by Refurbished medical equipment refers to previously used medical devices that have been cleaned, disinfected, tested and certified to be functional and safe. These devices offer an affordable alternative to new equipment for various healthcare settings. Hospitals and clinics in developing regions widely adopt refurbished devices due to budget constraints. Refurbishment helps extend the usable life of technically sound equipment by 2 to 3 years, reducing medical waste. The process involves dismantling, cleaning, repairing or replacing worn parts, inspection, non-destructive testing and certification.
The global refurbished medical equipment market is estimated to be valued at US$ 12.33 Bn in 2023 and is expected to exhibit a CAGR of 5.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The global refurbished medical equipment market is expected to witness significant growth over the forecast period, primarily driven by rising preference for cost-effective alternatives. Developing countries face considerable budgetary constraints establishing modern healthcare infrastructure. Refurbished equipment offers a pocket-friendly solution to equip hospitals and clinics on a tight budget. It provides quality medical devices at 30-70% lower prices than new equivalents. Additionally, rising need for sustainable management of medical waste disposal puts the spotlight on extending the usability of existing instruments through repair and refurbishment. This helps curb electronic waste from the healthcare sector as well. With the advantages of environmental friendliness and budget-friendliness, the refurbished medical equipment market is projected to gain steady demand globally.
SWOT Analysis
Strength: The refurbished medical equipment market offers cost-effective solutions for hospitals and clinics with tight budgets. Refurbished devices can cost up to 50% less than a new device. Refurbished equipment also undergoes rigorous quality checks and safety inspections to ensure proper functionality. Medical facilities can achieve substantial savings that can be reallocated to other priority areas.
Weakness: Some customers still perceive refurbished medical devices as inferior to new ones or have concerns over their quality and reliability. Healthcare providers also have to rely on the certification and assurance provided by refurbishers regarding the equipment’s condition. Revenue streams from consumables and services associated with new equipment are lost for OEMs when customers opt for refurbished alternatives.
Opportunity: With rising healthcare costs and infrastructure development needs in developing regions, the demand for affordable medical solutions is growing steadily. Favorable government policies and certification programs in many countries are helping strengthen customer confidence in refurbished equipment. Multi-year service contracts andtraining programs offered by refurbishers present an opportunity to enhance customer stickiness.
Threats: Stringent regulations and certification requirements posed by regulatory bodies in some regions pose compliance challenges for smaller refurbishing firms. Technological advancements may lead to some refurbished models becoming obsolete sooner. Intense competition amongst local and international refurbishers threatens their pricing and market share.
Key Takeaways
The Global Refurbished Medical Equipment Market Demand is expected to witness high growth over the forecast period driven by increasing healthcare infrastructure investments in developing countries and growing need to cut costs among hospitals and clinics.
Regional analysis: The Asia Pacific region accounts for the largest share of the refurbished medical equipment market due to rising medical tourism, increasing healthcare expenditure and shortage of capital for new equipment procurement across Vietnam, India, Indonesia and other developing nations. China, India and Japan also have a sizeable refurbished equipment refurbishing industry serving domestic as well as international demand.
Key players operating in the refurbished medical equipment market are Orica, Enaex, Austin Powder Company, Incitec Pivot, CSBP, Yara International, San Corporation, Fertiberia, Neochim, URALCHEM Holding, Dyno Nobel, Vijay Gas Industry, Solar Industries, Maxam, AEL Mining Services, EPC Groupe, Gulf Oil Corporation, IDEAL Industrial Explosives, Sichuan Meifeng Chemical Industry, Jiaocheng Jinxin Chemical.
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Source: Coherent Market Insights, Public sources, Desk research
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