Refurbished medical equipment is defined as a restored medical device rebuilt to a condition that is comparable to the new equipment. Refurbishment includes reconditioning, repair, installation of certain software/hardware updates without changing the intended use of the original device, and replacement of worn parts. Technology in terms of software, hardware and others is changing at a faster pace, which shortens the interval between the purchase of superior systems and worn out of preoccupied devices. Factors driving growth of refurbished medical equipment market are increasing involvement of key manufacturers in refurbishment of their equipment and increasing demand of cost effective systems by small scale private hospitals and clinics. For example, high cost of huge and technologically complex equipment such as MRI systems and CT scanners is a restraining factor for small scale private hospitals and clinics, which leads to high demand for refurbished medical equipment and in turn propelling the market growth.
Refurbished Medical Equipment Market DriverS
Increasing focus of original equipment manufacturers in refurbishment of medical device is expected to propel growth of the refurbished medical equipment market. For instance, companies such as GE Healthcare, Siemens, and Philips have now started focusing on refurbishment of large scanning machines such as angiography, radiology based equipment, magnetic resonance, X-ray systems, and other molecular imaging devices and are offering it at around 30% less cost of the new systems. Original equipment manufacturer-based refurbishment is more trusted by the end users. Moreover, adoption of effective remanufacturing standards is expected to enhance adoption of refurbished medical devices. For instance, Siemens remanufacturing process adheres to EN ISO 13485: 2003, which ensures quality management systems are used by medical device manufacturers and ISO 14001: 1996, which is an international standard for an effective environmental management system.
Increasing demand for medical devices at low cost is expected to aid in growth of the refurbished medical device market during the forecast period. Demand for refurbished medical device is higher in low income countries, due to low disposable income in the regions. High cost of large and technological advanced equipment is also estimated to have a major impact on growth of refurbished equipment market. Refurbished medical equipment are available at 30 to 50% lower price as compared to new equipment. Moreover, e-commerce platforms are expected to provide easy selling and purchasing options for refurbished medical equipment.
Refurbished Medical Equipment Market Restrain
Dearth of standardized regulatory policies for resale of refurbished device is expected to hamper the market growth over the forecast period. Moreover, negative perception about refurbished product is also expected to be a major restrain for growth of refurbished medical device market.
Refurbished Medical Equipment Market - Regional Analysis
Regional segmentation of refurbished medical equipment market by Coherent Market Insights includes North America, Latin America, Europe, Asia Pacific, Middle East, and Africa. North America holds dominant position in refurbishment medical equipment market, owing to presence of major medical devices manufacturers, also providing refurbishment services and increasing number of end users. For instance, companies such as GE Healthcare and Philips Healthcare have high presence in this region. Moreover, according to American Hospital Association (AHA), an annual survey of hospitals in the U.S. suggests the total number of registered hospitals in the U.S. in 2017 were 5,534, which increased to 5,564 in year 2018. This increasing number of healthcare centers such as hospitals is leading to increasing demand for new as well as refurbished medical equipment, which in turn is positively impacting growth of the refurbished medical equipment market. Moreover, Asia Pacific is expected to witness fast growth due to improving medical facilities, unmet medical needs and increasing medical tourism.
Refurbished Medical Equipment Market – Competitive Landscape
Key players operating in the refurbishment of medical device market include GE Healthcare (a wholly owned subsidiary of General Electric Company), Philips Healthcare (part of Koninklijke Philips N.V.), Siemens Healthineers, Soma Technology, Inc., Block Imaging International, Inc., and Agito Medical A/S.
Global refurbished medical equipment market is segmented on the basis of product type:
Global refurbished medical equipment market is segmented on the basis of end user
Global refurbished medical equipment market is segmented on the basis of region