The Indian medical technology (MedTech) market, valued at USD 12 billion in 2023, is projected to grow to USD 50 billion by 2030 at a compound annual growth rate (CAGR) of approximately 20.1 per cent between 2020 and 2030. According to EY Parthenon’s report, India’s MedTech Industry: The Renaissance of a Sector, over 70 per cent innovations by MedTech startups in India are driven by digital integration, further revolutionizing healthcare.
The report attributes this growth to factors such as digital integration by start-ups, supportive government policies, and increasing demand for advanced healthcare solutions. Over 70 per cent of innovations by Indian MedTech start-ups are driven by digital advancements, such as artificial intelligence (AI), Internet of Things (IoT), and cloud computing, which are transforming healthcare accessibility and delivery.
EY Parthenon analysed 100 MedTech start-ups—50 Indian and 50 global—to understand trends in innovation. Both groups are focusing on early disease detection, home-based care, advanced materials, minimally invasive techniques, and digital integration. Among Indian start-ups, 79 per cent of innovations are centred on medical technology solutions, of which 63 per cent are digitally integrated, while 21 per cent are driven purely by digital technologies.
Commenting on the findings, Suresh Subramanian, National Lifesciences Leader, EY Parthenon India, stated, “The growth of India’s MedTech sector presents a unique opportunity to redefine healthcare on a global scale. The trends we’re seeing today—ranging from the integration of digital health technologies to the rise of personalised care—are just the beginning. These innovations will be transformative, not only for healthcare providers but for the patients who will benefit from more accessible, efficient, and personalised care.”
He added, “With rising investments, strategic collaborations, and strong commitments from both global and Indian firms, India’s MedTech industry is poised for sustained growth and success. The government’s support in fostering innovation and scaling manufacturing will be key to unlocking this potential, positioning India not only as a leader in the domestic market but also as a global hub for MedTech innovation.”
The report identifies three key innovation models driving the industry: incremental improvements, substantial innovations, and breakthroughs. These models focus on safety, efficacy, accessibility, affordability, and device efficiency, with digital technologies playing a central role. Technologies such as AI, machine learning (ML), IoT, and cloud computing are enabling real-time data analysis, enhancing patient outcomes, and optimising healthcare workflows.
EY Parthenon also outlines 14 growth drivers for the sector under three categories:
- Changing disease patterns and healthcare delivery models: Rising chronic disease prevalence, an ageing population, and a shift toward preventive care and alternate sites of care are driving demand for wearables, remote monitoring devices, and early screening tools.
- Demographic and socioeconomic factors: Rising incomes, increased healthcare insurance coverage, improved infrastructure, and medical tourism are creating demand for innovative and affordable medical devices.
- Evolving MedTech industry ecosystem: Government initiatives, a vibrant start-up ecosystem, robust digital capabilities, and capital inflows through private equity, venture capital, and foreign direct investment are transforming the sector.
The government has introduced policies such as the Medical Device Rules, 2017, and the National Medical Device Policy, 2023, along with infrastructure and research and development (R&D) support through schemes like the Production Linked Incentive (PLI), medical device parks, and the PRIP scheme. These initiatives are aimed at reducing import dependence, boosting exports, and positioning India as a global hub for medical technology.