India's expansive $283-billion IT sector is currently navigating a period of slowing demand, but within this challenging landscape, the health-tech sector is emerging as a beacon of growth and innovation. While traditional IT service providers face headwinds from global economic uncertainties, health-tech companies are demonstrating remarkable resilience and achieving impressive revenue increases.
The overall Indian IT sector has witnessed significant growth over the past decade, with projections estimating revenues of $283 billion in the financial year 2024-25, a substantial increase from $118 billion in 2014-15. However, recent analysis indicates a slowdown in growth momentum, with potential single-digit revenue growth for the eighth consecutive quarter. This is attributed to factors such as weak client spending, reduced digital transformation budgets, and global macroeconomic pressures. Major IT firms like TCS and Infosys are feeling the impact as clients in the U.S. and Europe delay or scale back projects amid economic uncertainty.
In contrast, the Indian health-tech market is experiencing a boom, driven by increasing healthcare demand, technological advancements, and supportive government initiatives. The market was valued at $6.5 billion in 2024 and is expected to reach $78.37 billion by 2033, exhibiting a compound annual growth rate (CAGR) of 28.67%. Another report estimates that the digital healthcare segment alone will grow to $37 billion by 2030, a tenfold increase from $2.7 billion in 2022. This growth is fueled by the increasing adoption of digital health solutions, including telemedicine, electronic health records, and wearable devices, which improve the accessibility, efficiency, and affordability of healthcare services.
Several factors contribute to the success of the health-tech sector. Adaptations to U.S. healthcare regulations and a shift towards digital solutions have played a crucial role. Government initiatives such as the Ayushman Bharat Digital Mission (ABDM) are also significant drivers, promoting digital health records, telemedicine, and technology-enabled service delivery. This mission aims to create a unified online platform for patient health and medical records, transforming healthcare delivery across the country.
The health-tech market is segmented by technology, component, end-user, applications, and delivery modes. Digital health systems, including electronic health records and tele-healthcare, held the largest market share in 2023, while software dominates the component segment. Healthcare providers are the primary end-users driving the adoption of health-tech solutions. Tele-healthcare held the largest revenue share (44.98%) in 2024, while the services segment accounted for 37.89% of the market.
Companies like Sagility, Inventurus Knowledge Solutions (IKS), and Indegene are leading the charge in the health-tech sector, demonstrating steady growth even amidst the broader IT slowdown. These companies and others are adapting to the evolving landscape and providing innovative solutions that address the unique challenges and opportunities in the healthcare industry.
The Indian health-tech sector is not without its challenges. Inadequate healthcare resources, including a shortage of doctors, remain a concern. However, the rise of health-tech offers a promising path towards extending essential services to a larger population and improving the overall quality of healthcare in India. As the broader IT sector navigates a period of uncertainty, the health-tech industry's dynamism underscores its potential to be a key driver of growth and innovation in the Indian economy.
