Indian Diagnostic Market
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1 Indian Diagnostic Market RedSeer Consulting By Sandeep Divakar
2 Indian diagnostic market is growing at nearly 15-20% and is estimated to be currently worth 40,000 Cr.
3 INDIAN DIAGNOSTIC MARKET: SHIFTING TO PREVENTIVE CARE Healthcare sector in India continues to see a sharp growth driven by increasing incidence of lifestyle diseases, improving purchasing power for the middle class, and improvements in technology and procedures. Radiology, one of the sectors associated with the same is seeing the benefits of the growth. The importance of Radiology increases drastically in the context of Diagnostics, it is the first line of defense towards disease identification and treatment, while also supporting general health and wellness. Going forward, with a significant shift expected in India from prescriptive to preventive healthcare, the importance of access to quality healthcare would be greater than ever. Indian radiology market is multi-layered, with demand generated from a variety of sources, such as private diagnostic centres, large multi-specialty and specialty hospitals, government hospitals and academic centres with limited divide between organized and unorganized players. So as the industry goes forward we expect waves of consolidation as market coverage starts to saturate. We at RedSeer Consulting have analyzed the market for Radiology within India and some of our key findings are as follows 1) Overall market is growing Market for diagnostic services has been growing in India over the past couple of years at a rate of 15-20% and is at nearly 40,000 Cr. as of Pathology accounted for nearly 80% of the market while Radiology accounted for the remaining 20%. As per the RedSeer analysis, the current rate of growth is expected to continue, driven by increasing awareness in the population, improving payer coverage and rising incidence of lifestyle diseases 2) Nearly 50% utilization is noted for MRI/CT Machines across cities An in-depth look at the distribution and utilization of the MRI/CT machines across 5 major cities shows that the utilization largely lies between 40-60% with differences noted in micro-markets within the cities. So, with increasing population while the demand growth will be noted, adding new centres would require a look at the individual 3) Potential growth opportunities arising from new pockets New growth opportunities will arise from shifting doctor preference from CT to MRI machines, new pockets of residential and commercial development and from the growth in the establishment of new multi-specialty hospitals RedSeer Consulting Page 1
4 Indian Diagnostic Market Indian Diagnostic Market Drivers & Restraints 2016 Life style diseases rising Accessibility CAGR = ~16% Improving Per Capita Increasing Awareness DRIVERS BARRIERS Lack of Specialists Lack of Standardization 2010 Increasing Payer Coverage Affordability Still a Concern RedSeer Consulting Page 2
5 Indian Diagnostic Market Market Segment Analysis 20% Radiology Key Market findings Growing Market with sustainable demand Growth 40,000 Cr. ~50% utilization noted for existing MRI/CT machines. 80% Pathology Additional pockets of growth coming from urban and hospital development. Geographical Analysis - Radiology Market 55% Rest Of India 34% Delhi 14% Kolkata 8,000 Cr. 25% Mumbai 15% Bangalore 12% Hyderabad 45% 5 Major Cities RedSeer Consulting Page 3
6 RedSeer Authors Sandeep Divakar Sandeep Divakar is an Engagement Manager with RedSeer and leads the Healthcare Practice at RedSeer. He has worked as a Management Consultant with top tier consulting firms focused on Market Entry Strategy, Branding and Marketing Effectiveness, Sales Force Effectiveness, Mergers & Acquisitions, Process Re-engineering, Sourcing & Procurement, Corporate Strategy, Enterprise Cost Reduction, and Supply Chain Optimization. About RedSeer RedSeer is one of the fastest growing research and consulting firms in India. It's unique service offerings serves decision makers across the value chain. RedSeer works across the sectors with specific focus on auto, construction, farm equipments, healthcare, CPG/retail/e-commerce, funds, investment banks and technology sectors. Our Offices BANGALORE Indiqube Sigma, Plot3/B, 7th C Main, 3rd Block Koramangala,Bangalore DELHI INHWA BusinessCenter Sector 48, Sohana Road Gurgaon MUMBAI 25/b 4th Floor,Usha Sadan, Near Colaba PO, Colaba, Mumbai DUBAI 42Seer TechnologiesFZE, G-D-Flex G089 C-Thub, Dubai SiliconOasis, Dubai, UAE For more information, Visit:
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