Indian Diagnostics Sector Set for Rapid Growth: Report

The broader Indian healthcare sector is experiencing a transformative phase, with a market size of US$ 216 billion as of FY23.

The Indian diagnostics industry, currently valued at approximately $13 billion as of FY23, is poised for substantial growth.

According to the latest report by Praxis Global Alliance, titled "Defining the Future of Diagnostics," the sector is expected to grow at a compound annual growth rate (CAGR) of around 14% over the next five years.

This report provides an in-depth analysis of the evolving landscape of the diagnostics sector in India.

Healthcare Sector Expansion

The broader Indian healthcare sector is experiencing a transformative phase, with a market size of $216 billion as of FY23. This dynamic sector is projected to grow to an estimated $456 billion by FY28, achieving a remarkable CAGR of 16%.

Within this vibrant ecosystem, diagnostics plays a crucial role, currently representing approximately 6% of the market share.

The diagnostics industry is anticipated to grow into a $25 billion industry by FY28, driven by factors such as increasing life expectancy, a burgeoning middle class, and greater penetration of government insurance schemes.

The report was unveiled at the Healthcare Conference by Ameera Shah, Promoter & Managing Director of Metropolis Healthcare, and Surendran Chemmenkotil, CEO of Metropolis Healthcare.

The comprehensive report delves into the intricate dynamics of the diagnostics sector, highlighting key trends and emerging patterns poised to redefine the industry.

Aryaman Tandon, Managing Partner & Cofounder of Praxis Global Alliance, emphasized the significance of the diagnostics industry within the growing healthcare sector.

He stated, “The Indian diagnostics industry stands as a beacon of growth within the burgeoning healthcare sector, driven by compelling factors such as attractive margins and expansive opportunities. We are thrilled to unveil our latest report, offering invaluable insights into the evolving landscape of the Indian healthcare sector. The report underscores the immense potential for growth and innovation within the diagnostics segment, as well as the broader healthcare ecosystem.”

Technological Advancements & Market Composition

The report highlights the rise of digitalization and new-age technology, evolving patient needs, and regulatory impacts as key factors shaping the future of diagnostics in India.

The pathology segment currently contributes approximately 58% of the diagnostics market share, while radiology comprises around 42%.

Key diagnostic modalities include computed tomography (CT) scans, magnetic resonance imaging (MRI), and ultrasound scans.

The conference featured distinguished speakers such as Dheeraj Jain, Founder of Redcliffe Labs; Shravan Subramanyam, Immediate Past President of NATHEALTH; Prashant Tandon, Cofounder of Tata 1mg; and Dr Vedam Ramprasad, CEO of MedGenome.

The report explores the key drivers, challenges, and opportunities shaping the future of diagnostics and healthcare in India.

 It provides a comprehensive analysis of the impact of government insurance schemes and the evolving healthcare infrastructure, guiding stakeholders in navigating this dynamic landscape.