with the U.S. as the primary market. However, the sector remains import-dependent, with $8.2 billion in imports
Innovation and Startups: Indian startups are at the forefront of innovation, with 79% focusing on integrating MedTech with digital technologies like AI and data analytics, particularly in diagnostics. This trend highlights the industry’s pivot towards personalized and efficient healthcare solutions
Government Support: Policies such as the Production Linked Incentive (PLI) scheme, the establishment of MedTech parks, and programs like MedTech Mitra are promoting R&D, manufacturing competitiveness, and quality excellence. These initiatives are enabling local manufacturers to target previously import-reliant segments
Focus on Localization: Global companies are increasingly investing in India, not only in R&D but also in manufacturing and localized digital solutions. This has improved the sector’s global competitiveness while catering to domestic needs

While challenges like dependency on imports and infrastructure gaps persist, the industry is positioned for robust growth driven by strategic initiatives and an emphasis on digital integration and affordability. This transformation is expected to make India a global MedTech hub in the coming decades.

https://medicalbuyer.co.in/medtech-and-ivd-in-india-2024-in-review

Conclusion: A Renaissance in Global Healthcare

India’s MedTech industry is poised for exponential growth, driven by a unique blend of economic, technological, and demographic factors. With strategic actions and sustained investments, India can not only meet its $50 billion market goal by 2030 but also emerge as a global leader in the sector, redefining healthcare accessibility and affordability on a worldwide scale.