by Market Overview:
Refurbishment of medical devices involves repairing and restoring older or used medical equipment to an acceptable working condition. This helps increase lifespan of medical devices and makes them cost-effective for healthcare facilities with limited budgets. Refurbished medical devices such as CT scanners, MRI machines, ultrasound systems and lab diagnostic equipment are commonly used by small clinics, diagnostic centers and hospitals in developing regions.
Market Dynamics:
Rising cost of healthcare and limited budgets of healthcare facilities in developing countries is a key driver propelling growth of refurbished medical devices market. According to WHO, around 1.5-2 million tonnes of electronic waste is generated by the global medical device industry each year. Refurbishing this used equipment offers a more affordable alternative to purchase new medical devices. Moreover, the demand from Asia Pacific region is estimated to increase significantly during the forecast period owing to growing privatization of healthcare sector and rapid infrastructure development in countries like India and China. However, the market also faces challenges such as reluctance among doctors and patients to use refurbished equipment due to uncertainty over quality and lifespan. Stringent regulations related to quality certifications are helping address these concerns to some extent.
Segment Analysis
The refurbished medical equipment market is segmented into medical imaging equipment, operating room and surgical equipment, and patient monitors. The medical imaging equipment segment currently dominates the market, accounting for over 35% share in 2023. This is because medical imaging machines such as MRI and CT scanners have high maintenance and repair costs and often require refurbishment to keep them operational.
The global Refurbished Medical Equipment Market is estimated to be valued at US$ 10.8 Billion in 2023 and is expected to exhibit a CAGR of 12.4% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
PEST Analysis
Political: The regulations around refurbishing and reselling medical devices are well defined by regulatory bodies like the FDA in the US and MHRA in Europe. This provides a stable regulatory environment for market players.
Economic: The refurbishment market is expected to grow faster than the new medical devices market as healthcare providers look to optimize their budgets. The average cost savings from refurbished equipment is around 30-50% compared to new devices.
Social: With an aging global population, demand for quality and affordable healthcare is rising. This is driving healthcare providers to rely more on refurbished medical equipment to meet the growing needs.
Technological: Advanced techniques like 3D printing and robotics are now being used in medical device refurbishment to improve quality, reduce turnaround times and slash costs further.
Key Takeaways
The global refurbished medical equipment market is expected to witness high growth, exhibiting a CAGR of 12.4% over the forecast period of 2023-2030, due to increasing cost constraints in the healthcare industry.
Regionally, North America dominates the refurbishment market currently with over 40% share owing to well established regulations and presence of major market players. However, Asia Pacific is expected to grow the fastest at a CAGR of 15% during the forecast period due to rising healthcare expenditures and low adoption of advanced medical technologies in the region currently.
Key players operating in the refurbished medical equipment market are GE Healthcare, Philips Healthcare, Siemens Healthineers, Soma Technology, Inc., Block Imaging International, Inc., and Agito Medical A/S. Major players are investing in R&D to offer value-added services beyond repair and upgrade of older devices to gain a competitive edge.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
