Exploring India's Medical Device Sector with Noccarc: Growth Drivers, Challenges, and Future Trends

What are your views of the growth of the sector?

The medical device sector in India is primed for significant expansion, influenced by a surge in healthcare infrastructure investments and the prevalence of chronic respiratory disorders.

In total, 49 startups were founded since 2021 (after COVID year), and Medical Devices startups have raised over $100M in last 3 years.

Currently, approximately 80% of medical devices are imported, mainly from the US, EU, and China, with an even higher percentage in medical electronics. Noteworthy facts include:

The per capita expenditure on medical devices in India is $8, compared to a global average of $60, signaling immense growth potential.

The rise of insurance penetration and health initiatives like ABDM, coupled with the aftermath of COVID-19, have catalyzed the healthcare sector.

Significant movement in tier 2/3 cities with corporate hospital chains, hospitals raising significant capital for expansion, positioning a robust capital expenditure cycle in these regions.

In India, Transasia is largest med device company, with a revenue of $180 M. In contrast, there are 13 Indian pharma companies with 1B revenue. With investment in R&D, developing intellectual property, and manufacturing with global quality standards, Indian companies have immense potential in the space.

What are the significant developments that have taken place in the sector?

IAN Media release

1. Launch of several Indian standards (like BIS, CDSCO) for several products, enabling domestic manufacturers with high quality products getting standardized. Earlier, US FDA and EU MDR certifications were required, which take very long and cost a lot of money.

2. Many large multinationals setting up R&D and Manufacturing centers in India - Medtronic (US) investing $350 M, Siemens Healthcare ($198 M), Omron ($15M), Philips, and many others, underscoring India’s potential as a global hub.

3. In March 2024, 26 manufacturers of medical devices were approved under PLI scheme with total funding of 3420 Cr.

4. Launch of Medical Devices Policy by GOI in 2023: In a bid to reduce import dependency and boost domestic production, with a goal to establish India as a global manufacturing hub for medical devices. Besides aiming to acquire 10-12% share in the global market for medical devices over the next 25 years, the policy also accounts for domestic manufacturing of sophisticated, high value and high-end medical devices. The policy covers several agendas, with key ones being

a. Regulatory Streamlining for enhancing standardization, certification and quality standards

b. Enabling Infrastructure - by setting up medical device parks, testing centres, lab facilities, Production Linked Incentives for manufacturers, etc. to reduce manufacturing and development cost of medical devices.

c. Facilitating R&D by setting up funds for supporting R&D and directing focus of institutions such as AGNIi and BIRAC.

How is Noccarc poised in this industry as of now?

A key barrier for Indian medical devices companies in achieving domestic and global success has been the absence of IP-based products, lack of R&D, non-adherence to global quality standards, and performance metrics necessary for international approvals like the FDA and EU MDR.

From day 1, we have been committed to building products that are in line with these global standards. Noccarc has setup a fully digitized asset light manufacturing unit which is ISO 13485 certified, and have obtained a CDSCO manufacturing license. Noccarc has a full-stack in-house R&D team, and has developed the foundational stack of hardware and software in-house, and holds 8 patents for its technology. Noccarc has also built established a global supply chain to source the best parts available globally.

With high quality, world class products at the right price point; a digital first approach, and a strong adherence to global standards, Noccarc is eyeing the large global market in next 10 years, as high cost of healthcare is a major problem in developed economies too.

Major challenges and competitors

The primary challenge remains the strong multinational corporation lobby in government tenders. However, this is gradually resolving as domestic capabilities and standards rise, allowing us to compete more effectively.

Is this sector witnessing?a dip/decline or high growth?

The sector is witnessing high growth in India due to low penetration rates and significant capital investments in healthcare infrastructure. Globally, specially in developed economies, the trend towards cost-effective medical solutions mirrors the trajectory of the Indian pharmaceutical industry, emphasizing affordability and accessibility.

What significant/new advancements can be expected?

1. Introduction of cost-effective, high-impact medical devices that are poised to capture substantial market share.

2. Increased adoption of digitized systems - across healthcare facilities. With increased adoption of telemedicine, digitization will act as a catalyst and an enabler for mass adoption of telemedicine.

3. Broad implementation of AI, particularly tailored to the needs of developing nations, where doctor to patient ratio is skewed.

How is Noccarc changing?the world/industry/deep insights?

IAN Media release

1. Noccarc is enhancing critical care with its digitally-enabled devices that allow remote monitoring of patients, improving response times and patient outcomes, specially in countries like India where skilled doctors are scarce. Future integration of AI will further empower doctors to take better and faster decisions.

2. Aftersales support is one of the most important consideration of buyers in high value medical equipment. Noccarc is implementing a digital-first service model, which includes remote diagnostics and real-time support, reducing downtime and ensuring that hospitals can maintain continuous operation. This integration allows for predictive maintenance, where potential issues can be addressed before they impact device performance, enhancing overall reliability and trust in Noccarc’s products.

3. Noccarc is committed to solving critical healthcare challenges by providing high-quality medical devices at the right price/value, as it makes advanced medical technology accessible to a broader segment of the population, especially in emerging markets where cost is a significant barrier to advanced care.