Indian HealthTech Industry Predicted to Grow at 39% CAGR: IAMAI-PRAXIS Report

Indian HealthTech industry is set to grow at 39 percent for the next few years. IAMAI-PRAXIS report released earlier today reports this. HealthTech market currently stands at $1.9 billion. This is barely one percent of the total healthcare market.

The growth will be largely driven by customers who are more readily adopting HealthTech, and healthcare workers who use more technology. The government is also playing a crucial role in enabling this growth. The government is promoting telemedicine and creating digital health care backbone through the NDHM.

This surge in demand has attracted investors too, who have invested over $3 billion 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 one percent of the healthcare market (~$1.9 billion 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.”

The report was launched virtually, where 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.”

However, the industry is not untouched with challenges. The report highlights that the sector will face certain headwinds such as uncertainty over notification of e-pharma rules, consumer attitudes around HealthTech, and the limitations of India’s technological infrastructure. IAMAI is sure about shareholders resolving these issues soon.