Healthcare Industry in India

The healthcare industry in India continues to grow rapidly, which is driven by an increasing population, rising income levels, and a higher risk of lifestyle diseases. In 2024, significant developments and trends have been seen in the healthcare industry, which has been explored in this blog.

The Size of the healthcare industry in India

The value of the healthcare industry in India is approximately $320 billion in 2024. The expected compound annual growth rate (CAGR) of the healthcare industry in India from 2024 to 2029 is said to be 23%, and by the end of this period, the value of the industry is likely to be $600 billion. This growth is said to be driven by the incline in health care expenditure, rising health awareness, and increasing health insurance coverage.

Industry Trends

• Telemedicine: The anticipated reach of the telemedicine showcase is said to be $9.54 billion by 2029, which is developing at a 23.95% CAGR. This trend is being driven by the increasing adoption of digital health platforms and remote consultation services.
• Healthcare IT: The healthcare IT market is expected to reach $47,806.9 million by 2033, fueled by advancements in AI, machine learning, and electronic health records (EHR).
• Pharmaceuticals: India is continuously becoming the leading supplier of generic drugs. The pharmaceutical market is likely to expand by $70 billion by 2025.
• Health and Wellness: Due to increasing demand for preventive health care products, the growth of this segment is continuously increasing; its projected growth is 22%.

Future of the Healthcare Industry in India

The future of the healthcare industry in India looks very bright, which has been made possible by the advancement in medical technology, a focus on digital health, and supportive government policies like the National Digital Health Mission (NDHM). The aim of this initiative is to enhance healthcare delivery and accessibility in the entire country.

Leading Companies and Their Competitors

Hospitals and Healthcare Providers

• Apollo Hospitals: Apollo Hospitals is one of the largest healthcare groups in India and provides comprehensive healthcare services. Their advanced technology and focus on patient care make them an industry leader.
  [Read more about Apollo Hospitals]
  Key competitors:
  Fortis Healthcare (4%)
  Max Healthcare (3.5%)
  Manipal Hospitals (2.5%)
  Narayana Health (2%)

Pharmaceuticals

• Sun Pharmaceuticals: Sun Pharmaceuticals is a global pharmaceutical company that provides various products in therapeutic areas. They are leaders in the generic pharmaceutical market. [Read more about Sun Pharmaceuticals]
  Major competitors:
  Cipla (7%)
  Dr. Reddy’s Laboratories (6%)
  Lupin (5.5%)
  Aurobindo Pharma (5%)

Medical Devices

• Siemens Healthineers: Siemens Healthineers provides advanced medical technology and services and also focuses on diagnostic imaging and laboratory diagnostics. [Read more about Siemens Healthcare.]
  Major Competitors:
  GE Healthcare
  Philips Healthcare
  Medtronic
  Johnson & Johnson

Demographic and Market Share Data

There is a possibility of generating 3 million new jobs in the healthcare industry in India by 2025, which will be driven by the aging population and increasing healthcare needs. There is better access to healthcare services in urban areas, but efforts are being made to improve rural healthcare infrastructure.

Porter’s Five Competitive Forces

1. Competitive Rivalry: Due to many established players and new entrants in the industry,.
2. Threat of New Entrants:  Due to high capital investment and regulatory requirements.
3. Bargaining Power of Suppliers: depending on the segment.
4. Bargaining Power of Buyers: due to an increase in awareness and choices.
5. Threat of Substitutes: because alternative therapies are gaining popularity.

Industry Norms and Financial Ratios

The healthcare industry in India operates under stringent regulatory norms to ensure quality and safety.
The financial ratios for 2024 are as follows:

• Operating Margin: 13-16%
• Net Profit Margin: 9–11%
• Debt-to-Equity Ratio: 0.6-0.9

New Entrants

• 1mg: An online pharmacy and healthcare platform that provides medicines, diagnostics, or teleconsultations.
• Practo: is a digital healthcare company that offers telemedicine, doctor consultations, and health record management.
• Mfine: is a digital healthcare platform that provides AI-powered telemedicine and diagnostic services.
• HealthPlix: is an EMR (Electronic Medical Records) solution provider that caters to doctors and clinics.
• Cloudnine Hospitals: This company is rapidly expanding in metropolitan areas and focuses on maternity and pediatric care.
• Vijaya Diagnostic Centre: This company is expanding its presence in South India and specializes in diagnostic services.
• Thyrocare Technologies: This company provides diagnostic services and is expanding its network of laboratories.

Industry Websites and Trade Associations

• Indian Medical Association (IMA):  [ima-india.org]
• Healthcare Federation of India (NATHEALTH): [nathealthindia.org]
• Association of Healthcare Providers India (AHPI): [ahpi.in]

Links for In-Depth Articles

• India Brand Equity Foundation – Healthcare
• McKinsey & Company – Healthcare in India
• Healthcare Industry Trends and Future

Conclusion

The healthcare industry in India is in growth mode, which is being driven by technological advancement, supportive government policies, and healthcare awareness. The healthcare industry in India promises to provide a dynamic landscape for businesses and investors with numerous opportunities and challenges.