The digital transformation of India's healthcare industry has the potential to accelerate tenfold, from $2.7 billion in 2022 to approximately $37 billion by 2030, a report by Boston Consulting Group (BCG) and B Capital said.
This is being driven by rapid digitisation, the proliferation of innovative healthtech platforms, partnerships between start-ups and established companies, and favourable funding environments for viable business models, supported by government initiatives, it said.
A significant indicator of economic development is the upward trajectory of healthcare spending as a percentage of gross domestic product (GDP). In India, this trend has been gaining momentum, albeit still trailing behind other major economies, the report said.
The study provided insights into the emerging trends that are poised to reshape the country's digital healthcare landscape. One of these trends is the widespread adoption of digital healthcare following the disruptive influence of the COVID-19 pandemic. This period has seen patients and healthcare providers become more comfortable with leveraging technology for healthcare interactions, heralding a new era in healthcare consumption. Additionally, the expansion of insurance coverage and outpatient department (OPD) services is driving the adoption of OPD services, making healthcare more accessible to a broader population.
The healthcare landscape in India is witnessing significant disruptions, particularly in the inpatient departments (IPD) and OPD, largely attributed to the rapid advancements made by healthtech companies. These disruptions have unlocked new value pools within the sector, the report said.
Moreover, India's healthcare industry, the report said, benefits from a robust funding environment, providing fertile ground for the emergence of innovative models across various healthcare sectors.
“Indian healthcare is undergoing a transformative phase, catalyzed by the COVID-19 pandemic. The crisis has highlighted the paramount importance of healthcare for both the government and citizens. This extraordinary period has brought about an irreversible change in healthcare consumption, with patients and doctors increasingly embracing technology for healthcare interactions. Concurrently, a thriving ecosystem of innovation is taking root,” Priyanka Aggarwal, Managing Director & Senior Partner (New Delhi) of Boston Consulting Group said.
“The government's dedication to leveraging technology to reshape India's healthcare system is evident through initiatives like the Ayushman Bharat Digital Mission. These collective developments signal a profound shift in the trajectory of digital health development. They present a remarkable opportunity to tackle longstanding challenges related to healthcare accessibility and affordability,” she said.
Healthtech companies are extending their influence both horizontally, spanning the entire healthcare value chain, and vertically, achieving scale and improved economic efficiency.
A noteworthy aspect of the evolving healthcare landscape is the enhanced collaboration between established healthcare providers and digital-native startups. This collaboration aims to provide more efficient healthcare solutions tailored to meet the evolving needs of customers. Another trend on the rise is the emergence of asset-light healthcare providers, focusing on delivering cost-effective and efficient healthcare solutions that cater to evolving patient needs, the report said. To counter the competition posed by digital-native challengers, established healthcare players are actively enhancing their digital capabilities to capture growth and maintain their relevance in the industry. "By developing and scaling innovative treatment models and enhancing financial access through insurance, digital healthcare emerges as the linchpin for the sector's growth. With digital health-driven solutions, we can extend essential services to hundreds of millions,” Karan Mohla, General Partner at B Capital said.
India's healthcare industry could grow to $37 billion by 2030, says report