Indian Diagnostics Industry To expand at 14% CAGR

Praxis Global Alliance states that the Indian diagnostics sector, currently worth approximately $13 billion in FY23, is expected to experience a growth rate of about 14% per year over the next five years.

The Indian healthcare industry is on the verge of a significant transformation, with the market size reaching $216 billion in FY23, according to the report, Defining the Future of Diagnostics. The sector is expected to experience significant growth, reaching an estimated $456 billion by FY28, driven by its dynamic growth potential and multiple components, with a CAGR of 16%. Within this thriving environment, diagnostics is seen as a key contributor, accounting for approximately 6% of the market share, according to the report.

It is expected that the diagnostics sector will reach $25 billion by FY28, demonstrating a 14% CAGR. The report stated that the rise in life expectancy, an expanding middle class, and greater utilization of government insurance programs are driving this growth trend.

Ameera Shah, the promoter & managing director, and Surendran Chemmenkotil, the CEO, of Metropolis Healthcare Ltd., revealed the report at the Healthcare Conference.

According to Praxis Global Alliance, the report provides detailed insights on the current status and future direction of diagnostics in India, covering aspects such as the growth of digitalization and new-age technology, changing patient needs, and regulatory influences. The report highlights the important role of various diagnostic modalities, such as CT scans, MRI, and ultrasound scans, with pathology making up about 58% and radiology about 42% of the diagnostics market share.