The Indian MedTech market may see twofold rise as its size in value terms is likely to reach Rs. 55,040 crore by 2020 from the current level of Rs. 26,048, growing at a compounded annual growth rate (CAGR) of 15 per cent against the expected global industry growth of 4-6 percent, according to an ASSOCHAM-MRSSIndia.com joint paper.
The Medtech sector, which is an indispensible part of the Indian healthcare industry, is at a nascent stage with most of the indigenous manufacturing restricted to medical consumables. Imports still constitute over 75% of the current medtech market. India is looking to improve self-sufficiency in medtech as a part of the “Make in India” initiative. The rapidly expanding sector presents immense opportunities to global players, stated the study titled, ‘Medical Technologies,’ jointly conducted by ASSOCHAM and MRSSIndia.com.
Diagnostic imaging represents the second-largest segment of the medical devices industry in India, constituting 31 percent (8075 crore) of the industry in 2015-16. It is expected to grow at a rate of 13 percent over 2015–2020. Building on the existing installed base of electro-diagnostic and radiation apparatus, imaging parts and accessories are expected to lead this segment, growing at a CAGR of 15 percent over the next few years.
Syringes, Needles and catheters form major part of consumables and disposables. Consumables and Disposables are the only trade surplus segment of the medical device sector with domestic players having a larger market share. Key players include Hindustan Syringes, Lotus Surgicals, Sutures India, B Braun, Beckton Dickinson. Most of the requirements are met through domestic manufacturing. Consumables and implants constituted 19 percent (4949 crore) of the industry in 2015-16. It is expected to grow at a rate of 14 percent over 2015–2020. Implants segment is expected to grow faster than the other segments in the medical device industry.
Patient aids and other products is the fastest growing segment of the medical devices industry in India and constituted 16 percent (4168 crore) of the total industry size in 2015-16. It is expected to grow at a rate of 19 percent over 2015–2020.Hearing aids and Pacemakers form major part of the Patients Aids segments and constitute 70% of the market collectively.
Patient aids segment is basically an import driven segment with most products primarily sourced from Ireland, USA, Australia, Singapore, China and South Korea. Key Players include St Jude Medical, Shree Pacetronics, Medisafe International, Medtronics.
The global MedTech market is expected to grow from nearly USD 371 billion in 2015 to almost USD 529.8 billion in 2022, reflecting a seven-year compound annual growth rate (CAGR) of 5.2 percent, noted the joint study.
The growth in the medical devices industry will be driven by the rapid expansion of the emerging markets, allied with steady growth in mature markets as the effects of the economic crisis begin to fade. The expansion of the middle class income group in emerging economies will result in a larger proportion of the population being able to afford procedures and treatments that were previously deemed too expensive.
The United States remains the largest medical device market in the world with a market size of around $140 billion, and the U.S. market represented about 40 percent of the global medical device market in 2015. U.S. exports of medical devices in key product categories identified by the Department of Commerce exceeded $44 billion in 2015.
The European medical technology industry employs more than 650,000 people. Germany had the highest absolute number of people employed in the medical technology sector (195,000), while the number of medtech employees per capita is highest in Switzerland and Ireland. 95% of Europe’s 26,000 medical technology companies are small and medium-sized enterprises (SMEs). The European medical technology market in 2015 is estimated at roughly €110 billion.
The biggest medtech markets in Europe are Germany, France, the United Kingdom, Italy and Spain. The same countries form the top 5 IVD markets in Europe. The European medical technology market has been growing on average by 4.6% per annum over the past 8 years, while the European IVD market growth has been slowing down until 2013, while annual growth rates in the pre-crisis period were at around 2-4%.
Currently there are 800 medical device manufacturers in India of which close to 65 percent of companies have turnover of over Rs 10 crore ($1.5 million) and 2 per cent companies with a turnover of more than Rs 500 crore ($73 million). With upcoming changes in the regulatory and policy Medical Technologies: A Roadmap for Unlocking Future Growth Opportunities for India 18 framework and inherent growth potential of the industry, this sector is expected to undergo a phase of consolidation.