Stocking Refurbished Medical Inventories Prepares Hospitals to Tackle COVID-19 Pandemic
Coronavirus (COVID-19) has exposed the vulnerability of healthcare systems worldwide. With the ongoing shortage of PPE (Personal Protective Equipment), there is an unprecedented demand for used and refurbished medical equipment such as ventilators and other critical care equipment. Hence, companies in the refurbished medical equipment market are capitalizing on this trend, since the Government of India has lifted the import ban on used and refurbished medical equipment. The Union Environment Ministry of India announced that it has relaxed the country’s import ban up to September 2020 to support hospitals in need of ventilators.
The healthcare system in India refurbished medical equipment market is increasing efforts to increase the inventory of ventilators in order to enhance preparedness against the COVID-19 pandemic. Though stringent regulations prohibit the use of waste materials in India, health ministry are making an exception by lifting the import ban to tackle uncertainties associated with the pandemic.
Used Versus Refurbished Medical Equipment: Which is better?
Individuals have a common misconception that used and refurbished medical equipment is the same. However, refurbished medical equipment are restored according to factory specifications. On the other hand, purchasing used medical equipment is less expensive. Companies in the refurbished medical equipment market are reaping incremental benefits, as healthcare systems plan on cost savings by purchasing refurbished medical products.
Companies in the refurbished medical equipment market make sure that the equipment are tested, repaired, and pass the inspection test before handing it over to healthcare practitioners. For instance, Soma Technology— a medical equipment supplier in Connecticut, has an extensive product profile in medical imaging equipment and operating room equipment. As such, the revenue of medical imaging equipment and patient monitoring devices is projected for exponential growth in the market landscape.
Hospitals in India with Budgetary Constraints Opt for Refurbished Medical Products
Companies in the refurbished medical equipment market are exploring untapped opportunities in developing economies. India being one of the rapidly growing economies of Asia Pacific is creating a demand for affordable medical equipment. This is evident since the refurbished medical equipment market revenue in Asia Pacific is expected to grow at an aggressive pace, where the global market is projected to reach a value of ~US$ 24 Bn by the end of 2027.
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The healthcare sector is witnessing better growth in tier 2 and tier 3 cities of India, which involves semi-urban and rural population looking for affordable treatment and care. This trend has sparked the demand for refurbished medical equipment in order to keep the cost of setting up hospitals at a reasonable budget. Already pre-owned, second-hand and refurbished medical equipment hold a significant share of the India medical equipment sector. Imaging and critical care equipment are among the popular choices for owning refurbished medical products.
Investing in Advanced Refurbishing Facilities Overcomes Issues Associated with Downtime of Equipment
The refurbished medical equipment market is estimated to register a striking CAGR of ~13% during the forecast period. However, costs involved in maintaining the uptime of refurbished medical equipment is prohibitively expensive for budget-constrained healthcare systems. Moreover, many sellers are ignorant to invest in fulfilling the requirements of sustained performance mandatory in refurbished products. This has tarnished the reputation of other reliable companies in the refurbished medical equipment market, which is likely to hamper market growth. Hence, companies are increasing awareness to only buy refurbished products from trusted and reliable sellers.
Key market players invest in people skills and training to maintain optimum performance of refurbished medical equipment. They are increasing spending in state-of-the-art refurbishing facilities and stock of spares to bolster their credibility credentials in the global healthcare landscape. OEMs such as GE, Siemens, Toshiba, and Philips are gaining increased visibility, owing to their investments in refurbishing facilities. Market players are complying with regulatory standards of every country they operate in to boost their credibility in the global market landscape.
Hospitals in the India refurbished medical equipment market are stocking refurbished medical inventories such as ventilators to be better prepared for undetermined times of the COVID-19 era. Similarly, healthcare systems in small cities of India are investing in refurbished medical products to align with low budget set up costs of hospitals.
Imaging and critical care equipment such as heart-lung machines are growing increasingly popular in hospital environments. However, high costs associated with uptime and optimum maintenance of products have led to a reluctance in the adoption of refurbished products. Hence, companies should increase awareness about the warranty of products and encourage practitioners to purchase refurbished goods only from trusted and reliable sellers who invest in state-of-the-art refurbishing facilities.
Refurbished Medical Equipment Market: Overview
The global refurbished medical equipment market was valued at ~US$ 8 Bn in 2018 and is projected to expand at a high CAGR from 2019 to 2027. Rise in prevalence of various chronic conditions such as cardiology, respiratory & gastroenterology, neonatal condition, orthopedic, gynecology, and other conditions; stringent regulatory scenarios for refurbished medical equipment, favorable reimbursement policies; rising mergers & acquisitions; and presence of key players, especially in developing countries, are anticipated to propel the global refurbished medical equipment market.
Refurbished medical equipment are the restored or repaired devices, which involves repairing, reconditioning, or software or hardware installation without removing the original device. The refurbished medical equipment includes medical imaging equipment, operating room equipment, and patient monitoring devices. The equipment falling under the above categories are MRI scanner X ray machine, heart-lung machines, and other devices. Growing burden of various diseases across the globe and rising admission of patient population are expected to boost the need for the refurbished medical equipment. The original cost of the medical equipment incurs higher cost and thus, demand of the low cost medical equipment to be used at hospitals, and specialty centers is likely to propel the refurbished medical equipment market.
According to research, rise in prevalence of various chronic diseases is likely to increase the need of medical equipment, which, in turn, would boost the demand for refurbished medical equipment. CVD accounts for 45% of all deaths in Europe and 37% of all deaths in the European Union. CVD is the leading cause of death in men in all but 12 countries in Europe and is the primary cause of death in women in all but two countries. Moreover, in 2017, coronary heart disease, the most common heart disease, accounted for 365,914 deaths in the U.S. Moreover, around 18.2 million adults aged 20 and older are estimated to be suffering from coronary heart disease. This is expected to drive the refurbished medical equipment market in the region. The stringent regulations across the globe for refurbishing the medical equipment are likely to set the good standard and procedure for the manufacturers to develop refurbished medical equipment.
Refurbished Medical Equipment Market: Segmentation
The global refurbished medical equipment market has been segmented based on product, application, end user, and region
In terms of product, the global refurbished medical equipment market has been classified into medical imaging equipment, operating room equipment, patient monitoring devices, and others. Medical imaging equipment is further classified into X-ray systems, ultrasound systems, MRI scanners, CT scanner, and others. Operating room equipment is further segmented into heart-lung machines, defibrillators, anesthesia machines, electrosurgical units, and others. Patient monitoring devices is further classified into multi-parameter monitors, electrocardiography devices (ECG), pulse oximeters, neonatal monitors, and others. The medical imaging equipment segment is estimated to account for largest share of the market, owing to the increase in application of medical imaging equipment in diagnosis of neurological, cardiovascular, skeletomuscular, and oncology conditions is estimated to augment the adoption of medical imaging equipment across the globe. Moreover, introduction of Open MRI scanners has augmented the acceptance of refurbished MRI systems. Increase in demand for MRI scanners in emerging markets and quality support from OEMs for refurbished MRI scanners are estimated to boost the MRI scanner sub-segment.
Based on application, the global refurbished medical equipment is further classified into cardiology, respiratory & gastroenterology, neonatal care, orthopedic, and others. The cardiology segment accounted for the major share of the global refurbished medical equipment market in 2018. The segment is projected to expand at a high CAGR during the forecast period. This can be attributed to rise in patient population at global level. According to the American Heart Association, between 2013 and 2016, 121.5 million adults in U.S. suffered from cardiovascular diseases.
Based on end-user, the global refurbished medical equipment market has been divided into hospitals, diagnostic centers, ambulatory surgical centers, and others. The hospitals segment dominated the global refurbished medical equipment market in 2018, owing to dependency on hospitals for access to medical imaging services. Furthermore, budget constraints in hospitals, reduced patient flow, and demand for low cost of ownership are driving hospitals to adopt refurbished medical equipment.
Refurbished Medical Equipment Market: Regional Segmentation
In terms of region, the global refurbished medical equipment market has been segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
North America dominated the global refurbished medical equipment market in 2018, owing to high prevalence and incidences of chronic diseases in the U.S. and Canada, strong base of medical device companies in the U.S., and easy availability of refurbished medical equipment with upgraded technology in the region. These factors are expected to propel the market in North America in the next few years. Moreover, growing trend of privatization in the industry and strong presence of the distributors are likely to drive the market in the region during forecast period. Europe is likely to account for the second largest share of the global refurbished medical equipment market, followed by Asia Pacific. The attributable factors are vast base of technologically obsolete CT and MRI scanners in Europe and amended policies and regulations regarding radiation dose management.
Moreover, presence of strong distribution channels, direct sales, and focus of key players operating in the refurbished medical equipment market are projected to propel the market in the region in the near future
In Asia Pacific, the refurbished medical equipment market is likely to grow at a faster pace, owing to the lower cost of the refurbished medical equipment and increase in market penetration by companies as well as by establishing manufacturing facilities and distribution channels in the region. For instance, India is anticipated to be a lucrative market for medical devices, owing to the expansion of the health care sector and favorable government guidelines.
Refurbished Medical Equipment Market: Major Players
Key players operating in the global refurbished medical equipment market are established companies offering refurbished medical instruments across the globe. These include
These players are focused on adopting various organic and inorganic growth strategies to expand geographic presence, strengthen distribution network, and adapting to established guidelines, favorable reimbursement policies offering refurbished products across the globe. Companies entering into merger & acquisition and collaborating with other players and distributors are likely to boost the refurbished medical equipment market. New regulatory guidelines with policies would offer ample opportunities for hospitals and diagnostic centre to adopt advance imaging equipment systems.
Key Questions Answered in Refurbished Medical Equipment Market Report
Refurbished Medical Equipment Market – Segmentation
Operating Room Equipment
Patient Monitoring Devices