Healthcare Market in India 2022-2027

Healthcare Market in India 2022-2027

Market insights

In terms of revenue, the healthcare market was valued at INR 21.14 Trn in FY 2021. It is estimated to reach INR 110.21 Trn by FY 2027, expanding at a compounding annual growth rate (CAGR) of ~30.70% during the FY 2022 – FY 2027 forecast period.

The market for hospitals, outpatient care services, medical tourism, and diagnostic services witnessed a decline in 2020. However, it started recovering from the second quarter of 2021. The growing prevalence of chronic, lifestyle-related diseases, and inflow of funds from public as well as private investors propelled growth of the market. The exposure to advanced technologies such as telehealth and telemedicine in the healthcare ecosystem also bolstered the growth of the healthcare market. The government aims to increase healthcare spending to 3% of the Gross Domestic Product (GDP) by the end of 2022.

Segment Insights:

The market is segmented into outpatient care centres, hospitals, pharmaceuticals, medical equipment and supplies, diagnostic services, digital healthcare, research and development, medical insurance, and medical tourism. Metropolitan cities such as Delhi, Chennai, Mumbai, and Kolkata are the hubs for hospital infrastructure in the country. At present, healthcare companies are also expanding in tier-II and tier-III cities, such as Indore, Nashik, Jaipur, Mohali, Surat, and Dehradun. The pharmaceuticals segment was the second-largest segment in FY 2021 with a market share of 16.50%. It is estimated to grow to a market share of 19.91% in FY 2027. The digital healthcare segment also demonstrated a notable market share of 13.00% in FY 2021 and is anticipated to increase by 4.44% by FY 2027.

COVID-19 impact analysis:

Healthcare segments such as hospitals, medical tourism, and outpatient care centers were severely affected during the first wave of the pandemic. Meanwhile, digital healthcare, pharmaceuticals, and medical equipment and supplies witnessed remarkable growth during the COVID-19 outbreak. However, in 2021, with the spread of COVID-19 under control to a certain extent, the dispersion in the growth rate of healthcare market segments started reducing. Despite this, the India healthcare industry is anticipated to witness significant growth in the coming few years. In India, the medical insurance market is expected to expand consistently because people are apprehensive about suffering from complicated ailments and bearing the expenditure of the treatment.