India’s eHealth sector is expected to grow at a compound annual rate, or CAGR, of 68% to $16 billion by financial year 2025. Currently at $1.2 billion, the eHealth sector’s growth will be driven by rise in receptiveness from consumers, healthcare providers and suppliers towards such models, an increase in investments and supporting regulations, according to a report by RedSeer Consulting.
The eHealth sector in India has digitised the interaction between consumers and outpatient care providers such as pharmacies, doctors and diagnostics centers. The report estimates that eHealth services will reach 57 million households over the next five years, from around 4.3 million households at present.
The report said more awareness among consumers will add to healthcare consumption levels during this period. There is significant opportunity to improve healthcare services across the country, especially in those parts where access to quality and affordable outpatient and inpatient care services are limited. The government has also prioritised healthcare as key focus area for the next five years, the report said.
As a result, the $135 billion-Indian healthcare industry will grow at a CAGR of 17% to $353 billion by FY25, leading to an overall (including government and private) increase in spending on healthcare, it said.
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A statement from RedSeer said the team spoke to over 1,200 consumers across India for their research and then arrived at the estimates.
Vertical focused eHealth platforms will dominate the market, given the specialised nature of the domain, need for skilled personnel and required adherence to regulatory standards, the report said.
RedSeer said these platforms provide consumers with a convenient healthcare experience by offering pharmacy, consultation and diagnostics services online. While e-tailing horizontals also provide online ordering of over-the-counter (OTC) and personal care products, eHealth-focused vertical players largely drive the sector, it said.
The report named Medlife, 1mg, Pharmeasy, NetMeds, Practo, DocsApp, Medplus and Healthians as some of the leading eHealth players in India. While some provide only one type of eHealth service (ePharmacy, eConsultation or eDiagnostics), others have all three services, making them an integrated solutions provider.
The report also predicts that integrated eHealth models are likely to be more successful than the standalone ones in the long run due to higher consumer stickiness and better projected margins.
Source: livemint
