Refurbished Medical Equipment Market - Global Outlook & Forecast 2022-2027

MARKET INSIGHTS

• The global market is growing due to the increasing number of healthcare settings and increased access to healthcare services. The industry is growing due to the high prevalence of several acute and chronic diseases across the globe.
• Refurbishment is the systematic process of making used equipment equal to or better than new. Refurbishment is rebuilding or updating with all new materials, components, or parts to restore their original (or better) working condition and appearance. The global refurbished medical equipment market grew significantly during the pre-pandemic times. However, outbreaks of diseases like bird flu, COVID-19, and Monkeypox create a massive demand for used medical equipment.
• Small & medium-sized hospitals, typically doctor-owned and with less than 100 beds, often cannot afford to buy new high-end equipment. These facilities prefer refurbished equipment of reputed brands that will cost less but perform well for a few years without complaints. These could be young doctors who become self-employed after using such devices in large hospitals. They may be familiar with the equipment models, but they are short on a budget in the early stages of the business. Also, tier 3 cities may have enough patients without enough ability to pay. Such locations cannot provide sufficient return on investment (ROI) for new equipment. Nearly one-third of the medical equipment industry in developing countries is part of the refurbished medical equipment market.
• Besides important environmental benefits, refurbishing provides sustainable economic benefits by creating business and employment in the refurbished medical equipment market. Even existing equipment owners may consider refurbishing their machines rather than disposing of old ones and buying new ones if their users are comfortable using the specific model. A refurbished asset can be re-capitalized on a depreciation schedule at half the value of new equipment. Refurbishment typically costs about half as much as buying a new one and can bring a machine back to like-new. In addition to the initial cost savings, refurbishment increases resale value and can provide tax benefits to a business, depending on how it’s structured.
• Apart from cost savings, user comfort with the machines they’ve been using is a bonus. The global refurbished medical equipment market eliminates the annoying problems faced in using a worn-down machine and avoids the learning curve associated with new equipment. Users often grow fond of their devices and love to see their trusted old machines returned to life in better shape than before. The refurbishment also sometimes allows upgrading to the newest available technology.

MARKET TRENDS & OPPORTUNITIES

Increasing Demand for Medical Equipment in Developing Countries

• The dearth of access to medical equipment in developing countries has attracted global interest in the refurbished medical equipment market for disease diagnosis. Healthcare systems in low-and middle-income countries often have limited access to medical equipment that appears to be in routine use. Implementing medical equipment refurbishment in a developing country would provide employment, increase the knowledge of medical technology among the people, and thus, provide a sustainable supply of skilled personnel for the healthcare industry.

High Capital and Procurement Costs of Medical Equipment

• Medical equipment typically consists of complex machines that are expensive to purchase and operate and require significant maintenance. Smaller clinics and local medical centers may not be inclined to spend many resources purchasing new equipment that can easily deplete their entire annual budget for just a few devices. Purchasing refurbished medical equipment allows healthcare providers to maximize their budget while providing quality treatment options to each patient. By investing in refurbished equipment, hospitals and clinics can free up much-needed funds for other uses, such as staff, disposables, and medicines, further contributing to the growth of the refurbished medical equipment market.

Growing Preference for Eco-friendly Products

• The environmental benefits of refurbished medical equipment are also worth touting. By extending the useful life of medical equipment from 5-7 to 10-14 years or even more, refurbishment is a form of reuse and waste prevention, contributing to an environmental economy. Refurbishment saves energy, and the materials are used to produce new equipment. Refurbishing medical equipment and extending its service life maximizes the return on the initial investment of energy and materials. Approximately 90% of the material for a system undergoing refurbishment can be reused; only 10% of the material must be recycled, which is done using environmentally friendly processes.

Hospital Budget Cuts

• Preparing the hospital's capital budget is an interesting time because it often puts its executives at odds. There are two crucial points where refurbished medical equipment options can assist in this process. The first: relying on refurbished equipment in the development of capital budgets, as pricing options for refurbished equipment early in the process allow to push the price further while allowing for significant upgrades. Second, refurbished equipment can fill the capital budget gap with low-cost options for equipment.
• In the UK, hospitals are struggling to afford the most advanced scanners and surgical equipment to treat patients who have cancer and other diseases because of multibillion-pound cuts to the NHS’s capital budget. In such cases, the refurbished medical equipment market becomes an ideal choice for hospitals to get the requirements at affordable prices.

Increasing Number of Diagnostic Centers & Hospitals

• Diagnostic players are entering into outsourcing contracts with hospitals, whereby they would handle the entire diagnostic operations for them. Newly started small hospitals, diagnostic centers, and clinics have a financial burden and cannot dedicate to the new equipment. A few types of medical equipment could easily take up an entire annual budget for a small medical facility. Purchasing refurbished medical equipment is a viable solution contributing to the refurbished medical equipment market. The refurbished medical equipment is upgraded to current standards, ensuring updated equipment for a reasonable price.

Large Inventory of Used or Old Medical Devices

• Medical equipment inventory is an accepted cost of doing business for manufacturers and is often the most significant cost category. Since medical equipment is typically a high-value product, any efficiencies or cost reductions can quickly contribute to the bottom line. Older equipment does not last forever, and this equipment eventually will need to be replaced and refurbished. It is expected that many facilities will be eager to replace their older systems with the resolution of global supply chain problems. These factors contribute to the rising sales of medical devices, which reflects a large inventory of used medical equipment in the refurbished medical equipment market.

SEGMENTATION INSIGHTS

PRODUCT TYPE INSIGHTS

Segmentation by Product Type

• Medical Imaging Equipment
• IVD & Laboratories Equipment
• OR (Operating Room), Surgical and

Therapeutic Equipment

• Patient Monitoring Equipment
• Cardiology Equipment
• Dental Equipment
• Others

APPLICATIONS INSIGHTS

Segmentation Application

• Diagnosis & Monitoring
• Treatment & Surgical Interventions

END-USER INSIGHTS

Segmentation by End-users

• Hospitals
• Radiology/Medical Imaging Centers
• Clinics, Physician offices & Dental Clinics
• Clinical & Research Laboratories
• Others

GEOGRAPHICAL ANALYSIS

Segmentation by Geography

• North America
• US
• Canada
• Europe
• Germany
• UK
• France
• Italy
• Spain
• APAC
• China
• Japan
• India
• South Korea
• Australia
• Latin America
• Brazil
• Mexico
• Argentina
• Middle East & Africa
• South Africa
• Saudi Arabia
• Turkey
• UAE

VENDOR LANDSCAPE

Key Vendors

• General Electric Company
• Koninklijke Philips
• Siemens Healthineers

Other Prominent Vendors

• Amber Diagnostics
• Apt Medical Systems
• Avante Health Solutions
• Block Imaging
• EverX
• Future Health Concepts
• Medirays
• Meridian Medical
• PACIFIC HEALTHCARE IMAGING
• Radiology Oncology System
• Soma Tech Intl
• US Med-Equip’s
• US Medical Systems
• Venture Medical ReQuip

KEY QUESTIONS ANSWERED