Affluent market, medical tourism to lift market for drug delivery devices in India: GlobalData

NEW DELHI - As GDP per capita increases, India’s affluent market will drive demand for best-in line drug delivery devices and reward innovations in the years to come, says GlobalData in a new report which says the Indian market, which was worth US$411 million in 2016, is on course to touch US$510 million by 2023, clocking a CAGR of 3.1% from 2016 to 2023.

“Trends indicate that medical tourism will also bolster the demand for sophisticated devices and emerge as an important source of revenue for the Indian medical industry,” the report says.

“Relatively affluent patients from more developed countries are opting for India to get a standard of care at a fraction of the cost compared to their home country.

“As healthcare prices in the developed world continue to increase, so too will the interest in medical tourism in India.”

The report says an aging population, the prevalence of chronic diseases, and increasing health awareness are among other key factors driving the Indian market.

According to GlobalData, India’s ageing population will take care of volume growth in future, if not necessarily the quality of products.  Currently, 1.9% of the population of India is 75 or above.

James Spencer, Medical Devices Analyst at GlobalData, says: “India is the ‘diabetes capital’ of the world, and the number of people suffering from diabetes is expected to increase.

“As more knowledge and awareness is spread about diabetes, the demand for insulin delivery systems will grow as time progresses.”

The report says the overall drug delivery devices space is monopolised by overseas players, with only one domestic firm figuring in the top 10 list. The market is also highly competitive, with GlaxoSmithKline Plc wresting 14% share. 

India’s infusion systems market, which was worth US$160.1 million in 2009, went to US$199.3 million in 2016, and is now predicted to continue its growth trajectory to reach US$256.7 million at a CAGR of 3.7% by 2023.

The American healthcare company, Baxter International, along with German firms Fresenius Kabi AG and B. Braun Melsungen AG, had a combined 44% market share in 2016 in this segment. www.GlobalData.com/Healthcare   (ATI).