Medical Equipment Financing Market Size, Share & Trends 2031

Report Description

The global medical equipment financing market size was around USD 155.65 Billion in 2022 and is expected to surpass USD 283.76 Billion by 2031, expanding at a CAGR of 6.9% during the forecast period, 2023–2031. The market growth is attributed to the increasing need for regular medical equipment upgrades for better diagnostics and treatment services in hospitals, clinics, and ambulatory surgical centers.

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Medical equipment financing is a process of helping healthcare institutions to get loans for the payment of medical devices purchase. Various types of flexible financing schemes are available, especially from banks through which a hospital or clinic can use to acquire more advanced medical equipment over time. The financing tenure usually extends to 3-5 years and borrowers are normally given options to purchase, renew, or return the equipment at the end of the initial term of the agreement between the borrowers and banks. This type of financial lease is well suitable for organizations having a high credit score for their business performance and promising startups having strong potential for massive expansion in their business operations. The lease is widely practiced by large healthcare organizations as it offers one of the most financially efficient solutions for acquiring more innovative, up-to-date, and high-performance medical devices without the need to reduce a large portion of their capital. To solve the problems of the rising cost of healthcare equipment and provide the best medical service and facilities to patients at the same time, healthcare institutions require to timely apply for various financing services offered by banks or other financial service providers. Moreover, these institutions widely adopt financing from banks to secure their cash reserves, which are primarily set for handling worst-case conditions or emergency use.     

COVID-19 Impact

The COVID-19 pandemic had accelerated the market growth owing to the sharp increase in the need for various medical equipment for the treatment and diagnosis of corona patients across hospitals, research labs, diagnostic centers, and clinics. The surge in coronavirus cases worldwide had forced healthcare institutions to upgrade their existing infrastructure and rely on financing services to acquire medical devices including therapeutic devices, diagnostic equipment, and patient monitoring systems. Several healthcare organizations were facing financial shortages and needed massive capital funding to meet the rising demand for medical equipment and facilities including ventilators, beds, and oxygen concentration for patients during the pandemic

Market Trends, Drivers, Restraints, and Opportunities

• Rising demand for high-quality healthcare infrastructure and facilities for patient care and the increasing need for medical devices reimbursement policies, especially in developing countries are key factors driving the market.

• Increasing cases of chronic illness and disease infection globally, especially in developed countries presents another key driver of the market.  

• Rapid introduction of innovative and premium medical devices offering highly accurate results and consultant service facilities for patients is expected to boost the market during the forecast period.

• Issues concerning the delay in the approval of medical equipment for some health issues treatment and the higher risk of obsolescence of medical equipment act as major challenges that can hamper the market.

• Wide funding from banks and a rising number of private investors for funding in innovative technology and R&D programs for the development of innovative medical equipment are offering several opportunities for market growth.

Scope of the Report

The global medical equipment financing market research report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Market Segment Insights

Refurbished equipment segment to expand at a robust growth rate

Based on financing types, the global medical equipment financing market is segmented into new medical equipment, refurbished equipment, rental equipment, and others. The refurbished equipment segment held a major share, which was worth more than USD 15.9 billion in 2021 and is expected to expand at a robust growth rate during the forecast period. The segment growth is attributed to the rising demand for refurbished medical devices from healthcare institutions due to the cheaper price of the devices with guaranteed service from manufacturers and the high cost of medical equipment maintenance. These reconditioned devices are usually available for 20-40 percent less price as compared to original or new medical equipment. Moreover, the increasing availability of refurbished equipment in e-commerce platforms opens up various opportunities for segment growth in the coming years.  

Expensive prices of diagnostic medical devices drive the diagnostic equipment segment

In terms of equipment, the market is divided into patient monitoring equipment, therapeutic equipment, diagnostics equipment, laboratory equipment, medical furniture, and others. The diagnostics equipment segment accounted for a dominant market share in 2021, which was valued at around USD 45.5 billion for the same year. The segment is expected to exhibit steady growth during the targeted period owing to the expensive prices of diagnostic medical devices and the rising need for highly-efficient and accurate equipment for disease diagnosis. Moreover, rising competition for acquiring advanced diagnostic and treatment devices with superior healthcare facilities further boosts the segment.   

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Ambulatory surgical centers segment to register a considerable CAGR

On the basis of end-users, the global medical equipment financing market is segregated into clinics, hospitals, research labs, laboratories & diagnostic centers, ambulatory surgical centers, and others. The clinics segment is further segmented into dental clinics, ophthalmology clinics, and dermatology clinics. The ambulatory surgical centers (ASCs) segment is projected to register a considerable CAGR during the forecast period owing to the rising demand for ASCs for various surgical treatments as it offers same-day surgery options and an economical treatment alternative for patients. The rapid adoption of advanced endoscopic and laparoscopic surgical treatment in ASCs is another key factor driving the segment.

North America to dominate the market

In terms of regions, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America constituted around 42% of the total revenue share of the market in 2021 and is expected to dominate the market during the projected period owing to the rapid adoption of advanced medical equipment in hospitals, clinics, and ambulatory surgical centers in the region. The presence of key global players and their focus on developing innovative medical devices for better diagnostic results and treatment methods for patients require a large sum of capital funding. The wide prevalence of chronic illnesses and the presence of a large pool of the geriatric population who are at high risk of exposure to several chronic diseases are pushing the regional market growth further.    

On the other hand, the market of Asia Pacific is anticipated to account for a key market share in the coming years due to the increasing need for superior medical technology and equipment for better healthcare service for patients. Rising number of the regional population and increasing government participation in the development of advanced healthcare systems and infrastructure among major economies such as India, China, Japan, and South Korea are key other factors boosting the market in the region.  

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