MedTech industry – Riding the growth curve

India’s healthcare system has always been dynamic, with the MedTech industry playing a pivotal role. As the industry rides a growth curve, it is transforming patient care and making healthcare more efficient and accessible.

FY24 etched a remarkable chapter of expansion and concentration within India’s healthcare industry. India’s MedTech industry is on the cusp of a transformative journey, with ambitious plans to emerge as a global leader in healthcare innovation. India aspires to reduce import dependence from 75 percent to 50 percent within five years. It aims to foster self-reliance and enhance export competitiveness through value-added manufacturing, cutting-edge technology adoption, and policy reforms.

With projections to grow from ₹1.17 lakh crore to ₹4.2 lakh crore by 2030, India’s MedTech sector is poised to unlock its full potential. Collaborative efforts among government agencies, industry leaders, and technology innovators will drive this shift. As the country aspires to capture a larger global market share, India’s MedTech industry is gearing up to reshape healthcare domestically and internationally, setting a futuristic vision for the coming decade.

Comprehensive government initiatives fuel India’s remarkable growth in the MedTech industry, fostering innovation, self-reliance, and global competitiveness. Through policy reforms, financial incentives, and strategic collaboration with key industry players, India is poised to become a leading player in the global MedTech market.

The government is committed to scaling up the domestic production of medical devices. The production-linked incentive (PLI) scheme is transforming the landscape by reducing the country’s dependence on imports, improving manufacturing capabilities, and setting high-quality standards for medical devices.

The Make in India campaign, provides financial incentives and reduces regulatory burdens, enabling private companies to thrive and effectively meet the country’s healthcare demands. The commitment to enhancing quality standards and encouraging local manufacturing ensures that India can become a self-reliant hub for medical devices.

The Start-up India initiative, alongside critical funding programs, such as the Biotechnology Ignition Grant (BIG), Sustainable Entrepreneurship Development (SEED), and MedTech Mitra, has provided vital financial backing to start-ups.

These initiatives drive manufacturing, research, innovation, and clinical evaluation, ensuring India’s MedTech industry is aligned with global standards.

Public-private partnerships – Building a solid foundation
Collaboration between private companies and the government is pivotal in strengthening the MedTech ecosystem in India. By leveraging the private sector’s innovative capabilities and the government’s regulatory expertise, these partnerships foster an environment conducive to developing advanced medical technologies. This synergy enhances research and innovation, optimizes manufacturing and distribution, and ultimately improves healthcare delivery across diverse demographics.

India’s growing partnerships with global players like Taiwan further amplify these efforts. The recent collaboration under the WoW! Taiwan Project, which brings together Indian and Taiwanese health tech companies, exemplifies this trend. By organizing B2B meetings and fostering strategic alliances, these partnerships aim to develop next-generation health tech solutions tailored to India’s unique needs. Such international collaborations enhance innovation and position India as a critical player in the global health tech landscape, driving advancements in medical technologies for improved patient care.

Investment surge – Capitalizing on opportunity
India’s National Medical Devices Policy of 2023 has set ambitious goals to expand the domestic MedTech market, capturing 10–12 percent of the global market. Companies are attracting significant foreign investments, positioning themselves as credible challengers to multinational corporations. The appeal lies in India’s low-cost manufacturing advantage and ability to meet the growing global demand for high-quality, affordable medical devices.

The sector is witnessing a surge of investment interest from global giants, fuelled by its growing potential to become a key player in the international medical devices market. With India being the fourth-largest market for medical devices in Asia but holding only a 1.5-percent share of the global market, investors like KKR & Co., Warburg Pincus, and Morgan Stanley are now backing domestic MedTech firms to bridge this gap.

Breakthrough medical technologies set to transform patient care
Despite the challenges of the past five years, the MedTech industry has shown remarkable resilience, driving forward with ground-breaking technological advancements. These innovations represent the forefront of MedTech’s journey toward extraordinary impact.

Pulsed field ablation (PFA) devices. PFA has emerged as a promising treatment for atrial fibrillation (AF), garnering significant attention from the cardiac ablation community. PFA employs electric pulses, not heat that help electroporation of the myocardium without collateral damage to normal heart tissue. Compared to established treatment options, PFA has remarkably low recurrence rates, shorter treatment durations, and higher success rates.

The PFA market is highly lucrative, especially considering the potential global population of 60 million individuals with AF.

Diabetes care devices. Diabetes care technology is poised for significant growth in the near future, driven by ongoing advancements. Beyond these developments, considerable activity is also underway in developing alternative treatment options for diabetes management, including new drug therapies and medical procedures that could potentially impact the growth of the diabetes care technology market in the coming years.

A potential hurdle for long-term adoption of diabetes care technology is the recent rise of GLP-1 receptor agonists (GLP-1 RAs), due to their demonstrated efficacy in blood sugar control in individuals with Type-II diabetes. However, due to the high relative penetration for insulin pumps in the Type-I diabetic population, GLP-1s are not expected to have a paradigmatically strong effect on the insulin pump market in the short term.

Neurostimulation devices. The multibillion-dollar implantable neurostimulation devices market will grow as new and incumbent competitors expand treatable indications and launch new devices with design and lifespan improvements. The hypoglossal nerve stimulation device (HGNS) market has, in particular, witnessed rapid growth, and it is expected to surpass most other neurostimulation devices markets in size in upcoming years.

Surgical robotics. Surgical robotic systems are revolutionizing medicine, offering better visualization, increased precision, and better ergonomics for surgeons. These systems go beyond simple robotic systems, providing a platform for minimally invasive surgeries with benefits for both surgeons and patients. Despite being considered innovative technology, robotics has become increasingly common; in the orthopedics space, for example, all major companies now offer a robotic system and have had to do so to remain competitive against their leading peers.

There is still significant room for expansion as the use of surgical robotic systems remains underpenetrated. Favorable leasing terms for robotic systems and faster recovery times for minimally invasive procedures performed using these systems have increased their adoption in the ASC setting, opening a new avenue for revenue generation.

Renal denervation. The hypertension management market will regain its momentum with the dawn of the long-awaited age of renal denervation (RDN) technology. 2023 was eventful, with the US approvals of devices from Recor Medical and Medtronic poised to impact the market in 2024 and beyond.

Challenges remain
The medical devices industry faces evolving complexities and challenges, but when appropriately addressed, MedTech companies can transform these challenges into a competitive advantage.

Cyber-security and connected technologies. Cyber-security remains a critical challenge for medical devices manufacturers and healthcare organizations. A recent report by Health-ISAC, Finite State, and Securin highlights vulnerabilities across medical devices, software, and healthcare systems. The rise in cyber-attacks and the increased use of connected technologies have raised concerns among industry leaders, the FDA, and patients. Therefore, new regulations now require medical devices applicants to submit comprehensive cyber-security plans. Manufacturers must enhance their data security strategies and ensure the safety of both existing products and new launches to meet regulatory demands and protect patient safety.

Supply chain resilience. MedTech companies grapple with a prolonged supply chain crisis marked by raw material shortages and product delays. Larger customers are prioritized by contract manufacturers, leading to backorder issues, while OEMs face excess or incorrect inventory, causing delays and cancellations. This is creating financial strain for medical devices suppliers. To navigate these challenges, manufacturers are adopting strategies like improving inventory visibility, reassessing geographic production footprints, diversifying suppliers, and exploring joint ventures to build a more resilient supply chain.

Inflationary and pricing pressure. The medical devices industry faces rising pressures, including economic uncertainty, higher interest rates, and increased competition from global companies offering lower-cost solutions. Health systems tightening budgets have further impacted MedTech spending, pushing companies to reduce costs and optimize product portfolios. The competitive landscape prevents raising prices, forcing manufacturers to focus on streamlining and cutting redundancies. M&A activity has also slowed, with greater scrutiny on acquisitions and investments.

Patient-driven decisions and patient-centered solutions. Patients are driving healthcare decisions, focusing on personalized solutions, and pushing medical devices companies to adapt to custom-built devices and low-volume production demand. This shift has led to on-demand manufacturing, requiring manufacturers to adjust their operations. Therefore, OEMs should adopt additive manufacturing, automation, and creative inventory management strategies. Additionally, patients seek more control over their health, which opens opportunities for medical devices companies to enhance their products and support patients throughout their healthcare journey.

Talent gap. The MedTech industry’s skilled and unskilled talent shortage is expected to continue, with a limited pool of specialized technicians, machinists, and manufacturing supervisors. As companies explore new production locations, conducting labor market analyses is crucial to ensure adequate workforce availability. Consequently, organizations are considering automation and intelligent manufacturing technologies.

Additionally, many companies are rethinking their talent acquisition strategies by focusing on reskilling and upskilling current employees for retention and internal mobility. Flexible work schedules and hybrid options are also emerging as innovative solutions to attract and retain talent.

Emerging trends
Some trends will significantly shape the future of the medical devices industry.

Internet of medical things (IoMT). The medical devices industry has numerous opportunities in smart healthcare. IoMT connects devices to gather and process data, enabling healthcare professionals to make informed decisions and improve patient outcomes. These devices enhance operational efficiency and help reduce the cost of treatment and medication. The fundamental goal is to explore how IoMT can be effectively applied to transform healthcare further.

Growing use of biometric devices and wearables. Wearable and biometric technology, including popular devices like Fitbits and Apple watches, transforms healthcare by enabling continuous medical monitoring. These devices track vital metrics, such as heart rate, blood pressure, and oxygen levels, helping doctors and nurses treat patients more effectively. The rise of head-mounted displays, like smart watches, and advancements in AI are driving further growth in wearable medical devices, providing value to consumers while reducing pressure on hospitals.

Generative AI opportunities. Generative AI is transforming the medical devices industry by boosting efficiency, easing healthcare worker burdens, and improving patient outcomes. It optimizes manufacturing with digital twins, streamlines supply chains, and supports diagnosis and treatment recommendations, reducing costs and saving time. However, robust regulations are essential for the safe use of these technologies.

Rise in digital therapeutics and at-home diagnostics. Digital therapeutics and AI-based medical devices gained traction during the pandemic, enabling remote disease management and empowering patients with at-home diagnostics. The rise of self-tests in the IVD market has expanded consumer access to healthcare, opening new opportunities for medical devices sales and improving patient care.

Increased use of robotics. Minimally invasive surgeries are popular due to quicker recovery, reduced discomfort, and cost savings. Amid the global nursing shortage, medical devices companies are developing robots to assist nurses, a need amplified by the pandemic. Robotics are now being used in healthcare to automate tasks like monitoring vitals, transferring patients, and sanitizing rooms, easing the burden on staff.

Adoption of 3D printing. Adoption of 3D printing increases scope of surgical planning, training, and creating customized orthotics, prosthetics, and implants. This technology enables patient-specific medical devices like dental restorations and knee surgery implants, which enhance outcomes by reducing recovery time and discomfort. 3D printing offers significant potential to improve the quality of products used in dental and orthodontic procedures.

By key segments
The MedTech market, by technology, may be segregated as medical imaging equipment (x-ray, ultrasound, MRI, CT, and endoscopy), diagnostic tools (ECG), therapeutic medical devices (defibrillators), cardiovascular diagnosis and treatment (cath labs), and medical devices for patient care (anesthesia equipment).

X-rays have revolutionized medical diagnostics and imaging, with continuous advancements driving market growth. The shift from analog to digital radiography has digitized and mobilized x-ray systems globally, improving precision, accuracy, and patient comfort. Key innovations include digitization, mobile x-ray systems, and AI integration. AI-enabled x-ray systems automate complex procedures, enhance diagnostic accuracy, and improve patient outcomes while reducing costs. Companies are focusing on developing AI platforms to help clinicians manage imaging data and make quicker diagnostic decisions, further advancing the field.

Additionally, 5D ultrasounds and digital x-rays with wireless DR detectors are the advancements that facilitate improved image quality and diagnosis. This, along with the development of software-integrated imaging modalities and other technological advancements in the x-ray technology is supporting new product launches by key players.

Defibrillators. Among products, in 2024, the implantable cardioverter defibrillators segment is expected to account for the largest share of the market. The large share of the segment is attributed to factors, such as wide adoption of permanent implantable cardioverter defibrillators for the prevention of sudden cardiac arrests and atrial fibrillation, rising amount of modern therapies, and increasing awareness toward healthcare.

Cath labs. Ongoing advancements in medical imaging technologies and interventional cardiology instruments fuel the expansion of cath lab services. Innovations in angiography systems, imaging techniques, and minimally invasive procedures are enhancing the precision of diagnoses and the effectiveness of treatments. These technological developments enable healthcare providers to provide more sophisticated and less invasive therapies, thereby expanding the scope and efficiency of cath lab services.

Moreover, the rising adoption of interventional cardiology techniques, such as stent placements and angioplasty, is significantly boosting the demand for cath lab services. The increasing preference for minimally invasive interventions over traditional surgical methods leads to more procedures in cath labs, thereby driving market expansion.

ECG. The main types of products in the ECG devices market are monitoring and diagnostic ECG systems. The different lead types include single-lead ECG, 3–6-lead ECG, and 12-lead ECG, and different technologies are used, such as portable and wireless ECG systems.

In addition, there is an increasing demand for portable and wearable ECG devices, reshaping the ECG monitoring equipment market. As healthcare moves toward more personalized and accessible solutions, a growing preference exists for devices that allow continuous monitoring outside traditional clinical settings. Portable and wearable ECG devices offer the advantage of real-time data collection and ease of use, catering to patients who need ongoing heart monitoring without the constraints of hospital visits. These devices are popular among individuals with chronic conditions or those at high risk of cardiovascular issues. The shift toward remote and on-the-go health monitoring drives innovation and expansion in the portable ECG devices segment.

MRI. Advancements in MRI machines to enhance their usage for various applications are expected to drive market growth. Recent innovations, such as diffusion and diffusion tensor imaging with tractography, perfusion imaging, neuroimaging techniques, including MR spectroscopy, and functional imaging employing the BOLD technique, are anticipated to significantly bolster magnetic resonance imaging market growth in the coming years. Furthermore, the increasing development of intraoperative MRI and its diverse applications in neurosurgery are driving market growth.

Indian MRI market is expected to witness a significant CAGR. The market is driven by growing demand for advanced diagnostic technologies and the rising prevalence of chronic disorders. Some major players in the Indian MRI market are investing in R&D activities to develop innovative and cost-effective MRI machines to cater to the increasing demand for advanced diagnostic technologies.

In addition, the Indian government is also taking initiatives to promote R&D activities in the healthcare sector. The Department of Biotechnology has set up institutions like BIRAC (Biotechnology Industry Research Assistance Council) to promote innovation and entrepreneurship in the biotechnology sector, including medical devices like MRI machines.

Anesthesia. Integrating automatic features into anesthesia machines is pushing the growth and evolution of the market. These automatic features increase the precision, safety, and efficiency of anesthesia delivery for complicated modern surgical practices in different fields of medical specialties.

Automation is taking anesthetic drug administration to a high level of control and real-time monitoring so that adequate anesthesia is given to patients at levels matching their reactions and clinical conditions throughout the surgery.

Advanced machines with automatic features incorporate complex monitoring of vital signs as heart rate, blood pressure, and pulse oximetry, all of which are continually monitored and quite accurately , along with end-tidal CO₂.

Modern, automatic anesthesia machine-integrated monitors enable the anesthesia provider to closely watch for patient responses and act in case of deviation from the norms.

Finally, automated smart alarms and alerts increase patient safety through ranking of critical notifications, reducing alarm fatigue, and timely clinical responses against emergent situations. This trend highlights the importance of automation in anesthesia and ongoing innovations to meet surgical teams’ needs and improve healthcare delivery.

Ultrasound. Healthcare providers and patients are increasingly aware of ultrasound’s benefits for accurate and safe diagnostics, driving skyrocketing demand for ultrasound devices. Portable and high-resolution imaging systems are enhancing diagnostic precision and broadening the scope of medical examinations, further fuelling their adoption in recent years.

The ultrasound market is categorized by technology into 2D, 3D, and 4D ultrasound, color Doppler imaging, continuous Doppler imaging, etc. The 2D ultrasound technology segment dominates the market and is likely to remain the most preferred imaging technology in the healthcare industry, primarily due to its familiarity among healthcare professionals in various fields, such as obstetrics, cardiology, radiology, and emergency care.

Despite the emergence of 3D technology, 2D ultrasounds are experiencing a surge in adoption due to their cost-effectiveness, ease of operation, and ability to provide essential information in real time.

Endoscopy. The endoscopes segment is the fastest growing segment due to an increase in endoscopic procedures and biopsies and the availability of various types of endoscopes for improved diagnostics and treatment.

The gastrointestinal endoscopy segment leads the endoscopy equipment market, driven by the rising incidence of gastrointestinal disorders and a growing elderly population, resulting in the largest revenue share.

Meanwhile, the urology endoscopy segment is expected to experience rapid growth, fueled by the increasing burden of urological diseases and a rise in urology surgeries, which will boost demand for urology endoscopies.

Regulatory reform – Easing the path to innovation
In India, the regulatory framework for medical devices has undergone significant transformation, with the introduction of the Indian Medical Devices Rules (IMDR) in 2017 and subsequent amendments in 2020. Recognizing the importance of faster innovation approvals, the government has recently initiated efforts to further streamline the regulatory environment.

One notable initiative in this regard is the Medtech Mitra platform launched by the Indian Council of Medical Research (ICMR). This platform aims to promote innovation in diagnostics by providing a simplified pathway for potential MedTech products to reach the market. The platform acts as a bridge between innovators and regulatory bodies, ensuring faster evaluation and approval processes.

Additionally, under India’s broader vision of becoming a global leader in healthcare by 2047, the government is focusing on improving the export potential of its MedTech products. This involves not only fostering innovation domestically but also ensuring that Indian medical devices meet international regulatory standards, facilitating their access to global markets. By aligning Indian regulations more closely with international norms, such as the EU’s MDR and IVDR, the country aims to become a significant player in the global MedTech space, both as a market and as a creator of cutting-edge medical technologies.

Sustainability in MedTech
The shift toward eco-design and sustainability within the medical devices industry represents a pivotal transformation in healthcare practices. Manufacturers increasingly adopt eco-design principles, emphasizing the entire product lifecycle to minimize environmental impact. This involves creating devices that can be easily disassembled, repaired, and recycled, thus extending their usability.

Sustainability efforts also prioritize the use of eco-friendly materials, waste reduction, and ethical sourcing, which are crucial for fostering long-term environmental and economic benefits. By integrating these practices, the medical devices sector enhances its ecological responsibility and contributes to improved healthcare outcomes and innovation in patient care. As the industry embraces these sustainable approaches, it sets a foundation for a more resilient and responsible future in healthcare technology.

Outlook
As the MedTech industry continues to evolve, it stands as a beacon of innovation and progress. The focus on enhancing patient care, coupled with a commitment to affordability and accessibility, is reshaping the healthcare landscape. With strong government support and a vibrant ecosystem, the future is bright for MedTech, promising to deliver transformative solutions that will empower patients and revolutionize healthcare delivery across the nation and beyond.