Medical Equipment Financing Market Analysis

Medical Equipment Financing Market Analysis

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.
 

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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.