July2014
    market xcel
Medical Devices
    - A key contributor in Healthcare Sector

Overview

The Indian healthcare industry was valued at US$50 billion in 2010 and has been experiencing a rapid transformation due to which it is expected to reach US$ 100 billion by 2015 and US$ 275.6 billion by 2020. According to a World Health Report, India spends about 5.2% of its GDP on the healthcare sector, which is expected to rise to 9.1% by end of 2015.

India is a market fuelled by increased affluence and driven by the cardiovascular, orthopedic, ophthalmic and diagnostic-imaging sectors. During the next seven years, the key cardiovascular and orthopedic sectors forecast to grow at a rate of 13% and 11% respectively.

High quality products are sought after, particularly in the private sector, and the high-tech end of the medical device market is dominated by multinationals with extensive service networks.

Despite strong growth rates the market remains disproportionately small; it is ranking among the top 20 in the world but with low per capita spending. However, continued investment in the private sector infrastructure, coupled with increased healthcare funding from the government, should result in a steady increase in the market for medical equipment.

Medical Device & Equipment

India's medical device market is a key contributor in the Indian healthcare industry and is currently the fourth largest market in Asia with 700 medical device makers, and ranks among the top 20 in the world, according to data from the India Semiconductor Association.

The market is dominated by major players like Siemens Ltd, Larsen & Toubro, BPL Ltd, Wipro, GE, Philips Medical Systems, Morepen Labs and Opto Circuits (India). The medical equipment market is growing at a rate of 15.5% and the demand for equipment is expected to reach $ 7.8 billion. Some of the key drivers and challenges faced by the industry are:-

Key Driver: Indian Medical device market is changing by noticeable factors like Quality, Reach, Affordability and Services.

Key Challenges: Low Penetration & awareness, low affordability and accessibility are the major challenges in Indian Medical device market.

Hearing Aid Devices

Among the medical devices India emerges as big market for multinational hearing aid companies as the market has seen 40-50 % YOY growth in the past few years. According to World Health Organization four out of 1,000 babies are born with severe to profound deafness and about 63 million suffer from significant auditory impairment.

International players like Siemens, Phonak, Widex etc. make up 60% of the Hearing Aid market in India, even though the local manufacturers like Elcon , Starky & BPL are gradually increasing their presence in the sector and providing the similar quality of material at low costs.

Some of the key attributes of the market are:-

  • The top priority for the customers is the quality as well as the price of the product
  • While earlier people only relied on international brands, now with the enhanced presence of the local manufacturers, the market is competitive
  • Most of the manufacturers however import components from China
  • There are demands from Hospitals, Laboratories, Institutions and the end consumers - the patients suffering from hearing loss

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