The Diagnostic Industry of India is expected to grow at a strong rate or an annual growth rate (CAGR) composed of 14 percent in the next five years, according to a recent Phillipcapital report.
The report predicts this growth promoted by several key factors, such as the increase in health spending, an aging population, higher income levels, increased awareness of preventive tests, the broader availability of advanced diagnostic tests, greater penetration of health insurance and initiatives by the central government to strengthen the medical care infrastructure.
He said that “the CAG of the Indian diagnostic industry is estimated at 14 percent accelerated over fiscal year 23-28 fed by an increase in medical care spending driven by a population that ages, the increase in income levels.”
While the general industry is on a growth route, the report believed that organized diagnostic players will grow equally faster than the rest of the sector.
The report stressed that organized companies are better equipped with more advanced and efficient services compared to their non -organized counterparts. They are also likely to benefit from a faster consolidation that takes place throughout the industry.
He said: “We believe that organized diagnostic companies will overcome industry growth, led by their most advanced and efficient offers than un organized colleagues.”
Currently, the Indian diagnostic market is highly fragmented. Organized diagnostic chains represent only 15 percent of the total market share. Hospital laboratories have a greater participation of 37 percent, while a significant 48 percent is still controlled by disorganized independent laboratories.
This sacrifices a great opportunity for organized players to expand their presence through acquisitions and market consolidation.
The report also noted that the Diagnostic Sector of India remains sub -neutral compared to global standards. When measured by the number of tests performed per person every year, India stays far behind other developing nations such as Brazil and Saudi Arabia, he thought India has the largest population in the world.
This indicates that there is still a great demand without exploiting diagnostic services in the country.
Then, the report described that the Indian diagnostic industry is established for strong growth in the coming years, with players organized in a favorable position to lead the load through better services and market consolidation. (ANI)