India's Leading Healthcare & Pharma Companies 2023

India’s Leading Healthcare & Pharma Companies 2023 | 53 [ OVERVIEW OF INDIA MEDICAL DEVICES SECTOR ] KEY TRENDS Increased demand for home use medical devices: With rise in income level, increasing life expectancy, growing incidence of lifestyle related diseases like diabetes and hyper tensions and growing health consciousness has propelled demand for home use medical devices. The portable medical devices like blood sugar monitors, blood pressuremonitors and wearable heart rate counters have been increasingly used by the Indian households as they enable to monitor vital signs in a familiar and comfortable environment. Thi s a l so reduced pat ient ’ s dependence on pathological & diagnostic facilities, thereby helping to save on time and cost. Elevated use of digital technology in medical devices: There has been enhanced integration of digital technologies from the manufacturingstage till thefinished product. The Internet of Medical Things (IoMT) in which medical devicesareconnectedtohealthcare information technology system through online computer networks allows remote patient monitoring and collects data from patients’ wearable mobile health devices. Besides, the use of advanced design technologies like graphical modelling and 3D printing has improved the conceptualization and development speed of medical devices. The use of digital technologies has helped medical devices manufacturers to enhance productivity, reduce quality issues, andhas alsohelped in newproduct developments to cater to the export markets. Demand for non-COVID related medical devices: Dur ing the COVID pandemic in 2020, the demand sh i f ted for COVID related medical equipment like PPE kits, ventilators and testing kits, prompting manufacturers to operate at 100% capaci ty utilization levels and to expand their capacities. On the other hand, during the pandemic non-essential surgeries were postponed which had adverse impact on the demand for the related medical equipment like device used for aesthetic procedures and implants. However , wi th the easing of pandemic, the market for medical equipment has stabilized, reviving demand for non-COVID related devices. KEY CHALLENGES High cost of finance: Medical device industry is capital intensive with long gestation period. With majority of Indian medical device manufacturers are from MSME segment, high cost of financing has been one of the key hurdles faced by the industry. Price control mechanism: National Pharmaceutical Pricing Authority (NPPA) is empowered to impose price control on notified medical devices. The imposition of price control regulation on medical devices adversely impacts theprofit margins, further discouraging investment , innovat ion, and employment generation. Lack of adequate infrastructure & logistics: To be self-sufficient in the high-end medical devices segment , the count ry needs more investment in anci l lary manufacturing as well as relevant infrastructure and logistics. Given, the lack of adequate infrastructure and logistics faci l ities, Indian manufacturers are less competitive vis-à-vis international counterparts. Availability of skilled workforce: Although India produces one of the largest numbers of engineering graduates, medical devices sector is witnessing inadequate number of skilled professionals due to lack of alignment between biomedical educat ion and engi neer i ng disciplines. In view of the constant upgradation in the technology particularly in the digital space, the industry is facing challenges to upskill existing workforce. GROWTH OUTLOOK Industry to grow to USD 50 bn by 2030: Indian medical devices industry is expected to witness robust growth in the coming years and is poised to grow to USD 50 bn by 2030. The rising demand for home use medical equipment, conducive policy measures to Dun & Bradstreet