Technavio Research Report: Global Refurbished Medical Devices Market to Grow at Over 10% CAGR Through 2023

VCBeat (WeChat Official Account: vcbeat) has learned that Technavio Research recently released a global report on the refurbished medical device market, which indicates that the compound annual growth rate (CAGR) of the refurbished medical device market will exceed 10% by 2023.

With the increasing privatization of the healthcare industry, demand for refurbished medical devices continues to grow. The healthcare sector is rapidly becoming more privatized due to the inability of many governments to invest effectively in healthcare, coupled with high demand for innovation and technology in high-quality medical services. For example, in February 2018, Saudi Arabia launched its healthcare privatization program.

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Due to financial constraints, many countries are increasingly adopting refurbished and second-hand medical devices.

Due to substantial expenditures on pharmaceuticals and employee salaries, many suppliers operate with low profit margins, leading them to cut spending on critical products such as medical devices. The high cost of new medical devices has driven up the adoption rate of used equipment, thereby fueling the growth of the global refurbished medical device market.

However, the sales prospects for refurbished medical devices are not optimistic. Due to negative perceptions of these devices, most healthcare service providers are unwilling to assume the risks associated with purchasing refurbished medical equipment. Furthermore, as the use of refurbished medical devices increases, the likelihood of warranty and service-related issues also rises, which will further dampen demand and sales for such products.

The refurbished medical device market appears to be increasingly concentrated, and the competitive landscape will be intensely fierce with the emergence of a few leading companies such as Canon and GE Healthcare. Driven by factors such as financial constraints and the growing privatization of the healthcare industry, the adoption of refurbished and used medical devices is on the rise, offering substantial growth opportunities for manufacturers of refurbished medical equipment.

Canon, General Electric, Block Imaging, Koninklijke Philips, and Siemens Healthineers are some of the key companies covered in the report released by Technavio Research.

One factor influencing this market is the increasing privatization of the healthcare industry. The trend toward privatization in healthcare is rapidly accelerating, driven by the inability of many governments to invest effectively in the sector and the high demand for innovation and technology in high-quality medical services.

According to the report, one driver influencing this market is the increasing adoption of refurbished and used medical devices due to financial constraints. In recent years, the healthcare industry has reduced its budgets for essential products and systems, including medical devices, owing to substantial expenditures on pharmaceuticals and employee salaries.

Furthermore, the report points out that another factor affecting this market is the negative outlook for sales of refurbished medical devices. Due to negative perceptions of these devices, most healthcare service providers are unwilling to assume the risks associated with purchasing refurbished medical equipment.