Medical | News & Insights

Indian Diagnostic Sector to See Stable Double-digit Growth in Medium Term

Published: November 9, 2023


  • The diagnostic industry is highly competitive and fragmented in nature due to the low entry barriers, and the market share of organised players is only limited to around 17%. The major chunk of the market share is with the unorganised players.
  • In India, the diagnostics space is a growing sector owing to various factors, viz., increase in healthcare spending by ageing population, rising income levels, rising awareness for preventive testing, advanced healthcare diagnostic tests offerings, market penetration of healthcare insurance, and healthcare measures by the central government.
  • The diagnostic industry faces pricing pressure due to high competition and government-enforced pricing regulations.
  • More number of players in the industry are focusing on geographical expansion and inorganic growth acquiring regional local players to capture higher market share.
  • The companies are employing digitisation and artificial intelligence/ machine learning techniques since there is a rise in the customer demand for home-based diagnostic services.
  • The diagnostic industry is likely to witness stable double-digit revenue growth, ranging from 12%-14% with operating profitability margins likely to be at pre-Covid-19 levels and remain in the range of 23%-25% for FY23-24.


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