Worldwide Refurbished Medical Equipment Industry to 2027 - Increasing Diagnostic Centers & Hospitals and Hospital Budget Cuts Drive Growth
DUBLIN, Jan. 18, 2023 /PRNewswire/ -- The "Refurbished Medical Equipment Market - Global Outlook & Forecast 2022-2027" report has been added to ResearchAndMarkets.com's offering.
The global refurbished medical equipment market is expected to grow at a CAGR of 11.76% during 2022-2027.
The global market is growing due to the increasing number of healthcare settings and increased access to healthcare services. The industry is growing due to the high prevalence of several acute and chronic diseases across the globe.
Refurbishment is the systematic process of making used equipment equal to or better than new. Refurbishment is rebuilding or updating with all new materials, components, or parts to restore their original (or better) working condition and appearance. The global refurbished medical equipment market grew significantly during the pre-pandemic times. However, outbreaks of diseases like bird flu, COVID-19, and Monkeypox create a massive demand for used medical equipment.
Small & medium-sized hospitals, typically doctor-owned and with less than 100 beds, often cannot afford to buy new high-end equipment. These facilities prefer refurbished equipment of reputed brands that will cost less but perform well for a few years without complaints.
These could be young doctors who become self-employed after using such devices in large hospitals. They may be familiar with the equipment models, but they are short on a budget in the early stages of the business. Also, tier 3 cities may have enough patients without enough ability to pay. Such locations cannot provide sufficient return on investment (ROI) for new equipment. Nearly one-third of the medical equipment industry in developing countries is part of the refurbished medical equipment market.
Besides important environmental benefits, refurbishing provides sustainable economic benefits by creating business and employment in the refurbished medical equipment market. Even existing equipment owners may consider refurbishing their machines rather than disposing of old ones and buying new ones if their users are comfortable using the specific model.
A refurbished asset can be re-capitalized on a depreciation schedule at half the value of new equipment. Refurbishment typically costs about half as much as buying a new one and can bring a machine back to like-new. In addition to the initial cost savings, refurbishment increases resale value and can provide tax benefits to a business, depending on how it's structured.
Apart from cost savings, user comfort with the machines they've been using is a bonus. The global refurbished medical equipment market eliminates the annoying problems faced in using a worn-down machine and avoids the learning curve associated with new equipment. Users often grow fond of their devices and love to see their trusted old machines returned to life in better shape than before. The refurbishment also sometimes allows upgrading to the newest available technology.
Market Trends and Opportunities
Increasing Demand for Medical Equipment in Developing Countries
- The dearth of access to medical equipment in developing countries has attracted global interest in the refurbished medical equipment market for disease diagnosis. Healthcare systems in low-and middle-income countries often have limited access to medical equipment that appears to be in routine use. Implementing medical equipment refurbishment in a developing country would provide employment, increase the knowledge of medical technology among the people, and thus, provide a sustainable supply of skilled personnel for the healthcare industry.
High Capital and Procurement Costs of Medical Equipment
- Medical equipment typically consists of complex machines that are expensive to purchase and operate and require significant maintenance. Smaller clinics and local medical centers may not be inclined to spend many resources purchasing new equipment that can easily deplete their entire annual budget for just a few devices. Purchasing refurbished medical equipment allows healthcare providers to maximize their budget while providing quality treatment options to each patient. By investing in refurbished equipment, hospitals and clinics can free up much-needed funds for other uses, such as staff, disposables, and medicines, further contributing to the growth of the refurbished medical equipment market.
Growing Preference for Eco-friendly Products
- The environmental benefits of refurbished medical equipment are also worth touting. By extending the useful life of medical equipment from 5-7 to 10-14 years or even more, refurbishment is a form of reuse and waste prevention, contributing to an environmental economy. Refurbishment saves energy, and the materials are used to produce new equipment. Refurbishing medical equipment and extending its service life maximizes the return on the initial investment of energy and materials. Approximately 90% of the material for a system undergoing refurbishment can be reused; only 10% of the material must be recycled, which is done using environmentally friendly processes.
Hospital Budget Cuts
- Preparing the hospital's capital budget is an interesting time because it often puts its executives at odds. There are two crucial points where refurbished medical equipment options can assist in this process. The first: relying on refurbished equipment in the development of capital budgets, as pricing options for refurbished equipment early in the process allow to push the price further while allowing for significant upgrades. Second, refurbished equipment can fill the capital budget gap with low-cost options for equipment.
- In the UK, hospitals are struggling to afford the most advanced scanners and surgical equipment to treat patients who have cancer and other diseases because of multibillion-pound cuts to the NHS's capital budget. In such cases, the refurbished medical equipment market becomes an ideal choice for hospitals to get the requirements at affordable prices.
Increasing Number of Diagnostic Centers & Hospitals
- Diagnostic players are entering into outsourcing contracts with hospitals, whereby they would handle the entire diagnostic operations for them. Newly started small hospitals, diagnostic centers, and clinics have a financial burden and cannot dedicate to the new equipment. A few types of medical equipment could easily take up an entire annual budget for a small medical facility. Purchasing refurbished medical equipment is a viable solution contributing to the refurbished medical equipment market. The refurbished medical equipment is upgraded to current standards, ensuring updated equipment for a reasonable price.
Large Inventory of Used or Old Medical Devices
- Medical equipment inventory is an accepted cost of doing business for manufacturers and is often the most significant cost category. Since medical equipment is typically a high-value product, any efficiencies or cost reductions can quickly contribute to the bottom line. Older equipment does not last forever, and this equipment eventually will need to be replaced and refurbished. It is expected that many facilities will be eager to replace their older systems with the resolution of global supply chain problems. These factors contribute to the rising sales of medical devices, which reflects a large inventory of used medical equipment in the refurbished medical equipment market.
Vendor Landscape
The global refurbished medical equipment market is exceptionally active, with fewer global, regional, and local players offering a wide range of medical equipment. The industry is less competitive, as the key players have gained significant refurbished medical equipment market share compared to other prominent players. The market provides the avenue for cheaper access to healthcare delivery and reduces costs in developing countries where these equipment are purchased for use.
The three major manufacturers in the refurbished medical equipment market, GE Healthcare, Koninklijke Philips, and Siemens Healthineers, have implemented the refurbished process and sold their refurbished medical equipment under distinct brand names.
In 2021, North America was the largest regional refurbished medical equipment market. It was primarily attributed to the presence of many private healthcare facilities, the increasing aging population, the high prevalence of various diseases, ongoing reimbursement cuts, and regulatory scenarios for the sale and use of refurbished medical equipment in the US.
Key Vendors
- General Electric Company
- Koninklijke Philips
- Siemens Healthineers
Other Prominent Vendors
- Amber Diagnostics
- Apt Medical Systems
- Avante Health Solutions
- Block Imaging
- EverX
- Future Health Concepts
- Medirays
- Meridian Medical
- PACIFIC HEALTHCARE IMAGING
- Radiology Oncology System
- Soma Tech Intl
- US Med-Equip's
- US Medical Systems
- Venture Medical ReQuip
Key Questions Answered:
1. What is the expected refurbished medical equipment market size by 2027?
2. What is the growth rate of the global refurbished medical equipment market?
3. Who are the key companies in the global refurbished medical equipment market?
4. What are the latest refurbished medical equipment market trends globally?
5. Which region holds the largest refurbished medical equipment market share globally?
Key Topics Covered:
1 Research Methodology
2 Research Objectives
3 Research Process
4 Scope & Coverage
4.1 Market Definition
4.1.1 Inclusions
4.1.2 Exclusions
4.1.3 Market Estimation Caveats
4.2 Base Year
4.3 Scope of the Study
4.3.1 Market Segmentation by Product
4.3.2 Market Segmentation by Application
4.3.3 Market Segmentation by End-Users
4.3.4 Market Segmentation by Geography
5 Report Assumptions & Caveats
5.1 Key Caveats
5.2 Currency Conversion
5.3 Market Derivation
6 Market at a Glance
7 Premium Insights
7.1 Market Overview
8 Introduction
8.1 Overview
9 Market Opportunities & Trends
9.1 Increasing Demand for Medical Equipment in Developing Countries
9.2 High Capital & Procurement Costs of Medical Equipment
9.3 Growing Preference for Eco-Friendly Products
10 Market Growth Enablers
10.1 Increasing Hospital Budget Cuts
10.2 Increasing Diagnostic Centers & Hospitals
10.3 Large Inventory of Used or Old Medical Devices
11 Market Growth Restraints
11.1 Negative Perception About Refurbished Medical Equipment
11.2 Stringent Standards & Approval Mechanisms for Refurbished Medical Equipment
11.3 Growing Ease of Leasing Medical Equipment in Lmics
12 Market Landscape
12.1 Market Overview
12.2 Market Size & Forecast
12.2.1 Insights by Geography
12.2.2 Insights by Product Segmentation
12.2.3 Insights by Application Segmentation
12.2.4 Insights by End-User Segmentation
12.3 Five Forces Analysis
13 Product
14 Application
15 End-User
16 Geography
16.1 Market Snapshot & Growth Engine
16.2 Geographic Overview
17 North America
18 Europe
19 APAC
20 Latin America
21 Middle East & Africa
23 Key Company Profiles
24 Other Prominent Vendors
25 Report Summary
26 Quantitative Summary
27 Appendix
For more information about this report visit https://www.researchandmarkets.com/r/z2d67n
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