PRE-OWNED MEDICAL DEVICES MARKET ANALYSIS

Pre-owned Medical Devices Market Size and Trends

Global pre-owned medical devices market is estimated to be valued at USD 7.52 Bn in 2024 and is expected to reach USD 15.71 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 11.1% from 2024 to 2031.

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Global pre owned medical devices market has been witnessing growth over the past few years due to factors like rising need to reduce healthcare costs, increasing demand for affordable medical devices especially in emerging nations and growing awareness about services offered by refurbished medical device providers. Many hospitals and clinics in developing and developed regions opt for pre-owned medical equipment to manage budgets. Furthermore, implementation of stringent regulations regarding disposal of used medical devices and providing refurbished options as a sustainable solution can boost sales in recent times. However, availability of alternative rented models and perceived product quality concerns associated with refurbished devices can hamper the market growth over the forecast period.

Growing demand for cost-effective medical equipment

Rising cost of healthcare across the globe has pushed many hospitals and clinics, especially in developing regions, to rely more on pre-owned medical devices. New medical equipment can be extremely expensive for most healthcare facilities in low and middle-income countries. Meanwhile, there has been huge demand for advanced medical imaging, diagnostic and surgical equipment with expanding patient access. Refurbished machines that are recertified to the original high standards offer a viable compromise. These provide quality medical care at a fraction of the price of new devices. This has significantly boosted demand for pre-owned equipment over the past decade. Several organizations have entered the space to source, repair and resell used medical devices to areas that cannot afford the high cost. With more players mediating this trade, it has become safer and streamlined with reliable warranty and servicing support. The cost differential is quite significant as compared to similar new equipment. This value proposition will drive healthcare providers, especially in emerging markets, towards pre-owned options to meet patient needs affordably. For instance, in April 2024, according to the article published by the Economic Times, India's drug pricing regulator is developing a fresh pricing framework for medical devices. The National Pharmaceutical Pricing Authority (NPPA) expert committee is examining the current price regulations adopted in other nations to devise a distinct pricing mechanism tailored for medical device manufacturers operating in India. In February 2021, the Indian government investigated suspicions surrounding the high costs of 24 medical devices and has requested pricing details from manufacturers and importers. While the prices of certain devices like coronary stents, drug-eluting stents, condoms, and intrauterine devices are already regulated by the National Pharmaceutical Pricing Authority (NPPA), manufacturers themselves set prices for the remaining categories. NPPA has provided a three-week deadline for the submission of pricing details.

Shorter lifecycles of medical technologies

The fast pace of technology innovation in the healthcare sector can drive the market growth. Newer and improved models of medical devices are constantly being launched by manufacturers. This results in much shorter useful lifecycles for existing equipment before these are replaced, even though the machines may still be functionally capable. Hospitals in developed countries routinely upgrade to latest technology to provide state-of-the-art care and for marketing purposes. This leads to a steady flow of nearly new devices entering the resale market. Many of these devices have only been used for a year or two of their potential life spans of 5-7 years. These offer similar performance to brand new equipment at significantly lower prices. Integrated OEM refurbishing programs and independent refurbishers help restore the devices to original specifications, with recertification and warranties. This secondary market offers a win-win for cash-strapped hospitals seeking affordable devices and suppliers trying to extend the life of medical capital equipment. It has efficiently circulated usable medical technology worldwide.