In 2020, the refurbished medical devices market was valued at USD 10,130 million. By 2026, it is expected to reach USD 20,210. Hence in the forecast period of 2021-2026, the CAGR should stand at 12.2%.
These are the times of the COVID-19 pandemic. Correspondingly, there is a high demand for refurbished medical devices such as mechanical ventilators. The demand is only going to increase over time. However, the massive disruption in supply chains has negatively impacted refurbished medical devices.
Emerging technologies have resulted in medical tourism. This has further resulted in a market trend of affordable buying. This is the key underlying reason why the market for refurbished devices has emerged.
Just as an instance, when a customer, through the current times is looking for a CT-scanner under 4-slices, he will opt for a refurbished unit over a brand-new system. This is because he needs to pay an affordable price for getting the necessary device without having to compromise on quality.
What is refurbished medical equipment?
Refurbished medical equipment should be defined as devices that are restored. This makes them fit for being used in medical settings. The steps followed for refurbishing medical equipment include reconditioning and repair. Similarly, software or hardware updates may be installed, while ensuring that the devices’ original usage does not transform. The refurbishment also involves the replacement of worn-out parts.
Factors that fuel the demand for refurbished medical equipment
Among factors that boost the growth of the market for refurbished medical equipment, the persistent change in technological trends is among the most important. Another important factor is the high demand for cost-efficient systems, which private hospitals operating on a small scale pose. For catering to their demands, the focus on refurbishing medical equipment is increasing among the manufacturers. Just as an example, companies such as Philips, Siemens, and GE Healthcare are currently focusing upon refurbishing large scanning machines such as:
o Equipment for radiology and angiography
o Magnetic resonance equipment
o X-ray systems
o other molecular imaging devices
The refurbished medical equipment is then made available at a 30% discount, as compared to new systems. Demand for refurbished equipment is high. The demand for refurbished equipment is increasing among end-users. As manufacturing standards are updated, it will further boost the demand for the equipment.
In several emerging markets for refurbished medical equipment, disposable income levels are low. Refurbished medical equipment becomes a more feasible purchase option for end-users, as compared to new medical equipment in such circumstances. The price of refurbished medical equipment is lower than the price of new medical equipment by 30 to 50%. eCommerce further boosts the sale of refurbished medical equipment with their focus on the same. Lower-priced medical equipment is hence made available for more buyers.
Regional analysis for the worldwide market for refurbished medical equipment
Across the forecast period, the highest share in the global refurbished medical equipment market is likely to be commanded by North America. The key underlying reason behind the same is the high presence of a few of the most important medical device manufacturers in North America, who offer refurbishment services. They include Philips Healthcare and GE Healthcare. Similarly, an increase in the number of end-users will also fuel the growth market. When we consider the Asia Pacific region, market growth will further be accentuated by high development in the healthcare sector, and the high rates of medical tourism.
Classification of global refurbished medical equipment market based on sample type
o Operating room equipment
o Surgical Equipment
o Medical Imaging Equipment
o Patient Monitors
o Endoscopy Equipment
o Neurology Equipment
o Cardiovascular & Cardiology Equipment
o IV Therapy Systems
o Neonatal Intensive Care Units Equipment
o Intensive Care Unit Equipment
o Other Equipment
Market trends: Medical imaging equipment will hold a significant market share
Medical imaging is defined as the process of creating a visual representation of the body’s interior for the purpose of medical intervention. Hospital visits are fewer through the current times. Hence, the use of medical imaging devices will slightly decline.
Furthermore, renowned medical counsels such as the American College of Radiology have the opinion that as first-line diagnostic tools for COVID-19, X-rays and CT-scanners are not appropriate. Similarly, as the technological complexity of these devices increase, the total cost also increases. In such circumstances, the refurbished versions of these devices make more options available for an end-user.