Global Pre-owned Medical Devices Market is estimated to be valued at USD 7.52 Bn in 2024 and with CAGR of 11.1% over the forecast period 2024-2031. The market growth is driven by factors like increasing demand for affordable medical devices and growing acceptance of refurbished devices among end users. Furthermore, advancements in device reprocessing as well as availability of organization-certified pre-owned devices can drive the market growth.
Market Dynamics:
Growing demand for cost-effective medical devices: There has been huge demand for cost-effective medical devices due to rising healthcare costs and growing burden of diseases. Pre-owned medical devices offer a cost-effective alternative to brand new devices for healthcare providers while fulfilling the clinical needs of patients.
Advancements in reprocessing technologies: Significant advancements have been made in reprocessing technologies to restore pre-owned devices to an almost new state .Rigorous testing and quality control measures ensure pre-owned devices function like new device. Advanced cleaning and sterilization methods help address concerns around safety and efficacy of reprocessed devices, thus, driving the market growth.
Growing preference for cost-effective treatment options
Global pre-owned medical devices market growth is driven by growing preference among hospitals and healthcare facilities for more cost-effective treatment options. Medical devices such as CT scanners, MRI machines, ultrasound machines, and other high-end equipment requires huge capital investments. Refurbished and pre-owned medical devices provide a more affordable alternative to purchasing new devices. This allows cash-strapped hospitals, especially in developing economies, to access advanced medical technologies without significant budgetary restrictions. The lower acquisition costs of pre-owned devices make these an attractive proposition. Furthermore, hospitals are able to reallocate savings on device costs to other critical areas of patient care.
Increased lifespan of medical devices
Increased lifespan and durability of modern medical devices can drive the market growth. Advancements in materials and manufacturing technologies have enabled equipment manufacturers to build devices that can remain functional for 10-15 years or more with proper maintenance and calibration. This long usable life allows devices to have a second and sometimes even third lifetime through the pre-owned market after their first user retires them. Most diagnostic devices can withstand refurbishment and continue delivering quality healthcare if the core electronics and mechanics remain in good working condition.
Regulatory compliances add to the operating costs of refurbished devices
The regulatory compliances that refurbished medical devices must adhere to regarding safety, performance and documentation can hamper the market growth. While these regulations aim to ensure patient safety, these also increases the operating costs for refurbishment firms and intermediaries. Strict protocols for device inspection, performance testing, record-keeping of service history and certification increase overhead expenses. The regulatory burden is more for critical diagnostic tools than general equipment. Complying with quality standards necessitates additional investment and technical expertise, adding economic pressures. This offsets the cost benefits which pre-owned devices typically offer.
Lack of standardized grading and quality assurance practices
Lack of standardized system worldwide for grading the quality and condition of pre-owned medical devices can hamper the market growth. The functionality, remaining life expectancy and service history documentation vary greatly across the industry. This ambiguity regarding the true value and potential issues in a refurbished device deters some end users. The lack of globally accepted protocols for inspection, refurbishment, certification and reporting of technical specifications introduces an element of uncertainty. It reduces confidence among healthcare providers regarding the dependability of pre-owned equipment vis-a-vis new devices. The absence of established industry practices to evaluate and communicate device quality can also hamper the market growth.
Growth in the number of multi-facility hospitals expands the customer base
Growth in number of hospitals, diagnostic chains and medical facilities operating across multiple locations can offer market growth opportunities. These corporate and organized sector healthcare providers have a pressing need to standardize technology and resources among their sites. Purchasing pre-owned medical devices provides an affordable way to achieve standard equipment across locations without exhausting budgets. Multi-facility hospitals and diagnostic chains looking to create consistent offerings present a large target segment for refurbished device suppliers. This consolidating business model in the healthcare industry expands the potential customer base for pre-owned medical devices.
Rising demand in emerging nations with improving access to healthcare
Emerging economies experiencing fast economic development and rising spending power can offer market growth opportunities. As access to healthcare widens in nations like India, Africa, Latin America and Southeast Asia, there has been huge demand for diagnostic tools and hospital infrastructure to cater to burgeoning patient loads. While funding remains scarce, pre-owned medical devices allow these emerging healthcare systems to procure sophisticated equipment that was previously unaffordable. It helps narrow the resource disparity with developed nations. The rapid healthcare infrastructure growth unfolding in developing regions worldwide opens vast new markets for refurbished devices seeking to expand availability of treatment options.
Link - https://www.coherentmarketinsights.com/market-insight/pre-owned-medical-devices-market-4628
Key Developments
- In August 2023, according to the data published by Business Standard Private Ltd. The Medical Technology Association of India (MTaI) importing pre-owned medical equipment could enhance access to such machinery for patients, particularly in tier-2 and tier-3 cities. The association highlighted in a statement that sophisticated medical devices such as CT scans, MRIs, robotic-assisted surgical systems, X-ray machines, and endoscopes carry hefty price tags, often surpassing the budgetary limits of small to mid-sized hospitals.
- In September 2021, Soma Tech Intl, a medical equipment company, participated in the Florida International Medical Expo (FIME) held in Miami, Florida, U.S. The year marked the 30th anniversary of FIME, renowned as the premier medical trade fair in the Americas, attracting numerous manufacturers, suppliers, dealers, distributors, and healthcare professionals from across North, Central, and South America, as well as the Caribbean.
- In April 2021, Siemens Healthineers, a global healthcare company, acquired Varian Medical Systems, Inc., bolstering Siemens' position as a comprehensive healthcare partner
- In January 2021, Philips, a technology company, announced its acquisition of Capsule Technologies, a provider of data platforms aiming to interconnect all medical devices and record systems within hospitals, thus, enhancing Philips' integrated care and vital sign monitoring solutions.
Key Players: GE Healthcare, Siemens Healthineers, Canon Medical Systems, Koninklijke Philips N.V., Agfa-Gevaert Group, Block Imaging, Radiology Oncology Systems, EverX Pty Ltd, Integrity Medical Systems, Inc., Soma Technology, Master Medical Equipment, Hilditch Group, Fair Medical Co. Ltd., US Med-Equip, Centurion Service Group, TRACO, DIAMEDICA
