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The Future of Health Tech

Healthcare, facilitated by technology, has been an accelerated sector during the pandemic. The healthcare market in India is forecasted to reach USD 372 billion by 2022-2023. The global digital health market size is expected to reach ~USD 300B by 2028 and is projected to expand at a CAGR of 15% over the forecast period. The health-tech ecosystem in India is expected to be worth $5-6 billion by 2023, as per analyst reports. What is more exciting is that this sector is expected to rise with a CAGR of 39-40%, as per the report published recently by IAMAI and Praxis. There is solid headroom for the growth of health tech since it only accounts for 2-3% of the overall healthcare market in India.

The covid situation brought the intent in patients and families to adopt health tech. This was furthered by the government’s intention to promote technology, telemedicine, and creating a backbone of NDHM, a digital healthcare ecosystem. However, the challenge remains on the agility with which the new age ventures and corporates can develop health tech solutions.

Due to the pandemic, there is high adoption of many health tech services, including e-pharma, teleconsultations, and integrated homecare with diagnostics. Large organizations are looking for new startups who can be acquired and acqi-hired to fast-track the roadmap of digital health services. Healthcare institutions have started adopting online channels to include digital transformation as a part of their strategic focus. According to the experts report, e-pharmacy and B2B health tech sectors account for 60-70% of the increasing health tech market. This is being accentuated by medical devices, e-diagnostic, and teleconsultation solutions growing between 65-70% in the present situation.

According to the reports by Praxis Global, the health tech ecosystem will see a surge of models led by the next wave of AI/ML that will drive better and faster health services to the consumers in need. Considering the landscape of investments in the last five years for the health tech sector, the quantum of funding has been close to $3.5-4B billion, with late-stage companies raising about $173-$175 million or 40-45% of the funds deployed in the Indian healthcare sector.

With such strong winds for healthcare to move fast on the technology value chain, Tracxn claims there are ~6000 health tech companies in India and growing. With experts from medicine, biosciences, and technology being a part of Mirainxt, we can reduce the time to market and revenue for health tech startups. Whether the venture is medical devices-led or deep-tech augmented analytics, we are here to make the founder’s vision come true.

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