Medical Technology Market in India 2022-2027

Medical Technology Market in India 2022-2027

Medical technology, or MedTech, involves the use of technology to develop cure-based systems that are used in hospitals. Medical technology market comprises players supplying medical devices, diagnostic equipment and reagents, medical instruments, bionics, implants, disposables, and consumables. Rising number of medical facilities will boost the demand for medical technology in the market. Various government initiatives such as ‘Production Linked Incentives (PLI) Scheme for Medical Devices 2020’ and establishing medical parks will propel the growth of MedTech in the country.

Market insights:

In terms of revenue, the medical technology market was valued at INR 816.42 Bn in FY 2021 and is estimated to reach INR 3,038.68 Bn by FY 2027, expanding at a CAGR of ~24.99% during the FY 2022 – FY 2027 period. The epidemiological transformation from communicable to non-communicable disease, affordability, increasing geriatric population, and an overall improvement in healthcare infrastructure fueled the growth of medical technology market in the country.

The country’s medical technology is driven by 75-80% imports from countries such as the US, China and Germany. India and Russia have set the bilateral trade target at INR 2.46 Trn by 2025. Trade from major countries such as the US, China, and Germany is expected to increase by an additional INR 411.55 Bn annually, with possibilities in pharmaceuticals and medical devices, minerals, steel, and chemicals. Also, medical devices are a highly demandable export area for firms in the US.

Segment insights:

The medical technology market is segmented into instruments and appliances, diagnostic imaging, consumables and implants, and patient aids and others. In FY 2021, the instruments and appliances segment dominated the medical technology market, accounting for 33.64% of the revenue generated. Diagnostic imaging was the second-leading segment, with a contribution of 25.94% in FY 2021, followed by patient aids and others segment (21.79%). The market share of the patient aids and others segment is estimated to increase to 26.93% in FY 2027.

Impact of COVID-19:

The medical technology market in India has not been resilient to the impact of the pandemic. Being a majorly import-dependent market, the lockdown measures adopted by various nations disrupted the supply chain of the medical technology market. The medical technology market in. India witnessed a notable drop in sales due to various operational challenges such as lack of resources, restricted movement of people and goods, and supply chain difficulties. Furthermore, the market was already crippled by financial and operational challenges, which was aggravated by slumping revenue during the lockdown period. Disruption in hospital services along with shutdown of outpatient and non-emergency departments triggered the cancellation of elective procedures. The market experienced a revenue fall of around 90% during the April 2021 and June 2021 period.