While through 2020 to 2021, the COVID-19
pandemic plagued the healthcare sector with various challenges. Social
distancing in the lockdown scenario, lack of skilled technologies, management
of large volumes of data, and keeping up with extensively hectic research and
development led to tremendous pressures as the country struggled to come to
terms with the global pandemic. Glaring gaps in the diagnostics industry, one
of the crucial elements of the healthcare sector, were dramatically exposed as
the pandemic reiterated the need for timely and mass-scale testing to stop the
transmission of the virus. Diagnostic labs met with a huge challenge in
catering to a deluge of urgent doorstep sample collection, quick turnaround
time, and speedy delivery of the report. On the bright side, the COVID-19
pandemic impacted the level of health awareness among the population related to
early diseases diagnosis and created an increased need for quality preventive
healthcare. Diagnostic findings influence more than 70% of the decision-making
in healthcare for disease treatment, management, and preventive care. Thus,
market players involved in diagnostic services are devising innovative
techniques and newer tests, leveraging upgraded medical equipment to
accommodate the burgeoning volume of tests while maintaining quality and
efficacy. Consumerization, automation, and consolidation are the latest trends
shaping the consumer-friendly models of diagnostic care delivery.
India diagnostic labs industry was valued USD12.3
billion in 2021 and is expected to reach USD25.6 billion by 2027 due
to high incidences of lifestyle disorders like diabetes and cardiovascular
diseases and an overall rise in the spending power capacity of people among all
strata of the society. The diagnostic lab industry is segmented into large
chains, standalone centers, and hospital-based laboratories based on the
provider type. Accounting for 43.7% of the total market share,
standalone diagnostic labs dominated India's diagnostic labs market in 2021.
India is emerging as one of the attractive medical tourism hubs due to low
medical costs and effective treatment options. Additionally, growing awareness
and acceptance of personalized medicine and companion diagnostics are driving
the growth of the India diagnostic labs market. Furthermore, an announcement
for the creation and expansion of public health labs in the Union budget 2022
to enhance diagnostic services across 11 high focus states and 730
districts in India is expected to fuel the India diagnostic labs market in
the coming years.
Government Initiatives to Boost Diagnostic Lab
Ecosystem in India
Under the AB-PMJAY scheme, the Ministry of
Health and Family Welfare is planning to explore options for providing quality
diagnostic services from certified laboratories to beneficiaries. The
government has announced the establishment of 150,000 health and wellness
centers that offer diagnostic services to ensure sufficient coverage and
reduce the burden on secondary and tertiary care. Seeking the private sector’s
support, the government plans to provide special attention to underserved
areas, ensuring the availability of skilled healthcare professionals. The
Indian medical diagnostic industry will be playing a significant role in the
prevention and wellness, with 41% of the expenditure being spent on
diagnostics. An effective PPP model within the wellness outreach will help
improve the overall vision of health for all.
Under the flagship program of PM Narendra Modi,
the health ministry plans to establish more than 134 types of diagnostic
tests for free at the district level by 2025. In addition, the program, with an
outlay of INR64,180 crores, is aimed at establishing integrated public
health labs in all 730 districts. At the district level, 80 Viral
Diagnostics and Research Labs and 15 New Bio-Safety Level III
laboratories will be operationalized at the state level.
Rising Collaborations in India Diagnostic Labs Market
Advancements in molecular and genetic
technologies and increasing patient requests have created a need for a
personalized laboratory-developed test. Organizations that provide such kinds
of tests require strong cross-functional collaborations between the revenue
cycle and the lab for up-skilling, technology optimization, and clinical
knowledge within the medical fraternity. The collaborations will help health
providers maintain lifelong knowledge and skills for unique, niche, and
critical lab tests for accurate diagnosis, especially in super-specialized
fields of medicine. In February 2021, SRL Diagnostics, one of the leading
players in the India diagnostic market, collaborated with US-based Mayo Clinic
Laboratories to facilitate initiatives for more enhanced diagnosis and improve
physician’s ability to care for patients. In March 2022, Tata Medical Diagnostics
(TataMD) entered into a clinical collaboration with Anderson Diagnostics &
Labs (ADL) to advance in the diagnostic space of COVID-19.
The Indian Council of Medical Research (ICMR)
has planned to collaborate with IITs to set up centers of excellence for
commercialization in the medical devices and diagnostics sector. This has been
done to ensure that products and technologies are advanced enough to synergize
with the requirements of the National Health Mission, Ayushman Bharat, and
other public health programs by the Government of India. The integration of
ICMR and IIT will help boost technology development and expand the
commercialization cycle to create a much larger health impact and develop
need-driven, affordable, and inclusive healthcare solutions, particularly for
middle- and lower-income segments.
Technological Innovations to Drive the Market
Growth
Advances in biology, disease and molecular
medicine have put laboratory medicine at the forefront. Emerging technologies
such as biosensors, lab-on-a-chip, wearable devices, and Point-of-Care
diagnostics are some of the factors driving the growth of the India in-vitro
diagnostics market. As healthcare and laboratory medicine are converging, the
need for an improved precision call for continuous optimization is increasing.
Thus, market players in the diagnostic labs are incorporating new and improved
technologies for enhanced patient experiences, reduced ever-increasing
workload, and lower healthcare costs. Artificial intelligence replaces labor-intensive
and time-consuming procedures with quick and remote-accessible and real-time
solutions to provide accurate diagnoses. Internet of Medical Things (IoMT) has
remained a crucial part of the development of various diagnostic services,
which require little to no intervention. In recent years, major initiatives to
integrate genetic knowledge and processes into existing clinical workflows
would ensure physicians communicate with patients in a consistent and
actionable manner.
Automation has become common in medical
laboratories as manual operations can be time-consuming and inefficient. Modern
diagnostic labs are turning to total laboratory automation to streamline
operations. Total Laboratory Automation (TLA) system replaces human
intervention in preparing and transporting specimens with robotic devices.
Multiple advantages of TLA include reduced costs for laboratory testing, fewer
human errors in specimen handling, faster turnaround times, improved overall
process control, enhanced quality, and lab flexibility.
Challenges
India's diagnostic industry has been facing
issues related to a lack of skilled talent and tech infrastructure coupled with
connectivity issues required to improve services. Besides, diagnostic
businesses in tier-2 and tier-3 cities and remote areas provide only basic
testing and pricing pressure issues. Hence, local standalone players need to
consolidate with big market players to have the required infrastructure to
provide diagnostic services and reduce the demand-supply gap. Lack of skilled
IT professionals and allied health professionals and lack of robotic service
equipment might hinder the growth of the India diagnostic labs market in the
coming years.
The Future Outlook
In terms of quality, precision, and
affordability, India diagnostics solutions are considered to be one of the best
in the world. As more diagnostics manufacturers would make efforts to make
diagnostic services cost-effective and accessible in the remotest corners of
the country, the diagnostic lab segment will undergo a massive transformation
in terms of digitalization and technological innovations. Enhanced awareness of
preventive and curative healthcare will accelerate demand for diagnostic
services driven by marketing communication aspects. Additionally, lucrative
offers provided by clinics and hospitals for health tracking applications,
preventive healthcare packages, booking a path lab test, online reports, and
consultations are expected to propel the growth of the India diagnostic labs
market.
According to TechSci Research report on “India Diagnostic Labs Market By
Provider Type (Stand-Alone Labs, Hospital Labs, Diagnostic Chains), By Test
Type (Pathology v/s Radiology), By Sector (Urban v/s Rural), By End User
(Referrals, Walk-ins, Corporate Clients), By Region, Competition Forecast &
Opportunities, FY2027”, India diagnostic labs market is anticipated to grow
at a significant CAGR of 12.25% through the forecast period. The market growth
can be attributed to the rising incidences of various diseases and growing
geriatric population. Additionally, rising healthcare awareness among the
population and expansion of various diagnostic chains and hospitals are
expected to drive the growth of India diagnostic labs market.
According
to another TechSci Research report on “Vietnam Diagnostic Labs Market By Provider Type
(Hospital Based Diagnostic Labs v/s Stand Alone Diagnostic Labs), By Test Type
(Pathology v/s Radiology), By End User (Referrals, Walk-ins, Corporate
Clients), By Region, Competition Forecast & Opportunities, 2017-2027”, Vietnam
diagnostic labs market stood at USD1.08 billion in 2021 and is anticipated to
grow at a CAGR of 6.79% during the forecast period. The market growth can be
attributed to the increasing demands for early disease detection and
advancements in healthcare infrastructure in the country.