Medical Devices Market in India

The Indian medical devices market is significantly smaller than other overseas markets. However, macroeconomic factors suggest there is huge potential for double-digit growth of the Indian medical devices market. The evolving behavior of consumers, along with proactive patients and consumers, is driving the medical devices market.

Manufacturers of medical devices create and produce these instruments either as standalone items or in combination with others to aid in diagnosing, preventing, monitoring, treating, and alleviating diseases. This industry benefits from supportive government policies, including provisions that allow up to 100% foreign direct investment (FDI) through the automatic route. The growing demand for advanced and specialized medical equipment is driven by the rapid expansion of luxury healthcare and medical tourism sectors.

Market trends:

Multiple organizations have been leveraging predictive analytics models by accumulating key patient vital signs, observations from devices, etc., to make decisions about the overall health of patients.

The Indian market for wearable medical devices is on an upward trajectory, with significant developments expected in the upcoming years. Wearable devices like glucose monitors, fitness trackers, and mental health wearables are gaining traction due to their user-friendly nature. Products such as Evolv28, launched in February 2024, are offering therapeutic functionalities that are aimed at mental wellness.

Market drivers:

The Union Cabinet approved the National Medical Devices Policy 2023 in April 2023. The National Medical Devices Policy, 2023, aims to promote structured growth within the medical devices sector to achieve public health goals related to access, affordability, quality, and innovation.

The increasing prevalence of chronic conditions such as diabetes, cardiovascular diseases, and cancer is a major driver for the medical devices market. As more patients require ongoing monitoring and treatment, the demand for diagnostic and therapeutic devices is expected to surge. This trend is further supported by growing awareness about treatment options among patients, leading to an increase in surgical and diagnostic procedures globally.

Key deterrents to the growth of the market:

The medical devices sector is subject to stringent regulatory standards that can complicate manufacturing processes. Obtaining necessary certifications is often time-consuming and cumbersome, which can hinder timely market entry for new products.

The medical devices sector has a weak supply chain infrastructure, characterized by inadequate logistics and distribution networks. This leads to delays and eventually increased expenses, especially for temperature-sensitive products that require reliable cold chain logistics. High reliance on imports is also a cause for supply chain weakness.