semi conductor

The usage of semiconductors from power supply to displays is critical in medical equipment

The medical electronics segment is witnessing an increase in momentum fueled by an increasing need for quality- conscious, intelligent and time efficient health solutions which are affordable as well. Advancements in medical electronics has helped reduce the cost and size of equipment; especially for diagnostic solutions such as BP, ECG and blood sugar monitors and other assessment tools like CT, MRI, angiogram and ultrasound. Ganesh Guruswamy, Vice President and Country Manager, Freescale Semiconductor India reveals more about the dynamics of the medical electronics market in India, in conversation with M Neelam Kachhap

What is the size of medical electronics market in India and what are the main segments?

The Indian healthcare sector is one of the largest service sectors in the country. A December 2010 report on 'Current Status and Potential for Medical Electronics in India' by India Semiconductor Association(ISA) estimated the domestic market for medical equipment at $ 820 million. It is estimated to grow at 17 per cent CAGR over the next five years and reach $ 2.075 billion.

The medical electronics market can be divided into four segments:

• Imaging equipment, which is used largely in secondary and tertiary healthcare, constitutes approximately 57 per cent of the market
• Therapeutic products make up 26 per cent of market share.
• Home-care and handheld equipment accounts for approximately eight per cent and is largely imported; this has high potential for domestic manufacturers
• Patient monitoring systems, approximately nine per cent of the market.

What is the share of indigenous manufacturers vs MNC based in India in medical electronics?

The market for medical electronics is equally divided between indigenous manufacturers and MNCs. According to the ISA report the total market for the MNCs in India is 45 per cent and remaining market is occupied by smaller, niche players.

What are the trends in medical electronics market today? What are the drivers of this market in India?

Some key features that are the drivers for medical market in India is changing demographics and age profile which is prone to spend more on healthcare; rise of lifestyle diseases and the need for their diagnosis; an increasing awareness leading to the growth of preventive healthcare; increase in healthcare spending due to increase in healthcare insurance; growth in medical tourism to address international needs; and last but not the least the entry of corporates into the healthcare arena. Medical equipment today needs to offer accessibility, affordability and ease of usage

According to the ISA, the usage of semiconductors from power supply to displays is critical in medical equipment. This includes medical imaging, patient monitoring systems, digital hearing aids and infusion pumps, to name a few. Hence, growth in the medical equipment is expected to drive growth in semiconductor manufacturing. ISA proposes the need for high-level R&D to offer special medical equipment for India that offers accessibility, affordability and ease of usage; and closing the large gap in healthcare infrastructure and India's diverse landscape through private partnerships.

Why is India a preferred destination for most MNC for starting a manufacturing unit of medical devices? What is the effect of such reverse engineering on medical electronics market?

As mature markets like US, Europe and Japan reach their saturation point, medical device manufacturers are turning to emerging markets like India as engines of growth. This automatically implies that they will now need to develop and build products that are relevant to these markets, of which India is very promising for medical technology OEMs.

What are the challenges medical device manufacturers are facing currently?

The main challenges for medical device manufacturers in India are mainly accessibility, affordability and availability. Since a large proportion of the Indian population resides in rural areas with limited access to healthcare providers, medical devices need to go to the patients, and these must be provided at an affordable price. Thus, it is obvious that medical devices manufacturers have to address the increasing demand of the Indian market for portable and affordable and easy to use devices.

How will the medical device market change in future and how will medical electronics segment adapt to this changing environment?

The medical device market is an ever evolving market which sees new standards, regulations and technologies coming in all the time. However, today there are companies investing in developing IP in the areas of short-range communication such as Bluetooth, IEEE 11073, imaging algorithms, 802.11n etc. Medical device manufacturing companies are now able to reduce time to market and R&D costs using these new technologies.

Telemedicine is another fast growing area through which medical device manufacturers can expand the scope of usage of their devices from a patient’s home to make medical data available to a doctor or a nurse providing primary healthcare. With the availability of internet and broadband technology in almost all the developed and rapidly developing countries, technology today is available where a patient or a primary health centre located in remote or rural regions can have a video conference with the doctors and specialists in the larger hospitals.

Advanced diagnosis can be done for cardio care (through exchange of ECG), orthopaedics (through exchange of digital X-ray) etc, connecting the medical devices to the telemedicine unit along with the user application software.

The evolving market will see the segment adapt to the changing environment by accommodating all the changes in the industry and understanding the pressing needs of the demography and adapting accordingly.