HEALTHY DIAGNOSIS

Organized diagnostic players thrive due to increasing health awareness

India’s diagnostic sector has witnessed great progress over the years. However, the onset of the coronavirus pandemic has introduced new dynamics to the industry. In recent times, a substantial number of sector experts and analysts reassessed the diagnostic sector, considering it a potentially attractive investment option. Concurrently, amidst prices increases, the sector’s array of services has evolved to align with the changing health preferences of consumers.

According to a report by CareEdge Ratings, India’s diagnostic services sector is positioned for steady revenue growth of 12% to 14% in FY24. Furthermore, the report indicates that the sector’s operating profit margins may return to pre-Covid-19 levels, and remain in the range of 23% to 25% in FY24. This forecast is quite optimistic.

Let’s take a closer look at the changing business landscape of India’s diagnostic sector, exploring the opportunities it offers and the shifts in consumer trends. Low entry barriers characterize India’s diagnostic sector, resulting in fragmentation and intense competition. According to a study conducted by market research and consulting firm Polaris, the value of India’s diagnostic sector reached $14.57 billion in 2022. The study predicts that the industry’s value will grow to $43.57 billion by FY32.

India’s diagnostics encompass pathology testing and imaging services, with pathology tests accounting for 60% of the market share. In addition to this, the radiology market is growing rapidly due to the increasing demand for imaging services. Simultaneously, pathology testing is on the rise as more people undergo preventive health checks.