Medical Equipment >> India

India Country Market
Insights and Opportunities

Medical Equipment Sector

Overview: The Indian healthcare industry is experiencing a rapid transformation. According to a World Health Report, India spends about 5.2 percent of its Gross Domestic Product (GDP) on the healthcare sector. It is expected that this figure will rise to 6.1 percent of GDP by 2012. The World Health Organization projected that India needs to create at least 80,000 hospital beds per year for the next five years to meet the expanding local demand. A significant portion of these hospital beds will be in various specialties.

The medical infrastructure in India is far from adequate. Demand, for hospitals and beds, far surpasses availability. The problem is most acute in rural India, which accounts for over half of India's population. Approximately 80 percent of available hospital beds are located in the urban centers, leaving only 20 percent for the larger rural population. Both the government and the private sector have embarked on a path to bring about a rapid growth in the industry and to manage the demand for high quality service. This has also brought a surge in demand for high-end medical devices and equipment.

The Indian healthcare industry is estimated at $35 billion and is expected to reach over $75 billion by 2012. The medical equipment market is growing at an impressive rate of 15 percent. The demand for equipment is expected to reach $5 billion by 2012 from the current figure of $2.7 billion. The specialty hospital facilities depend on the import of high-end medical equipment.

Opportunities: The large private healthcare services providers are actively seeking growth by enhancing their reach across the country through the building new hospitals and acquiring and upgrading existing hospitals. There are several groups that operate hospital chains, such as Apollo Group, Fortis Healthcare, Manipal Group, Max Healthcare, and Wockhardt Hospitals. In the medical equipment segment, competition is from the imports from European companies and Japan. India being a price sensitive market there is competition from low priced Chinese products. The most promising sub-sectors in the healthcare and medical equipment sector are: Medical Infrastructure; Medical and Surgical Instruments; Medical Imaging; Electro Medical Equipment; Orthopedic and Prosthetic Appliances; Cancer Diagnostic and Ophthalmic Instruments / Appliances.

The growing demand for quality healthcare and the absence of matching delivery mechanisms pose a challenge and certainly a great opportunity. In infrastructure - building, equipping, managing, and financing super specialty hospitals are areas for growth. Some of the best sales prospects in the Indian medical equipment market include cancer diagnostic, cardiac products, medical imaging, plastic surgery equipment, as well as polymerase chain reaction technologies, laboratory products, orthopedic and prosthetic appliances. India is full of opportunities as most Indian healthcare institutes use foreign medical equipments.

  2012 3rd International Conference on Environmental Science and Development (ICESD 2012)