Some of the factors driving this growth include customers readily adopting healthtech, and healthcare workers using more technology, and government promoting telemedicine
New Delhi: The covid-19 pandemic has accelerated growth of the Indian healthtech industry, which is expected to touch $5 billion by 2023. The sector is also likely to see a compounded annual growth rate (CAGR) of 39%, according to a report by The Internet and Mobile Association of India (IAMAI) and management consulting firm Praxis, released on Friday.
There is large headroom for growth with the healthtech market less than 1% of overall healthcare market. Some of the factors driving this growth include customers readily adopting healthtech, and healthcare workers using more technology, and government promoting telemedicine and creating digital health care backbone through the National Digital Health Mission.
“The widespread adoption of technology in Healthcare will bring about a paradigm shift in access to healthcare wherever there has been a gap. The ‘HealthTech Predictions 2021’ report help stakeholders navigate and consolidate such a shift and subsequently bridge gaps in access," said Prashant Tandon, Founder and CEO 1mg and co-chairman, IAMAI HealthTech Committee.
The pandemic has led to an increased adoption towards online consultation, e-pharmacy, homecare services and e-diagnostics. Even hospitals started redesigning their strategy and increased their focus to acquire patients through online channels. According to the report, e-pharmacy and B2B healthtech are the two largest segments in the sector and account for about 70% of the overall healthtech market while e-diagnostic and tele-consultation are the fastest-growing sub-segments with 66% and 73% growth respectively.
“HealthTech saw a tremendous increase in consumer adoption towards online consultation, e-pharmacy, etc. However, the next wave of growth is expected to arise from technology-led business models driven by AI/ML which will help consumers have faster and better care," said Aryaman Tandon, managing partner and co-founder, Praxis Global Alliance.
The sector also saw a surge in investment from 2015 and has received about $3.4 billion funding since 2014. According to data from Tracxn, late-stage companies got about $173 million or 43% of the funds in India.
The report also mentions that the sector faces certain headwinds such as uncertainty over notification of e-pharma rules, consumer attitudes around healthtech, and the limitations of India’s technological infrastructure.