India In-Vitro Diagnostics (IVD) Market Outlook 2024, Global Opportunity and Demand Analysis, Market Forecast, 2016-2024

India In-Vitro Diagnostics (IVD) Market

Market Overview

The Indian healthcare industry is known to be upbeat, influenced by the growing economy, high incidence of lifestyle disorders, new investment avenues and large, young, talented and cost effective workforce, coupled with pool of experienced consultants. The sectors that gained profit are hospitals, pharmaceuticals, medical devices, diagnostics and pathological labs. Roche dominates the IVD market in India in terms of workloads, for instance, Cobas 6000 is for medium laboratories with custom-made solution in laboratories with small workload. Siemens expertise in manufacturing of biochemistry instruments while Beckman Coulter registered a health market share with its DxC systems that provides maximum productivity for laboratories. Transasia is the local player of biochemistry market, catering to specific needs with the introduction of products like fully automated random access EM200.

The government of India doesn’t need a license to import equipment and reagents. Import provides approximately 60% of diagnostic medical equipment and supplies market. In government hospital cases, hospital directly import equipment, the government levies a 5% duty.

Market Segmentation

Based on Healthcare Segments

• By Immunochemistry
  • By Products
    • Chemiluminescence immunoassay (CLIA) analyzers
    • Immuno fluorescence (IFA) analyzers
    • Enzyme immunoassay (EIA) analyzers
    • Integrated analyzers
    • Point of Care Testing (POCT) Devices (bench top and hand held)
  • By Reagents (thyroid, infectious disease, fertility hormones, tumor marker, auto-immune kits, cardiac markers, others)
  • By Services
•  
• By Clinical Chemistry
  • By Products (Clinical Chemistry Analyzers)
  • By Reagents (calibrators, controls, standards, other reagents)
  • By Services
•  
• By Hematology
  • By Products
    • Semi automated hematology analyzers
    • Fully automated hematology analyzers
    • POCT Devices (bench top and hand held)
  • By Reagents (coagulation reagents, flow cytometer reagents, hematology reagents, control plasmas, hematology stains, immunohematology reagents)
  • By Services
•  
• By Coagulation & Hemostasis
  • By Products (fully automated and semi automated)
  • By Reagents (prothrombin time (PT), activated partial thromboplastin time (aPTT), factor assays, fibrinogen, fibrinolysis, thrombin time (TT), thrombophilic profile, speciality assays)
  • By Services
•  
• By Clinical Microbiology
  • By Products (microbiology analyzers)
  • By Reagents (pathogen specific kits and general reagents)
  • By Services
•  
• By Molecular Diagnostics
  • By Products (PCR, DNA sequencing, flow cytometry, mass spectrometry, others)
  • By Reagents
  • By Services
•  
• By Biochemistry
  • By Product (Automated and semi automated)
  • By Reagents
  • By Services
•  
• By Others
  • By Product
  • By Reagents
  • By Services

Based on Application

• Oncology
• Diabetes
• Infectious Disease
• Cardiology
• Autoimmune Disease
• Nephrology
• Drug Testing
• Others

Based on End User

• Hospitals
• Diagnostics/Pathology Labs
• Research and Development Centers (R&D)
• Home care Settings

Market Size and Forecast (2016-2024)

The global In-vitro diagnostics (IVD) market is estimated to reach USD 80 Billion, in 2024. In 2014, India holds total 1% market share of global IVD market. However, the revenue of the India In-vitro diagnostics (IVD) market has grown at a CAGR of 20% having increased from USD 0.64 Billion in 2012 to USD 1.6 Billion in 2017. Immunochemistry market accounted for the largest market share (i.e. 40%) of IVD revenue in India followed by clinical chemistry and hematology market. Reagents acquire major share of total IVD market i.e. 70-80% due to the advent of a variety of tests for diseases.        

Immunochemistry (IC) Market: In 2014, Immunochemistry reagents accounted for 87% IC market. Among the product segments CLIA and IFA are the favorable analyzers because of their unique principles.  In IC reagents, infectious disease and thyroid kits dominate the market.

Growth Drivers

• Increase in automation, higher penetration of insurance cover, rapid urbanization, increasing number of laboratories, mounting consolidation, health awareness, and improvement in medical infrastructure are the major factors responsible for the growth
• The Indian Government is promoting the medical diagnostics through positive regulations such as introduction of Health Bill which aims to bring independent bodies like Medical council of India (MCI), Dental Council of India (DCI), Pharmacy Council of India (PCI) and Nursing council of India (NCI) under one umbrella
• The government is also increasing public expenditure in healthcare from just 1% to 2.5% of GDP
• Promotion of activities like medical tourism, private-public partnership in R&D, thereby making the atmosphere more conducive to investments by foreign companies
• Expansion of corporate hospitals
• Non communicable diseases like diabetes are no longer diseases of rich, however rapidly spreading to rural regions.

Challenges

• There is no national insurance system, though the government, public sector and private organizations sponsor healthcare expenses to their employees and family
• Currently, 75% of qualified doctors practice in urban areas, 23% in semi-urban (towns) and only 2% in rural areas where majority of the population resides
• In rural areas there are 0.10 per 1000 hospital beds while 2.2 in urban areas. Also out of pocket spending is the biggest source of the financing healthcare due to low insurance cover
• The Indian diagnostics market can be categorized into equipment, services and reagent. The service sector is highly unorganized with majority of players clustered in suburbs and metro
• There are multiple diseases like malaria, dengue, tuberculosis, hepatitis B and C, etc whose diagnostics tests are still unavailable or out of reach to maximum population. For instance, the GeneXpert can detect resistance in tuberculosis but is plagued by high cost, which is preventing its introduction in the public health program in India
• Innovative funding mechanisms need to be in place so that these can be made available to those who need it most

Opportunities

• In the coming years there will be an increase in the number of health insurance policies. Therefore, there are opportunities for insurance companies to coordinate with various diagnostics labs
• Availability, affordability as well as the accessibility of the diagnostic tests makes the real impact on economy.
• In India, medical equipments are distributed by regional distributors who have a network of sub distributors. Use of a well qualified distributors help in establishing good relationships and influence buying decisions
• The emerging trend of corporate players establishing diagnostic centers in small towns and rural areas tend to provide opportunities for the import of automated systems and imported reagents

Key Findings:

• Cancer is anticipated to be the fastest growing Indication segment over the forecast period
• There are only a few large national players in diagnostics lab including SRL Ranbaxy, Max Healthcare, Dr. Lal’s Laboratory, Metropolis, Thyrocare and Apollo Clinics
• Due to stratification that exists in the laboratories, there are increasing numbers of corporate players. The high-end labs, which offer automated chemistry and hematology systems, cater to approximately 30% of the national workload while the second tier regional laboratories cater to 40% of the patients. The manual laboratories account for the remaining 30% patients
• High cost of the analyzers gave rise to rental/lease trend of medical devices which includes reagent contracts with the respective manufacturer or distributor. 90% of the high cost analyzers are rented in the organizations
• There is 80-90% of insurance coverage at global scale, while in India only 25% insurance coverage is there in healthcare sector

Key players

• Roche Diagnostics
  • Synopsis
  • Business Strategy
  • Product Portfolio
  • SWOT Analysis
• Beckman Coulter
• Siemens
• Transasia Bio-Medicals Ltd.
• Accurex
• Bayer Healthcare
• Becton and Dickinson
• bioMerieux
• Nicholas Piramal
• Wipro Biomed
• Johnson and Johnson
• Olympus Diagnostics
• Sigma Aldrich
• Hitachi
• Ortho Clinical Diagnostic
• Ranbaxy Diagnostics
• Bio-Rad Laboratories

Scope Background

Market Synopsis

Market Segmentation

The India IVD market is segmented as follows:

• On the basis of healthcare segments (Market Size (USD Billion), Market Share (%) and Growth Analysis (%))
• On the basis of application (Market Size (USD Billion), Market Share (%) and Growth Analysis (%))

• On the basis of end user (Market Size (USD Billion), Market Share (%) and Growth Analysis (%))

Market Dynamics: Growth Drivers, Restraints and Opportunities

• Risk Factors
• Regional Variations
• Recent Trends and Developments

Key Market Players

• Synopsis
• Business Strategy
• Product Portfolio
• SWOT Analysis

Porter’s Five Force Model

Market Landscape: Competition and Beyond

Market outlook for business players and entry level players to ascertain their business in dynamic ecosystem

Expert Analysis

Concluding Remarks