Medical Equipment Financing Market size is projected to surpass USD 275,000 million by the end of 2033, growing at a CAGR of 8% during the forecast period, i.e., 2023-2033. In the year 2022, the industry size of medical equipment financing was over USD 150,000 million. The market growth is primarily driven by the growing geriatric population as old adults are more susceptible to diseases including chronic issues, cancer, orthopedic problems, and others. Based on the United Nations report, on a worldwide scale, 1 in 6 people estimated to be older than 65 by 2050, compared to 1 in 11 in the year 2019. Moreover, rising opportunities in the medical sector for finance companies are also estimated to drive the growth of the market in the coming years. Besides this, a sudden rise in COVID-19 cases is another significant factor projected to skyrocket the growth of the global medical equipment financing market over the forecast period.
In addition to these, factors that are believed to fuel the market growth of medical equipment financing include the propelled demand for medical accessories such as gloves, face masks, gowns, and medical equipment, including ventilators, oxygen cylinders, monitoring devices, and so on across the globe. According to the World Health Organization, more than half a million people need 1.1 million oxygen cylinders every day in low and middle-income countries. Moreover, each month 129 billion disposable masks are used throughout the world. Besides this, in 2020, more than 400 million medical masks have been distributed by UNICEF to assist the nations. Additionally, the increasing demand for diagnosis on account of the growing prevalence of several types of chronic diseases and infections across the world has been doubling the need for emergency equipment. This, as a factor, is also estimated to boost the market growth in the projected time frame.
Growth Drivers
Surging Demand for Medical Accessories as of the Rise of COVID-19 - The rise of coronavirus has dynamically increased the need for various medical accessories comprising safety masks, sanitary liquid, PPEs, face shields, goggles, gloves, and so on to prevent virus infection. The requirement for ventilators, oxygen, medications, vaccines, and care beds was already so huge. Hence, the worldwide increasing number of COVID-19 cases is anticipated to surge the demand for medical accessories in the coming years. As per a report, Unicef distributed more than 6.4 million pairs of gloves, 1 million hospital gowns, and 1.8 million surgical masks in the first quarter of 2020.
Growing Demand for ICU Equipments - Common equipments including blood pressure monitors to more specialized ones such as dialysis machines, catheters, and many more are employed in intensive care units. ICU equipment is utilized to treat patients by monitoring their condition. The surge in several kinds of chronic disorders, along with the rising ratio of patients who need special intensive care are fueling the demand for ICU equipment across the globe. For instance, every year, more than 6 million central venous catheters are implanted in hospitalized and surgical patients in the United States.
Increasing Usage of Medical Equipment - The United States had nearly 70,000 ventilators in 2020, but at the peak of the pandemic, an additional 45,000 ventilators were needed to meet hospital demands.
Worldwide Rise in Healthcare Expenditure - In 2019, as estimated by The World Bank, worldwide healthcare spending amounted to around 9.83% of the global GDP. Moreover, healthcare expenditure in 17 OECD countries rose by approximately 6% on average in 2021.
Rise in Government Approvals for Novel Medical Devices – For instance, Prisma Health Inc. designed a “Y” splitter tube that received Food and Drug Administration (FDA) approval in an emergency situation as this technology allows a single ventilator can be administrated to four patients at a time.
Challenges
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Base Year |
2022 |
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Forecast Year |
2023-2033 |
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CAGR |
~8% |
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Base Year Market Size (2022) |
~ USD 150,000 Million |
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Forecast Year Market Size (2033) |
~ USD 275,000 Million |
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Regional Scope |
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Equipment (Diagnostics, Patient Monitoring, Therapeutic, Laboratory Equipments, Medical Furniture)
The global medical equipment financing market is segmented and analyzed for demand and supply by equipment into diagnostics equipment, patient monitoring equipment, therapeutic equipment, laboratory equipment, and medical furniture. Out of these segments, the diagnostics equipment segment is anticipated to hold the largest medical equipment share of about ~39% in the year 2033. The growth of the segment can be attributed to the rising use of various diagnostic machines including computed tomography scans, x-rays, magnetic resonance imaging, ultrasound, and others to detect various disorders across the globe. As per the World Health Organization estimations 3.6 billion diagnostic procedures, including X-rays, are performed each year across the globe. Among these, 3.6 billion x-rays make up 40% of all medical imaging. In addition to this, currently, there are 300 million CT scans performed worldwide annually, an increase of 4% over the previous year. Besides this, the growing occurrence of various types of infectious disorders, coupled with the surging demand for ventilators is also anticipated to skyrocket the segment growth over the projected time frame.
End-user (Hospitals, Clinics, Ambulatory Surgical, Diagnostic Centers)
The global medical equipment financing market is also segmented and analyzed for demand and supply by end-user into hospitals, clinics, ambulatory surgical centers, and diagnostic centers. Amongst these four types of segments, the hospitals segment is expected to garner a significant share of around ~56% in the year 2033. The growth of this segment can be attributed to the escalating proportion of various kinds of surgical procedures performed on hospitals’ premises, along with the rising adoption of novel medical equipment installed by hospitals throughout the world. On the other hand, the diagnostic centers segment is projected to witness an impressive CAGR during the forecast period, owing to the rising development and integration of novel diagnostic equipment and rapid testing kits across the globe. In addition to this, the emerging role of various medical equipment finance organizations in funding research and development activities is also projected to provide huge opportunities for segment growth in the coming years.
Our in-depth analysis of the global market includes the following segments:
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By Type |
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By Equipment |
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By End-User |
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North American Market Forecast
The market share of medical equipment financing in North America, amongst the market in all the other regions, is projected to be the largest with a share of about ~40% by the end of 2033. The growth of the market can be attributed majorly to the augmenting healthcare spending, followed by the surging count of medical beds in the region’s hospitals. According to the Centre for Medicare and Medicaid Services, national health expenditure of the United States has increased by 9.7% amounting to USD 4.1 trillion in 2020, and it is around 19.7% of the national GDP. Moreover, in 2019, there were around 800,000 beds in community hospitals out of which nearly 60,000 are medical-surgical intensive care beds. In addition to this, the increasing need for therapeutic devices such as portable ventilators, dialysis equipment, and ICU equipment, and rising finance services for medical diagnostic devices are also estimated to elevate the market growth further in the North American region throughout the forecast period.
Europe Market Forecast
The European medical equipment financing market is estimated to be the second largest, registering a share of about ~26% by the end of 2033. The growth of the market can be attributed majorly to the escalating adoption of AI-based medical equipment, coupled with the surge in healthcare infrastructure in the region. Besides this, significant economic growth in various countries of Eastern Europe is also projected to push the market growth further in the European region in the coming years.
APAC Market Statistics
Further, the market in the Asia Pacific, amongst the market in all the other regions, is projected to hold a majority of the share of about ~19% by the end of 2033. The growth of the market can be attributed majorly to the significant rise in the finance sector in the region, along with the increasing setup of advanced laboratories, hospitals, diagnostic centers, and so on in various countries in the region. Moreover, rising investment by the government to establish a more solid medical sector is also projected to skyrocket the growth of the medical equipment financing market in the APAC region in the projected time frame.
Wells Fargo & Company founded the Siemens Healthineers Medical Equipment Finance Program to deliver effective, and comprehensive financing strategies throughout the United States. Through this program, Wells Fargo is estimated to provide profitable lease and credit products, thorough transaction assistance, and additional services to the Siemens Healthineers to assist the sales process.
TD Bank, N.A. announced an agreement to purchase First Horizon Corporation in a cash transaction. Through this acquisition, TD Bank is all set to strengthens its long-term expansion strategy in the US by acquiring a premier regional bank having a cohesive culture and risk-management strategy.
Author Credits: Radhika Gupta, Shivam Bhutani
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