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Indian healthcare innovation market to double at $60 billion by 2028: Bain & Co
The overall Indian healthcare market is projected to grow to $320 billion in FY28, a 10-12% CAGR growth from $180 billion in FY23, according to the report.
- By PharmaNews Live Desk
- New Delhi
- Mar 07, 2024
India’s healthcare innovation sector, currently valued at $30 billion, is poised to grow to an estimated $60 billion by FY 2028, according to a recent report by Bain & Company and venture capital firm HealthQuad.
The report titled ‘Healthcare Innovation in India’ anticipates that Pharma services (CDMO, CRO, pharma IT) and healthtech with vaccines and biotech, will drive about 80% of this growth and will continue to dominate the innovation segment.
The overall Indian healthcare market is projected to grow to $320 billion in FY28, a 10-12% CAGR growth from $180 billion in FY23, according to the report.
Other factors that will contribute to the growth will be rising consumerization of health, reconfigurations to the global healthcare value chain, India's deepening scientific and technological expertise, and regulatory tailwinds, the report said.
The report, while highlighting that healthcare innovation accounts for about 15 per cent of the overall healthcare market in India, out of which around 55 per cent is export-led, also points out India’s potential as a manufacturing and innovation hub in attracting global players seeking cost-effective solutions and a large talent pool.
According to the report, India’s healthtech market is poised to be the next prominent segment within healthcare innovations, as it more than doubled from $3 billion in 2020 to $7 billion in FY2023. This growth, fueled by both the COVID-19 pandemic and efficiency needs in healthcare, has seen healthtech claim roughly 25% of the overall healthcare innovation space.
The report states that the CDMO segment saw the highest growth, driven by global supply chains shifting away from China and improvement in capacity, capability, and quality by Indian players.
As per the report, Pharma IT too showed robust growth, as led by growing global price pressures and demand for omnichannel transformation.
The report outlines the opportunity in healthcare innovation where companies increasingly leverage emerging technologies to add innovation vectors including new business models, software-led solutions, and products that extend beyond more longstanding value engineering considerations.
International pharma companies are setting up technology ‘innovation hubs’ and global capability centers (GCCs) driven by India’s growing technological expertise, said the report.
It also mentions how universities, research institutions, and start-ups are partnering to create a robust innovation ecosystem and are fostering ground-breaking discoveries and solutions.
Additionally, Government initiatives like ease of doing business reforms and open innovation platforms are seen to be removing barriers and streamlining processes, according to the report. It also mentions that India, with a diminishing focus on China and its expertise, is poised to become an attractive outsourcing destination, mentioned the report.