By| Published: September 3rd, 2015
The Indian healthcare sector has become the fastest growing industry with a growth rate of fifteen per cent in comparison with the other emerging markets globally. According to a recent report released by global investment banking firm Singhi Advisors, titled Health Care Report 2015, it is revealed that the healthcare industry in Asia (specifically India, Japan and China) is in the increasing trend, contributing much to the global health care industry which is expected to grow in its market size by $ 13.7 trillion by 2020.
The reason for this trend is because of a greater retail orientation in healthcare, which in turn led to the evolution of the primary health care system. Due to which large corporates have started investing in single specialty hospitals with technology playing a bigger role in the day to day interactions in healthcare. Such hospitals in India contribute 68 per cent to the healthcare sector followed by pharma and medical equipment. Diagnostics (three per cent), pharmacy (two per cent), medical insurance (two per cent) and healthcare IT (0.2 per cent) are amongst others.
The contribution of Indian middle class is a key element in this growing trend, as the percentage of the working population is increasing and so is the country’s GDP. Therefore, expenditure on health care is also increasing. As the rural household constitutes 70 per cent of the nation’s population, the growing need for improved healthcare infrastructure in tier II and III cities had resulted in 57 percent of the health care consumption compared to the consumption in tier I cities and metros.
Also, the Single specialty hospitals are increasing due to large players establishing specialty hospitals for women and child care, oncology, cardiology, ophthalmology, etc. Apart from these, Day Care Surgery units where patients can be discharged on the same day are helping the hospitals to free up the capacity at tertiary hospitals, thereby increasing its market size to $ 840 million by the end of 2015.
Adding to the above scenarios, India’s home health care which is worth $2 billion is growing at the rate of 20 percent annually and It is expected to grow at a much faster pace because India will have approximately 200 million people above the age of 65 by 2018.
Healthsignz looks at the multi-dimensional industry to revolutionize the way health care is being looked at by building medical intelligence that is driven by innovative technology to touch and enrich millions of lives and make healthcare affordable.