Analyst at Ken Research in their latest
publication “India
Diagnostic Laboratories Market Outlook to 2025 - By Government and Private
Labs, By Radiology and Pathology, By Organized and Unorganized Players, By
Business Model (Standalone, Hospital Based and Diagnostic Chains), By Cities
(Tier I, Tier II and Tier III cities) and By Payment Method (Out of Pocket
Expenditure, Insurance based and Corporate Spending” believe
that the market is highly fragmented and there is a dire need for strict
regulations. These regulations would help bring about uniformity along with high
quality testing standards in the industry. The report further talks about the
ecosystem of the diagnostic labs present in India along with a number of
segmentations such as radiology and pathology, types of models used, organized
and unorganized players and many more. It also provides an investment model for
a franchise lab to open up in India. There have been a number of research
projects focusing on innovative and less invasive forms of testing. Some of the
challenges faced by this industry include price differentiation, lack of
knowledge at the consumer end and lack of regulations. Despite the COVID-19
pandemic, this industry sees a bright future. People will be more aware of
their health & lifestyle choices and hence, there would definitely be a
rise in wellness/preventive testing, helping the diagnostic laboratory market
of India to grow further in the coming years.
Industry
Overview
The market is
highly fragmented with only four major PAN-India level players. It is still at
its’ growing stage. However, the unorganized sector dominates the market’s
revenue currently. The highest penetration of the labs is in Tier I cities,
which is also the place for their reference labs. Digitalisation in the chain
of diagnostics has helped remove mistakes from the time the samples have been
collected to the last process of delivering the report to the customer. The
major drivers for this market include the high elderly population and the shift
from non-communicable to communicable diseases in India. Radiology test market has evolved over time with the
advancement in the existing technology of imaging machines such as PET-scan
which added more clarity in the diagnosis of the patient’s disease. Whereas for
pathology, the segment has gained dominance in the market owing to the fact
that it is the preferred line of diagnosis for the majority of diseases
prevalent in India including infectious diseases.
Industry
Segmentation
The report
explores segments such as government and private diagnostic labs within the
country. It is the private diagnostic labs market which is further broken down
into various segments. The market is dominated by unorganized players. Medical
insurance in the country is currently focused upon the clinical side and not so
much towards the diagnostic sector. As of now, majority of the payment is done
through out of pocket expenditure. There are a number of standalone centers in
the market which hold the highest share. The diagnostic chains are further
split into regional and PAN-India level labs. Within the Indian market, there
are a number of doctors who have tie ups with labs and hence the customers
coming from a referral hold a prominent share in the overall market. The
revenue earned by a lab from a referral customer is split between the doctor
and the lab. In the future, it is expected that testing for wellbeing would
increase as people are now making a conscious effort to stay fit, however
testing for sick care would still dominate the market.
Bottlenecks
Faced in the Industry
Due to lack of
regulations, there are hardly any barriers to entry. As a result there are a
number of labs which have opened throughout the country. Majority of them fail
to follow protocols and lack accreditations. There is also a lack of price
standardization due to which there is a high level of discrepancies between diagnostic
test prices of Tier I and Tier III cities. The penetration of labs in the rural
parts of India is also low. When
compared to a developed market like that of UK wherein 80% of the medical
expense is incurred by the government, India falls behind in both aspects and
is inclined towards out of pocket expenditure.
Competition
Scenario in the Industry
The market structure is highly fragmented with unorganized players
dominating the industry and has presence majorly in Tier-2 and Tier-3 cities. In
the past few years, there have been a number of acquisitions and mergers with
larger players acquiring smaller players helping the organized sector grow. It
also facilitates a larger reach and more comprehensive test menus. There are majorly
four PAN-India players which are well established in the market, they include
Dr. Lal Pathlabs, Thyrocare Technologies, Metropolis Healthcare and SRL
Diagnostics. These labs give utmost focus on research and development in order
to introduce new and less invasive tests.
Future
Strategies-The Way Forward
Government
regulations are in focus which would help in streamlining the market in the
coming years. As more companies enter
the organized sector, there would be an increasing emphasis on the hub and
spoke model in order to bring in volumes required for a commercial entity to
survive in the market. Growth of 3D printing, which allows radiologists and
clinicians to bring to life body parts and tumors which were previously available
only as flat diagrams, will help revolutionize the market. India is set
to increase its public health spending to 2.5% of its GDP by 2025 which would
help cut down on out of pocket expenditure on healthcare services. This would
be a major boost to the diagnostic sector of the industry. Consumer
satisfaction would be a focus point in order to retain brand equity. Home
sample collections are expected to further increase thereby bringing in
convenience to the patient and facilitating further penetration of organized
players in the market.
Key Segments Covered:-
India
Diagnostic Laboratories Market
Revenue
Segmentation by Government and Private Labs
Government
Labs
Private
Labs
India Private Diagnostic Laboratories Market
Revenue
Segmentation by Pathology and Radiology
Pathology
Sector
Radiology
Sector
Revenue
Segmentation by Pathology
Clinical
Biology
Hematology
Surgical
Pathology
Histopathology
Clinical
Microbiology
Molecular
Biology
Others
Revenue
Segmentation by Radiology
X-rays
Sonography
MRI
CT Scans
Mammography
PET
Others
Revenue
Segmentation by Business Model
Standalone
Diagnostic
Chains
Hospital
Based Labs
Revenue
Segmentation by Diagnostic Chains
Regional
Chains
Large
PAN-India Chains
Revenue
Segmentation by Tier I, II and III Cities
Tier
I cities
Tier
II cities
Tier
III cities
Revenue
Segmentation by Organized and Unorganized Players
Revenue
Segmentation by Type of Customers
Referrals
Walk
Ins
Corporate
Client
Revenue
Segmentation by Payment Method
Out
of Pocket Expenditure
Corporate
Spending
Insurance
Key
Target Audience:-
Government
Diagnostic Labs
Private
Diagnostic Labs
Research
Labs
Medical
Insurance Companies
Medical
Device Manufacturers
Industry
Associations
Government
Bodies
Investors/VC’s
Time
Period Captured in the Report:-
Historical
Period: FY’2015-FY’2020
Forecast
Period: FY’2020-FY’2025
Companies Mentioned:-
Dr.
Lal Pathlabs
SRL
Diagnostics
Metropolis
Healthcare
Thyrocare
Technologies
Medall
Healthcare Pvt Ltd
Suraksha
Diagnostics Pvt Ltd
Suburban
Diagnostics
Neuberg
Diagnostics
Key
Topics Covered in the Report:-
Spread of Communicable and Non-Communicable
Diseases in India
Market Sizing Analysis of Diagnostic Labs in
India
Ecosystem of Diagnostic Labs in India
Operating Models in India Diagnostic Labs
Pricing Analysis in India Diagnostic Labs
Market
Value Chain Analysis of India Diagnostic Labs
Market
Decision Making Parameters for a Diagnostic
Lab
Issues and Challenges in the Industry
Government Regulations in the Industry
Segmentation by Radiology and Pathology
Segmentation by Type of Business Model
(Standalone, Hospital Based Labs and Diagnostic Chains)
Upcoming Trends and Technologies in the Market
Competition Scenario and Market Share
Investment Model for a Franchise Lab in India
Success Stories of Diagnostic Labs in India
For
More Information on the research report, refer to below link:-
Related Reports:-
Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
+91-9015378249
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