SRS Dispo – Industry Scenario
The industry has steadily grown and witnessed a surge from USD 2.02 billion in 2009 to USD 3.9 billion in 2015 at a Compound Annual Growth Rate (CAGR) of 15.8%. As per industry estimates, the Indian medical devices market will grow to USD 50 billion by 2025. Currently, India is counted among the top 20 global medical devices market and is the 4th largest medical devices market in Asia after Japan, China and South Korea. Equipment and Instruments (surgical and non-surgical) form the largest segment (53% of the Indian medical device industry), constituting about USD 2.7 Billion (2017), while the estimated market size of the consumer and durable segment is USD 1404 million. The medical device industry was accorded the status of an independent industry in 2014 when it was included as one of the focus sectors of the
“Make in India” campaign reflecting of the government’s intentions to support growth and development in this sector. With the liberalising of government policies, up to 100% Foreign Direct Investment is permitted in Medical devices through the automatic route. During the period between April 2000 and March 2017, USD 1.57 billion worth FDI came into the country. Taking advantage of this lucrative opportunity, an increasing number of MNCs are setting up their manufacturing bases in India. Some instances include the Becton Dickinson’s manufacturing plant in Haryana9 and Philips Medical Systems’ acquisition of Medtronic.
The demand for medical devices is predicted to rise to meet the demands of a growing population. According to the United Nations, India’s population is set to touch 1.45 billion by 2028, making it the world’s most populous nation. With socio-economic changes such as rapid urbanization, demographic and lifestyle changes, the society is more prone to lifestyle-related ailments, including diabetes, obesity, stroke, and cancer.
Also, out of the total population, the share of ageing population in 2011 was 5.3% and is expected to increase to 6% of the total population by 2021. With an increasingly ageing population, there will be a greater demand for better health care facilities and medical devices.
Also, with large number of private players making their foray into healthcare, there is a growth in the number of hospitals, diagnostic centers, and specialized facilities. Most of these hospitals have their quality and accreditation at par with international standards. 393 hospitals have already received the National Accreditation Board for Hospitals & Healthcare Providers (NABH) accreditation in the last decade.
The Indian medical device industry is highly fragmented. Currently this sector is dominated by MNC with 70-75% of demand being met through imports. Approximately 30% of the domestically manufactured devices are exported, in which the consumables and disposables segments has the largest shares. Numerous factors underlie the prevalence of higher imports in the country. Some of these are:
- Lack of favourable policy and regulatory framework.
- Medical devices unlike pharmaceuticals, are dependent on mix of technologies such as engineering, material, sciences, innovation, capital and technology drive in the industry. However India has not been able to bridge the gap between investments, skilled resources and innovation to fully capitalize on these opportunities.
There is no clear comparative cost advantage in comparison to other emerging markets and policy issues like inverted duty structure do not help in creating positive environment.
Currently, there are approximately 800 medical device manufacturer in India, 10% of which have a turnover of more than USD 8 million. Therefore growing focus of the government and better availability of capital has led medical devices companies to upgrade their technologies, manufacturing facilities and production portfolio customization to compete with international companies.
At SRS, we will bring the finest range of products that include hypodermic needles, syringes, infusion sets, gloves and much more. Along with you, our motto is to bring smiles in the lives of people with our unquestioned reliability!
