Written By: Resham Daswani

Are you considering investing in a diagnostics lab franchise in India? Collaborating with a well-respected pathology brand is a prudent business decision given the increasing focus on preventative healthcare and diagnostic testing. If you are looking to open a diagnostic lab franchise in India, this blog will help you narrow down your options by comparing four of the country's most prestigious names.

What Makes a Diagnostics Lab Franchise a Good Investment?

The Indian diagnostic services business is expected to grow by over 10% in the next years. Regular testing and health screenings have become more commonplace in the post-COVID era. You may help improve healthcare and create a sustainable, scalable business by investing in a pathology lab franchise.

Here are the top Diagnostics Lab Franchise Opportunities in India: A Comparative Analysis

Here is a detailed view of these 4 top diagnostics lab franchises in India:

#1. Dr Lal Pathlabs Franchise

Attributes:

• Convincing name recognition and support
• laboratories recognised by NABL and CAP
• Help with advertising and education

Moreover, this premium diagnostic brand is perfect for entrepreneurs based in major cities or tier-1 cities.

#2. SRL Diagnostics Franchise

The benefits include:

• Comprehensive partnerships with healthcare facilities
• Help given to franchisees in the areas of marketing and operations
• Also provides radiological services.

In short, partners seeking steady growth who have ties to the medical or hospital fields are ideal candidates.

#3. Metropolis Healthcare Franchises

Its advantages are:

• Capabilities for advanced testing in fields such as genetics and cancer
• Solid online framework
• Various health bundles

Moreover, this is perfect for Investors in secondary cities seeking a mix of technology and brand recognition.

#4. Thyrocare Franchise

Positive aspects include:

• Optimal business expense
• Reduced effort through centralised testing
• Bulk testing and clear pricing

Nonetheless, it is suitable for People in price-sensitive markets or those who are just starting out in business.

Diagnostic lab market analysis in India (2024-2025)

For anyone interested in investing, starting a business, or acquiring a franchise, we have compiled this exhaustive market research of the diagnostic lab industry in India. It covers all the bases: current trends, major players, growth drivers, obstacles, and expected outcomes.

Overview of India's Diagnostic Industry:

Diagnostic imaging facilities (radiology centres, X-ray, MRI, CT scans), clinical laboratories for testing blood and urine, and wellness screening programs are all part of this category.

• Rate of Growth Anticipated (CAGR): 10-12% (2024–2028)
• Share of Organised Sector: 25% to 30% (anticipated to increase significantly)

Principal Factors Contributing to Growth

• ​​Health Awareness on the Rise: Diagnostic testing is now more common due to the increased focus on wellness checkups, chronic illness management, and preventative healthcare.
• Lifestyle-Related Illnesses and Urbanization: Diagnostic services have become increasingly important due to the rising prevalence of diabetes, hypertension, and cardiovascular disorders.
• Surge in Demand Following the COVID-19 Pandemic: Because of the epidemic, people's attitudes and practices towards health have altered irrevocably. Telemedicine, home sample collection, and regular checkups are now the norm.
• Diagnostics are becoming more integrated into e-health and mobile health services, which is facilitating the digital health boom by making tests more accessible and easier to schedule for consumers.
• Ayushman Bharat, the Digital Health Mission, and EHRs (Electronic Health Records) are some of the government programs that are actively promoting data tracking and diagnosis.

Disorganised vs. Organised Market Structure

• The unorganised sector accounts for around 70% of the market and includes things like doctor-owned clinics and local labs, which have limited technology and unpredictable quality.
• About 30% of the market is made up of organised companies, such as Dr. Lal PathLabs, Metropolis, SRL, and Thyrocare.
• New trend: Standardised, branded diagnostics laboratories with tech-driven services are replacing fragmented, quality-variable labs.

Prospective Developments in Diagnostics

• No longer a luxury, the Home Sample Collection is now an absolute necessity.
• Key to quick growth: franchise and aggregater models.
• Application of AI to Diagnostic Imaging Intelligent reporting and AI-powered technologies.
• Monthly diagnostics and telehealth access through subscription-based health plans.
• Increasing demand in Tier 3/4 towns for rural diagnostics is a connect by healthcare awareness and the proliferation of mobile units.

Future Of Diagnostic Lab Business Industry - The Road Ahead [2025 & Beyond]

• Consolidation is inevitable: Large corporations are expected to acquire regional laboratories through mergers and acquisitions.
• DaaS: Laboratory testing that is connected with APIs for health platforms..
• AI, genomics, and precision testing will revolutionise preventive and predictive healthcare.
• Booming Tier-2 and Tier-3 Regions: These regions will propel the subsequent phase of diagnostics expansion.

Nonetheless, scalable, branded, tech-enabled firms are replacing disorganised, doctor-run setups in India's diagnostics lab market. There is a lot of room for growth and influence in the diagnostics lab franchise market, particularly with a big name behind it, thanks to the increasing emphasis on preventative care, digitisation, and affordable testing.

5 Strong Reasons You Should Invest in A Diagnostic Lab Franchise in India

Right now is a great time to buy a diagnostics lab business in India. Here's why:

#1. Rapid Expansion of the Market

• India's diagnostics market is expected to reach ₹2 lakh crore by 2028, growing at a CAGR of 10-12%..
• Screening for chronic diseases and other preventable health issues is becoming routine practice.

#2. Transition to Organised Diagnostics

• With the organised sector at less than 30%, branded labs have a tonne of space to expand.
• Franchises are more popular than local labs because customers value confidence, accuracy, and the convenience of home collection.

#3. Ecosystem Driven by Technology

• It's not uncommon to see online booking systems, digital reporting, and AI diagnostics.
• Franchises from well-known brands have advantages that independents often struggle to match, such as centralised support, CRM systems, and digital integration.

#4. Promoting Digital Health with Government Assistance

• Diagnostics are becoming an integral part of India's healthcare system with initiatives like the Ayushman Bharat Digital Mission, Health IDs, and telemedicine.
• The foundation of preventative care and services related to insurance will be diagnostics.

#5. Advancement Beyond Metropolitan Areas

• Minority and third-tier urban areas are underdeveloped.
• The demand-supply gap that franchises can fill is being created by increasing health consciousness, urbanisation, and disposable income.

Final Thoughts,

Diagnostic services are expected to experience an increasing demand. A diagnostic lab franchise provides opportunities for long-term growth for individuals with backgrounds in healthcare or an interest in business. Take the time to assess the brand compatibility, cost structure, ROI timetable, and support system before making a final decision.

Do you want to launch a pathology lab franchise in India? Leave a comment telling us the brand you're thinking about buying.

Disclaimer: The brands mentioned in this blog are the recommendations provided by the author. FranchiseBAZAR does not claim to work with these brands / represent them / or are associated with them in any manner. Investors and prospective franchisees are to do their own due diligence before investing in any franchise business at their own risk and discretion. FranchiseBAZAR or its Directors disclaim any liability or risks arising out of any transactions that may take place due to the information provided in this blog.