Medical Device Industry opportunities & Challenges
Published on: 2018/06/03
Dr. Himanshu Baid
With 17% of world population and a GDP growth rate of 7.2%, India is amongst the fastest growing economies of the world. The Indian healthcare sector grew at a rate of 18% from 2010 till 2016 and is expected to advance at a rate of 15% during 2016-20 to reach USD 280 billion by 2020.
Medical device industry, Health Sector in India, Healthcare industry
The Indian medical device industry – an overview
Medical device industry is the fourth largest in the market of medical devices in Asia. It is currently valued at $5.2 Bn and it is growing at the rate of 15.8 percent. India is one of the key markets for medical devices in the world.
- $50 bn is the market size expected in 2025
- The two fastest-growing segments are orthopedic prosthetics and patient aids are projected to grow at 9.6 and 8.8 percent respectively.
- Other growing segments are diagnostic imaging, consumables and dental products which are expected to grow at 7 percent.
Indian and foreign manufacturers
In India, the medical device market comprises of imported products which account for 80 percent of the total sales whereas the local manufacturers mostly concentrate on local manufacturing and supply of low-end products. In the recent past, many of the foreign companies have acquired these local manufacturers in order to tap the local markets as well.
The Indian medical device industry offers many attractive opportunities for foreign manufacturers and investors by size, and also the government policies and regulations that provide many advantages to the companies with respect to the regulatory licenses, cut-down on paperwork, favorable FDI policies, etc. Apart from these, the government has also introduced various measures in order to promote research and development, import and manufacturing of medical devices.
Some of the major players in the Indian market are:
- Hindustan Syringes and medical devices
2/ Wipro GE healthcare
- India Medtronic
- Johnson & Johnson
- Abbott Vascular
- Becton Dickinson
- Bausch & Lomb
- Zimmer India
- Boston Scientific
- Accurex Biomedical
- Philips Medical
- HCL Technologies
- Wipro Technologies
- Texas Instruments
The Government of India has regulated the price of a few medical devices, whereas the medical device industry is largely unregulated. There is no control over the import, manufacture or distribution and sale of many types of medical devices in India. For the devices that have been regulated, the key challenge for the manufacturer is fixing the price. The regulations restrict the manufacturer to increase the price more than the prescribed percentage. Multiple regulations and archaic laws are few other challenges that pose the manufactures in the medical device industry in India.