Growing at 8% CAGR, Indian hospital market to reach USD 193.59B

India’s healthcare landscape has undergone a transformation, propelled by substantial investments in infrastructure development. The Union Health Ministry’s allocation of Rs 90,658.63 crore in the interim Budget for 2024-2025 reflects a 12.59 per cent increase, highlighting the government’s prioritisation of healthcare expenditure.

As the world observes World Health Day, India celebrates significant milestones in its healthcare sector, with a focus on infrastructure development, access to quality care, and the rollout of transformative initiatives.

Since 2016, the Indian healthcare industry has been on an upward trajectory, boasting a remarkable compound annual growth rate (CAGR) of around 22 per cent.

The hospital market in India, valued at USD 98.98 billion in 2023, is set to continue its upward trajectory, with projections indicating a CAGR of 8.0 per cent from 2024 to 2032. By 2032, the market is estimated to reach value of USD 193.59 billion.

In addition to the burgeoning hospital market, several other segments of the Indian healthcare industry are witnessing rapid growth and expansion.

The telemedicine market, for instance, is expected to touch USD 5.4 billion by 2025, growing at an impressive CAGR of 31 per cent. Similarly, AI applications in healthcare are projected to grow at an annual rate of 45 per cent by 2024, indicating a significant shift towards technology-driven healthcare solutions.

The healthtech sector is also poised for substantial growth, with hiring expected to increase by 15-20 per cent in 2024.

With groundbreaking investments and visionary policies, India is reaffirming its commitment to ensuring health and wellness for all citizens.

On February 25, Prime Minister Narendra Modi inaugurated five new All India Institute of Medical Sciences (AIIMS) across the nation, including Rajkot (Gujarat), Bathinda (Punjab), Raebareli (Uttar Pradesh), Kalyani (West Bengal), and Mangalagiri (Andhra Pradesh).

Additionally, he unveiled a total of 202 healthcare infrastructure projects worth over Rs 11,700 crores across 23 states and union territories, encompassing medical colleges, specialty units, and research facilities.

Transforming Healthcare Accessibility PM Modi’s flagship scheme, Ayushman Bharat, stands as a testament to India’s commitment to providing accessible and affordable healthcare to all citizens.

Launched in 2018, Ayushman Bharat comprises four pillars aimed at revolutionising the healthcare landscape.

As the world’s largest government-funded health insurance plan, PM-JAY covers nearly 55 crore individuals from vulnerable families, offering an assured health cover of up to Rs 5 lakh per family per year.

Since its inception, over 26,000 hospitals, including more than 11,000 private facilities, have been empaneled under the scheme, catering to 6.2 crore free hospital admissions.

With the establishment of over 1.6 lakh health and wellness centres nationwide, India is expanding access to comprehensive healthcare services, particularly in rural and underserved areas.

These centres provide preventive, promotive, curative, and rehabilitative services, free of cost, fostering a shift towards preventive healthcare.

In line with PM Modi’s vision of a digitally empowered India, the Ayushman Bharat Digital Mission aims to create an integrated digital health infrastructure, facilitating seamless flow of health data and empowering individuals with information and awareness.

Launched in response to the Covid-19 pandemic, the Pradhan Mantri-Ayushman Bharat Health Infrastructure Mission (PM-ABHIM) seeks to enhance healthcare infrastructure across rural and urban frameworks, with an outlay of Rs. 64,180 crore till 2025-26.

This mission aims to bridge critical gaps in healthcare systems and institutions, ensuring preparedness for future public health emergencies.

India’s healthcare industry has been witnessing exponential growth, with projections indicating continued expansion in the coming years.

The hospital market, valued at USD 98.98 billion in 2023, is expected to reach USD 193.59 billion by 2032, growing at a CAGR of 8.0 per cent. Additionally, the telemedicine market is forecast to touch USD 5.4 billion by 2025, while AI applications in healthcare are expected to grow at an annual rate of 45 per cent by 2024.

Moreover, hiring in the healthtech sector is anticipated to grow by 15-20 per cent in 2024.

On World Health Day, India stands at the forefront of global healthcare transformation, driven by visionary leadership, groundbreaking investments, and unwavering commitment to ensuring health and wellness for all citizens.

As the nation marches towards a healthier and prosperous future, these achievements underscore India’s role as a beacon of hope and resilience in the global healthcare landscape. ANI