India IVD Market Outlook to 2030

India IVD Market Overview

• The Indian In Vitro Diagnostics (IVD) market has reached a size of USD 1.70 billion, underpinned by the growing burden of chronic diseases, rising healthcare expenditure, and the expanding reach of diagnostic services across urban and rural areas. The market has seen growth during the historical period, driven by the increasing demand for diagnostic services and advancements in medical technology. Key drivers of the market include the rising incidence of conditions such as diabetes, cardiovascular diseases, and cancer, which necessitate accurate and timely diagnostic tools.

• Major metropolitan cities like Delhi, Mumbai, and Bangalore account for a share of the market due to the concentration of diagnostic centers and hospitals, while the governments push to improve healthcare access in rural regions is opening new opportunities in tier 2 and tier 3 cities. However, challenges such as regulatory constraints and the lack of skilled professionals continue to pose barriers to the seamless adoption of IVD technologies across the country.
• The Indian governments initiatives to improve healthcare infrastructure and expand diagnostic capabilities, especially under programs such as Ayushman Bharat, have also contributed to the markets growth. Additionally, the increasing adoption of point-of-care (POC) diagnostics and the integration of digital technologies into diagnostic systems are further propelling the market forward.

India IVD Market Segmentation

• By Product Type: The market is segmented into instruments, reagents, and software. Reagents dominate the market, accounting for the largest share due to their frequent use in various diagnostic tests. Instruments are also gaining traction, especially with the increasing demand for automation and high-throughput systems in diagnostic laboratories. Software solutions, which are critical for data management and diagnostic accuracy, are growing steadily as laboratories integrate digital solutions.

• By Application: The market is further segmented by application into infectious diseases, oncology, diabetes, and cardiology. Infectious diseases lead in this category due to the high prevalence of viral and bacterial infections in India, which require timely diagnostic testing. The need for early diagnosis and proper management of diseases like tuberculosis, hepatitis, and HIV/AIDS has ensured that this sub-segment remains a priority within IVD testing.

India IVD Market Competitive Landscape

The India IVD Market is competitive, with both domestic and international players vying for market share. Major companies include Dr. Lal PathLabs, SRL Diagnostics, and Thyrocare from the domestic market, while global players like Siemens Healthineers, Abbott, and Roche Diagnostics have also established a strong presence, particularly in high-end diagnostic segments.

Companies are increasingly focusing on research and development to introduce innovative diagnostics, including molecular diagnostics and immunoassays, which are gaining popularity due to their precision and efficiency. Strategic initiatives such as partnerships with hospitals and diagnostic chains, along with the expansion of distribution networks, are helping companies penetrate deeper into the Indian market.

India IVD Market Analysis

Growth Drivers

• Rising Burden of Chronic Diseases: India has witnessed a sharp rise in chronic diseases such as diabetes, cardiovascular diseases, and cancer. According to the World Health Organization (WHO), India is home to over 77 million diabetics, and this number is expected to grow, increasing the demand for diagnostic services. The increasing burden of these diseases has led to a higher requirement for regular diagnostic testing, boosting the IVD market.
• Increasing Adoption of Point-of-Care Diagnostics (POC): The demand for Point-of-Care (POC) diagnostics has surged in India, especially following the COVID-19 pandemic. In 2024, the market for POC diagnostics is seeing adoption in rural and urban healthcare settings, supported by over 140,000 Health and Wellness Centers established under the Ayushman Bharat program. This expansion enhances diagnostic accessibility and affordability, leading to increased use of POC IVD products.
• Technological Advancements: India's diagnostic sector is experiencing rapid technological advancements, with AI and automation being integrated into laboratories and diagnostics. In 2024, AI-driven diagnostics will revolutionize disease detection, with applications in imaging, pathology, and genetic testing. Automation has reduced manual errors and improved diagnostic accuracy, facilitating the faster adoption of advanced IVD instruments in major hospitals and diagnostic labs. The increased efficiency and accuracy provided by these technologies are further driving the growth of the IVD market in India.

Market Challenges

• Regulatory Hurdles and Compliance: India's regulatory landscape for IVD products remains complex, with compliance requirements varying between domestic and international standards. The Central Drugs Standard Control Organization (CDSCO) regulates IVD products, and manufacturers must navigate complex approval processes. For example, local manufacturing and distribution of IVD devices must comply with both ISO 13485 and CDSCO guidelines, posing challenges for smaller companies
• Shortage of Skilled Professionals: India faces a critical shortage of skilled healthcare professionals, including laboratory technicians and diagnostic experts. In 2023, the country had a healthcare workforce deficit of around 600,000 professionals, particularly in rural areas where diagnostic services are expanding under government initiatives. This shortage hinders the full utilization of advanced diagnostic technologies, including IVD, limiting the reach and efficiency of diagnostic services across the country.

India IVD Market Future Outlook

The India IVD Market is poised for robust growth in the forecasted period, driven by the increasing prevalence of chronic diseases, rising healthcare expenditure, and the growing demand for diagnostic services. The market is expected to benefit from government initiatives aimed at improving healthcare infrastructure and expanding access to diagnostic services in rural and remote areas.

Future Market Opportunities

• Rise of Molecular Diagnostics (PCR, NGS): Molecular diagnostics, particularly Polymerase Chain Reaction (PCR) and Next-Generation Sequencing (NGS), have seen a surge in demand across India. By 2024, the country has over 1,200 PCR labs, fueled by growing demand for accurate disease detection, including for infectious diseases and cancer. Molecular diagnostics offer precise detection and have become essential for personalized medicine, providing opportunities for IVD companies to expand their molecular product lines.
• Expansion in Tier 2 and Tier 3 Cities: The diagnostic market in India is witnessing rapid expansion in Tier 2 and Tier 3 cities, driven by government initiatives such as the Ayushman Bharat program. In 2023, diagnostic penetration in these regions improved , with over 12,000 new diagnostic centers established in smaller cities. This expansion provides an untapped market for IVD manufacturers, as these regions demand more affordable and accessible diagnostic solutions.