The Indian medical device market will grow to US$ 8.16 billion (Rs.53,053 crore) in 2020 at CAGR of 16 per cent, as per the key findings of a government led study in collaboration with World Health Organisation (WHO) and Andhra Pradesh MedTech Zone (AMTZ).

India is one of the top 20 global medical device markets and the 4th largest medical device market in Asia.

The report further reveals that diagnostic imaging is the largest segment within Indian medical device market in 2015. It constitutes US$ 1.18 billion (Rs.7,650 crore) in 2015 and will grow to US$ 2.47 billion (Rs.15,561 crore) in 2020.

The Indian medical device market has grown from US$ 2.02 billion (Rs.13,130 crore) in 2009 to US$ 3.9 billion (Rs.25,259 crore) in 2015 at CAGR of 15.8 per cent. This accounts for approximately 1.7 per cent of the global medical device market in 2015. The Indian medical device market contributes to 4 per cent of the Indian healthcare market which is pegged at US$ 96.7 billion (Rs.6.29 lakh crore), in 2015.

Others and IV diagnostics comprise largely of electrical and electronic devices. The others category (patient monitors, ECG machine, defibrillators, etc) is estimated at US& 0.94 billion (Rs.5,922 crore) in 2015 and will grow to US$ 1.98 billion (Rs.12,880 crore) in 2020. Similarly, the IV diagnostics market constituted of US$ 0.39 billion (Rs.2,550 crore) in 2015 and will reach US$ 0.82 billion (Rs.5,356 crore) in 2020.

Report also reveal that non-communicable diseases like cardiovascular diseases, cancer, diabetes, and other, are expected to comprise more than 75 per cent of India’s disease burden by 2025, compared to 45 per cent in 2010. The chronic diseases will drive the demand for healthcare services with basic and advanced medical devices and technology.

The Indian health insurance penetration has also increased in the last one decade. The health insurance market was estimated at US$ 3.9 billion in FY15 and grew at a phenomenal CAGR of 22 per cent from FY08 to FY15. The Indian health insurance market is expected to reach over US$ 8 billion in FY 2020, and close to US$ 20 billion in FY 2025. The increasing aged population will drive the demand for healthcare services and medical devices.

India has been increasingly attracting medical tourist from across the globe with SAARC countries contributing to maximum inflow. The medical value travel market in India is expected to grow at a CAGR of 30 per cent from US$ 2.8 billion in 2014 to US$ 10.6 billion in 2019. The increasing medical tourist flow will drive the demand for quality healthcare services, medical devices and technology.

Similarly, orthopaedics & prosthetics and consumables will grow from a cumulative US$ 0.90 billion (Rs.5,850 crore) in 2015 to US$ 1.88 billion (Rs.12,220 crore) in 2020.

Dental products and patient aids will grow from a cumulative US$ 0.47 billion (Rs.2,961 crore) in 2015 to US$ 1.1 billion. Currently, the healthcare delivery system has an acute shortage of availability of hospital infrastructure. India has an estimated 1.1 beds per 1,000 people, which is well behind the 3.5 beds per 1,000 people recommended by the WHO. The healthcare delivery system will need additional 3.6 million beds to reach the recommended capacity. The demand for additional beds will drive the demand for medical devices.

Quality and accreditation of hospital on par with International Standards - In India, around 393 hospitals have received the NABH accreditation in the last decade. Apart from the National Accreditation Board for Hospitals and Healthcare Providers (NABH) accreditation, India has more than 20 Joint Commission International (JCI) accredited healthcare facilities. The adoption of national and international quality accreditation system has increased focus on medical device maintenance and up-gradation of technology.