India's Leading Healthcare & Pharma Companies 2023

India’s Leading Healthcare & Pharma Companies 2023 | 41 [ OVERVIEW OF INDIA DIAGNOSTICS SECTOR ] Break-up of Indian diagnostics market by provider type (FY21) Source: Nathealth Break-up of Indian diagnostics market by category (FY21) Source: Nathealth It is estimated that pathology segment accounts for 58% and radiology accounts for 42% of market share in Indian diagnostics market. Indian diagnostics sector is highly fragmented with the presence of over 100 thousand clinical labs. This can be attributed to very low entry barriers amidst lack of stringent regulations, which has led to mushrooming of several standalone diagnostic centres in the country. BREAK-UP OF INDIAN DIAGNOSTICS MARKET BY PROVIDER TYPE Stand-alone centres, hospitals and diagnostics chains are three main types of diagnostics providers in India. The market is dominated by various standalone players accounting for 48% of the market share, followed by hospital based diagnostic centres with market share of 37%, while the remaining market share accrues to the organised chain based diagnostic centres. The diagnostic chains operate through a hub-and-spoke model with two or more centres having presence in a single region or multiple regions. Scalability of operations is the key benefit of operating in organised or chain format . On the other hand, standalone diagnostic centres are single-unit centres, operating on a small scale at local level. In terms of accreditation, hardly 1% o f d i agnos t i c l abs a r e National Accreditation Board of Laboratories (NABL) and/or College of American Pathologists (CAP) accredited. This works out to less than one accredited lab per million population. In terms of accreditation, the organised diagnostic centres are far ahead of their standalone counterparts, which is expected to help them gain market share going forward. KEY GOVERNMENT INITIATIVES In India, the diagnostics sector i s regulated by the Cl inical Establishments Act (CE Act), 2010 which recommends the minimum standards for registrat ion of diagnostic facilities. States are al lowed to voluntar i ly adopt the CE Act in their respective jurisdictions. So far, 10 states and Dun & Bradstreet