1. The eHealth sector grew at a lightning pace over the last year to reach $1.2 Bn GMV in FY 20

​eHealth Sector GMV
USD Bn

Before COVID, the eHealth sector grew at a rapid pace to reach $1.2 Bn GMV in FY 20. All the eHealth categories grew at 100%+ CAGR over FY 19.

2. The sector had a mixed run during COVID (AMJ’20), because high demand for online health, was countered by supply chain disruptions (primarily in pharma)

eHealth Category Response during AMJ’20

FY 21 had a mixed start for the eHealth sector. The high demand for most online health services (except diagnostics) during COVID was evident, but its translation into business for eHealth platforms, was limited by the supply chain issues – primarily for pharma categories.

3. Hence, the sector had sluggish growth during AMJ’20, led by limited rise in ePharma GMV and drop in eDiagnostics (despite growth in eConsultation)

​eHealth Sector GMV – Recovery Curve (Indexed to 100)
Jan to June’ 2020 (Jan 2020 = 100)

Overall, the eHealth sector’s GMV dropped significantly in April and has been able to reach slightly above pre-COVID levels in June.

eConsultation category saw a significant surge in GMV during the COVID period, while eDiagnostics saw a considerable drop. ePharma prescription medicines remained largely flat during the COVID period, while ePharma OTC saw a bump in May-June, due to demand for hygiene products (masks, sanitizers etc.)

4. Moving forward, the sector is likely to see supply chain restoration, rise in new users and higher need for hygiene goods, eConsultation & home diagnostics

What will drive the sector’s recovery in the remaining FY 21?

Basis our analysis of the consumer, doctor and regulatory sentiment, all eHealth categories are expected to recover swiftly in the remaining months of this financial year (FY 21).

Pharma is expected to be back on the growth track, as lockdown restrictions get lifted; immunity & hygiene product demand is likely to continue driving OTC business; despite the drop, home diagnostics is projected to recover faster than lab diagnostics; eConsultation is on the right path to make full use of the COVID-led sentiment.

5. These factors will enable the eHealth market to bounce back by FY 21-end and reach ~$2 Bn GMV

eHealth Market GMV – FY 21 Estimates

USD Bn

Moving forward, the sector is expected to bounce back and grow at ~70% CAGR to reach $2 Bn GMV by FY 21. eConsultation is expected to grow at a lightening pace, while eDiagnostics will see a decline compared to FY 20.