India's medical implant industry is experiencing remarkable growth, with domestic manufacturers leading the charge. The sector is projected to reach $5 billion by fiscal year 2028, driven by strong local demand and increasing export opportunities. Factors like rising healthcare awareness, aging population, and government initiatives are fueling this expansion. Domestic companies are outperforming multinational corporations through competitive pricing and strategic market positioning.
May 21, 2025
India's orthopaedic, cardiac implant industry to reach $5 billion by FY28
"India's
medical implant sector is on a robust growth trajectory" - Krunal Modi,
CareEdge Ratings
India’s
orthopaedic and cardiac implant sector, including exports, is expected to reach
$4.5 to $5 billion by FY28, driven by strong domestic demand and gradually
growing export presence, according to a report released on Monday.
Key Points
1 Domestic implant sales growing at 28% CAGR
2 Export market expanding rapidly
3 Government schemes boosting affordability
4 Sector expected to reach $5 billion by FY28
The sector
(including exports) stood at $2.4 to $2.7 billion in FY24, according to
CareEdge Ratings.
The Indian
implant manufacturers are making rapid strides in the domestic market and are
gradually expanding their presence in the export market.
The report
cited that with only 7.5 per cent customs duty on the import of most coronary
and orthopaedic implant products, any potential trade deal with the US
resulting in tariff reduction is not likely to materially change the market
dynamics for domestic manufacturers.
However,
material changes in non-tariff barriers, such as the relaxation of price caps,
can significantly alter the competitive landscape for domestic manufacturers
compared to MNCs, it added.
Sales of
homegrown implant manufacturers have grown at a compound annual growth rate
(CAGR) of 28 per cent (including a CAGR of 37 per cent for exports) during the
four years ended FY24, outpacing the sales CAGR of 12 per cent for foreign
multinational corporations (MNCs) during the same period.
The sales
volume growth of domestic entities was even higher, driven by their competitive
pricing and increased participation in government-sponsored insurance schemes.
“India's
medical implant sector is on a robust growth trajectory, driven by strong
domestic demand and growing exports,” said Krunal Modi, Director at CareEdge
Ratings.
India’s
export growth rate for implants has significantly outpaced the implant imports
during the last 5-6 years.
Increasing
per capita income and affordability, rising healthcare awareness, an ageing
population, expansion in healthcare infrastructure, and increasing insurance
penetration are expected to drive the domestic demand for implants in the long
term, said the report.
Price caps
adversely affected the foreign MNCs’ high-margin products, forcing them to
discontinue some of their premium products from the Indian market.
However, it
significantly improved affordability, especially for implants manufactured by
domestic companies, thereby enabling them to expand their market share. Schemes
like Ayushman Bharat further improved the affordability and expanded the
market, according to the report.
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