India in Vitro Diagnostics Market Outlook to 2028

India In Vitro Diagnostics Market Overview

• The India in Vitro Diagnostics (IVD) Market was valued at USD 394 million. This growth is driven by several factors, including increased demand for diagnostic tools due to the rising prevalence of chronic diseases, advancements in technology such as molecular diagnostics, and government initiatives to improve healthcare infrastructure across the country.
• Major players in the market are Siemens Healthineers, Roche Diagnostics, Abbott Laboratories, Transasia Bio-Medicals, and Tulip Diagnostics. These companies have established a strong market presence due to their wide-ranging product portfolios, extensive distribution networks, and ongoing investments in innovation.
• Roche Diagnostics India was awarded Frost & Sullivans 2021 India Competitive Strategy Leadership Award for its innovative, technology-led solutions in the in market. Roche Diagnostics performed over 350 million tests in India using its laboratory automation systems, enhancing operational efficiency and reducing turnaround time.
• Maharashtra, dominated the market due to the state's robust healthcare infrastructure, high population density, and increasing private-sector investment in diagnostics. Also Tamil Nadu, with a strong public healthcare system and multiple diagnostic centers.

India in Vitro Diagnostics Market Segmentation

The market is segmented into various factors like product, end user, and region.

By Product: The market is segmented by product into clinical chemistry, molecular diagnostics, immunoassays, and hematology. Molecular diagnostics held the largest market share, due to its growing application in the early detection of diseases, particularly cancer and infectious diseases.

By End-User: The market is segmented by end-user into hospitals, laboratories, and academic & research institutes. Laboratories held a dominant market share by the increasing number of private diagnostic labs, which have made diagnostics more accessible across urban and rural India.

By Region: The market is segmented by region into North, South, East, and West. The western region, led the market share due to the presence of key players, better healthcare infrastructure, and high per capita healthcare spending.

India in Vitro Diagnostics Market Competitive Landscape

• Transasia Bio-Medicals: Transasia Bio-Medicals, a leading in-vitro diagnostic company, has set up a state-of-the-art medical device manufacturing plant at the Andhra Pradesh MedTech Zone (AMTZ), Visakhapatnam, with an investment of 30 crore. The facility, spread over 35,000 sft, has an annual capacity of 2 million Molecular & Serology test kits and can produce 6 lakh Elisa-based antibody detection test kits per day besides RT-PCR and rapid test kits.
• Becton, Dickinson and Company: BD and Quest Diagnostics are collaborating to develop companion diagnostics aimed at enhancing patient care in oncology. This partnership will leverage BD's expertise in diagnostic technologies and Quest's extensive laboratory services. The initiative is part of a broader trend in personalized medicine, which is expected to grow significantly, with the global market projected to reach $2.6 billion by 2027.

India in Vitro Diagnostics Market Analysis

Market Growth Drivers

• Chronic Disease Prevalence: The rise in chronic diseases such as cancer, diabetes, and cardiovascular conditions is a primary driver in the Indian IVD market. As of 2024, India has over 77 million individuals diagnosed with diabetes, leading to increased demand for diagnostics like glucose monitoring. The number of cancer cases diagnosed yearly is expected to exceed 1.5 million, pushing the adoption of molecular diagnostics solutions across the healthcare sector.
• Increased Healthcare Expenditure: The Indian government allocated over INR 2.98 lakh crore towards healthcare in the 2024 budget. This increase in healthcare spending has fueled the expansion of diagnostic infrastructure, especially in rural areas, further driving demand for vitro diagnostic solutions. Rising investments in healthcare insurance and diagnostic facilities are projected to improve accessibility and affordability of diagnostic tests across the country.
• Expansion of Point-of-Care Diagnostics: In 2024, there has been a substantial rise in the demand for point-of-care (POC) diagnostic systems. These tools allow for quicker diagnosis in primary healthcare centers, which currently service over 28,000 villages and smaller cities in India. With the government aiming to increase healthcare access in rural areas, POC diagnostics will see adoption, especially for infectious disease testing.

Market Challenges

• Regulatory Barriers: India lacks a comprehensive regulatory framework for the IVD industry, leading to challenges related to quality control and product approvals. In 2024, over 30,000 diagnostic labs operate in the country, but many remain unregulated. The absence of standardized regulations has led to inconsistencies in product reliability and diagnostic accuracy, restricting market growth and international competitiveness.
• Shortage of Skilled Personnel: There is a shortage of skilled technicians to operate advanced diagnostic tools. In 2024, India has an estimated 1.6 million healthcare workers, but fewer than 10% are trained in handling sophisticated diagnostic equipment, including molecular and genetic testing systems. This gap in expertise has created operational inefficiencies, limiting the full utilization of diagnostic tools.

Government Initiatives

• National Digital Health Mission (NDHM): NDHM aims to create a digital healthcare ecosystem in India, allowing for easy access to healthcare services, including diagnostics. The government has allocated INR 5,000 crore towards this initiative in 2024, which is expected to enhance diagnostic services across the country by linking patients with healthcare providers through digital platforms.
• Ayushman Bharat Program: The Ayushman Bharat Digital Mission (ABDM) introduced the Digital Health Incentive Scheme (DHIS) to encourage healthcare providers to adopt digital health services. In 2024, the government allocated INR 500 crore for this initiative, which aims to incentivize hospitals and diagnostic labs for using digital health records and interoperable health solutions, promoting efficiency and accessibility across Indias healthcare system.

India in Vitro Diagnostics Market Future Outlook

The market is expected to expand with increased adoption of companion diagnostics, AI-based tools, and preventive healthcare solutions, particularly in rural and semi-urban areas, driven by both government and private sector investments.

Future Market Trends

• Growth in Companion Diagnostics: Over the next five years, India will witness a surge in the adoption of companion diagnostics, particularly in oncology. By 2028, the number of cancer cases in India is expected to surpass 1.6 million, driving demand for precise, personalized diagnostic tools. Investments in this segment are projected to reach INR 3,500 crore by 2028.
• AI and Big Data in Diagnostics: The integration of AI and Big Data will reshape the diagnostic landscape in India by 2028. Hospitals and diagnostic centers will increasingly rely on AI-driven diagnostic tools for real-time data analysis and accurate disease detection. By 2028, AI-based diagnostics are expected to be a standard in over 60% of healthcare institutions across the country.