Medical Equipment Financing Market Analysis by Type (New Equipment, Rental Equipment, and Refurbished Equipment); by Equipment (Diagnostics Equipment, Patient Monitoring Equipment, Therapeutic Equipment, Laboratory Equipment and Medical Furniture); and by End User (Hospitals, Clinics, Ambulatory Surgical Centers, and Diagnostic Centers) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2033
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In 2022 & 2023, market players expected to sail in rough waters; might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain. Further, U.S. economy is expected to grow merely by 3% in 2022. Purchasing power in the country is expected to fell nearly by 2.5%.
On the other hand, European countries to see the worst coming in the form of energy crisis especially in upcoming winters!! Right after COVID-19, inflation has started gripping the economies across the globe. Higher than anticipated inflation, especially in western world had raised concerns for national banks and financial institutions to control the economic loss and safeguard the interest of the businesses. Increased interest rates, strong USD inflated oil prices, looming prices for gas and energy resources due to Ukraine-Russia conflict, China economic slowdown (~4% in 2022) disrupting the production and global supply chain and other factors would impact each industry negatively.
The cost of advanced medical machinery is very high and difficult for medical professionals without any funds. Medical equipment financing is the financial loan model to support hospitals and clinical facilities to build or develop their own business with medical equipment. Healthcare technology aids society in many ways and it is so much important for medical professionals to provide the best-advanced services even on low-budget. The medical equipment financing makes this possible with less interest percentage and availability of EMI option.
|
Base Year |
2022 |
|
Forecast Year |
2023-2033 |
|
CAGR |
~8% |
|
Base Year Market Size (2022) |
~ USD 150,000 Million |
|
Forecast Year Market Size (2033) |
~ USD 275,000 Million |
|
Regional Scope |
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The global medical equipment financing market is estimated to garner a revenue of around ~USD 275,000 Million by the end of 2033 by growing at a CAGR of ~8% over the forecast period, i.e., 2023 – 2033. Further, the market generated a revenue of nearly ~USD 150,000 Million in the year 2022. The market growth is primarily driven by the growing geriatric population, rising opportunities in the medical sector for finance companies, and the sudden rise of COVID-19. Old adults are susceptible to diseases including chronic issues, cancer, orthopedic problems, and others. According to the United Nations, globally, 1 in 6 persons will be over 65 by 2050, up from 1 in 11 in 2019.
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Propelled demand for medical accessories such as gloves, face masks, gowns, and medical equipment, including ventilators, oxygen cylinders, monitoring devices, and others are anticipated to boost the growth of the medical equipment financing market. According to the World Health Organization, more than half a million people need 1.1 million oxygen cylinders every day. Moreover, worldwide, 129 billion disposable masks are used each month. 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 chronic diseases and infections across the world rises the need for emergency equipment.
Higher Demand for Medical Accessories with the COVID-19 Presence Around the Globe - The rise of coronavirus increased the need for safety masks, sanitary liquid, PPEs, face shields, goggles, and gloves to prevent virus infection. The increasing number of cases rose the demand even more. The requirement for ventilators, oxygen, medications, vaccines and care beds was so huge. Also, the cease of imports and exports impacted the dearth of supplies during the pandemic. The UN 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. Additionally, according to UNICEF's projections, 8.8 million people would need face shields, and 13 million people will utilize surgical masks and goggles.
Growing Need for ICU equipment as the Elderly Population is on the Rise - One in six individuals on the planet will be 60 or older by 2030. By this point, there will be 1.4 billion people over the age of 60, up from 1 billion in 2020.
Increased Usage of Medical Equipment Owing to Increasing Emergency Cases such Accident -In 2020, the United States of America had nearly 70,000 ventilators and at the time of the pandemic, they required additional 45,000 ventilators more for sufficing the needs of the hospitals.
Rise in Healthcare Expenditure with the Elevating Awareness of People on Early Diagnosis -In 2019, as estimated by The World Bank, worldwide healthcare spending amounted to around 9.83% of the global GDP. Moreover, in around 17 OECD countries, healthcare expenditure rose by approximately 6% on average in 2021.
Approvals of New Medical Devices by the Government to Improve Public Healthcare Infrastructure- Prisma Health designed a “Y” splitter tube that received Food and Drug Administration (FDA) approval in the emergency situation as this technology allows a single ventilator can be administrated to four patients at a time.
Lower Awareness in Underdeveloped and Developing Countries
Many regions in underdeveloped and developing countries stick to the existing equipment rather than choosing the new advanced one. The prices of various equipment are significantly high and many companies are not aware of the insurance and financing provided for the medical equipment, which is likely to hamper the market growth.
Risk of Equipment Become Obsolete
Businesses' Careful Capital Expenditure
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. Amongst all, the diagnostics equipment segment is anticipated to hold the largest medical equipment loan market share. Owing to the rising use of various diagnostic machines including computed tomography scans, x-ray, magnetic resonance imaging, ultrasound, and others. The World Health Organization estimates that 3.6 billion diagnostic procedures, including X-rays, are performed annually. Among these, 3.6 billion x-rays make up 40% of all medical imaging. Additionally, currently, there are 300 million CT scans performed worldwide annually, an increase of 4% over the previous year.
Regionally, the global medical equipment financing market is studied into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. Amongst these markets, the market in North America is projected to hold the largest market share by the end of 2033. The higher spending on the healthcare sector followed by a rise in medical beds, the increasing need for therapeutic devices such as of ventilators, dialysis equipment, and ICU equipment, and rising finance services for medical diagnostic devices are estimated to elevate the market growth in North America. 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.
Ans: Higher healthcare expenditure, increased need of medical accessories and equipment and increased old age population are the few factors which are to propel the market growth
Ans: The market is anticipated to attain a CAGR of ~8% over the forecast period, i.e., 2023 – 2033.
Ans: Risk of machine to become of no use, caution among investors and unawareness in underdeveloped region are the factors likely to impede the market growth.
Ans: The market in North America is projected to hold the largest market share by the end of 2033 and provide more business opportunities in the future.
Ans: The major players in the market are Blue Bridge Financial, LLC, CMS Funding, First American Healthcare Finance, HDFC Bank, HeroFinCorp, JPMorgan Chase & Co., Kabbage (American Express), National Funding Inc., SMC Finance, Toronto-Dominion Bank, and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by equipment, type, end user, and by region.
Ans: The diagnostic equipment is anticipated to garner the largest market size by the end of 2033 and display significant growth opportunities.
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