India’s medical devices market is projected to grow at a CAGR of 9.4% from 2023-2028, driven by rising healthcare demand, chronic diseases, and government support, despite regulatory complexities and reliance on imports.
Key View
- India’s medical devices market will grow by a high-single digit compound annual growth rate over the 2023-2028 period.
- The rising demand for healthcare services in India’s Tier II and Tier III cities, driven by the expanding middle class and increasing incidence of chronic diseases, will support the growth of the medical devices market.
- Orthopaedics, along with other medical devices, are projected to be the fastest growing product categories.
We expect India’s medical devices market will register a high-single digit compound annual growth rate (CAGR) to 2028. We have revised upwards our forecast CAGR and expect India’s medical devices market to grow by a 2023-2028 CAGR of 9.4% in local currency terms and 8% in US dollar terms, which will take the market to INR890.6bn (USD10.1bn) in 2028. The market will be supported by easing inflation and steady economic growth in 2025. Market growth will be driven by increasing government health expenditure, rising demand for healthcare services from the expanding middle class and a growing chronic disease burden. While India’s regulatory environment for medical devices will continue to evolve, the complexity of regulations will remain a challenge for manufacturers. We anticipate the market will remain heavily reliant on imports over the 2023-2028 period, although domestic production is expected to increase steadily, driven by initiatives such as the National Medical Devices Policy 2023 and the Make In India Initiative.
India’s medical devices market is witnessing a significant transformation, particularly in Tier II and III cities, driven by ongoing healthcare developments. These cities are rapidly evolving due to increased government focus on healthcare infrastructure, which has led to the establishment of new hospitals and clinics. This growth not only enhances accessibility to medical care but also creates a burgeoning demand for medical devices, propelling the market forward.
The rising middle-class population in these urban areas is another crucial factor driving the expansion of the medical devices market. As income levels rise, so does the demand for quality healthcare and advanced medical technologies. Manufacturers are looking to innovate and provide affordable medical solutions tailored to the unique needs of these regions, facilitating a surge in localized production and supply chains.
Additionally, the growing awareness of health issues and preventive care among the population is fostering a more significant acceptance of medical devices. Telemedicine and digital health initiatives are further bridging the gap between patients and healthcare providers, making it easier for people in Tier II and III cities to access necessary medical treatments. This combination of factors sets the stage for a robust growth trajectory for India’s medical devices market.
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