April 18, 2024
Refurbished Medical Equipment Market

Refurbished Medical Equipment Market Poised for Growth by Increased Focus on Cost-Containment is in trends by growing demand for affordable healthcare

Refurbished medical equipment refers to pre-owned medical devices that have been decommissioned from their primary user and restored to a functional condition by the Original Equipment Manufacturer (OEM) or an independent repair vendor. These refurbished devices offer significant cost-savings as compared to new ones, while providing similar clinical functionality. They find wide application across diagnostic imaging equipment, operating room equipment and patient monitors among others. The refurbished segment helps address challenges associated with high equipment costs, especially for cash-strapped public hospitals and small clinics in developing nations.

The Global Refurbished Medical Equipment Market is estimated to be valued at US$ 14.21 Mn 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 Global Refurbished Medical Equipment Market Share are Crayola LLC, Faber-Castell AG, Sargent Art, Reeves (Colart Group), Liquitex (Colart Group), Sax Arts & Crafts, Prang (Dixon Ticonderoga Company), RASCHER GmbH, Richeson Art Materials, Jovi S.L. With healthcare costs soaring across major economies, there is a growing demand for affordable alternatives to new medical equipment. Refurbished devices offer significant savings of up to 50-60% as compared to their new counterparts. Several countries and hospitals are increasingly procuring refurbished equipment to manage financial constraints without compromising on quality of care.

The global refurbished medical equipment market is witnessing strong growth on account of rising interest of healthcare providers to reduce capital expenditure and operational costs. Growing need for high-quality critical care equipment in emerging markets without stretching budgets is propelling demand. Furthermore, availability of similar warranties and performance guarantees on refurbished devices as new ones is boosting popularity.

The refurbishment market allows OEMs and independent providers to expand globally. Growing infrastructure and awareness in Latin America, Asia Pacific and Middle East & Africa is creating new sales avenues. Advanced technologies acceptance in refurbishment is further improving quality, manageability and compliance with international standards.

Market key trends

One of the key trends gained traction in the refurbished medical equipment market is third-party independent refurbishing. Independent repair vendors not affiliated with OEMs offer significant cost savings to hospitals by refurbishing a wide variety of equipment types from multiple brands. Advanced diagnostics, customized refurbishment plans and international certifications by third parties are helping gain more trust versus OEM refurbished devices. This trend allows for greater competition and flexibility of choice for healthcare providers.

Porter’s Analysis

Threat of new entrants: The threat of new entrants in the refurbished medical equipment market is moderate. There is a need for high technical expertise, certification requirements and significant capital investments required to enter this market.

Bargaining power of buyers: The bargaining power of buyers is high in this market. There are a large number of existing players providing refurbished medical equipment at competitive prices. Buyers can negotiate on price and financing options.

Bargaining power of suppliers: The bargaining power of suppliers is moderate. While there are many component/parts manufacturers, most major OEMs produce key components in-house reducing supplier power.

Threat of new substitutes: The threat of substitutes is low. Refurbished medical devices provide significant cost savings compared to new devices, making substitution difficult.

Competitive rivalry: The competitive rivalry is high. The market has numerous global and regional players competing on the basis of product offerings, service, and price.

Geographical regions with highest market share:

North America currently holds the highest share of the refurbished medical equipment market, primarily due to favourable regulatory policies and reimbursement framework for refurbished devices in the region.

Fastest growing region:

Asia Pacific region is expected to witness the highest growth over the forecast period in the refurbished medical equipment market. This can be attributed to increasing healthcare infrastructure, rising medical tourism and growing demand for cost-effective treatments in developing nations such as India and China.

*Note:
1.      Source: Coherent Market Insights, Public sources, Desk research
2.      We have leveraged AI tools to mine information and compile it