GLOBAL MEDICAL EQUIPMENT FINANCING MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Market Size and Trends

Global medical equipment financing market is estimated to be valued at USD 173.69 BN in 2024 and is expected to reach USD 275.90 BN by 2031, exhibiting a compound annual growth rate (CAGR) of 6.8% from 2024 to 2031.

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With healthcare modernization initiatives underway globally, especially in emerging economies, the demand for medical loans and financing options is expected to rise steadily. Financing solutions allow healthcare providers to purchase expensive medical devices in installment payments. This eases budget constraints and enables higher investment in quality healthcare infrastructure and technologies. Key players are enhancing their product portfolios to capitalize on the trend.

Rising healthcare expenditure

Global healthcare expenditure has been increasing over the past few decades and this rise has accelerated in recent years. Rising healthcare spending is projected to continue in the near future due to factors such as aging population, rise of non-communicable diseases, cost of new medical technologies, and others. Naturally, this rise in healthcare spending has put pressure on hospitals and other healthcare providers to invest in latest medical equipment to provide better treatments. However, upfront investment required for medical equipment is quite high which makes it difficult for many healthcare systems to procure these technologies. Thus, medical equipment financing allows hospitals and clinics to acquire modern medical equipment without having to bear the entire cost upfront by spreading it over the lifetime of equipment. This helps them to continue delivering quality care to patients while managing their budgets efficiently. Thus, the consistent rise in global healthcare spending boosts demand for medical equipment financing.

Market Concentration and Competitive Landscape

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Most of the critical medical equipment present in public hospitals is over 10-15 years old which limits the treatment options for patients. The costs of upgrading this old infrastructure is huge. Thus, medical equipment financing helps healthcare providers to modernize and expand their capabilities. It allows gradual retirement of old equipment and acquisition of new advanced systems which improves patient outcomes. Several hospitals and clinics in developed markets are now actively relying on equipment financing to replace CT scanners, MRI machines, ultrasound, and others installed many years ago. Aging healthcare infrastructure is expected to further boost demand for medical equipment financing in the near future.

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Global medical equipment financing market faces several challenges. One major challenge is rising cost of new medical technologies which puts pressure on healthcare providers and their budgets. Strict regulations around medical devices also increase costs. Reimbursement policies often does not cover the full cost of new capital equipment which burdens hospitals. The payment process can also be lengthy and complex. These financial challenges may limit the adoption of new life-saving or productivity-enhancing medical equipment.

Market Opportunities – Partnerships between OEMs and financial institutions

As population ages and treatment options advances, demand for new medical technologies increases. Partnerships between OEMs, providers and financers can help navigate regulations and reimbursement systems better. Partnerships between Original Equipment Manufacturers (OEMs) and financial institutions could provide significant opportunities for the medical equipment financing market. As the costs of advanced medical technologies increases, these collaborations allow hospitals and healthcare providers to access the latest life-saving devices without large upfront capital investments. 

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Equipment Type segment  is sub-segmented into imaging devices, diagnostic devices, surgical devices, patient monitoring equipment, and others. Imaging devices segment is estimated to hold 32.7% share of the market in 2024. Imaging equipment like MRI, CT, X-ray and ultrasound machines witnesses frequent innovation that improves diagnostics capabilities. Newer generations offer higher resolution images, advanced applications and reduced procedure time. This helps clinicians gain deeper insights into diseases. It also expands the range of patients that can be screened or treated. Manufacturers regularly launch innovative products to stay ahead of competition. This spurs demand from healthcare facilities looking to offer cutting-edge care using latest imaging technology. Equipment financing makes these costly investments more accessible.

Insights, By Type: Growth of non-invasive surgery boosts new medical equipment segment growth

Type segment is sub-segmented into rental equipment, refurbished equipment, and new medical equipment. New medical equipment  segment is expected to hold 53.8% of the market share in 2024. With new surgical techniques and robotics, invasive procedures are being replaced by minimally invasive alternatives. This increases adoption of newer surgical devices. Advanced lasers, scopes, implants and implants allow targeted, scarless treatments. These result in less pain and quicker recovery for patients. Healthcare providers also benefit from shorter hospitalization times. Growing geriatric population prone to chronic diseases and injuries raises need for such surgical innovations. Non-invasive methods attract both patients and physicians pushing sales of new devices. Manufacturers catering to evolving surgical standards with cutting-edge products drive the segment growth over refurbished or rental options.

Insights, By End User: Increased outpatient care drives hospitals segment growth

End User segment is sub-segmented into  hospitals, diagnostic laboratories, ambulatory surgical centres, and others. Hospitals  segment is expected to hold 38.3% of the market share in 2024. With medical tourism and day-care surgeries rising, more complex procedures are moving from inpatient to outpatient settings within hospitals. This allows affordable access while freeing up beds. Accounting for majority of medical device financing, hospitals offer diverse services under one roof utilizing latest equipment. Their large multi-specialty centers also see highest patient throughput necessitating fleet of advanced devices. Financing packages help hospitals optimize costs while expanding service lines. Growth in employable population and rising insurance penetration further boost hospital footfalls and thus their position as top equipment financing clientele.

Regional Insights

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North America has been the dominant regional market for medical equipment financing over the past decade and is projected to hold 42.8% of the market share in 2024. The large scale and well-established healthcare industry in countries such as the U.S. has driven significant demand for advanced medical technologies. With high healthcare expenditures and a focus on innovation, many North American hospitals and clinics regularly upgrade their medical equipment to provide cutting-edge care to patients. This constant need for modernization has supported the growth of the medical equipment financing sector in the region. Moreover, the presence of major medical device manufacturers based in North America has made new equipment more accessible through flexible financing options.

Emerging Asia Pacific markets such as India and Indonesia have tremendous growth potential for medical equipment financing. Healthcare infrastructure is rapidly developing in these countries to support large and fast-growing populations. Governments are increasing healthcare budgets to expand access to services nationwide. However, high costs remain a barrier for many hospitals and clinics looking to acquire advanced diagnostic and treatment technologies. This is where medical equipment financing helps address the affordability issue. By offering leasing and other financial solutions, the medical device industry and financing firms are able to tap into these new markets. With rising medical expenditures and investment in the sector, Asia Pacific is poised to become the most active regional market for medical equipment financing over the coming years.

Market Report Scope

Key Developments

• On January 25, 2024, SS Innovations International, Inc., a developer of innovative surgical robotic technologies committed to make robotic surgery affordable and accessible to a global population, announced a collaboration with Medikabazaar, India's leading medical equipment supplier, to facilitate sales of its flagship SSi Mantra Surgical Robotic System to hospitals and medical facilities across India
• In December 2023, The IFC-led Africa Medical Equipment Facility (AMEF) added Shenzhen Mindray Bio-Medical Electronics Co. Ltd., a medical device company, to its growing list of partners, allowing smaller healthcare providers in Côte d'Ivoire and Kenya to more easily access lifesaving, modern medical equipment and supplies. The AMEF collaborates with partner financial institutions and medical equipment manufacturers to provide inexpensive, long-term funding to smaller African healthcare providers.
• In March 2023, building on a highly successful program established in 2018, TIAA Bank and GE HealthCare, a worldwide medical technology company, announced extension of their vendor equipment finance agreement, which will provide innovative financing alternatives to GE HealthCare's US customers
• In November 2022, Santander Bank, N.A., a financial institution, announced an extension of its Commercial Equipment and Vehicle Finance business to offer commercial equipment financing for healthcare organizations. The new nationwide program will provide financing for cutting-edge medical technology and equipment to hospitals, health systems, outpatient clinics, and specialized providers.

*Definition: Medical equipment financing market provides financing options for healthcare organizations and medical professionals to purchase expensive medical equipment without large upfront costs. This market connects borrowers needing funding for medical technologies, diagnostic devices, surgical tools and other hospital equipment to lenders that offer financing through loans, lines of credit and leasing programs. Medical equipment financing allows healthcare facilities to spread equipment costs over time while obtaining the resources needed to provide quality patient care and perform lifesaving procedures.

Market Segmentation

• Equipment Type Insights (Revenue, USD BN, 2019 - 2031)
  • Imaging Devices
  • Diagnostic Devices
  • Surgical Devices
  • Patient Monitoring Equipment
  • Others
•  Type Insights (Revenue, USD BN, 2019 - 2031)
  • Rental Equipment
  • Refurbished Equipment
  • New Medical Equipment
•  End User Insights (Revenue, USD BN, 2019 - 2031)
  • Hospitals
  • Diagnostic Laboratories
  • Ambulatory Surgical Centres
  • 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
  • First American Equipment Finance
  • Blue Bridge Financial, Inc.
  • Charter capital
  • Med One
  • SMC Finance
  • Siemens Financial Services
  • First Capital
  • HDFC Bank
  • Terkar Capital
  • Bajaj Finserv
  • Clix Capital
  • IndusInd Bank
  • Piramal Finance
  • ICICI Bank
  • TIAA Bank
  • Wells Fargo
  • SunTrust Banks