Market Report on Diagnostics Sector

Vijya Research & Advisory

Broad Areas Covered

SectorMarketGrowth DriversKey PlayersGovernment Role, Initiatives and PoliciesInvestmentsStrengths and WeaknessGrowth Opportunities


The Report contents

IntroductionMarket SizeMarket StructureGrowth DriversOpportunitiesChallengesRegulatory EnvironmentInvestmentsSwot Analysis PESTLE AnalysisRoad Ahead


Market Size

There are about 100,000 laboratories in IndiaAverage all India penetration of institutional

diagnostic services: 4.6 % in rural areas 6 % in urban areas

Average all India penetration of institutional diagnostic services:

1.75 % in rural areas 2.6 % in urban areas


Market Structure

The Diagnostic services sector is divided into four major segments which are Biochemistry, Hematology, Immunology and Microbiology.

The Diagnostic market in India, is largely dominated by organized players.

Organized players constitute approximately 10 % of the diagnostic market.


Growth Drivers

The major growth drivers in the diagnostic sector are:

• Rising population• Expanding middle class income• Rise of tier II and tier III cities• Rise of diseases• Research and Development• Global approach of domestic players’• Entry of new players


Challenges

Diagnostic sector has to face some challenges such as:

High capital costsCost of medical equipmentsAvailability of human resourcesCompetition from standalone players


Government Initiatives

Major government initiatives in diagnostic sector include :

Building rural healthcare infrastructure Entering into Public-Private Partnerships (PPP)Bringing about Medical Devices Regulation BillCentral government is establishing India’s first

specialized devices centre in Gujarat to promote indigenous R & D efforts: ‘National Centre for Medical Devices


Taxes

In Union Budget 2011-12, the excise duty on medical equipment has been increased from four to five per cent.

Reduction in import duty on equipment from 25% to 5%.

Customs duty reduced to 8% from 16% for medical surgical, veterinary furniture.

Customs duty on 24 medical equipments such as X-ray, goniometer, teletherapy stimular machines reduced to 5%.

Depreciation limit on equipment rose from 25% to 40% to encourage imports.


Key Findings of the Report

The diagnostic sector is projected to contribute Rs. 11,250 crore (USD 2.5 billion) by 2012.

Nearly 5% of India’s GDP is spent on healthcare. almost 60-70 per cent of medical treatments are based on

laboratory diagnostic tests There are about 100,000 diagnostic laboratories in India

conducting nearly 2,000 to 3,000 tests per day for larger laboratories.

There are approximately 100,000 diagnostic laboratories serving nearly 1.21 billion Indian people. This implies 8 laboratories per 100,000 people.


The revenues from diagnostic segments are projected to grow at a CAGR of around 20 per cent over the next three year.

Key Findings of the Report (Contd.)

Mergers & acquisitions (M&A) are likely to pick up pace in diagnostic sector. There may be consolidation among larger players through mergers as well.

The Indian diagnostics giants are expanding their presence not just in India, but also in overseas territories like the Middle East and the U.S.

Upper cap for foreign direct investment in diagnostic sector and approved under automatic route.

The inflow of Foreign Direct Investment in Indian hospital and diagnostic sector was Rs. 4,373.45 crore from April 2000 to February 2011.



To purchase the report or to know more about it, please contact:

Ms. Piyush JainVijya Research & Advisory Email: [email protected]://www.kapsole.com/indian-diagnostic-industry-

and-market-report-2011-12/

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Market Report on Diagnostics Sector