The healthcare innovation landscape in India is poised for significant growth, with projections indicating a doubling of market value by FY28. A recent report by Bain & Company and HealthQuad sheds light on the promising trajectory of healthcare innovation. It forecasts a rise from the current $30 billion to an impressive $60 billion by 2028.
Rapid Expansion Amidst Market Growth
India’s healthcare innovation sector currently accounts for approximately 15% ($30 billion) of the overall healthcare market, with a notable 55% of this driven by exports. Aarthi Rao, Partner at Bain & Company, anticipates robust expansion in the coming years. She emphasizes that this growth will stem not only from value engineering but also from business innovation. These innovations are expected to span various sectors, including biotech, vaccines, and med-tech.
Diverse Segments Driving Innovation
The healthcare innovation space encompasses four key segments: pharma services, medtech, health-tech, and biotech. Each segment plays a crucial role in driving innovation and addressing diverse healthcare challenges. Charles-Antoine Janssen, Managing Partner of HealthQuad, highlights India’s evolution in the biologics space. The sector is propelled by its significant contributions to global vaccine exports during the pandemic.
Biotech and Vaccines Market Surge
The Indian vaccines and biotech market have experienced remarkable growth, surging from $1.2 billion in FY20 to $4 billion in FY23. This exponential rise, propelled by exports, underscores India’s pivotal role as a vaccine powerhouse catering to a substantial portion of global demand. Furthermore, biotech startups are leveraging advanced technologies to develop innovative products, signaling a shift towards transformative healthcare solutions.
Health-Tech Revolution
The health-tech sector has witnessed a rapid evolution, with innovations ranging from telemedicine to e-pharmacy witnessing substantial growth. The pandemic acted as a catalyst, accelerating the adoption of digital health solutions among patients and healthcare providers alike. The sector’s robust growth trajectory reflects its potential to revolutionize healthcare delivery in India.
Pharma Services: Driving Export Growth
Pharma services make up a significant portion of India’s healthcare innovation market, valued at around $16 billion in FY23. India’s expertise in contract development and manufacturing organizations has solidified its position as a major player in global pharmaceutical supply chains. This strength has been particularly evident in recent years, with India emerging as the second-largest CDMO player globally for small molecules. This growth underscores India’s importance in meeting the evolving demands of the pharmaceutical industry worldwide. The country’s robust workforce and regulatory compliance further bolster its appeal as a preferred destination for pharma services.
India’s healthcare innovation ecosystem presents vast opportunities for stakeholders across the value chain. As the sector continues to evolve, fostering collaboration, investment, and technological advancement will be pivotal in addressing healthcare challenges and driving sustainable growth in the years to come.
