India’s digital healthcare market could generate $37 billion in revenue by 2030, according to a joint report by consulting firm Boston Consulting Group and venture capital firm B Capital. The report, titled ‘A Digital Pill for Revolutionising Healthcare’, highlights the growth potential of the digital healthcare market in India. In 2022, the total revenue generated by businesses operating in this space represented 1-2% of the country’s overall healthcare market. However, the report predicts that this will increase to 7-8% by the end of the decade. The report also divides the digital healthcare market into six sub-sectors: e-pharmacy, e-diagnostics, teleconsultation, surgery aggregation, healthcare financing, and fitness and specialty care.
In 2022, e-pharmacy maintained a lead with $1.1 billion in total revenue, but represented only 3.5% of the overall retail pharmacy sector. The report expects e-pharmacy to expand to $12 billion with 12-15% market penetration in 2030. Similarly, the report estimates that e-diagnostics will be a $10 billion market, surgery aggregation $5 billion, healthcare financing $5 billion, teleconsultation $3 billion, and fitness and specialty care $3 billion by 2030.
The report attributes the growth of the digital healthcare market to changing consumer behavior and increased access to healthcare digitally since the Covid-19 pandemic. It also highlights the importance of partnerships and ecosystems in driving innovation and opportunities in the sector. Founders in the space are using the current slowdown in business and funding to recalibrate and create more rational business models. The report emphasizes the need for an omnichannel and omnipresent approach to healthcare, rather than a pure digital model. Building trust and credibility is also seen as crucial for companies in the healthtech sector.
The joint report by Boston Consulting Group and B Capital provides valuable insights into the potential of the digital healthcare market in India and the opportunities it offers. With the expected growth and the importance of technology in healthcare, it is clear that the digital healthcare market will play a significant role in the future of healthcare in India.
