In 2020, the Indian medical devices industry was expected to be worth $11.5 billion. With a CAGR of 35.4%, the market is projected to grow to Rs. 352,450 crores ($50 billion) by 2025.
Medical electronics are projected to be worth USD 6.3 billion in 2021 and USD 8.8 billion in 2026, growing at a compound annual growth rate (CAGR) of 6.9%.
The aging population and increasing life expectancy are two factors driving the global medical electronics market’s fast growth. Medical wearable electronics and IoT-based smart medical gadgets are rising in popularity due to a variety of factors. Radiation therapy is becoming more used in the diagnosis and treatment of illnesses, which is another factor.
Aging populations and rising life expectancy are major drivers of the global medical electronics market’s growth, as are the increasing use of Internet of Things (IoT)-based smart medical devices and the growing demand for wearable electronics. Other major drivers include the increasing use of radiation therapy in disease diagnosis and treatment, as well as existing favorable healthcare reforms and government financial assistance for senior citizens. In India’s medical devices sector, global corporations coexist with start-ups and small and medium-sized businesses (SMEs).
The medical equipment business in India is now worth about $10 billion, according to industry estimates. With a CAGR of almost 15%, the medical device industry is anticipated to generate $12 billion in revenue by 2021-22.
With a projected market value of $50 billion by 2025, the Indian medical devices sector is anticipated to expand rapidly over the next five years. Brownfield and greenfield projects may also use the automated method to bring in 100 percent FDI. Increasing FDI inflows show that foreign companies have faith in the Indian market.
- Growing Population: India’s population is expected to reach 1.45 billion by 2028, making it the world’s most populated country.
- Life Expectancy: India’s life expectancy is projected to rise to 70 years by 2025, up from the current 67.5 years.
- The Expanding Middle Class: A rapidly expanding middle class has aided in the development of private healthcare players.
- Increased discretionary income: By 2026, 8% of Indians will earn more than $12,000 per year.
- Insurance for Health Care: Around 20% of Indians have health insurance. This figure is projected to climb as wages rise and urbanization accelerates.
- Medical Tourism is Growing in Popularity: Due to India’s comparatively cheap cost of medical treatment, it is growing at a rate of 22-25 percent. It provides more than $2 billion to India’s healthcare sector. Increased demand for healthcare and medical equipment is a result of the growing popularity of medical tourism.
- Developing industry: With over 90% of complex gadgets imported, the local sector has enormous potential for R&D capability.
Development of Infrastructural Infrastructure: India is in the process of developing four medical device parks. - Support & Incentives for Policy: 100% FDI is permitted in greenfield and brownfield projects; efforts to rectify an unfair tariff structure are being implemented, and a single-window clearance e-portal is being developed to enhance the EoDB.
The sensor market is anticipated to grow at the quickest CAGR during the forecast period. Global healthcare expenditure is expected to rise, and the aging population will boost the need for medical imaging, monitoring, and implantable devices. All of these factors will drive the medical electronics industry to develop quickly over the next five years. With the shrinking size of sensors and the advent of MEMS technology, new uses for sensors have emerged, driving up demand for existing ones.
Different sensors have risen in popularity as a consequence of the increasing demand for ventilators, respirators, and other life-supporting devices due to COVID 19. The non-invasive medical procedure market is projected to account for the largest share of the medical electronics industry between 2021 and 2026.
Medical tourism is anticipated to increase in rising APAC countries like China and India during the forecast period, opening up new markets for high-tech medical gadgets. Medical electronics sales in APAC are expected to be bolstered by the region’s growing need for high-quality medical treatment.
Medtronic (Ireland), Texas Semiconductor (US), TE Connectivity (Switzerland), and Microchip Technology (Japan) dominate the medical electronics market. Cypress Semiconductor Corporation, Maxim Integrated Products, ON Semiconductor Corporation, and Renesas Electronics Corporation also have significant positions. Analog Devices is the second-largest medical electronics company in the world, behind Texas Semiconductor (US).
Electrical engineering meets biological sciences and clinical practice in the field of medical electronic devices. Defibrillators, imaging devices, and patient monitors are just a few of the medical devices that biomedical equipment technicians (BMETs) work with daily. Some technicians specialize in one area of the lab, such as x-ray or microbiology.
During the third industrial revolution, the global manufacturing sector is poised to go beyond computers and automation. The fourth industrial revolution (I4.0) has now arrived with the complete integration of digital technology.
In reality, the I4.0 revolution is already changing global industrial operations and raising product quality. So global manufacturing firms may increase their capabilities or develop new manufacturing solutions to meet changing customer needs.
The medical electronics sector is experiencing a boom, with new opportunities for improved patient care. The I4.0 offers tremendous potential for the future of medical electronics, despite its paper-based procedures.
About medical electronics
Medical electronics is one of the fastest developing areas today since it combines engineering and medical research to enhance today’s healthcare services.
Medical electronics engineers, sometimes known as equipment physicians, develop medical devices and methods to treat a variety of health conditions, most notably those for which there is presently no treatment. Additionally, they are responsible for the maintenance, repair, and calibration of electronic medical equipment.
Numerous medical electronics engineers collaborate with life scientists, chemists, and medical scientists to collect data, assess which parts of the healthcare sector may be improved, and devise strategies for delivering superior medical equipment and methods.
Reasons for future growth
The medical electronics sector, according to the global manufacturing industry, has a bright future. Indeed, Markets and Markets reported that the medical electronics industry is projected to reach $4.41 billion by 2022, up from $3.01 billion in 2015.
One of the primary reasons that experts believe will contribute to this development is the industry’s newly acquired capacity to manufacture medical goods that can be tailored to a patient’s specific requirements, such as prostheses or artificial body parts. This is enabled through I4.0’s usage of the Internet of Things (IoT), which is the connection of physical devices and ordinary things to the Internet, and the Internet of Services (IoS), which is the systematic use of the Internet to create new value in the services sector.
Additional grounds for strong support for the medical electronics industry’s development include rising standards of living and more health awareness in emerging countries. Increased prevalence of lifestyle illnesses and an older population in today’s culture also contribute to higher adoption of wearable and simple-to-use electronic medical equipment.
Global Medical Electronics Market Scope and Market Size
End-user and application segments separate the medical electronics industry. You may discover specialized growth pockets and market entrance strategies as well as your main application areas and distinction in your target markets by developing segments.
- The medical electronics market is segmented by component type into sensors, MCUS/MPUS, displays, memory devices, and batteries. Temperature sensors, pressure sensors, blood glucose sensors, blood oxygen sensors, ECG sensors, image sensors, motion sensors, heart rate sensors, and touch sensors are all subcategories of the sensor component. The section on batteries is further subdivided into lithium-ion batteries, lead-acid batteries, zinc-air batteries, nickel-cadmium (NI-CD) batteries, nickel-metal hydride (NIMH) batteries, and alkaline-manganese batteries. Further subcategories of memory devices include flash memory, SDRAM, EPROM, and FRAM. Displays are further classified as TFT-LCD displays, organic light-emitting diode (OLED) displays, and light-emitting diode (LED) displays.
- Patients monitoring, diagnostic imaging, medical implants, and endoscopy are the main applications of medical electronics.
- The medical electronics industry is classified into invasive and non-invasive products based on product. Imaging devices and monitoring devices are subcategories of non-invasive goods. MRI scanners, X-ray scanners, CT scanners, and ultrasonic scanners are examples of imaging equipment. Nuclear imaging technologies, such as SPECT scanners, are subdivided from ultrasound scanners, which are used for medical imaging. Multipara monitors and digital thermometers are types of monitoring equipment. Cardiac and hemodynamic monitoring devices are sub-categories of these. Endoscopes, pacemakers, implanted loop recorders, spinal cord stimulators, and stomach electric stimulators are some of the other subcategories under Invasive Products.
- Hospitals, ambulatory surgery centers, and clinics constitute the majority of the medical electronics industry.
Survey of Medical Devices India
In the past ten years, the healthcare and medical device industries have seen tremendous growth. The existing demand-to-supply gap for medical equipment in India is enormous, which presents major potential for the country’s device manufacturers.
Now many medical device companies (both local and foreign) are looking to capitalize on India’s huge under-penetration of medical equipment.
Size of the Industry
India is one of the world’s top twenty markets for medical equipment. India’s medical device industry is projected to reach US$ 65 billion in 2024, up from US$ 11 billion in 2020.
In India, the medical devices industry is comprised of major international corporations as well as small and medium-sized businesses.
The Government of India (GOI) has initiated several measures to improve the medical devices industry, with a particular focus on research and development (R&D) and 100% FDI for medical devices to stimulate the market. Between April 2000 and March 2021, the medical and surgical appliances industry attracted US$ 2.19 billion in FDI.
Scenario of Export
Medical devices are imported at a rate of 75-80% in India, with exports reaching Rs 14,802 crores (US$2.1 billion) in 2019 and expected to increase at a 29.7% compound annual growth rate to Rs 70,490 crores (US$10 billion) in 2025.
The Ministry of Health and Family Welfare (MOHFW) and the Central Drugs Standard Control Organization (CDSCO) have taken the following steps to increase medical device exports in India: re-examination and implementation of Schedule MIII (draught guidance on good manufacturing practices and facility requirements), export labeling system, clinical evaluation, and adverse reaction reporting.
The Virtual Medical Devices Expo 2021 would showcase Indian products and provide direct interaction between Indian manufacturers and buyers/importers from participating countries. There will also be 300 foreign buyers from the healthcare sector in attendance.
Investments
To further encourage investments in medical device manufacturing, the government announced in May 2020 incentive programs of at least Rs. 3,420 crores (US$ 4.9 billion) over five years, available exclusively to businesses that invest in major medical device manufacturing set-ups.
Here are some significant medical device investments and developments:
- In July 2021, to improve the state’s primary healthcare sector and clinical facilities, the government of Uttar Pradesh has announced the adoption of automated drug delivery devices. ‘Health ATMs,’ walk-in medical kiosks with a combination of medical devices for basic diagnostics, emergency services, cardiology, neurology, lung testing, and gynecology, among other specialties and operated by a medical assistant, have been established in each of Uttar Pradesh’s 75 districts by the state health department.
- In July 2021, Babies born with congenital hole-in-the-heart defects now have a life-saving option thanks to Abbott, which will be available by the end of 2021. The gadget was introduced by the firm in India, with a focus on hospitals with a functioning neonatal intensive care unit (NICU).
- In June 2021, Medical start-up Docon Technologies in Bengaluru inked an agreement with AstraZeneca India to digitize 1,000 clinics throughout India with customized Electronic Medical Record (EMR) systems to provide physicians with full patient histories. Docon Technologies is headquartered in Bengaluru.
- In July 2021, Emvólio, a portable, battery-powered refrigeration system for the efficient and safe carriage of vaccinations, was created by Blackfrog Technologies, a start-up funded by the Biotechnology Industry Research Assistance Council (BIRAC).
- In June 2021, to provide customers with tax savings on COVID-19-related medical goods, the National Anti-Profiteering Authority (NAA) instructed tax authorities on GST rate reductions.
- In June 2021, as part of its IPO, Skanray Technologies has submitted its draught red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) for approval. Ascent Capital (an existing private equity investor) and its promoters are anticipated to sell a portion of their interest in the IPO as secondary shares.
- By 2022, the Gautam Budh Nagar area of Noida is anticipated to be home to Northern India’s first medical device and system manufacturing park once construction is complete. A new park is expected to be built in the Yamuna Expressway Industrial Development Authority (YEIDA) Space in Sector 28, according to the authority overseeing the construction of the expressway. It is anticipated that YEIDA would launch a mission program costing Rs. 5,000 crores (US$ 685.35 million) in March 2021, of which the federal government will likely pay Rs. 100 crores (US$ 13.71 million).
- In February 2021, Mr. Sunder Sham Arora, Punjab’s Industry and Commerce Minister, announced the establishment of a medical device park in Rajpura, Punjab, on 210 acres at an estimated cost of Rs. 180 crores (US$ 24.67 million).
- In January 2021, The Tamil Nadu government planned to construct a 350-acre medical gadgets park at Oragadam in the Kancheepuram district. This project is estimated to cost Rs 430 crore (US$ 58.92 million).
- In March 2021, in vitro diagnostics firm TransAsia Bio-Medical Ltd., headquartered in Mumbai, has announced intentions to spend Rs 150 crore (US$ 21 million) in Sultanpur, Telangana’s Medical Devices Park to build up a production facility to manufacture medical devices. In addition to COVID-19, HIV, dengue, and TB testing for local and international markets, the firm intends to build state-of-the-art high-technology analyzers in the unit to handle biochemistry, immunology, hematological, and molecular testing.
- A manufacturing facility in India may be part of Omron Healthcare’s development strategy for the country, which also includes increasing the company’s retail presence. There will be 10 retail locations in India by 2021 and a center in Warangal will be built as part of the company’s development into Southern India, where it expects to contribute 40% of its revenues in the current fiscal year (FY 2020). During that time, the firm aims to turn over Rs. 220 crores (US$ 30 million) in India.
- Robotic cardiothoracic surgeon Dr. Sudhir P Srivastava’s New Delhi-based SS Innovations plans to commercially deploy India’s first and cheapest surgical robot system in the next three to four months. Mantra, a revolutionary multi-arm surgical robotics system developed in-house over the past three years, will be manufactured by the business in 2021 and sold more than 1,000 units in the following five years.
- In April 2021, Medtronic opened a Medtronic Engineering and Innovation Center (MEIC) in Hyderabad to take advantage of India’s vast pool of varied and skilled people and expedite its creative efforts in medical technology sector in the nation.
- In April 2021, ResMed extended its cloud-based remote monitoring and management platform, Air View for Ventilation, in India, allowing healthcare workers and doctors to use this digital respiratory monitoring system to follow patients remotely and offer better treatment.
- In April 2021, Anthill Ventures announced a partnership with Kanfit3D (an Israeli health technology firm) to assist the company (Kanfit3D) in expanding into India and producing custom-made medical implants, and gaining access to the country’s healthcare professionals.
- Initiatives by the Government: In 2014, the Indian government designated medical devices as a sunrise industry as part of its ‘Make in India’ program.
- In July 2021, the government announced plans to construct a medical park in Uttar Pradesh, which would produce an estimated Rs. 500 crores (US$ 67.13 million) in revenue for the state.
- In June 2021, The Indian Certification of Medical Devices (ICMED) 13485 Plus program was established by the Quality Council of India (QCI) and the Association of Indian Manufacturers of Medical Devices (AiMeD) to verify the quality, safety, and effectiveness of medical devices.
- The department of pharmaceuticals established a PLI program for domestic manufacture of medical devices, with a total expenditure of funding of Rs.3,420 crore (US$ 468.78 million) for the period FY21-FY28, to promote domestic manufacturing of medical devices and attract large investments in India.
- On March 25, 2021, According to DoP’s amended Public Procurement Order (PPO) notice, 19 medical devices are now included in the new PPO rules, which are anticipated to enhance domestic medical device production (and strengthen “Make in India”) and decrease import costs by Rs. 4,000 crores (US$ 538.62 million).
- In April 2021, the government streamlined the approval process for medical equipment such as nebulizers, oxygen concentrators, and oxygen canisters by relaxing the criteria for permission under the Legal Metrology Act (Packaging Rules 2011).
- Additionally, the government approved applications for nine eligible projects, which are expected to result in a total committed investment of Rs. 729.63 crore (US$ 100.01 million) by the companies (e.g., Siemens Healthcare Private Limited, Allengers Medical Systems Limited (AMSL), Allengers OEM Private Limited (AOPL), Wipro GE Healthcare Private Limited, Nipro India Corporation Private Limited, and Sahajanand Healthcare Private Limited).
- In January 2020, the government set up a National Medical Devices Promotion Council to promote local manufacturing of high-end medical devices and attract investments in the sector.
Sector Accomplishments
Medical device production is expensive in India due to the significant investment required in scientific facilities. To offset this expense, the Andhra Pradesh government is creating the Andhra Pradesh MedTech Zone (APMTZ), which would contain all capital-intensive research facilities, labs, and other equipment and will be leased to manufacturers in Vishakhapatnam. This effort will contribute to the reduction of the cost of high-quality goods.
The Journey Continues
India’s policymakers will need to develop a strategy for reducing the country’s dependency on medical device/technology imports. NITI Aayog is developing a strategic road plan for medical devices comparable to the incentive package that provides significant capital subsidies to the electronics industry, thus boosting domestic mobile phone manufacturing.
Medical device manufacturers should establish India as a manufacturing hub for both domestic and international markets, pursue India-based innovation alongside indigenous manufacturing, collaborate across the Make in India and Innovate in India programs, and produce Low to Medium technology products to serve underserved domestic markets.
In the post-pandemic period, healthcare growth in India is anticipated to accelerate. The Ayushman program of the Indian government has helped in the provision of healthcare to the country’s poor. The economically disadvantaged now have equal access to care regardless of their financial circumstances. Numerous more initiatives of this kind will enable healthcare providers to strengthen their presence in rural regions. Additionally, the Indian government is drafting new sustainable development goals (SDGs) for the next decade. Its mission is to help people in need, promote public health, and preserve social peace. Its goal is to eradicate malnutrition in all age groups while simultaneously encouraging access to clean drinking water, sufficient sanitation, and good hygiene. Although the healthcare system confronts many problems and possibilities, it is well-positioned to succeed as a result of government efforts.
A big nation like India offers many possibilities for medical device manufacturers. As a consequence of excessive capital expenditure in sophisticated diagnostic facilities, the country has developed a reputation for providing more costly diagnostic services to a wider spectrum of individuals. Additionally, Indians who seek medical care are more concerned with their general health. Due to the diversity of the Indian healthcare industry, there are many possibilities for providers, payers, and medical technology companies. As firm rivalry intensifies, many firms are on the lookout for new dynamics and trends that may benefit their operations. In India, the hospital industry is projected to expand at a 16–17 percent compound annual growth rate (CAGR) from USD61.79 billion in FY17 to USD132.84 billion in FY22. As part of its long-term healthcare plan, the Indian government aims to raise public health expenditure to 2.5 percent of GDP by 2025. Additionally, the nation has a plethora of possibilities for research and development, as well as medical tourism. Finally, India’s urban and rural areas both provide great possibilities for healthcare infrastructure investment.
