The in-vitro diagnostics has turned into one of the most profitable and established markets in the Indian healthcare industry. In the past several years the in vitro diagnostics market in India has gained a huge momentum. Various companies, both foreign as well as domestic have entered this business with enthusiasm mainly due to the immense growth the industry has been experiencing lately. The ever increasing population of patients along with the steady growth in the number of medical centers has resulted in a growing target base of consumers which has in turn resulted in the market to exhibit a steady growth rate in the future.
The main drivers in this industry include an increasing number of diagnostic labs as well as hospitals, growth rate in patient population, unhealthy lifestyle resulting in chronic diseases, innovations by pharmaceutical companies, increased awareness of healthcare as well as increased affluence and demand for cost effective, faster and sensitive results. With the improved and newer corporate hospital infrastructure as well as the installation of automated and semi-automated biochemistry, immunology and hematology equipment, the market has achieved a healthy growth rate. The foreign players entering the Indian market is set to take advantage of rising disposable income, rising consumer awareness, increase in lifestyle diseases and changing regulatory landscape. The main hurdles faced by this market include faulty regulations which have led to disorientation of IVD products and prevalence of laboratories without any accreditation due to the lack of standardized procedure.
Lately hospitals have started reaching out to patients in the rural and backward areas. The main reason being lifestyle as well as communicable diseases has started to spread into the rural areas. Since many of the rural population do not have an access to the healthcare facilities, many individual cases remain untreated. This has helped the in-vitro diagnostics manufacturers identify opportunities in the rural untapped markets mainly due to the rising cases of diseases, the changing disease patterns etc. The diagnostic sector in India is set for a revamp after the entry of foreign players which as of now is being dominated by the large unorganized players. The government has taken up initiatives to uplift the healthcare sector by entering into public private partnership and also by attracting foreign direct investments inflow into the diagnostics sector.
If companies are looking to gain a competitive edge they must not only provide cost effective but also quality healthcare. They must also establish a well spread out distribution channel to reach out especially to the rural areas.