$15 bn Indian diagnostics market estimated to grow at 14 pc CAGR: White paper

New Delhi: Driven by increasing urbanisation, improved test penetration, and rising health awareness, the Indian diagnostics market, valued at $15 billion in the last fiscal (FY24), is expected to grow at 14 per cent compound annual growth rate (CAGR), according to a report on Monday.

Tier 2 and beyond cities face significant challenges, with over 65 per cent of diagnostic labs concentrated in tier 1 and 2 cities, presenting vast opportunities for tech-driven solutions, according to a white paper by Praxis Global Alliance launched at the Assocham diagnostics conference in New Delhi.

The white paper examined key trends and technologies such as artificial intelligence (AI), Blockchain, smart labs, genetic testing, mHealth, telemedicine, mobile diagnostics, and smart wearables that has the potential to bridge the gap and ensure more equitable access to quality healthcare

According to the findings, tier 1 cities, which house 9 per cent of the population, contribute approximately 37 per cent to the GDP, while the majority of more than 540 urban centres are Tier 2 and Tier 3+ cities, with Tier 3+ cities projected to accommodate an additional 46 million people by 2030.

“With government initiatives, rising health awareness, and an increasing focus on preventive care, the role of diagnostics in improving health outcomes has never been more critical,” said Aryaman Tandon, Managing Partner, Healthcare at Praxis Global Alliance.

“Together, we can build a healthcare system that not only addresses current disparities but also sets the foundation for a healthier, more equitable future for all, particularly in the rapidly growing Tier 2 and 3+ cities,” he added.

By aligning on a shared vision and committing to bold investments in technology and innovation, stakeholders can transform the diagnostics landscape in India, said the white paper.

The experts at the event highlighted the transformative role technology can play in addressing the disparities in healthcare delivery.