India Healthcare Market Outlook to 2028

India Healthcare Market Overview

The Indian healthcare market was valued at USD 178 billion in 2023, driven by increasing healthcare expenditure, expanding healthcare infrastructure, and rising demand for medical services. The sector has experienced important growth due to government initiatives, increased private sector investment, and advancements in medical technology.

Major players in the Indian healthcare market include Apollo Hospitals, Fortis Healthcare, Max Healthcare, Narayana Health, and Medanta. These companies play a crucial role in providing healthcare services, including hospitals, diagnostic centers, and specialty clinics. They cater to both domestic and international patients, contributing to the market's growth.

The healthcare market in India is concentrated in major urban centers like Mumbai, Delhi, Bangalore, Chennai, and Hyderabad. These cities are hubs for advanced healthcare facilities and attract patients from across the country and beyond, thanks to their state-of-the-art infrastructure and specialized medical services.

In a major development set to greatly improve oncology care, Apollo Cancer Centre in Bengaluru has introduced Indias first AI-Precision Oncology Centre (POC). This innovative facility will assist oncologists, patients, and caregivers in achieving optimal outcomes efficiently by leveraging the extensive capabilities of artificial intelligence.

India Healthcare Market Segmentation

The Indian healthcare market is segmented by various factors including service type, healthcare Sector, and region.

By Service Type: The market is segmented by service type into hospitals, diagnostics, and pharmaceuticals. In 2023, the hospital segment held a substantial market share due to its extensive network and high demand for inpatient and outpatient services. Major hospital chains such as Apollo Hospitals and Fortis Healthcare have established strong footholds, driven by their comprehensive medical services and advanced facilities.

By Healthcare Sector: The Market is segmented by sector into public healthcare, private healthcare, and non-profit healthcare. In 2023, the private healthcare sector holds a dominant market share due to the growing demand for high-quality, timely medical services and advanced healthcare technology. Private hospitals and clinics offer a wide range of specialized services and cater to the increasing healthcare needs of the affluent population.

By Region: The market is segmented regionally into north, south, east, and west India. The Northern India region dominated the healthcare market in 2023 due to its high population density and substantial healthcare infrastructure. The presence of numerous hospitals and healthcare facilities, combined with a large urban population, contributes to its market leadership.

India Healthcare Market Competitive Landscape

Company

Establishment Year

Headquarters

Apollo Hospitals

1983

Chennai, India

Fortis Healthcare

1996

Gurgaon, India

Max Healthcare

2001

New Delhi, India

Narayana Health

2000

Bangalore, India

Medanta

2009

Gurgaon, India

Manipal Hospitals

1991

Bangalore, India

Healthcare Global Enterprises

2006

Bangalore, India

Fortis Healthcare: In 2023, Fortis Healthcare announced plans to acquire hospitals with 250-300 beds to enhance growth. The strategy aims to increase bed capacity by over 2,000 in the next 3-4 years, focusing on brownfield projects for cost efficiency. Additionally, Fortis is exploring rebranding as a unit of IHH, pending legal proceedings regarding the name change.

Max Healthcare: Over the next years, Max Healthcare is set to open a new 500-bed hospital in Saket, Delhi, which will enhance its capacity in the region to 2,300 beds. This expansion aims to strengthen its service offerings, particularly in cardiology and neurology, and reflects the company's strategy to increase its presence in key urban centers.

India Healthcare Market Analysis

Growth Drivers:

Increase in Healthcare Expenditure: The total health expenditure in India is expected to reach above 891 billion Indian rupees by fiscal year 2024 as per government budget estimates reflecting an important boost in financial resources allocated to the healthcare sector. This rise in expenditure is driven by government initiatives to improve healthcare infrastructure and expand insurance coverage. For instance, the expansion of the Ayushman Bharat scheme aims to cover more individuals, leading to increased public and private investment in healthcare facilities and services.

Rising Incidence of Chronic Diseases: A recent study by the Indian Council of Medical Research (ICMR) found that in 2023, India has over 101 million people living with diabetes compared to 70 million people in 2019. This increasing burden of chronic diseases is driving the demand for advanced medical treatments and healthcare services. The National Diabetes and Diabetic Retinopathy Survey 2024 highlights that adults in urban areas are at risk of chronic conditions, necessitating enhanced healthcare infrastructure and specialized medical services.

Expansion of Health Insurance Coverage: The expansion of health insurance coverage under the Ayushman Bharat scheme is a significant growth driver for the Indian healthcare market. The Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) cover 55 crore beneficiaries, which is about 40% of India's population. As of 2024, the government plans to double the beneficiary base over the next three years and increase the insurance coverage from 5 lakh to 10 lakh per family.The increased insurance coverage is expected to drive demand for healthcare services and improve market dynamics.

Challenges
:

Inadequate Healthcare Infrastructure in Rural Areas: Despite improvements in urban healthcare facilities, rural areas in India still face healthcare infrastructure challenges. As of 2023, rural areas lack adequate healthcare facilities and specialized medical services. This disparity limits access to quality healthcare for rural populations and poses a challenge for equitable healthcare distribution.

Shortage of Healthcare Professionals: India faces a critical shortage of healthcare professionals, in 2023, India has only 1.7 nurses per 1,000 people, while the World Health Organization (WHO) recommends 3 nurses per 1,000 people. The shortage of skilled healthcare workers impacts the quality of healthcare delivery and increases the burden on existing medical professionals. Efforts to address this shortage through training and recruitment are ongoing but have yet to fully meet the growing demand for healthcare services.

Government Initiatives:

Ayushman Bharat Digital Mission (ABDM): Launched in 2020 and continued through 2024, the Ayushman Bharat Digital Mission aims to create a digital health ecosystem across India. The initiative involves the development of a national digital health ID system, which will improve the efficiency and accessibility of healthcare services by enabling seamless sharing of patient health records and reducing administrative burden.

Pradhan Mantri Jan Arogya Yojana (PMJAY): As part of the Ayushman Bharat scheme, PMJAY provides health insurance coverage of up to INR 5 lakh per family per year for secondary and tertiary care hospitalization. In 2023, the scheme covered more than 500 million beneficiaries, improving access to healthcare services for economically disadvantaged individuals.

India Healthcare Future Market Outlook

The India Healthcare Market is poised for remarkable growth, driven by Expansion of AI and Data Analytics in Healthcare, Increased Focus on Preventive Healthcare, and Growth of Medical Tourism.

Future Market Trends:

Expansion of AI and Data Analytics in Healthcare: By 2028, the use of artificial intelligence (AI) and data analytics in healthcare is expected to become widespread, transforming diagnostic processes and personalized treatment plans. The integration of AI technologies will enable more accurate disease prediction, efficient data management, and improved patient outcomes. The market for AI in healthcare is anticipated to grow remarkably, driven by advancements in machine learning and data analytics.

Increased Focus on Preventive Healthcare: The focus on preventive healthcare will intensify, with an expected rise in preventive health services and wellness programs. By 2028, preventive healthcare initiatives are projected to become a central component of the healthcare system, driven by increased awareness and the need to manage chronic diseases proactively. This shift will lead to more widespread adoption of preventive measures such as health screenings, vaccination programs, and lifestyle interventions.
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