Indian healthtech sector to grow 14x to $35b by 2030: report

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The healthtech sector in India could reach US$35 billion in 2030, a 14x increase from US$2.5 billion in 2022, according to a recent report by Boston Consulting Group (BCG) and Eduardo Saverin’s B Capital.

This will be the main growth driver for the country’s wider healthcare market, which is set to increase from US$181 billion to US$488 billion during the same period.

Called “Digital Pill for Revolutionizing Healthcare,” the report also found that despite this growth, India’s healthcare resources are inadequate. For example, the country has a lower number of hospital beds and medical practitioners compared to countries like China and the US.

India also had the highest inflation in medical costs at 13.8% in 2021, followed by China at 11.6% and Vietnam at 10%.

“Digitalization is no longer optional for India’s healthcare industry – it’s vital and a matter of survival,” said Priyanka Aggarwal, senior partner and managing director at BCG.

It also appears that the country’s population is receptive to healthcare digitization. In India’s metro areas, 49% said they would prefer taking a digital consultation for the first doctor visit. This indicates that healthtech adoption could go up.

The Indian government also has its own teleconsultation platform called eSanjeevani, which has reached over 100 million patients.

While e-diagnostics is just one segment of the larger healthtech ecosystem, it is the area best poised for market size growth. This will be mainly driven by the population’s increasing consumption of digital solutions.

The report noted that along with pharma delivery and wellness, teleconsultation is a mature segment. Meanwhile, areas like healthcare financing and healthcare SaaS are emerging segments primed for more growth.

For instance, the report expects insurance coverage to improve from 37% to 69% by 2030 due to improvements in the healthcare financing space.

“With digital health-driven solutions, we can extend essential services to hundreds of millions,” said Karan Mohla, general partner at B Capital.

Founded in 2015, B Capital targets seed to late-stage investments, including those in the healthcare sector. The firm has more than US$6 billion in assets under management across multiple funds.

In March, B Capital closed its inaugural healthcare fund at over US$500 million. The fund is led by Robert Mittendorff, a general partner at the firm.