The global medical equipment financing market was valued USD 161.87 Billion in 2022 and is expected to rise to USD 278 Billion by 2030 with a CAGR of 7%.
Medical Equipment Financing Market
The global medical equipment financing market size was worth around USD 161.87 Billion in 2022 and is predicted to grow to around USD 278 Billion by 2030 with a compound annual growth rate (CAGR) of roughly 7% between 2023 and 2030. The report analyzes the global medical equipment financing market drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the medical equipment financing market.
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With the growth in medical technology along with the growing population and the subsequent rise in the number of medical conditions being treated, the requirement for state-of-the-art and highly advanced medical equipment is at an all-time high. Owing such pieces of equipment no longer stands as a luxury but a dire need for the medical community. However, these pieces of machinery or supportive equipment are extremely expensive in which some are costlier than others.
The financial outlay to purchase and maintain such medical equipment is significant and may end up blocking a large section of the working capital invested in operating a medical center or treatment facility. Medical equipment financing can be considered a business loan especially created for the medical community.
The loaned amount completely depends on several factors including the credit history and the loan repaying capacity of the borrower and the expected rate of return on the piece of equipment that is being loaned. All categories of medical professionals including dentists, doctors, healthcare facilities, and small hospitals can apply for loans.
Changing economic conditions across the world to propel market demand
The global medical equipment financing market is projected to grow owing to the impact of the changing economic conditions across the world. For instance, the onset of Covid-19 had put the healthcare industry under immense pressure which included operational and economical stress wing to the sudden outburst in demand for additional beds, ventilators, and other medical accessories in general. Some of the healthcare units were not sufficiently equipped monetarily to manage such high demand.In addition to this, the ongoing Russia-Ukraine which has severely impacted oil & gas prices across the globe along with the impending period of the high recession could lead to added duress on the healthcare sector further leading them into financial limitations.
Furthermore, the global industry is witnessing a surge of advancements for different associated technologies that are used extensively to treat various medical conditions ranging from severe to mild. The new machinery comes at a high cost and small or mid-sized medical firms may not be able to afford them. For instance, a 16-slice Computed Tomography (CT) Scan may cost between USD 80,000 to more than USD 110,000.
Lack of awareness to restrict market expansion
The global sales volume may witness certain growth restrictions owing to the lack of awareness about the presence of such an idea where medical equipment can be bought on loan. The concept may not be fairly new but has received major attention in the past few years and remains a relatively fresh idea amongst the medical equipment financing industry players. Although financing companies have amped up efforts to spread mass awareness to benefit from the tide of financial insecurity in the medical community, a huge segment is still untouched.
Growing technological advancements to provide expansion opportunities
The global medical equipment financing market is projected to register higher growth opportunities driven by the increasing spending on the adoption of new and advanced technologies and breakthrough inventions in the sector. Such automation and mechanization open doors for enhanced medical care, improved patient experience, and the ability to diagnose or treat conditions that previously remained outside the bounds of human capacity. The growing use of machine learning, the Internet of Things (IoT), and artificial intelligence (AI) is expected to attract more buyers in the coming years.
Less number of players to challenge market growth
The medical equipment financing industry could face certain expansion challenges due to the less number of players operating in the segment limiting the true potential of the market. Since the quality of service providers is relatively less than anticipated, they can only reach a restricted segment of buyers. Nonetheless, the global market is registering a growing influx of new players consistently which is a good sign of growth.
The global medical equipment financing market is segmented based on end-user, equipment, type, and region
Based on equipment, the medical equipment financing industry divisions are laboratory equipment, therapeutic equipment, diagnostic equipment, patient monitoring equipment, and medical furniture.
Based on type, the global market is segmented into refurbished equipment, rental equipment, and new equipment
|Medical Equipment Financing Market Research Report
|Market Size in 2022
|USD 161.87 Billion
|Market Forecast in 2030
|USD 278 Billion
|Compound Annual Growth Rate
|CAGR of 7.0%
|Number of Pages
|Value (USD Billion), and Volume (Units)
|Key Companies Covered
|First American Equipment Finance, Hero FinCorp, SLR Healthcare ABL, JPMorgan Chase & Co., National Funding, Siemens Financial Services, Inc., Blue Bridge Financial, LLC, Truist Bank, SMC Finance, HDFC Bank, TIAA Bank, and Macquarie Group Limited.
|By End-User, By Equipment, By Type, And By Region
|North America, Europe, Asia Pacific (APAC), Latin America, Middle East and Africa (MEA)
|North America: U.S and Canada
Europe: Germany, Italy, Russia, U.K, Spain, France, Rest of Europe
APAC: China, Australia, Japan, India, South Korea, South East Asia, Rest of Asia Pacific
Latin America: Brazil, Argentina, Chile
The Middle East And Africa: South Africa, GCC, Rest of MEA
|2017 to 2021
|2023 - 2030
|Avail customized purchase options to meet your exact research needs. Request For Customization
North America to witness the highest growth during the forecast period
The global medical equipment financing market is projected to register the highest growth in North America. The region generated more than USD 46 billion in 2021 and the major reason for the regional growth is the high financing rate witnessed in the countries of the US and Canada. Furthermore, the ongoing research on technological advancements in the medical sector could lead to higher growth revenue during the forecast period. The region boasts of the presence of certain key players that have assisted in driving the concept of financing medical equipment including new products and refurbished medical equipments.
Several associated companies that currently act as support groups in terms of delivering services have helped the market players contribute higher in the previous years. The increasing investments in the healthcare infrastructure of the US could act as an expansion propeller during the forecast period.
The global medical equipment financing market is led by players like:
Medical equipment financing can be considered a business loan especially created for the medical community.
The global medical equipment financing market is projected to grow owing to the impact of the changing economic conditions across the world.
According to study, the global medical equipment financing market size was worth around USD 161.87 billion in 2022 and is predicted to grow to around USD 278 billion by 2030.
The CAGR value of the medical equipment financing market is expected to be around 7% during 2023-2030.
The global medical equipment financing market is projected to register the highest growth in North America. The region generated more than USD 46 billion in 2021 and the major reason for the regional growth is the high financing rate witnessed in the countries of the US and Canada.
The global medical equipment financing market is led by players like First American Equipment Finance, Hero FinCorp, SLR Healthcare ABL, JPMorgan Chase & Co., National Funding, Siemens Financial Services, Inc., Blue Bridge Financial, LLC, Truist Bank, SMC Finance, HDFC Bank, TIAA Bank, and Macquarie Group Limited.