The growth in the sector is led by increasing per capita income, greater healthcare awareness, ageing population, expanding healthcare infrastructure, and broadening insurance coverage, it stated.
The report said that domestic manufacturers have grown at a faster pace than the dominant foreign MNCs in recent years, aided by their price competitiveness and a gradual build-up of an efficacy and safety track record.
The segment is dominated by the presence of foreign multinational companies, which largely import the implants and sell them in India as the implant business requires strong technological capabilities, a proven track record of safety and efficacy, a broad marketing and distribution network, and a robust post-sales support system.
However, India is gradually reducing its dependence on imports as sales of homegrown implant manufacturers have grown at a compound annual growth rate (CAGR) of 28 per cent (including a CAGR of 37 per cent for exports) during the four years ended FY24, outpacing the sales CAGR of 12 per cent for foreign multinational corporations (MNCs) during the same period.
The sales volume growth of domestic entities was even higher, driven by their competitive pricing and increased participation in government-sponsored insurance schemes. Over the past few years, Indian manufacturers have not only challenged foreign MNCs in the domestic market but are also gradually venturing into the export market, added the report. The bright prospects for domestic implant manufacturing have also attracted interest from large pharmaceutical companies, with Zydus Lifesciences Limited and Alkem Laboratories Limited having already announced investments in the manufacturing and distribution of implants, it added.
“India’s medical implant sector is on a robust growth trajectory, driven by strong domestic demand and growing exports. India’s implant sector, including exports, is expected to reach USD 4.5 to USD 5 billion by FY28, registering an impressive CAGR of around 15-16 per cent. Additionally, with supportive government policies and a growing healthcare infrastructure, the implant market is advancing towards ‘Atmanirbharta’,” CareEdge Ratings Director Krunal Modi said.
However, there is a need to watch out on the ongoing trade and tariff uncertainty, imposition of price caps, regulatory scrutiny, and patent litigations for the medical implant sector, the report added.
