The Medical Devices industry is estimated at USD 3.8 bn (2014) and growing at an organic rate of 15% p.a. However, the sector remains highly under‐penetrated compared with other segments i.e. healthcare delivery and pharmaceuticals. Classical challenges such as lack of government focus, inadequate manufacturing ecosystem, limited technology and innovation have impacted growth.
Various reports have pegged the industry to reach ~USD 20 bn by 2025, which is significantly lower than the industry vision of USD 50 bn. While the government initiatives give a good start, a lot needs to be done for the industry to unfold its latent potential. These include higher government spend on healthcare, faster implementation of industry specific regulations, adequate incentives for frugal innovation and targeted interventions for skill development.
We expect that there will be momentum in the industry through greater focus by the Government, focus on low cost innovations and increased technical collaborations. All the stakeholders will have to come together in order to realize the USD 50 bn vision by 2025.
Watch the Aurum CXO Dialogues webinar to view the key trends and opportunities in the Indian Medical Devices Industry.