New -delhi [India]April 19 (ANI): The Diagnostic Industry of India is expected to grow at a strong rate of 14 percent composite annual growth rate (CAGR) over the next five years, according to a recent PhillipCapital report. The report predicts this growth driven by various key factors such as increased spending on healthcare, an outdated population, higher income levels, increasing awareness of preventative testing, greater availability of advanced diagnostic tests, increased penetration of health insurance and initiatives by the central government to strengthen health care infrastructure. It is said that “the Indian diagnostic industry is estimated to be estimated at an accelerated 14 percent of FY23-28, fueled by an increase in spending healthcare driven by an outdated population, rising income levels.” While the overall industry is on a growth path, the report believes that organized diagnostic players will grow even faster than the rest of the sector. The report emphasized that organized businesses are better equipped with more advanced and efficient services compared to their disorganized peers. This is also likely to benefit from faster consolidation that is taking place across the industry. It is said: “We believe that organized diagnostic businesses will exceed the growth in the industry, led by their more advanced and efficient offers than disorganized peers.” Currently, the Indian diagnostic market is very fragmented. Organized diagnostic chains account for only 15 percent of the total market share. Laboratories based in the hospital have a larger part of 37 percent, while a significant 48 percent are still controlled by disorganized independent laboratories. It provides an important opportunity for organized players to expand their presence through acquisitions and market consolidation. The report also pointed out that India’s diagnostic sector remains submissive compared to world standards. If measured by the number of tests performed per person each year, India remains far behind other developing countries such as Brazil and Saudi Arabia although India has the largest population in the world. This indicates that there is still a great unused demand for diagnostic services in the country. The report thus set out that the Indian diagnostic industry is growing strongly in the coming years, with organized players in a favorable position to lead the costs through better services and market consolidation. (Ani) first published: 19 Apr 2025, 08:21 am Ist
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