India Diagnostic Laboratories Market, Market Sales, Revenue, Growth and Analysis, Major Players: Ken Research

Overview: India Diagnostic Laboratory Market

The report observes the fast-growing Indian diagnostic industry. The market has been observed to be at the growth stage, with the competition being highly fragmented owing to the presence of unorganized sector. The need of the hour for the industry is implementation of regulations which would also help the organized sector to grow further and will bring uniformity and higher test quality standards.  The India Diagnostic Laboratory Market is expected to grow at a CAGR of ~% from FY’2015 to FY’2019. There is expected to be a shift towards molecular testing in the future along with an increased penetration of insurance in this sector which would help a number of individuals to have access to this facility. Some of the challenges faced by the industry include lack of regulations, lack of price standardization, high cost of equipments, growing operating expenses in providing new or existing medical services etc.

Industry Segmentation by Government and Private Labs, FY’2020

The governments labs help cater to the lower strata of the economy as they have a lower pricing policy. The private labs, which form the majority of the market, focus more on research and development and have a variety of high end tests.

India Private Diagnostic Laboratory Market Segmentation, FY’20

Revenue by Radiology and Pathology, FY’20

The market is dominated by the pathology department. The initial investment required for the same is lesser as compared to radiology. Pathology also happens to be the first step towards diagnosis of any disease.

Revenue by Pathology, FY’20

Amongst the different tests, clinical bio-chemistry holds the largest revenue share in the market. Haematology, which is often used as a diagnosis for cancer, also provides a significant amount towards the overall pathology market.

Revenue by Radiology, FY’20

X-rays hold the maximum share in the radiology market. Radiology tests can be extremely complex and their equipments also cost a lot. X-rays are something which are available from the smallest of labs to the bigger ones.

Revenue by Model Type, FY’20

As the market is highly unregulated majority of the labs are standalone labs. However, they often have a tie up with other labs for high end testing. The diagnostic chains mostly constitute the organised sector.

Revenue by Diagnostic Chains, FY’20

There are only a handful of PAN-India Diagnostic Chains in the country. As the market is highly fragmented there are a number of regional labs spread across.

Revenue by Tier I, II and III Cities, FY’20

The reference labs of the major players are situated in the Tier I cities. It is also very difficult to have trained doctors in the Tier III and rural areas of the country; thereby majority of the revenue comes from Tier I.

Revenue by Organised and Unorganised Players, FY’20

Well established organized players are extremely minimal in this space. They use the hub and spoke model for their operations and expansion. The unorganized players are mostly standalone centers.

Revenue by Type of Customers, FY’20

Within the diagnostic industry of the country, there are a number of doctors who have tie ups with hospitals. Referrals have proven to be beneficial for both the parties involved.

Revenue by Cause for Testing, FY’20

As the kinds of diseases have changed drastically over the past, individuals are becoming more conscious of their health. In is expected in the future that the share of testing for well-being would also increase.

Revenue by Payment Method FY’20

The insurance sector is yet to penetrate into the diagnostic market. Majority of the payment is currently through out of pocket expenditure.

India Diagnostic Laboratory Market Future Projections

The diagnostic labs market of the India has a lot of potential to grow in the future. New technologies such as 3D printing, which allows radiologists and clinicians to bring to life body parts and tumors which were previously available only as flat diagrams will further help the industry grow. More players are likely to penetrate the rural healthcare market with increasing number of diagnostic laboratories coming up in remote places during this period. India is also set to increase its public health spending to 2.5% of its gross domestic product (GDP) by 2025 which would help cut down on out of pocket expenditure.

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:-

India Diagnostic Laboratories Market

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In-Depth Analysis of the COVID-19 Impact on India Diagnostic Laboratories Market: Ken Research

Despite the pandemic having a severe impact on a number of industries, the diagnostic sector is set to have a speedy recovery. A drastic shift amongst the consumers is expected wherein more focus will be upon wellness and preventive testing. In pre-Corona pandemic stage, the major diagnostic service providers such as Dr Lal Path Labs, SRL Diagnostics and several others were facing the issues like price increase, volume pressure and rising cost base but post-corona virus outbreak, the worry has shifted to the sustainability of the business. However, some players are bucking the trend by adopting innovative strategies and outlooks to stay afloat.

Impact on Diagnostic Laboratory Market Offerings: Like any other businesses, the diagnostics sector is also facing severe bottlenecks and patient volumes have come down significantly. As the lockdown continues, people seek medical care only for emergency or acute conditions and consequently, demand for diagnostic tests has also reduced. An assessment by the Federation of Indian Chambers of Commerce and Industry (FICCI) and Ernst and Young (EY) estimated that the lockdown is likely to result in operating losses for this quarter of INR 13,400-22,000 crore for hospitals and INR 600-2,200 crore for diagnostic labs.

Government Initiatives: Initially, it was only the government labs which were allowed to do testing within India. However due to high demand, the government gave permission to private labs, who have accreditations, to also test for COVID-19. According to the government of India, a cap of INR 4,500 has been set on COVID testing. Despite the Center providing this figure, the state of Karnataka has imposed a cap of INR 2,250, thereby increasing the pressure on private labs. One of the biggest cost components is reagents, priced at INR 800-1,500, and with the cost of transportation and labour, the figure works out to approximately INR 2,500. An undue cost pressure is being witnessed in the market, with advance payments becoming a norm for all manufacturers & suppliers and deferred payments being witnessed from hospitals (both private and government) to diagnostic players. Few of the private firms which are allowed to do Covid-19 testing include Dr. Lal Pathlabs, SRL Diagnostics, Roche Diagnostics etc.

Research on Vaccines: Pune-based Serum Institute of India (SII), founded by Cyrus Poonawalla in 1966, is the world's largest vaccine manufacturer, which produces over 1.5 billion doses and immunizes. It launched three critical initiatives for defeating COVID-19 virus - one with UK's Oxford University, one with US-based biotech company Codagenix, and its own recombinant BCG vaccine. The clinical trials have already commenced in the UK. The company is simultaneously initiating production as well, in the hope that when the trials are successful, they would have the first batch of doses ready for use by September or October. Each vaccine is going to cost approximately INR 1,000.  The decision has been solely taken to have a jump-start on manufacturing, in order to have enough doses available and the distribution of the doses will commence only once the trials are successful and the vaccine is efficacious as well as safe for use.

Strategies Adopted by Diagnostic Laboratories Players:-

Medall Healthcare: The company has increased its focus on home collection services and has witnessed a significant growth in home collection for routine samples across all regions it is operating.

Neuberg Diagnostics: This industry player ramped up their ‘Anywhere Anytime’ services (home collection service) to offer free round the clock lab services at the doorstep during the lockdown period. Neuberg’s full-fledged sample collection and ECG services are offered in Chennai, Bengaluru, Cochin and Hyderabad.

SRL Diagnostics: This company has partnered with ‘Housejoy’ in Bengaluru to develop mobile testing vans for conducting routine pathological tests, primarily in red zones, it also has witnessed a huge surge in demand for home pick-up of samples. It has also planned to start its drive-through sites/centers for Covid testing in Jammu by June 2020. It already has drive-through sites operational in Gurgaon, Chandigarh and Mumbai.

Other Players: Few major players are also eyeing acquiring smaller unorganized players during this time as many of these unorganized players are facing difficulty in sustaining their business and the major organized players see this as an opportunity to expand their operation and customer reach by acquiring existing business, post an evaluation of their customer catchment area, technology, quality controls etc. to decide on finding the right targets to takeover.

Increasing Demand from the Corporate Sector: Dr Dangs laboratories (a major market player) received significant number of emails from private companies requesting them to test their employees so that they can resume work. Max Healthcare also confirmed they had been receiving requests from corporate sector to conduct tests. Airlines and air travelers have also added to the rush in getting RT-PCR tests. Air travelers now need a negative RT-PCR test 48 hours before they travel, which has resulted in further increase in demand for Covid tests in the country.

Expectations of the Industry from the Government: The health industry is significantly strained due to revenue losses in the current quarter. The industry believes that in the true spirit of a public-private partnership (PPP), the government should release timely payments (usually within a week) as per the agreements signed with private laboratories and hospitals. Rationalization of goods and services tax (GST) for healthcare services at 0% or 5%, instead of the current exemption from GST, is a long-standing request of the health sector, which should be considered now. Due to the exemption, hospitals and labs cannot claim input tax credit, while the cost of several input products and services has increased in the GST regime.

Industry’s Future-The Way Forward: Short-term interest-free or concessional interest rate loans to address the liquidity gap in the industry should be facilitated by the government. However, laboratories need to sustain operations at full scale to support testing for covid-19, which is increasing on a daily basis with the rise in the number of reported cases in the country crossing 2,10,000 cases as of 3^rd June 2020.

It is expected that post-Covid pandemic, testing for wellbeing would increase as people will now be making a conscious effort to stay fit, however testing for sick care would still dominate the market. The overall market for wellness and preventive diagnostics was approximately 6.0% in the financial year 2018. It is expected that preventive care/wellbeing testing segment will now grow at a CAGR of approximately 20.0% over the next three financial years. Higher literacy levels are expected to increase awareness of preventive and curative healthcare and in turn boost the demand for diagnostic services. Health tracking mobile applications and online services such as booking appointments online for preventive healthcare checkups, booking a path/lab test, obtaining reports online will further augment growth in this industry in future.

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

For More Information on the research report, refer to below link:-

India Diagnostic Laboratories Market

Related Reports:-

Brazil Medical Device Market Outlook to 2025 - by Type of Device (Reagent for In-Vitro Diagnostics, Materials and Supplies, Laboratory Equipment and Others), Type of Business Activity (Import and Local Production), Channel of Sales (Distributor and Direct), Type of End User (Hospital, Clinics, and Diagnostic Lab Centers and Others) and By Region (South-East, South, North-East, Mid-West, and North)

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Contact Us:-

Ken Research

Ankur Gupta, Head Marketing & Communications

Ankur@kenresearch.com

+91-9015378249