Healthcare market in India is a $158.6B billion opportunity
30 Jan 2020
Healthcare has become one of India's largest sectors both in terms of revenue and employment. For the medical supplies segment particularly, Asia is projected to be the fastest-growing region owing to factors such as the rising geriatric population, increasing incidence of various diseases, growing medical tourism industry, and improving healthcare infrastructure.
India has emerged as a hub for research and development activities for global players owing to the relatively low cost of medical services. This has resulted in the rise in medical tourism in India facilitating the growth and improvement of the Healthcare system at a faster pace, attracting patients globally.
A recent edition of PraxRoundup from global business analytics, research and advisory firm Praxis Global Alliance uncovers how the market and various segments in it are presenting interesting opportunities for companies and investors to grow and expand in the sector.
Consumables hold the maximum share among medical supplies.
India is the 4th largest market for medical devices in Asia and the healthcare medical supplies market stands at US$ 158.6 B in 2019. Major factors contributing to the growth of this market include increasing patient pool for renal diseases, rising incidence of diabetes and hypertension, growing geriatric population, and increasing adoption of dialysis procedures over kidney transplantations.
The healthcare distribution structure in India is complex with multi-layered complexity in terms of size, ownership, and geography. Overall non-pharma Hospital supplies market is US$ 6B with 70% of the market comprising 85% of the market is catered by offline channels. Online procurement is also dominated by online tenders run by government hospitals
Large hospitals procure 75-90% medical supplies through pre-negotiated ARCs optimizing operations, and maximizing profits have become a crucial part of running a successful healthcare entity. Smaller hospitals generally spend a higher share of revenue in procuring medical supplies compared to larger chains in India.
This article was originally published on India Tech online. Read more.
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