Sunday 25 December 2011

Medical electronics mkt to touch Rs 33,800 cr

Indian medical electronics market is set to touch nearly $ 6.4 billion (nearly Rs 33,800 crore) by 2020, growing at a compounded annual growth rate (CAGR) of up to 19 per cent on the back of rising cases of diseases and healthcare facilities expansion.

Indian medical electronics industry has been growing at an average rate of 17 per cent for past couple of years. It is expected that growth will outperform the pace and industry will touch the $ 6.4 billion mark by 2012, a study by FICCI-Deloitte said.

"There are various factors, which will propel growth of the medical electronics industry which are a combination of macroeconomic factors, industry trends and segment consideration," Deloitte Touche Tohmatsu India Pvt Ltd Director Strategy and Operations Anjan Sen told PTI.

Factors like increasing disease burden, expansion of healthcare delivery in Tier II and Tier III towns, increase in non-communicable and lifestyle diseases, rising income levels and demand for better healthcare will drive growth in the short term, he said.

In 2010, the segment had sales of $ 1 billion out of the Indian medical devices market of $ 2.5 billion.

'Medical Electronics' are healthcare products which require external energy source to be operational. The segment includes equipments, diagnostic tools, life support systems, implants and disposables.

"In the longer term shift towards better diagnostics and preventive healthcare coupled with integrated healthcare delivery will drive growth," Sen said.

He said in order to drive growth further in the segment, "the industry has to target both the public and private sectors."

With the Indian government planning to increase the healthcare allocation to 2-3 per cent of the GDP, the report said: "Schemes like National Rural Health Mission (NRHM) and Rashtriya Swasthya Bima Yojna (RSBY) will break the constraint for rural India, offering the economies of the scale to the Industry."

About the prospects of domestic firms in the future growth scenario Sen said: "The market is expected to grow 6.5 times the current size and everything depends on who is able to capture what share of the market."

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