by
Thomas Dworetzky, Contributing Reporter | September 21, 2016
The global refurbished medical equipment market is expected to reach $11.91 billion by 2021, up from $6.55 billion in 2016, growing at a compound annual growth rate (CAGR) of 12.7 percent between those years.
“Increasing privatization in the health care sector, the poor reimbursement scenario for various medical treatments, large patient population base, and presence of a large number of hospitals/clinics with budget constraints in developing countries are the major factors driving the growth of this market,” according to a recent Marketsandmarkets report,
Refurbished Medical Equipment Market (X-Ray, Ultrasound, MRI, CT Scanner, Nuclear Imaging Systems, Heart-Lung Machine, Surgical, CO2 Monitor, Patient Monitor, Pulse Oximeter, AED Defibrillator, Cath Labs, Neonatal, Endoscopy) - Global Forecast to 2021.
The market growth has also been spurred by refurbishing efforts taken by major players in the new equipment space, such as GE Healthcare, Philips Healthcare and Siemens Healthineers, the report stated.
In March a Siemens spokesperson stressed the
importance of the refurbished market to HCB News, stating that "refurbished equipment is a key part of the Diagnostic Imaging business area and plays an important role in achieving our business goals."
According to the Marketsandmarkets report, companies are establishing such facilities in both mature and developing countries, which will add to the growth of the market. In addition there are a growing number of deals between OEMs and third-party players, which will also boost the market.
While it's possible that the FDA's recent
investigation into the terms defining third-party parts and service could have a sizable impact on the U.S. market, the growth forecast continues to match analyst expectations from previous years.
Back in 2013, an analysis by Transparency Market Research found the market slated to be worth
$9 billion by 2018, building at an annual growth rate of 8.2 percent.
That report noted that in previous decades most of the demand for refurbished equipment came from developing countries. But the economic crises and tightened health care budgets in the U.S. and Europe, along with the increase in trained professionals in the refurb sector, have driven growth in wealthier economies as well.
The market for refurbished medical equipment contains 10 segments, including operating room equipment and surgical equipment, patient monitors, defibrillators, medical imaging equipment, cardiovascular and cardiology equipment, IV therapy systems, neurology equipment, endoscopy equipment, intensive care systems, and neonatal intensive-care equipment.
