Indian HealthTech Industry to Grow at 39% CAGR: IAMAI-PRAXIS Report
Indian HealthTech industry is set to grow at 39% for the next few years according to the IAMAI-PRAXIS report released earlier today. HealthTech market currently stands at USD 1.9 billion which is barely 1% of the total healthcare market. According to the report, the rapid growth in HealthTech sector would be driven by a) customers more readily adopting HealthTech, b) healthcare workers using more technology, c) Government promoting telemedicine and creating digital health care backbone through the NDHM. The global pandemic seems to have accelerated all these processes in the last one year and the trend is likely to continue.
Expectedly the investors have become active in this sector and have invested over 3 billion USD between 2014 and 2019. ‘HealthTech Predictions 2021’ provides forecasts and insights on aspects such as the large headroom for growth in HealthTech sector, which currently comprises less than 1% of the healthcare market (~US$ 1.9B market in 2020, growing at 39 percent CAGR). It will also explore themes such as the changing customer attitude towards digital healthcare, the impact of Government initiatives like the National Digital Health Mission (NDHM) and defined guidelines for telemedicine, and the use of AI/ML by HealthTech companies so that they become more tech-led than tech-enabled amongst others.
Responding to the report, Prashant Tandon, Founder and CEO 1mg, as well as Co-Chairman, IAMAI HealthTech Committee said “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.” During the virtual launch of the report, Aryaman Tandon, Managing Partner and Co-Founder, Praxis Global Alliance said, “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.” The report, however, also mentioned that the sector also faces certain headwinds such as uncertainty over notification of e-pharma rules, consumer attitudes around HealthTech, and the limitations of India’s technological infrastructure. IAMAI believes that stakeholders would very soon resolve these issues.