Refurbished Medical Equipment Market is Anticipated to Witness High Growth Owing to Increase in Healthcare Facilities
Refurbished Medical Equipment Market |
The refurbished medical equipment
market involves the reconditioning and remarketing of used medical devices to
reduce healthcare costs. Refurbished medical devices such as MRI machines, CT
scanners, ultrasound machines, X-Ray machines and other vital patient care
equipment offer significant savings compared to new alternatives. The key
advantage is refurbished equipment provides near-new performance at
approximately half the cost of newly manufactured devices. Refurbished devices
undergo rigorous quality assurance practices to ensure all features and
functions match OEM specifications. The refurbishing process involves
calibration, installation of new parts, upgrades to current technology
standards and thorough safety inspections.
The Global Refurbished Medical
Equipment Market is estimated to be valued at US$ 14.21 Bn in 2024 and is expected to exhibit a CAGR of 5.4% over the forecast period
2024 to 2030.
Key Takeaways
Key players operating in the
refurbished medical equipment market are GE Healthcare, Philips Healthcare,
Ultra Solutions, Soma Technology, Block Imaging, and TRACO. These players specialize
in refurbishing a wide range of medical equipment and provide multi-year
warranty packages for financing options.
The growing demand for affordable
healthcare is a major factor driving growth of the refurbished medical
equipment market. Refurbished devices help hospitals and diagnostic centers
upgrade their facilities without significant strain on budgets. They provide a
cost-effective means to access the latest medical technology.
Globally, the market is expanding
in line with increasing acceptance of refurbished devices. Several developing
nations lack sufficient healthcare infrastructure and invest in refurbished
options to develop radiology and imaging capabilities. Leading suppliers are
focused on new regional markets to further penetration.
Market Drivers
Rising healthcare costs across
the world is a key factor behind the growing demand for refurbished medical
equipment. New medical technologies are often very expensive for hospitals and
long-term purchase commitment challenges many budgets. Refurbished equipment
helps expand access to critical tools at lower costs. This is expected to
remain a major driver over the forecast period.
Current geopolitical situation and its impact on Refurbished Medical
Equipment Market growth:
The ongoing geopolitical tensions
between major economies like US and China are impacting global trade dynamics
and medical equipment supply chains. The rising nationalist sentiments have
increased import tariffs and restrictions on key components of refurbished medical
devices. This is negatively affecting the refurbishment process of older
equipment and driving up overall costs for this market. At the same time,
ongoing conflicts and political instabilities in various regions are reducing
investments in upgrading healthcare infrastructure. This is expected to dampen
the medium term demand for refurbished medical equipment as many cash-strapped
hospitals prioritize essential needs over capital equipment purchases. However,
the market players are focusing on local sourcing and manufacturing to
circumvent trade barriers. They are also targeting high potential emerging
markets in Asia Pacific and Latin America to offset slower growth in US and
Europe. Partnerships with distributors and leasing companies in these regions will
be crucial to tap the substantial replacement and infrastructure upgrade
opportunities.
Regions contributing most to Refurbished Medical Equipment Market
value:
In terms of Global
Refurbished Medical Equipment Market Share value, North America and
Western Europe currently account for over 60% of the global refurbished medical
equipment space. This is primarily due to the large installed base of aging
medical devices and capital equipment in hospitals and clinics across US,
Germany, France and other developed countries. With the rising costs of new
equipment and growing emphasis on sustainable healthcare, many facilities in US
rely on refurbished CT scanners, MRI machines, ultrasound devices and general
hospital products to upgrade their diagnostic and treatment capabilities on a
limited budget. Similarly, the significant replacement demand from healthcare
providers is driving the refurbished equipment market in major Western European
markets.
Fastest growing region in Refurbished Medical Equipment Market:
The Asia Pacific region,
specifically China and India, is poised to witness the fastest growth in the refurbished
medical equipment market during the forecast period. This is attributed to the
massive investments underway to bolster healthcare infrastructure and access to
services across small towns and rural areas in these densely populated
countries. The focus on cost effective solutions also makes refurbished
equipment an attractive choice for new and expanding hospitals. Furthermore,
the presence of a large refurbishment industry catering to domestic as well as
international needs is helping accelerate adoption. The market is forecast to
expand at a CAGR of over 8% in Asia Pacific compared to the global average of
5.4% from 2024-2030.
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