The global Medical Equipment Financing Market was valued at USD 161.89 Billion in 2022 and is projected to reach USD 277.89 Billion by 2030, growing at a CAGR of 6.99% from 2023 to 2030.

Medical Equipment Financing Market Overview:

Keeping up with new developments in medical equipment is important, but it can be expensive. Because of this, many people who work in health care need financing to get the tools and machines they need. A loan or lease for medical equipment helps these professionals get the tools they need to bring in new and returning patients. This helps them make more money and build up their savings. With the way medical technology is always getting better, it is now a must to choose the best medical equipment for excellent health care. But advanced diagnostic systems are expensive, and it's hard for doctors and hospitals to pay for them with the money they have. There is a need for low monthly payments and flexible loan models to pay for medical equipment.

Market Dynamicss

Growth Factor

COVID-19 had a big effect on the healthcare financing market. During the pandemic, one of the hospitals' first problems was how to handle the influx of patients. There weren't enough beds or ventilators, and there was such a high demand for ambulances that non-ambulance vehicles were outfitted with equipment to transport patients. There also wasn't enough personal protective equipment (PPE). Operations that were not needed right away were stopped. The dentist, eye doctor, and health checkups were rescheduled. The loss of routine care hurt staffing and income. Healthcare companies worked quickly to make COVID-19 test kits, and pharmaceutical companies switched gears to start making vaccines as soon as it was possible to do so. A report from August 2020 called "COVID-19 and Its Impact on Healthcare Financing" says that there was a big change in the demand for equipment. As a global asset finance partner, DLL's clients' budgets and equipment needs are always changing. Flexible financing options have made it possible to quickly put important assets to use and get ready for a rush of new processes when the economy gets better, while keeping up-front costs to a minimum and adapting to changing needs. So, situations that lead to different and flexible financing options are expected to drive market growth over the next few years.

As incomes rise, there is a huge increase in the demand for high-quality health care and related services. Also, it's no longer a way for doctors to stand out if they know about the latest medical standards and practises; it's now a must. But it's not easy to spend money on cutting-edge medical technology or to improve facilities. This includes big costs that most small healthcare service providers can't even come close to paying for. If available funds are used to buy medical equipment, this could reduce the amount of working capital and cash flow needed to run the business normally. So, a medical equipment loan is the most cost-effective way to make sure that patients have access to the best medical care without going bankrupt.

Market Drivers

More people want same-day surgery

In the near future, the segmental growth will be helped by things like the improvement of endoscopic and laparoscopic surgery techniques at ASCs, which has led to more outpatient visits. ASCs will also see more demand because they offer affordable treatment options and have skilled medical professionals on staff. ASCs also give patients the option of having surgery on the same day, which saves time for both the patient and the doctor. Because of this, the above factors favour segmental growth.

Market Challenges

Businesses' prudent capital expenditure

As their economies grow, equipment finance companies still have to deal with a lot of problems. Even though banks have more money and are looking for opportunities in the medical equipment market, most companies have become more careful about how much they spend on capital. Hospitals, clinics, and diagnostic centres are more likely to spend money to keep the equipment they already have in good shape than to buy new ones. This has caused the medical equipment financing market growth index to go down over the past few years. Also, as the cost of X-ray machines, MRI scans, CT scans, and other services goes up, end users have to rethink their capital investments. So, the above factors are expected to have a negative effect on the market during the time frame given.

Market Opportunities

Technological innovation

The market for medical supplies has grown a lot. Rapid technological advances and AI technologies have made the most of what the medical industry could do. This is the main thing that drives demand and brings doctors and other medical professionals to the market for financing equipment. Hospitals and diagnostic centers have chosen to finance because the equipment is expensive and very high-tech.

Medical Equipment Financing Market Segmentation Analysis

Equipment Insights

In 2021, the market for medical equipment was estimated to be worth USD 48.3 billion. Due to better healthcare infrastructure and a booming healthcare industry, there is a greater need for premium, high-quality, and cutting-edge healthcare facilities in developing countries. Due to the increased demand for technologically enhanced medical care, new and inventive items for providing these treatments, as well as related services, have been developed all of which are relatively expensive to purchase. There is a growing tendency towards the establishment of more diagnostic centers as a result of the rising prevalence of infectious diseases and advancements in diagnostic technology. This, in turn, is to blame for increased funding for medical equipment. Additionally, end users frequently invest in cutting-edge diagnostic and therapeutic equipment, such as dialysis machines, ventilators, and ICU equipment, in order to give the patient the best possible medical treatment. For example, the COVID crisis in 2019 has increased demand for ventilators as well as other diagnostic tools like X-ray scanners and MRI scans. In the upcoming months, this is projected to raise the market value of both the therapeutic and diagnostic sectors. Additionally, hospitals have increased their facility investment due to patient demand for intensive care unit capabilities. Every end user now depends on patient monitoring technology including Electrocardiograph (ECG) monitors, incubators, and EHR systems.

Type Insights

In 2021, the market for reconditioned goods was maximum. Medical equipment that has undergone reconditioning or restoration to a workable state without altering its primary purpose or original specifications is referred to as refurbished equipment. Only after complete cleaning, disinfection, and replacement of any worn or broken parts is this equipment utilized. Due to financial constraints, the demand for reconditioned medical equipment is particularly significant in emerging nations. In 2021, the market for reconditioned goods was maximum. Medical equipment that has undergone reconditioning or restoration to a workable state without altering its primary purpose or original specifications is referred to as refurbished equipment. Only after complete cleaning, disinfection, and replacement of any worn or broken parts is this equipment utilized. Due to financial constraints, the demand for reconditioned medical equipment is particularly significant in emerging nations.

End User Insights:

Creation of diagnostic tools to support the expansion of diagnostic centers and labs. The hospital and clinic industry kept the top spot in the market in 2021. This dominance is attributable to elements like increased investment in infrastructure management and rising demand from patients at clinics and hospitals for surgical operations. Due to the availability of an established medical infrastructure and increased patient preference, hospitals and clinics are seeing tremendous expansion. Due to the quick availability of sufficient finances from finance businesses, hospitals and clinics quickly adapt and install newly introduced medical technologies. The need for therapeutic equipment is also being facilitated by an increase in patient admissions owing to infectious diseases like COVID-19, respiratory problems, cardiology disorders, and others, which is opening up a variety of chances for financial businesses.

The development of diagnostic kits and suitable equipment for patient healthcare, on the other hand, is predicted to lead to a faster increase in the laboratories and diagnostic centers segment over the course of the projection year. For instance, there has been a significant need for diagnostic kits in both diagnostic centers and cutting-edge laboratories due to the present global pandemic emergency of COVID-19. Equipment finance firms are making progress in providing funding for research and development to reduce the danger of pandemics around the world.

Regional Insights:

During the Forecast period, North America is anticipated to be the largest market by region.

North America has become the biggest market for medical equipment financing. In 2021, it was worth $45.93 billion. The main reason for this is that the financing rate for medical equipment is the best in the area. Medical device improvements and spending on medical infrastructure have helped this region become the most powerful in the world. Europe is in second place in the industry because more medical equipment financing is based on artificial intelligence technology and more money is being spent on healthcare infrastructure. Also, more clients have turned to the market for financing medical equipment because medical professionals and staff know more about it. Also, the industry is expected to grow over the next few years because many Eastern European countries are doing well economically.

Asia-Pacific, on the other hand, is expected to grow faster because the financial sector is growing there and more hospitals, cutting-edge labs, and diagnostic centers are being built in its developing countries. This market would also grow if the government put more money into the medical sector. As an example, the Indian finance minister recently said that the country's 2020 budget will put $9.09 billion into the healthcare sector. The money was mostly meant to help build more hospitals all over the country. Because of these investments, it is expected that the size of the market will grow over the next few years. Also, the markets in Latin America, the Middle East, and Africa are likely to grow a lot because fewer people know about the rules and structures of finance and don't understand them well.

Scope Analysis

Recent Development

• In July 2021 - IFC and the Multilateral Investment Guarantee Agency (MIGA) launched a trade finance guarantee initiative to help low-income countries recover from the effects of the pandemic by supporting trade flows of critical goods, including food and medical equipment.
• In May 2021 - E. Healthcare and NSIA Banque Cote d'Ivoire announced a partnership with IFC's Africa Medical Equipment Facility to strengthen the healthcare industry and support medical equipment financing across Africa.
• In April 2021 - IMAGEENS jointly raised $1.45 million in seed funding with Anaxago. This is expected to strengthen the company's team with key R&D talent to expand the deployment of software solutions.
• In June 2020 - Wells Fargo & Company announced the launch of a medical equipment financing program with Siemens Healthineers to provide a wide range of financing options to hospitals and healthcare systems across the United States. Wells Fargo will supply lease and loan products to Siemens Healthineers to support the sales process.

The Global Medical Equipment Financing Market has been segmented into:

By Equipment

• Diagnostics Equipment
• Therapeutic Equipment
• Patient Monitoring Equipment
• Laboratory Equipment
• Medical Furniture

By Type

• New Medical Equipment
• Rental Equipment
• Refurbished Equipment

By End User

• Hospitals
• Clinics
  • Dermatology Clinics
  • Dental Clinics
  • Ophthalmology Clinics
• Laboratories & Diagnostic Centers
• Ambulatory Surgical Centers
• Others

By Companies

• Hero FinCorp
• National Funding
• Blue Bridge Financial, LLC
• First American Equipment Finance
• SMC Finance
• Siemens Financial Services, Inc.
• SLR Healthcare ABL
• TIAA Bank
• JPMorgan Chase & Co.
• Macquarie Group Limited
• Truist Bank
• HDFC Bank