Medical Technology Market in India 2023-2028

A transforming medical technology landscape, improving healthcare delivery and financing mechanisms, and changing patient profile are driving growth in the medical technology market. However, the industry has been stifled by some key impediments to growth. The foremost among these is the lack of - affordability, accessibility, awareness, and availability.

Market Insights:

In terms of revenue, the medical technology market was valued at INR 1,200.22 Bn in FY 2023 and is estimated to reach INR 3,810.45 Bn by FY 2027, expanding at a CAGR of ~26.50% during the FY 2024 - FY 2028 period.

Though medical technology market has volumes lower than some industries, many global organizations in this space are making India the hub for manufacturing, as well as innovation, for products that cater to, and are designed for, both local and global markets. Additionally, some organizations have now started focusing on India as a component manufacturing hub for assembly plants located across the globe.

These are early trends but are also firm strides that India is taking in both manufacturing and innovation to pave the way for in-country end- to-end product development. Home grown entrepreneurs and the rise of the start-up ecosystem in the country, the third largest globally, are also boosting the medtech trend in India. While boosting exports of manufactured products is one way of driving growth, moving up the value chain and delivering innovation is another important opportunity for medical technology in India.

Segment insights:

The medical technology market is segmented into instruments and appliances, diagnostic imaging, consumables and implants, and patient aids and others. In FY 2023, the instruments and appliances segment dominated the medical technology market, accounting for 33.48% of the revenue generated. Diagnostic imaging was the second-leading segment, with a contribution of 24.33 % in FY 2023, followed by patient aids and others segment (23.50%). The market share of the patient aids and others segment is estimated to increase to 27.78% in FY 2028.

Impact of COVID-19:

With new features and increased security and scalability, the recently released eSanjeevani 2.0 has improved the telemedicine experience. India has also made considerable progress in its National Tele Mental Health Programme. Since its launch in October 2022, the Tele-MANAS Helpline has received over a million calls. More than 38 Tele MANAS Cells operate in 27 states and union territories, delivering mental health treatments in over 20 languages. First-line assistance are provided by 1,600 certified counsellors.