Medical Equipment Financing Market Trends

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

• Lower Awareness in Underdeveloped Countries Regarding Advanced Medical Equipment - Many regions in underdeveloped and developing countries stick to the existing conventional medical equipment rather than choosing the new advanced one. Therefore, such a type of unawareness is anticipated to hamper the market growth in the coming years.
• Extremely Careful Investments by the Businesses
• Higher Risk of Medical Equipment Obsolesce