Market Expansion and Investment Trends
The health technology segment in India, currently comprising approximately 10,000 startups, is poised for significant growth, with projections indicating a tripling in value by 2028. Investors are increasingly shifting their focus towards businesses that exhibit resilience to economic disruptions. A joint report by global management consultant Bain & Company and Indian healthcare-focused venture fund HealthQuad reveals that the current market value stands at around $30 billion, with health tech constituting a quarter, or approximately $7 billion, of the total. By 2028, the market is anticipated to double in value to $60 billion, with health tech potentially capturing up to 35%, equivalent to $21 billion.
Driving Factors and Emerging Trends
The growth trajectory of India’s health tech sector is fueled by three primary trends: horizontal and vertical integrations, expansion into international markets, and the influx of disruptors through acquisitions. These trends have led to increased consolidation within the health tech space, broader market reach for major players, and the emergence of new success paradigms.
Investor Preferences and Focus Areas
Investors are increasingly drawn to business models offering lower risk and higher positive-unit economics. Enterprise-facing ventures that address operational efficiencies or supply chain challenges are particularly appealing. Such ventures demonstrate sustainable long-term growth potential, resilience during economic downturns, and cater to a sizable addressable market with strong market acceptance.
Consumer Demand and Digital Health Adoption
The report underscores the rising adoption of digital health applications among Indian consumers, including telemedicine, e-pharmacy, and wellness services. Consumers seek convenience and quality care in proactive self-health management, driving the continued expansion of health tech products and services.
Structural Changes and Strategic Imperatives
As the market expands, structural changes are expected, including consolidation, increased profitability of enterprise-facing and AI-driven companies, and the growing significance of global markets for health tech. To capitalize on this lucrative market opportunity, health tech players must forge partnerships with established entities or fellow innovators.
