Medical Equipment Financing Market
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Medical Equipment Financing Market size surpassed USD 149 billion in 2021 and is expected to witness 7.1% CAGR from 2022 to 2030. Factors such as the high cost of healthcare equipment, rising demand for medical equipment in developing countries, and the presence of advanced technology in developed nations is driving the global market demand. Additionally, building-up cash reserves as a defense against the worst-case reimbursement scenarios will drive the market expansion.
The COVID-19 pandemic has proven to be advantageous for the medical equipment financing and has rendered a positive impact on the market expansion. As amid pandemic the growing COVID 19 cases contributed to the increased demand for diagnostic equipment, therapeutic equipment, and patient monitoring systems among others. Many healthcare facilities that were unable to buy the medical equipment such as oxygen concentrators, ventilators, hospital beds, among others; immediately through internal accruals; shifted towards medical equipment financing options. Therefore, this trend positively influenced the market growth.
| Report Attribute | Details |
|---|---|
| Base Year: | 2021 |
| Medical Equipment Financing Market Size in 2021: | USD 149.7 Billion |
| Forecast Period: | 2022 to 2030 |
| Forecast Period 2023 - 2032 CAGR: | 7.1 |
| 2023 Value Projection: | USD 275.2 Billion |
| Historical Data for: | 2017 to 2021 |
| No of Pages: | 184 |
| Tables, Charts & Figures: | 258 |
| Segments Covered: | Equipment, Type, and End-use |
| Growth Drivers: |
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| Pitfalls Challenges: |
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Moreover, with the incessant advancement in medical technology, it is important to use best-in-class medical equipment for exceptional healthcare services. Since advanced diagnostic technologies are costly, medical practitioners and hospitals may not be able to afford them with their own cash. Medical equipment financing with cheap monthly instalments and flexible loan types is required. Such scenarios positively supported the market statistics amid the pandemic.
Medical equipment financing refers to the financing options available to help fund all of a medical facility's machinery and equipment. Medical equipment finance is one of the most common ways for major and small medical hospitals and clinics to invest in their individual businesses. It is critical to ensure that medical professional has the best equipment and infrastructure available to them in order to deliver the best medical care to patients. Medical equipment financing services like this give the funds needed to start or expand a healthcare business.
The medical equipment and healthcare sectors have grown tremendously in the last decade. Surging number of medical facilities across several developing countries including India, Japan will enhance the demand for medical equipment in the market. There is a huge gap in the supply of medical devices as well as current demand in India and this provides a significant opportunity for various manufacturing devices. Medical equipment plays an important role in treating geriatric population and can be a lifesaving aspect when it comes to diagnosing different health disorders and medical conditions.
Elderly population is likely to have comorbidities such as heart issues, chronic kidney problems as well diabetes that further augments the demand for medical equipment facilities. Due to surging number of geriatric population base, the utilization rates of medical equipment have risen promptly relative to other healthcare services. For instance, according to the data published on the United Nations’ World Population Prospects 2019, worldwide, 1 in 6 people will be of 65 and above in age by 2050, up from 1 in 11 in 2019. Therefore, growing number of older adults will secure the overall business progression.
The diagnostic equipment segment was valued at USD 48.3 billion in 2021. The demand for premium, high-quality, and innovative healthcare facilities has increased throughout developing nations due to improved healthcare infrastructure and a burgeoning healthcare business. As a result, there has been a surging demand for technologically advanced medical care, as well as new and innovative products for delivering these treatments and related services, all of which are rather costly to purchase.
As a result, customers choose to use financing services to obtain these diagnostic devices, propelling the diagnostic equipment finance industry segment statistics.
Based, on type, the medical equipment financing market is divided into new medical equipment, rental equipment, and refurbished equipment. The refurbished segment was valued at USD 16.8 billion in 2021. Refurbished equipment refers to medical devices that have been reconditioned or restored to a reusable condition without changing its basic function and initial specifications.
This equipment are used only after thorough servicing, followed by disinfection and replacement of damaged or old parts. The demand for refurbished medical devices is high in developing economies owing to budgetary constraint. Refurbished medical equipment are available for 30 to 50 percent less than new medical equipment.
Furthermore, several e-commerce platforms are anticipated to provide easy purchasing and selling options for refurbished medical equipment. Such benefits associated with refurbished equipment will propel the segmental as well as overall market growth.
Factors such as increasing innovation in the fields of endoscopic and laparoscopic surgical techniques in ASCs has resulted in an increase in outpatient visits, which will drive segmental expansion in the near future. Furthermore, the availability of economical treatment alternatives at ASCs, as well as the presence of competent healthcare specialists, will boost its demand. Moreover, ASCs provide same-day surgery options for patients, saving both the patient and the physician time. As a result, the aforementioned factors benefit segmental expansion.
North America medical equipment financing market captured over 44% business share in 2021 and is poised to grow substantially during the forthcoming years. The regional market is expected to increase due to high adoption rates of technologically advanced medical equipment. Moreover, the presence of multiple market participants focused on developing revolutionary medical systems or products for improved patient care will be beneficial to the company's growth. Similarly, increasing senior population base, rising cases of chronic illnesses, and favorable government efforts will fuel the regional market expansion.
Some of the prominent players functioning in the medical equipment financing industry include:
These industry participants are involved in various growth strategies with continued innovations and technology improvements to sustain market competition in medical equipment financing business.
Some of the recent industry developments:
The medical equipment financing devices market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2017 to 2030, for the following segments:
By Equipment
By Type
By End-use
The above information is provided for the following regions and countries:
Diagnostic medical equipment financing market size was around USD 48.3 billion in 2021 and is estimated to register substantial growth driven by the soaring demand for innovative, high-quality, and premium healthcare facilities.
Prominent players in the medical equipment financing industry comprise CMS Funding, Bajaj Finserv, HeroFinCorp, TIAA Bank, SMC Finance, National Funding, Toronto-Dominion Bank, and others.
North America accounted for more than 44% of the medical equipment financing market share in 2021 and is expected to register substantial growth considering the increasing cases of chronic illnesses and the rising senior population base.
Global market for medical equipment financing exceeded USD 149 billion in 2021 and is anticipated to record a CAGR of 7.1% between 2022 and 2030 owing to the presence of advanced technology in developed countries and the high cost of healthcare equipment.