The Medical Devices’ industry is a multi-product industry, producing a wide range of products. Manufacturing and trade in medical devices is also growing quite steadily. Double digit growth rates indicate its importance in health care. Medical devices’ industry monthly depends on imports. Most hi-tech innovative products and technology originate from a well-developed eco-system and innovative cycle which needs to be developed in India to promote indigenous industry and to reduce our dependence on imports.
It is estimated that the global market for medical devices is over US$ 220 billion. The medical disposables account for 40% of the total medical devices market, ophthalmic about 18%, Imaging and other medical equipment 16%, Diagnostics 12%, and dental equipments 8%. United States of America, with about 45% market share is the dominant market for medical devices in the world followed by European market with a share of 30% and Japan with a share of 10%. At present, the Indian medical devices industry is fragmented into small and medium enterprise category and is primarily manufacturing products such as disposables/medical supplies. Requirement for high end medical equipments are met by multinational companies. It is estimated that there are about 800 manufacturers in the country and based on their turnover, the industry profile of these manufacturers is as given in table 1 below:
|Table 1: Industry Profile|
|Source : Association of Indian Medical devices Industries (AIMED)|
Medical devices Industry in India is predominantly import driven accounting for over 65% of the total market. Domestic firms generally participate in the low priced, high volume market segment wherein competition is intense. MNCs do not operate in low tech device segment where local manufacturers are involved in intense price competition. On the brighter side, some manufacturing companies are now shifting their focus from capturing the market share to market creation. They are discovering innovative products for market niches.
During the period 2011-12 to 2014-15 both import and export of medical devices have grown at more than 10% annually.
Medical devices sector in India is relatively small as compared to the rest of the manufacturing industry, though India is one of the top twenty markets for medical devices in the world and is the 4th largest market in Asia after Japan, China and South Korea. Although accurate data is not available, an educated guess would place the retail market at Rs.60,000-70,000 Crores.
Various sources expect the Medical Electronics industry to reach around USD 2+ Billion in 2015 growing at a CAGR of 17% for the last five years from a size of USD 850+ Million in 2009. It is believed that the growth will not only sustain but may increase beyond 17%.
To Promote Domestic Manufacturing of Medical Devices