FY2017 – FY2027 INDIA MEDICAL EQUIPMENT FINANCING MARKET FORECAST AND OPPORTUNITIES
Published: September 2021 www.techsciresearch.com MARKET INTELLIGENCE . CONSULTING
Table of Contents S. No.
Contents
1.
Product Overview
2.
Research Methodology
3.
Impact of COVID-19 on India Medical Equipment Financing Market
4.
Executive Summary
5.
Voice of Customer
5.1. Brand Awareness 5.2. Preferred Loan Tenure 5.3. Factors Influencing Finance Decision 5.4. Challenges Faced Post Purchase 6.
India Medical Equipment Financing Market Outlook, FY2017-FY2027F 6.1. Market Size & Forecast 6.1.1. By Value 6.2. Market Share & Forecast 6.2.1.
By Equipment (Diagnostic Equipment, Therapeutic Equipment, Patient-Monitoring Equipment, Others)
6.2.2.
By Source (Banks, NBFCs)
6.2.3.
By Percentage of Amount Sanctioned (Up to 50%, 51-75%, Above 75%)
6.2.4.
By Tenure (Less than 3 Years; 3-5 Years; More than 5 Years)
6.2.5.
By End User (Hospitals & Clinics, Laboratories & Diagnostic Centers, Others)
6.2.6.
By Region (By Top Three States)
6.2.7.
By Company (FY2021)
6.3. Market Map (End User and Region) 7.
India Diagnostic Medical Equipment Financing Market Outlook, FY2017-FY2027F © TechSci Research
2
Table of Contents S. No.
Contents 7.1. Market Size & Forecast 7.1.1.
By Value
7.2. Market Share & Forecast
8.
7.2.1.
By Source
7.2.2.
By Percentage of Amount Sanctioned
7.2.3.
By Tenure
7.2.4.
By End User
India Therapeutic Medical Equipment Financing Market Outlook, FY2017-FY2027F 8.1. Market Size & Forecast 8.1.1.
By Value
8.2. Market Share & Forecast
9.
8.2.1.
By Source
8.2.2.
By Percentage of Amount Sanctioned
8.2.3.
By Tenure
8.2.4.
By End User
India Patient Monitoring Medical Equipment Financing Market Outlook, FY2017-FY2027F 9.1. Market Size & Forecast 9.1.1.
By Value
9.2. Market Share & Forecast 9.2.1.
By Source
9.2.2.
By Percentage of Amount Sanctioned © TechSci Research
3
Table of Contents S. No.
10.
Contents 9.2.3.
By Tenure
9.2.4.
By End User
Market Dynamics 10.1.
Drivers
10.2.
Challenges
11.
Market Trends and Developments
12.
Policy and Regulatory Landscape
13.
India Economic Profile
14.
Competitive Landscape 14.1.
HDFC Bank Limited
14.2.
ICICI Bank Limited
14.3.
State Bank of India
14.4.
Siemens Financial Services Private Limited
14.5.
Axis Bank Limited
14.6.
Bajaj Finserv Limited
14.7.
YES BANK LIMITED
14.8.
IndusInd Bank Limited
14.9.
Moneywise Financial Services Pvt Ltd (SMC Finance)
14.10.
Clix Capital Services Pvt. Ltd.
14.11.
Phillip Capital (India) Pvt. Ltd.
15.
Strategic Recommendations
16.
About Us & Disclaimer
© TechSci Research
4
List of Figures Figure No.
Title
Figure 1:
India Medical Equipment Financing Market Size, By Value (USD Billion), FY2017-FY2027F
Figure 2:
India Medical Equipment Financing Market Share, By Equipment, By Value, FY2017-FY2027F
Figure 3:
India Medical Equipment Financing Market Share, By Source, By Value, FY2017-FY2027F
Figure 4:
India Medical Equipment Financing Market Share, By Percentage of Amount Sanctioned, By Value, FY2017-FY2027F
Figure 5:
India Medical Equipment Financing Market Share, By Tenure, By Value, FY2017-FY2027F
Figure 6:
India Medical Equipment Financing Market Share, By End User, By Value, FY2017-FY2027F
Figure 7:
India Medical Equipment Financing Market Share, By Region, By Value, FY2017-FY2027F
Figure 8:
North India Medical Equipment Financing Market Share, By Top Three States, By Value, FY2021
Figure 9:
South India Medical Equipment Financing Market Share, By Top Three States, By Value, FY2021
Figure 10:
West India Medical Equipment Financing Market Share, By Top Three States, By Value, FY2021
Figure 11:
East India Medical Equipment Financing Market Share, By Top Three States, By Value, FY2021
Figure 12:
India Medical Equipment Financing Market Share, By Company, By Value, FY2021
Figure 13: Figure 14:
India Medical Equipment Financing Market Map, By End User, Market Size (USD Billion) & Growth Rate (%), FY2021
India Medical Equipment Financing Market Map, By Region, Market Size (USD Billion) & Growth Rate (%), FY2021
Figure 15:
India Diagnostic Equipment Financing Market Size, By Value (USD Billion), FY2017-FY2027F
Figure 16:
India Diagnostic Equipment Financing Market Share, By Source, By Value, FY2017-FY2027F
Figure 17: Figure 18:
India Diagnostic Equipment Financing Market Share, By Percentage of Amount Sanctioned, By Value,
FY2017-FY2027F India Diagnostic Equipment Financing Market Share, By Tenure, By Value, FY2017-FY2027F © TechSci Research
5
List of Figures and Tables Figure No.
Title
Figure 19:
India Diagnostic Equipment Financing Market Share, By End User, By Value, FY2017-FY2027F
Figure 20:
India Therapeutic Medical Equipment Financing Market Size, By Value (USD Billion), FY2017-FY2027F
Figure 21:
Total Number of Hospitals in India, Public Vs Private Sector, 2020
Figure 22:
India Therapeutic Medical Equipment Financing Market Share, By Source, By Value, FY2017-FY2027F
Figure 23:
India Therapeutic Medical Equipment Market Share, By Percentage of Amount Sanctioned, By Value, FY2017-FY2027F
Figure 24:
India Therapeutic Medical Equipment Market Share, By Tenure, By Value, FY2017-FY2027F
Figure 25:
India Therapeutic Medical Equipment Market Share, By End User, By Value, FY2017-FY2027F
Figure 26:
India Patient Monitoring Medical Equipment Financing Market Size, By Value (USD Billion), FY2017FY2027F
Figure 27:
Total Number of Hospital Beds in India, Public Vs Private Sector, 2020
Figure 28: Figure 29:
India Patient Monitoring Medical Equipment Financing Market Share, By Source, By Value, FY2017FY2027F India Patient Monitoring Medical Equipment Market Share, By Percentage of Amount Sanctioned, By Value, FY2017-FY2027F
Figure 30:
India Patient Monitoring Medical Equipment Market Share, By Tenure, By Value, FY2017-FY2027F
Figure 31:
India Patient Monitoring Medical Equipment Market Share, By End User, By Value, FY2017-FY2027F
Table No.
Title
Table 1:
India’s Top 10 States with Total Number of Hospital Beds, 2020
Table 2:
India Cancer Incidences and Mortality, By Cancer Site, As of 2020 © TechSci Research
6
Product Overview
Scope of Report
Product of Interest (POI): Medical Equipment Financing
Medical Equipment Financing is the loan provided to healthcare facilities such as hospitals & clinics, diagnostic centers & laboratories, ambulatory surgical centers, dental clinics among others for purchasing medical equipment. In order to get technologically advanced and latest treatment equipment, healthcare facilities are opting for medical equipment financing options. These finances are being provided by Banks, Non-Banking Financial Companies, among others. India Medical Equipment Financing Market
Market Segmentation
BY EQUIPMENT
BY TENURE
•
Diagnostic Equipment
•
Less than 3 Years
•
Therapeutic Equipment
•
3-5 Years
•
Patient-Monitoring
•
More than 5 Years
Equipment •
Others
Review Period
•
North
FY2017 – FY2020
•
West
Base Year
Non-Banking Financial
•
South
Company (NBFC)
•
East
BY SOURCE • Bank •
BY REGION
Year Range
BY END USER BY PERCENTAGE OF AMOUNT SANCTIONED •
Upto 50%
•
51-75%
•
Above 75%
•
Hospitals & Clinics
•
Laboratories & Diagnostic Centers
•
Others
FY2021 Estimated Year
FY2022 Forecast Period
FY2023 – FY2027
© TechSci Research
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Research Methodology
Research Methodology
Market Profiling
In-depth secondary research was conducted to determine the overall market size, segmental market size and the top players in India medical equipment financing market.
Formulating Questionnaire
In order to conduct industry experts’ interviews, TechSci formulated a detailed discussion guide.
Developing List of Respondents
Data Validation
Data Collection
Data obtained as a result of primary and secondary research was validated through rigorous triangulation.
TechSci conducted interviews with industry experts and industry players for data collection and verification.
List of industry players and industry specialists was developed.
Primary Research
Data Collection
Data Filter & Analysis
Research & Intelligence
Actionable Insights
Business Solution
LinkedIn TechSci Internal Database
✓ Recent Developments ✓ Market Changing Aspects/Dynamics ✓ Government Policies ✓ Conclusion
✓ Identifying Key Opinion Leaders ✓ Questionnaire Design ✓ In-depth Interviews
Primary Research ✓ ✓
Desk Research
Secondary Research ✓ ✓ ✓ ✓ ✓ ✓ ✓
Company Websites Company Annual Reports White Paper Study Financial Reports Investor Presentations Regulatory Body Associations, etc.
Data Analysis
The data was scrutinized using MS-Excel, statistical tools and internal proprietary database to obtain qualitative and quantitative insights about India medical equipment financing market.
Company Analysis ✓ Market Participants ✓ Key Strengths
Paid Sources
✓ ✓
Factiva Hoovers
© TechSci Research
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Research Methodology Baseline Methodology
Our dedicated team of industry experts has monitored and analyzed various aspects of India medical equipment financing market. The team has analyzed the outlook of various segments of this market, while considering the major influencing factors such as growing need for technologically advanced medical infrastructure, increasing demand for high-cost medical equipment, growing prevalence of fatal diseases & requirement of early diagnosis, improving medical equipment loan availability and affordability etc. The study includes market forecasting, which would enable our clients to take better decisions while planning their strategy to achieve sustainability in the India medical equipment financing market.
Methodology Followed for Calculation of Market Size:
•
Market Size by Value: Market size, in terms of value, for the year FY2021 was calculated based on information collected through exhaustive secondary research and primary surveys, with various key opinion leaders/stakeholders, such as medical equipment financing companies, channel partners, industry experts and other industry participants.
•
The team interviewed more than 20 medical equipment financing companies, NBFCs and private & public sector banks, 200 end users and 15–20 industry experts and other value chain stakeholders in India medical equipment financing market to obtain the overall market size between FY2017 and FY2021. Taking standard deviation into consideration, the responses were averaged out to arrive at the final market size data during FY2017-FY2021. © TechSci Research
11
Research Methodology Methodology Followed for Calculation of Market Shares: Market shares by equipment, by source, by percentage of amount sanctioned, by tenure, by end user, by region and by company were calculated based on the responses received through primary surveys with industry experts, in which the respondents were asked about the market shares or revenue generated from various segments of India medical equipment financing market. The final shares were calculated by taking the geometric mean of the responses gathered from key opinion leaders after eliminating the outliers. Methodology Followed for Forecasting: •
TechSci Research performed periodical checks on data collected through the surveys with logic checks and analyzed the survey results in SPSS/Tableau Software.
•
Data triangulation techniques were applied to fill the gaps and to present a more meaningful picture of the market. To forecast India medical equipment financing market, TechSci Research used various forecast techniques such as: ✓ Moving Average ✓ Time Series Analysis ✓ Regression Analysis ✓ Econometric and Judgmental Analysis
TechSci Research used its own forecast tool, which is based on the growth of various allied industries. TechSci Research also used
the impact analysis during short, medium and long-term period to estimate and analyze market demand scenario. It should be noted that the figures compiled are only for the organized market including market share data.
© TechSci Research
12
Research Methodology While conducting primary research, TechSci Research interviewed the industry experts at mid and senior level in the following companies. TechSci conducted intensive secondary research to cross-validate the data collected by referring the following set of sources.
Partial List of Companies Interviewed
Key Secondary Sources
▪ ICICI Bank Limited
▪ World Bank
▪ HDFC Bank Limited
▪ TechSci Research Proprietary Database & Knowledge
▪ Axis Bank Limited
Repository
▪ State Bank of India
▪ Company Annual Reports
▪ YES BANK Limited
▪ Industry Magazines
▪ Siemens Financial Services Private Limited
▪ Industry Reports
▪ Bajaj Finserv Limited
▪ News Dailies
▪ IndusInd Bank Limited
▪ Credible Paid Databases
▪ Moneywise Financial Services Pvt Ltd(SMC Finance) ▪ Clix Capital Services Pvt. Ltd. ▪ Phillip Capital (India) Pvt. Ltd.
© TechSci Research
13
Industry Brief According to the report released by TechSci Research, “India Medical Equipment Financing Market By Equipment (Diagnostic Equipment, Therapeutic Equipment, PatientMonitoring Equipment, Others), By Source (Banks, NBFCs), By Percentage of Amount Sanctioned (Up to 50%, 51-75%, Above 75%), By Tenure (Less than 3 Years, 3-5 Years, More than 5 Years), By End User (Hospitals & Clinics, Laboratories & Diagnostic Centers, Others), By Region (By Top Three States), Competition Forecast & Opportunities, FY2027”, the medical equipment financing market in India is expected to grow at a CAGR of 13.30% in the forecast period to reach USD8.36 billion by FY2027. Medical equipment financing is the loan provided to healthcare facilities such as hospitals & clinics, diagnostic centers & laboratories, ambulatory surgical centers, dental clinics among others for purchasing medical equipment. In order to get technologically advanced and latest treatment equipment, healthcare facilities are opting for medical equipment financing options. These finances are being provided by Banks, Non-Banking Financial Companies, among others. Growing need for technologically advanced medical infrastructure, increasing demand for high-cost medical equipment, growing prevalence of fatal diseases & requirement of early diagnosis, improving medical equipment loan availability and affordability, etc. are the driving factors for the growth of this market in India. The demand for the medical equipment financing market is growing on account of various advantages of medical equipment financing facilities such as purchasing equipment with minimal upfront payment, loan repayment moratorium, monthly repayment schedule, option to upgrade an existing equipment, top-up loans and flexibility in terms of loan amount payment. In addition, growth in the market can be attributed to growing geriatric population, growing number of chronic diseases such as cancer, cardiovascular diseases, respiratory disorders, renal problems, etc where technologically advanced and very expensive medical equipment are required. Moreover, rising awareness among the healthcare facility providers such as hospitals & clinics, diagnostic centers & laboratories, among others, regarding the availability and affordability of medical equipment financing options offered by different banks and NBFCs is driving the medical equipment financing market in India. The imposition of nationwide lockdown in order to curb the spread of virus significantly impacted the overall economy of the country. It adversely impacted the employment level and profitability of businesses. The healthcare industry which was functioning during the pandemic crisis also reported reduced profits and generated lesser revenues as people chose to stay at home. As a result, due to COVID-19 patients, the already overburdened healthcare facilities were also financially affected. These healthcare facilities either switched over to buying refurbished medical equipment or taking financial aid for buying them. India Medical Equipment Financing Market is segmented into equipment, source, percentage of amount sanctioned, tenure, end user, region and company. In terms of equipment type, the India medical equipment financing market is segmented into Diagnostic Equipment, Therapeutic Equipment, Patient-Monitoring Equipment, and Others. Among which, the diagnostic equipment segment accounted for the majority of market share of around 29% due to the growing prevalence of chronic and infectious diseases in the country. Also, various healthcare providers such as hospitals & clinics, diagnostic centers & laboratories, among others are ready to invest in recently launched diagnostic equipment to provide advanced medical care to their patients. Additionally, the sudden outbreak & spread of COVID-19 pandemic in the country has significantly increased the demand for X-ray equipment and CT scanners. This in turn has led to the healthcare facilities such as hospitals & clinics, diagnostic centers & laboratories, among others purchasing these devices. These are one of the costliest imaging equipment which every healthcare facility cannot afford or put their capitals on, hence opening up opportunities for financing of these equipment. Some of the major players operating in the India medical equipment financing market are HDFC Bank Limited, ICICI Bank Limited, State Bank of India, Siemens Financial Services Private Limited, Axis Bank Limited and Others. Medical equipment financing companies are shifting towards digital banking to remain competitive in the market. The companies operating in the market are using strategies such as introducing new services, mergers and collaborations to boost their market share in the medical equipment financing industry.
“The growing digitization across banking industry and use of e-banking options provides improved services and increased customer satisfaction, improved productivity and overall reduced cost of financial operations. The healthcare facilities are able to keep a record of their transactions through e-banking services. Furthermore, factors such as instant money transfer, anytime anywhere usage benefit, reduced fraud and improved security, etc., are boosting this sector in India.”, said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.
© TechSci Research
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Sample Data - Snapshot India Medical Equipment Financing Market Size, By Value (USD Billion), FY2017-FY2027F CAGR FY2022E-FY2027F By Value: xx%
CAGR FY2017-FY2021 By Value: xx%
FY2017
FY2018
FY2019
FY2020
FY2021
FY2022E
FY2023F
FY2024F
FY2025F
FY2026F
FY2027F
Value (USD Billion) India Medical Equipment Financing Market Share, By Equipment, By Value, FY2017-FY2027F
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022E FY2023F FY2024F FY2025F FY2026F FY2027F Diagnostic Equipment
25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00%
Therapeutic Equipment
25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00%
Patient-Monitoring Equipment 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% Others
25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% India Patient Monitoring Medical Equipment Financing Market Share, By Percentage of Amount Sanctioned, By Value, FY2017-FY2027F
FY2017
FY2018
FY2019
FY2020
FY2021
FY2022E
FY2023F
FY2024F
FY2025F
FY2026F
FY2027F
51%-75%
20.00%
20.00%
20.00%
20.00%
20.00%
20.00%
20.00%
20.00%
20.00%
20.00%
20.00%
Above 75%
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
Upto 50%
50.00%
50.00%
50.00%
50.00%
50.00%
50.00%
50.00%
50.00%
50.00%
50.00%
50.00%
© TechSci Research
15
Report Ordering
Report Name: INDIA MEDICAL EQUIPMENT FINANCING MARKET
FORECAST AND OPPORTUNITIES FY2017 – FY2027 License Type
Price
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About Us & Disclaimer
TechSci Research is a global market research and consulting company with offices in the US, UK and India. TechSci Research provides market research reports in number of areas to organizations. The company uses innovative business models that focus on improving productivity, while ensuring creation of high-quality reports. The proprietary forecasting models use various analyses of both industry-specific and macroeconomic variables on a state-by-state basis to produce a unique ‘bottom-up’ model of a country, regional and global industry prospects. Combined with the detailed analysis of company activity and industry trends, the result is a uniquely rich evaluation of the opportunities available in the market.
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Disclaimer The contents of this report are based on information generally available to the public from sources believed to be reliable. No representation is made that it is timely, accurate or complete. TechSci Research has taken due care and caution in compilation of data as this has been obtained from various sources including which it considers reliable and first hand. However, TechSci Research does not guarantee the accuracy, adequacy or completeness of any information and it is not responsible for any errors or omissions or for the results obtained from the use of such information and especially states that it has no financial liability whatsoever to the subscribers / users of this report. The information herein, together with all estimates and forecasts, can change without notice. All the figures provided in this document are indicative of relative market size and are strictly for client’s internal consumption. Usage of the same for purpose other than internal will require prior approval of TechSci Research.
