Medical Technology Market in India

Medical technology, or MedTech, involves the use of technology to develop cure-based systems that are used in hospitals. The medical technology market comprises players who supply medical devices, diagnostic equipment and reagents, medical instruments, bionics, implants, disposables, and consumables. The purpose of MedTech is to improve the efficiency of treatments and diagnosis and reduce risk exposure. It also helps in improving the cost-effectiveness of the health system.

To enhance the export of medical devices, the Ministry of Health and Family Welfare (MOHFW) and the Central Drugs Standard Control Organization (CDSCO) conducted measures such as re-examination and implementation of Schedule MIII, systems for export labeling, clinical assessment, and clear guidance on adverse event reporting.

The Indian government has launched several programs, such as the Production Linked Incentive (PLI) Scheme, aimed at boosting domestic manufacturing and attracting foreign investments. However, the space has been facing challenges due to a complex regulatory environment that results in delayed product approvals.

Market trends:

Many companies are leveraging predictive analytics models by collecting essential vital signs and data of patients from various devices to assess and make informed decisions about their overall health. For instance, in 2019, Medtronic and IBM developed a mobile personal assistant app that delivers real-time information about glucose levels for people with diabetes. This system helps users understand the connections between glucose levels, lifestyle choices, and medication use, empowering patients to make informed decisions about their treatment.

Market drivers:

The approval of 100% FDI under the automatic route for both brownfield and greenfield projects in the sector is anticipated to drive industry growth. Robust FDI inflows also indicate the confidence of global players in the Indian medical devices market. India got a total of USD 600 Mn during the 2015 - 20 period, with major investments from countries like the US, Singapore, Japan, amongst others. Categories like equipment and instruments, consumables, and implants have attracted the highest FDI.

Key deterrents to the growth of the market:

The medical device manufacturing space faces supply chain problems just like other manufacturing segments. The issues involve multiple complications like inventory visibility and procurement of raw materials. The dearth of distributors also leads to delays and damages during the shipment of medical devices. These challenges not only hinder growth, but also impact the overall efficiency and competitiveness of the sector.

As pharmaceutical companies ship temperature-sensitive products globally, distributors need to rely on dependable cold-chain logistics solutions.