The Indian medical diagnostic equipment industry is expected to reach close to $6 billion by 2027, up from about $4 billion in CY23, supported by multiple favourable factors.

The diagnostic equipment market in India will grow at a CAGR of about 12 per cent in the next four years, according to estimates of Praxis Global Alliance, a next-generation management consulting and advisory services firm.

The clinical and immunoassay segments are projected to be the largest, each with a market size of about $1 billion CY27. Other high-growth segments include clinical chemistry, immunoassay, and histopathology, with projected CAGRs of 14 per cent, 16 per cent, and 18 per cent respectively. However, the X-ray, CT, and MR segments are expected to experience slower growth, with CAGRs of 7 per cent, 4 per cent, and 9 per cent, respectively

Key players

The medical equipment market is served by three distinct segments – domestic players, Asian MNCs, and Western MNCs

Domestic players such as Transasia, Trivitron, and Accurex, among others focus on delivering high-quality products at competitive prices, with a deep understanding of local market needs and preferences. They have well-established distributor networks and sales teams, enabling broad outreach and efficient after-sales service, particularly in tier 2/3/4 cities.

Asian players (Sysmex, Neusoft, Shimadzu, etc) seek to provide a wide range of cost-effective yet sophisticated solutions, coupled with perceived high product quality like Japanese MNCs. Strong manufacturing capabilities ensure a consistent supply of high-quality products at scale. Western MNCs (GE Healthcare, Roche, Philips, Siemens, etc), which dominate the high-end equipment segment due to technological leadership, are preferred by customers seeking reliability and cutting-edge technology.

Growth drivers

Some of the growth drivers of the medical equipment market include the expansion of diagnostics labs in small towns, rising disposable income (which will drive demand for advanced medical treatments and devices), ageing population (which may demand more home-based equipment), rising prevalence of non-communicable diseases (which will fuel demand for specialized medical devices) and increasing medical tourism.

Tier 1 cities dominate the landscape of pathology equipment, holding the highest market share at 46%, primarily due to a larger population and higher healthcare spending compared to other tiers. Also, penetration of radiology medical equipment is significantly lower in tier 2 cities compared to tier 1 cities. This reflects the disparities in healthcare infrastructure and resources across different city tiers.

Meanwhile, the diagnostics mkt will see the emergence of 3-4 new players and the current 3-4 players may not dominate like in the last 5-7 years, Aryaman Tandon, Managing Partner & Co-Founder, Praxis Global Alliance told BusinessLine.

He explained that by leveraging emerging technologies such as AI, IoT and molecular diagnostics, new entrants will be able to meet the evolving market demands and enable them to differentiate themselves from incumbents.

“Additionally, tailoring diagnostic tests and services to individual patient profiles, leveraging genomic testing and predictive analytics will further guide personalized decisions and improve patient outcomes,” he added.