Healthcare and Lifesciences

Rise of wearable medical devices market in India

24 Jan 2024

This edition is particularly focused on the emerging trends in wearable health technology and how can companies leverage that opportunity.

Wearable medical devices are used to diagnose or monitor medical conditions by integrating it with digital health information. They can be classified by product (wearable vital sign monitors, wearable fatal monitors, obstetric devices, neuro-monitoring devices, pain management, glucose monitoring, respiratory therapy, etc.), by application (sports, remote patient monitoring, home healthcare, etc.), and by type of device (watches, wristbands, etc.). Amongst these, smartwatches and wristbands are the most sought-after tools for monitoring one’s health.
The global wearable medical devices was valued at US$ 9.15B in 2022 and expected to grow at a CAGR of 10% to reach US$ 14.5B by 2027 (Exhibit 1).

In India, the wearable devices market is expected to play a significant role in fostering innovation in healthcare, fitness, and communication. With a growing emphasis on health and wellness, these devices enable individuals to proactively monitor their fitness levels and overall well-being, addressing the rising prevalence of lifestyle-related issues.

Currently, the Indian wearable market is valued at US$ 1.3B in 2022 and is expected to grow at a CAGR of 34% to reach US$ 5.7B by 2027 (Exhibit 2). As the landscape of technology continues to evolve, the Indian wearable market will offer exciting prospects for both businesses and consumers alike.

Factors driving growth in the Indian wearable medical devices market

Increasing health awareness: Growing awareness of health and fitness among the Indian population has led to an increased demand for wearable that monitor physical activity, track health metrics, and provide personalized insights. As per the recent survey conducted by a leading insurance company, 84% of the individuals agreed that their health awareness has been increased post COVID-19
Rising incidence of chronic diseases: The prevalence of chronic diseases such as diabetes, cardiovascular diseases has been increasing in India, paving the need for continuous monitoring and management of these conditions through wearable medical devices. Post 2003, India reported a shift from communicable to non-communicable diseases with NCDs accounting for 66% total deaths in India in 2019.
Government initiatives: The introduction of new government schemes, such as the PLI scheme and the National Medical Devices Policy are further driving growth in the Indian medical devices sector by promoting domestic manufacturing and improving investor confidence. Under the PLI scheme for Medical Devices, till FY23, a total of 26 projects have been approved, with a committed investment of INR 1206 Cr and out of this, so far, an investment of INR 714 Cr has been achieved.
Technological advancements: Continuous advancements in wearable technology, such as improved sensors, longer battery life, and enhanced features like blood pressure, ECG, SPO2, and cellular connectivity, are attracting consumers looking for more sophisticated and functional devices

Key impediments to the growth of industry

Data security and privacy concerns: The collection of sensitive health data by wearable underscores the critical importance of data security and privacy. Issues such as data breaches, unauthorized access, and misuse pose significant hurdles for user adoption, potentially hindering the evolution and overall acceptance of the wearable market
Limited clinical validation: Wearable medical devices currently lack robust clinical validation, demonstrating their accuracy and efficacy. This gap in validation instills skepticism in healthcare professionals, particularly in the context of major healthcare tracking, thereby hindering the adoption of such products
Price-capping policy: The capping of prices by NPPA of several medical devices such as stents, implants, etc. has further posed challenges for the medical device companies to manufacture high-quality devices in the Indian market. For e.g., the pulse oximeter has been capped at ~INR 3L whereas the blood pressure monitoring devices have been capped at ~INR 39K
High capital cost: Affordability remains a concern due to significant capital required for R&D associated with advanced devices contributing to increased costs, and limiting access to specific demographics. Currently, the cost of financing for medical device manufacturing lies in the range of 14-18%.

Evolution in the wearable medical devices market

As we explore the thriving wearable medical devices market in India, it's crucial to delve into the key categories that have gained traction, predominantly dominated by technology brands. The growing presence of wearable in India indicates a path toward rapid scaling and substantial market growth. As our understanding of wearable medical device technology deepens, new categories will emerge in the medical devices sector, each harnessing the power of wearable in unique ways. These categories span across various sectors, including clothing, eyewear, and glasses. These categories possess a unique opportunity for medical device companies. As wearable technology continues to evolve, these categories are expected to mature, offering more sophisticated and personalized solutions.

1a. Wrist bands: Wrist-worn fitness trackers, initially pivotal for affordable health monitoring, have undergone a transformative evolution. While their cost-effective nature made them a preferred choice, the market dynamics are shifting with the emergence of increasingly affordable smartwatches offering enhanced features and expansive displays. This shift is anticipated to lead to a notable decline in the wristbands market, projecting a -11% CAGR from CY22 to CY27, with smartwatches emerging as the predominant fitness tracking device. Global industry giants such as Xiaomi, Fitbit, and Garmin have been prominent players, with domestic contenders like boAt and Noise also entering the arena. The future trajectory suggests a growing preference for smartwatches, driven by their multifunctionality.

1b. Smartwatches: The evolution of smartwatches has witnessed a remarkable progression, transitioning from basic fitness trackers to sophisticated health monitoring devices. Currently capable of detecting vital signs such as blood pressure, heart rate, and even performing ECGs, smartwatches have become integral in managing various health conditions. Looking ahead, the trajectory involves the integration of AI, empowering these devices to engage users through voice technologies and conversational platforms. AI-equipped smartwatches are poised to gather, analyze, and provide personalized health insights, shaping a future where proactive health monitoring becomes the norm. With global giants like Apple, Samsung, Xiaomi, Fitbit, and Garmin dominating the market, competition is expected to intensify. Also, domestic players such as boAt, Fire-boltt, and Realme are emerging, contributing to a diverse landscape.

2a. ECG patch / Holter monitor: Holter monitors, an integral part of cardiac care, are undergoing a transformative phase with players like Spandan leveraging cutting-edge technology to enhance these devices. APAC region commands a ~25% share in the global market with smartwatch-based ECG close to ~83% of the market share in product-wise split. With advanced sensors, Holter monitors now seamlessly capture and analyze comprehensive cardiac data, including real-time heart rhythm patterns. This evolution marks a pivotal moment in healthcare, foreseeing a surge in demand for non-intrusive, continuous cardiac monitoring solutions.

2b. Smart patches: The Indian wearable patch market is valued at ~US$ 207M in 2021, is expected to grow at 17% CAGR with expected value of ~US$ 530M in 2027. Blood wearable patch is expected to have almost ~80% market share by 2027, down by ~5% from the current levels due to growth in other segments such as heart-rate, ECG patches, temperature patches and other segments. In terms of application, monitoring and diagnostics segment has a ~75% market share in 2021. The evolution of smart patches, seamlessly merging health monitoring and therapeutic delivery, has catapulted the market into the realm of personalized and precision medicine. BioIntelliSense, a notable player in the smart patch sector, has pioneered research in sweat analysis to garner crucial health insights, notably in detecting dehydration.

2c. Wearable spirometer: Wearable spirometers represent a giant leap in health tech, with players like Health Care Originals, seamlessly integrating pulmonary function assessment into daily life. It leverages breath analysis, providing insights into lung health and aiding in early detection of respiratory issues. As these compact spirometers evolve, a transformative era emerges, creating a surge in demand for non-intrusive, personalized respiratory monitoring. Global spirometers have been estimated to grow at 10% CAGR from 2021-27 to ~US$ 1.8B.

2d. Smart shoes: The global smart shoes market has been valued at ~US$ 275M in 2021 and they are expected to reach ~US$ 878M by 2027 at a CAGR of ~21%. Smart shoes are used to track steps, measure and track joint movement and mobility. Organizations such as Kinvent and Meloq are some of the emerging players garnering crucial health insights. The trajectory suggests a future with growing demand driven by enhanced efficiency and expanded applications in diagnostics and education.

Leveraging the opportunity for MedTech players

Indian companies can grow in the field of wearable medical devices by adopting a strategic approach that encompasses the various aspects of technology, regulations and market dynamics.

Emphasis on R&D: Investments in research and development are crucial to drive innovation in medical wearable. A particular focus should be placed on miniaturizing technologies, including health sensors, networking modules, and batteries, to enhance the functionality of medical wearable for the Indian consumer base. Furthermore, R&D efforts are needed to explore new technologies and products, such as smart clothes and biosensors.
Domestic manufacturing: By manufacturing domestically, devices can be competitively priced, ensuring increased affordability and accessibility for consumers in India. A skilled workforce and cheaper labor in India help in medical device manufacturing at a cost that is up to 50% lower than their US counterparts. Focusing on domestic manufacturing can lead to greater market acceptance and success due to their ability to cater to the specific needs and preferences of the local market.
User-centric design: Prioritizing user experience and design features that are easy to use and cater to the specific needs of Indian consumers. By conducting usability studies and gathering feedback from healthcare professionals, the design can be customized for a specific set of consumers.
Compliance with regulations: Implementing robust data security measures is paramount to protect the sensitive health data collected by wearable devices. It is essential to stay abreast of evolving regulatory requirements to effectively navigate the dynamic landscape of data protection in the healthcare sector.
Education and awareness: Investing in user education programs to increase awareness among healthcare professionals and end-users about the benefits and usage of wearable medical devices. Initiatives to achieve this can include partnerships with health insurance companies, hospital/healthcare service providers, and other offline initiatives.

Key implications of capitalizing over the wearable medical devices market

There can be several long-lasting implications of capitalizing on the rising wearable medical devices market in India.

Home healthcare for chronic disease management: Wearable technology holds significant benefits for individuals managing chronic conditions like diabetes and heart disease. It aids in monitoring vital signs and issuing alerts during emergencies, ensuring patients receive prompt medical attention when needed. They can directly transmit the collected data to healthcare providers reducing the infrastructural load of healthcare delivery providers.
Early detection and intervention: Wearable technology can transform the healthcare sector through real-time health data provision and enhancing patient results. Wearable medical devices offer remote patient monitoring, reducing hospital visits and aiding in preventing readmissions. Moreover, wearable technology plays a role in cost reduction within healthcare by early detection of health concerns, thus averting the necessity for more costly treatments. Furthermore, it enhances the efficiency of healthcare services by automating specific tasks, lessening the workload for healthcare professionals.
Ecosystem development: The growth in wearable medical devices can spur the development of a broader ecosystem, including insurance partners. Insurance companies can participate in this ecosystem for leveraging wearable data for more accurate risk assessment and personalized insurance premiums.
Data-driven insights and services: Healthcare wearable medical devices can collect real-time health data and provide valuable insights that inform the design and delivery of personalized treatment plans. Additionally, data gathered from these devices (e.g. blood pressure levels or blood glucose levels) can immediately inform/alert patients to take their necessary medications.
Shift to preventive healthcare: Wearable medical devices will promote a shift from reactive to preventive healthcare. This shift will lead to a reduction in burden on the healthcare system with a focus of preventing diseases rather than just treating them. It will also bring in behavioural changes in how individuals perceive and manage health, leading to healthier lifestyle choices and an emphasis on self-care.

In conclusion, the wearable medical devices market in India is poised for remarkable growth, fuelled by a combination of technological advancements, increasing health consciousness among consumers, and a growing trend towards fitness and wellness. The evolving landscape, marked by innovation and integration, predicts a future where wearable seamlessly becomes a part of everyday life.

At Praxis, we are committed to helping healthcare organizations navigate this new landscape. We believe that with the right strategies and technologies, wearable medical devices can become a mainstay, offering patients a more convenient, personalized, and effective healthcare experience.