Indian diagnostics sector is witnessing an era of immense progress in innovative competencies and credibility. The use of advanced and cutting-edge technologies in understanding the disease prognosis has further strengthened the sophistication level of participants in the sector. Besides, significant developments at the demographics level has led to create a health-concerned society; thus, creating a demand pattern for effective and suitable diagnostic tests at a broad level.
With a population of more than 1 billion, India is the world’s second largest country and therefore also a significant potential market for goods and services. India has the world’s seventh-largest economy by nominal GDP and third largest by purchasing power parity. The country is one of the G-20 major economies with approximately 7% average growth rate for the last two decades. In the final quarter of 2014, India became the world’s fastest growing major economy, replacing China.
As an in vitro diagnostics (IVD) market, India leads the emerging nations and follows only the populous, developed economy markets of the United States, western European countries, Japan and China. The country and its healthcare system are confronted by challenges shared by the developing countries, as well as rising rates of diabetes, cardiovascular disease, and the diseases of aging.
The major factor boosting the growth of the diagnostic market in India is the cost advantage that Indian laboratories offer over countries. Gujarat’s diagnostic market is worth Rs 600 Crore with more than 5,000 labs and that of India’s is Rs 14,400 Crore with one lakh labs.
The diagnostic services market is expected to continue growing at 27.5% for next five years. This growth is likely to be driven by improving healthcare facilities, medical diagnostic and pathological laboratories, private-public projects, and the health insurance sector. Moreover, with the rise in health consciousness in the society and the rising burden of chronic diseases, this market will swell to approximately INR 860 Billion in revenues market by 2020. In terms of services, the market is dominated by pathology services, which account for approximately 70% of the market.