India Diagnostics Market Size, Share, Growth, Trends, and Industry Analysis: By Type (Immunodiagnostics, Clinical Chemistry, Tissue Diagnostics, Haematology, Point of Care Tests, Molecular Diagnostics and Others), By Product Type (Instruments/Analysers and Reagents & Kits), By Application (Infectious Disease, Oncology, Hormone, Diabetes, Cardiac and Others), By End User (Diagnostic Chains, Individual Diagnostic Laboratories, Hospital Laboratories and Others) and Country

India Diagnostics Market size was valued at US$ 2,128.7 million in 2023 and is projected to reach US$ 7,847.9 million by 2030 poised to grow at CAGR of 19.9% from 2024-2030. owing to a rise in healthcare awareness, increase in preventive healthcare check-ups, prevalence of cancer diseases, infectious diseases, and increase in health insurance penetration. Many other potential factors are expected to drive the market over the forecast period. Rising awareness of communicable and non-communicable diseases among the population and subsequent preventive/treatment measures by regular monitoring of health with frequent check-ups under physician guidance is also a significant factor to drive the diagnostics market over the forecast period.

The major restraints of the market are paying the diagnosis tests cost out of pocket, low penetration into Tier 2, 3, and health insurance providers not covering the cost of diagnosis, which is one of the key factors restraining the market. Sick care accounts have a major market share in the market followed by Preventive Wellness. However, post-pandemic preventive wellness has surged owing to awareness among consumers, home collection, discounted prices, and online reporting. Health insurance companies are reimbursing the cost of preventive wellness tests based on the policy coverage to encourage consumers for early diagnoses of diseases. 

India's Diagnostics market is highly fragmented, and most diagnostic tests take place in the metro and tier 1 cities like Mumbai, Pune, Delhi, Chennai, Hyderabad, and Bangalore. Urban Diagnostics dominates the market in India, and rural diagnostics accounts to have 22% market share. The top three diagnostic chains account to have around 52% market share. Dr. Lal Pathlabs, SRL, and Metropolis are India's top three market players. For example, Dr. Lal Pathlabs processed more than 66 million samples in 2022, and Metropolis processed 26 Million. Individual/Standalone diagnostic laboratories have a 41% market share, followed by hospital laboratories and diagnostic chains.

Post-COVID-19, various market players forayed into the market due to low entry barriers, capital investments, and a large population pool. In 2022, Medplus Health Services Limited, a pharmacy chain, launched diagnostic and radiology services, offering a 75% discount on every test. Currently, the pricing of tests has become very competitive due to the entry of new players and online companies. PBI anticipates that the margins are shrinking. Companies with strong financials are going to survive in the market, and consolidation of companies will take place in the near future.

Key Developments

• In March 2022, Trivitron Healthcare acquires US-based medical devices firm Kennedy Company. The acquisition will allow the Chennai-based Trivitron to get a 7 acres campus with 25,000 square feet of production space in Scottsboro, Alabama.
• In Dec. 8, 2021, Thermo Fisher Scientific Inc. announced that it has completed its acquisition of PPD, Inc. a leading global provider of clinical research services to the biopharma and biotech industry, for $17.4 billion.