The refurbished medical equipment market involves the reconditioning and remarketing of used medical devices to reduce healthcare costs. Refurbished medical devices such as MRI machines, CT scanners, ultrasound machines, X-Ray machines and other vital patient care equipment offer significant savings compared to new alternatives. The key advantage is refurbished equipment provides near-new performance at approximately half the cost of newly manufactured devices. Refurbished devices undergo rigorous quality assurance practices to ensure all features and functions match OEM specifications. The refurbishing process involves calibration, installation of new parts, upgrades to current technology standards and thorough safety inspections.
The Global Refurbished Medical Equipment Market is estimated to be valued at US$ 14.21 Bn in 2024 and is expected to exhibit a CAGR of 5.4% over the forecast period 2024 to 2030.
Key Takeaways
Key players operating in the refurbished medical equipment market are GE Healthcare, Philips Healthcare, Ultra Solutions, Soma Technology, Block Imaging, and TRACO. These players specialize in refurbishing a wide range of medical equipment and provide multi-year warranty packages for financing options.
The growing demand for affordable healthcare is a major factor driving growth of the refurbished medical equipment market. Refurbished devices help hospitals and diagnostic centers upgrade their facilities without significant strain on budgets. They provide a cost-effective means to access the latest medical technology.
Globally, the market is expanding in line with increasing acceptance of refurbished devices. Several developing nations lack sufficient healthcare infrastructure and invest in refurbished options to develop radiology and imaging capabilities. Leading suppliers are focused on new regional markets to further penetration.
Market Drivers
Rising healthcare costs across the world is a key factor behind the growing demand for refurbished medical equipment. New medical technologies are often very expensive for hospitals and long-term purchase commitment challenges many budgets. Refurbished equipment helps expand access to critical tools at lower costs. This is expected to remain a major driver over the forecast period.
Current geopolitical situation and its impact on Refurbished Medical Equipment Market growth:
The ongoing geopolitical tensions between major economies like US and China are impacting global trade dynamics and medical equipment supply chains. The rising nationalist sentiments have increased import tariffs and restrictions on key components of refurbished medical devices. This is negatively affecting the refurbishment process of older equipment and driving up overall costs for this market. At the same time, ongoing conflicts and political instabilities in various regions are reducing investments in upgrading healthcare infrastructure. This is expected to dampen the medium term demand for refurbished medical equipment as many cash-strapped hospitals prioritize essential needs over capital equipment purchases. However, the market players are focusing on local sourcing and manufacturing to circumvent trade barriers. They are also targeting high potential emerging markets in Asia Pacific and Latin America to offset slower growth in US and Europe. Partnerships with distributors and leasing companies in these regions will be crucial to tap the substantial replacement and infrastructure upgrade opportunities.
Regions contributing most to Refurbished Medical Equipment Market value:
In terms of Global Refurbished Medical Equipment Market Share value, North America and Western Europe currently account for over 60% of the global refurbished medical equipment space. This is primarily due to the large installed base of aging medical devices and capital equipment in hospitals and clinics across US, Germany, France and other developed countries. With the rising costs of new equipment and growing emphasis on sustainable healthcare, many facilities in US rely on refurbished CT scanners, MRI machines, ultrasound devices and general hospital products to upgrade their diagnostic and treatment capabilities on a limited budget. Similarly, the significant replacement demand from healthcare providers is driving the refurbished equipment market in major Western European markets.
Fastest growing region in Refurbished Medical Equipment Market:
The Asia Pacific region, specifically China and India, is poised to witness the fastest growth in the refurbished medical equipment market during the forecast period. This is attributed to the massive investments underway to bolster healthcare infrastructure and access to services across small towns and rural areas in these densely populated countries. The focus on cost effective solutions also makes refurbished equipment an attractive choice for new and expanding hospitals. Furthermore, the presence of a large refurbishment industry catering to domestic as well as international needs is helping accelerate adoption. The market is forecast to expand at a CAGR of over 8% in Asia Pacific compared to the global average of 5.4% from 2024-2030.
Get More Insights Here
