• by bcarlson@marketresearch.com
  • January 26 2016


India and China IVD Markets Defy Economic Headlines

India and China IVD Markets Defy Economic Headlines

While in vitro diagnostic testing is not immune to general economic conditions, it is somewhat shielded by its own set of market dynamics not always attached to stock prices and quarterly results.  Healthcare spending and hospital construction, underserved populations and increasing urban migration drive tests.   Kalorama has just released IVD in India:  http://www.kaloramainformation.com/IVD-India-9596771/   Our current study of Indian IVD markets finds growth despite recent concerns about Asian markets broadly. Really, it can be said that both China and India have better IVD market prospects than GDP growth expectations set by economists. With a combined $3.2 billion in 2015 sales, India and China currently account for over 6% of the world’s IVD market. However, while overall market will expand by about 4% per year through 2020, India is expected to grow by 13% per year from $782 million to $1.4 billion and China will rise by over 14% per year from $2.5 billion to $4.8 billion, making them the world’s most quickly growing IVD markets. In both countries, growth will be supported by a steadily expanding population, modernizing healthcare infrastructure and continued migration from manual to automated processes. 

As of 2015, China was the largest country in the world with over 1.3 billion persons and a 0.5% annual growth rate. India followed closely with 1.2 billion persons rising by 1.3% per year. Seniors, who tend to require a substantially greater level of healthcare services than younger persons, will particularly drive growth, as the 65-and-older population in China and India alone exceeded 200 million in 2015, or approximately one-third of the world’s total older population. The same population in both countries is projected to reach 551 million in 2040 (329 million in China and 222 million in India). 

Both countries are leveraging continued strong economic growth to steadily improve their healthcare infrastructures. India’s GDP has ranged from 3.9% to 10.3%. In both India and China, urban centers, which account for about one third of the total population, now offer considerably better-equipped and better-funded healthcare facilities compared with rural areas. These centers cater to a growing middle-class and affluent patient base with greater reimbursement and coverage.