REPROCESSED MEDICAL DEVICES MARKET ANALYSIS

Reprocessed Medical Devices Market Size and Trends

The reprocessed medical devices market is estimated to be valued at USD 3.04 Bn in 2024 and is expected to reach USD 8.18 Bn by 2031, growing at a compound annual growth rate (CAGR) of 15.2% from 2024 to 2031.

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The reprocessed medical devices market is driven by the rising demand to lower healthcare costs. As medical devices are expensive, reprocessing helps reduce costs for patients and providers. The trend of improved reprocessing technologies is also supporting the market growth. Advancements in inspection and reconditioning techniques ensure that reprocessed devices meet high standards of safety and performance. Additionally, as the population ages and the burden of chronic diseases grows, more procedures will utilize these cost-efficient reprocessed alternatives to new medical devices. The market opportunity is substantial given the large replacement market for devices that are retrieved after use.

Increasing levels of supply chain cost savings in healthcare facilities due to reprocessing of medical devices

Increasing level of supply chain cost savings in healthcare facilities due to the reprocessing of medical devices are expected to drive growth of the reprocessed medical devices market. For instance, according to the data published in May 2022 by Healthcare Facilities Management, which is the maintenance and oversight of a healthcare facilities' development, maintenance, security, and operations, reprocessing of medical devices saved U.S. hospitals USD 372 million in 2020, as using reprocessed devices costs 25 to 40% less and the reduction in medical waste offers further savings.

Market Concentration and Competitive Landscape

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The increasing prevalence of chronic disorders is expected to drive the growth of the market during the forecast period. The forecast period's market dynamics are impacted by the increasing prevalence of chronic diseases. The market for medical device reprocessing is growing as a result of an increase in the prevalence of chronic diseases and surgical operations. For instance, according to data published in June 2020 by the National Library of Medicine (NIH), globally, approximately 310 million major surgeries are performed each year.

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The risk of surgical site infections due to the use of reprocessed medical devices, and stringent regulations for medical device reprocessing practices act as major barriers for the growth of the global medical device reprocessing market. When used for procedures and treatment, medical equipment becomes contaminated and infested with bacteria. Medical equipment’s are routinely reconditioned since, contaminated and infected ones increase the risk of infections. However, certain remanufactured medical devices may retain biological waste, tissue, and blood due to insufficient cleaning.

Market Opportunities: Growing number of surgical procedures

Rising healthcare costs and budget constraints have increased the demand for cost-effective alternatives like reprocessed devices. As baby boomers age, the demand for surgical procedures will rise, benefiting remanufacturers. Many devices are now designed for multiple uses, making reprocessing more feasible, thus creating lucrative growth opportunities for market development over the forecasted period.

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The device type segment includes laparoscopic devices, general surgery devices, orthopedic devices, cardiovascular devices, non-invasive devices, and others. The cardiovascular devices segment is anticipated to hold 36.8% of the market share in 2024. Cardiovascular diseases, particularly heart disease and stroke, are the leading causes of death globally. The rising sedentary lifestyles and unhealthy dietary patterns have led to a substantial increase in risk factors like obesity, diabetes and high blood pressure. This in turn is fueling the incidence of various heart conditions that require surgical procedures and devices for treatment. The aging population also presents a major driver as cardiovascular problems are highly common among the elderly. Moreover, technological advancements have enabled minimally invasive procedures using reprocessed cardiovascular devices, helping reduce medical costs significantly. The reuse of such devices provides sustainable solutions while ensuring safety and efficacy standards are met. Several governments and healthcare organizations worldwide are promoting reprocessing as a means to expand access to cardiovascular treatments.

Insights, By Type: Growing Demand for Third-party Reprocessors

The type segment includes third-party and in-house. Third-party contributes the highest share of the reprocessed medical devices market and is projected to hold 74.8% of the market share in 2024. Reprocessing medical devices internally requires substantial infrastructure, trained personnel and quality certifications that increases costs for individual healthcare facilities. In contrast, third-party reprocessors have dedicated facilities, technical know-how, and strict regulatory guidelines in place to efficiently remanufacture devices. They can leverage volume to reduce turnaround times and offer competitive pricing for hospitals. Third-party services also eliminate the need for operator training and inventory management in individual centers. The complexity of reprocessing tasks like disassembly, cleaning, inspection, repair, and testing favors the reliance on expert third-party providers over in-house solutions. Strict regulatory oversight further makes the bar for self-clearance very high. Overall, outsourcing to well-established third-party reprocessors presents a more viable option for most healthcare facilities.

Insights, By End User: Convenience and cost advantages drive the hospital segment

The end user segment includes hospitals & clinics, diagnostic centers, ambulatory surgical centers, and others. Hospitals & clinics contribute the highest share of the reprocessed medical devices market and is projected to hold 45.2% of the market share in 2024. Healthcare budgets remain under immense pressure due to rising medical costs and limited public funding in most countries. This has compelled providers to explore more affordable alternatives that do not compromise on quality and safety. Reprocessed devices offer pricing discounts of up to 50-70% compared to originals. The savings on device costs can then be channelized towards upgrading other hospital services or improving access through community outreach. Reuse also supports the ethical and environmental priority of extending device lifespan. Moreover, reprocessors have demonstrated that functionality and sterilization standards of refurbished devices are at par with new ones. This addresses a key concern among hospitals and eases adoption. The expansion of approved reprocessing services regionally also improves procurement availability for many healthcare facilities. Overall, cost savings and access to high-quality critical care continue driving hospitals to leverage reprocessed medical devices.

Regional Insights

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North America has established itself as the dominant player in the global reprocessed medical devices market and is expected to hold 49.4% of the market share in 2024. With strong industry presence across major countries like the U.S. and Canada, the region accounts for over 40% of the worldwide market share. The region has a very well-developed medical devices sector with ample opportunities for reprocessing of devices. Most major players involved in reprocessing activities have their headquarters located in North America, allowing them to leverage the region's infrastructure and expertise. Moreover, the favorable regulations related to reprocessing in the US boosts investor confidence and new business openings in this space. Many hospitals and clinics also outsource their reprocessing needs to regional third-party reprocessors, ensuring continuous demand. With the rise in healthcare costs, reprocessed instruments provide an affordable alternative for facilities without compromising on quality.

Asia Pacific has emerged as the fastest growing regional market for reprocessed medical devices. Countries like India, China, Japan, and South Korea are witnessing exponential growth opportunities. While import-reliant in nature initially, the presence of low-cost skilled labor and developing infrastructure has encouraged local manufacturing activities in recent years. Regional governments are supporting the sector through various initiatives in order to reduce healthcare spending and improve access to services. Southeast Asian countries have especially warmed up to the value proposition offered by reprocessed instruments. Burgeoning medical tourism coupled with rising income levels is expanding the customer base rapidly. Several international OEMs are also setting up local reprocessing units to target Asian markets and compete with global third-party reprocessors. With growing healthcare expenditures, cost-effective solutions, such as reprocessed devices, would become increasingly crucial for Asia Pacific to achieve universal health coverage goals.

Market Report Scope

Reprocessed Medical Devices Industry News

• In November 2023, Medline Industries, LP., a private healthcare company, announced that it has increased the square footage of its facility in Redmond, U.S., which reprocesses medical items destined for landfills. The site grew by around 52,000 square feet. ReNewal is the company's medical device reprocessing initiative, and since 2014, it has saved over 10 million pounds of waste from landfills by reprocessing about 15 million goods.
• In October 2023, GE HealthCare, a global medical technology company, and reLink Medical, an all-in-one online medical equipment store, announced a partnership to provide asset management solutions to healthcare providers to help reduce medical device waste, increase operational efficiency, and maximize equipment utilization. This collaboration includes a standardized medical equipment disposition approach that entails selling, recycling, or donating obsolete equipment.
• In October 2023, AA Medical, a provider of sustainable solutions for the new and resale medical device markets, announced three new collaborations with renowned firms in the health care asset management, medical device reprocessing, and disposition industries. The firm's strategic relationships with Zantek Medical, a well-known certified biomed medical device reprocessing firm, support AA Medical's ambition of becoming a market leader in surgical devices.
• In January 2023, AA Medical announced the completion of a partnership with Certified Endoscopy Products, a prominent U.S.-based medical device reprocessing company specializing in endoscopic devices. AA Medical and Certified Endoscopy will merge to become a leading medical device reprocessing company that serves the endoscopy, orthopedic, and other surgical equipment sectors.

*Definition:The reprocessed medical devices market consists of medical equipment and instruments that have been reprocessed or refurbished after use in hospitals and medical facilities. These devices include surgical instruments like forceps and retractors, endoscopes, orthopedic implants and components, and other equipment that can be cleaned, disinfected, sterilized, tested, repaired if necessary, and marketed to be used again by healthcare providers. Reprocessing helps reduce medical waste while providing more affordable device options for hospitals and patients.

Market Segmentation

• Device Type Insights (Revenue, USD BN, 2019 - 2031)
  • Laparoscopic Devices
  • General Surgery Devices
  • Orthopedic Devices
  • Cardiovascular Devices
  • Non-Invasive Devices
  • Others
•  Type Insights (Revenue, USD BN, 2019 - 2031)
  • Third-party
  • In-house
•  End User Insights (Revenue, USD BN, 2019 - 2031)
  • Hospitals & Clinics
  • Diagnostic Centers
  • Ambulatory Surgical Centers
  • Others
• Regional Insights (Revenue, USD BN, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
  • Stryker Corporation
  • Johnson & Johnson
  • Vanguard AG
  • Medline ReNewal
  • SteriPro Canada Inc.
  • Pioneer Medical Devices AG
  • Vascular Solutions Inc.
  • HYGIA Health Services Inc.
  • ReNu Medical Inc.
  • SureTek Medical
  • Centurion Medical Products Corporation
  • Cardinal Health
  • NEScientific, Inc.
  • Vanguard AG
  • Steris Healthcare
  • Avante Health Solutions