REPORT DESCRIPTION

Market Size and Overview:

The healthcare equipment market was valued at USD 473.24 billion in 2023 and is estimated to register a revenue of USD 665.9 billion by 2030. The market is anticipated to witness a compound annual growth rate (CAGR) of 5% over the forecast period of 2024 - 2030. 

As the prevalence of chronic illnesses continues to escalate, healthcare organizations are increasingly prioritizing early detection and treatment. Concurrently, a growing number of patients undergo diagnostic and surgical procedures, propelling the expansion of the healthcare equipment market.

OVERVIEW OF THE INDUSTRY

An integral facet of patient therapy in hospitals revolves around the utilization of equipment. The equipment deployed in hospitals significantly influences various activities and plays a pivotal role in determining the effectiveness of treatments. Additionally, it has a profound impact on patients' perceptions and the overall therapeutic experience. Medical devices, characterized as electronic instruments transmitting signals corresponding to physical, chemical, or biological impulses from a patient's body, contribute to evidence-based therapeutic solutions. Healthcare equipment serves diverse purposes, including diagnosis, monitoring, and treatment. Advancements in medical technology facilitate accurate diagnosis across various medical indications, thereby enhancing treatment precision. The escalating prevalence of conditions such as arthritis, liver inflammation, cancer, renal diseases, diabetes, chronic pain, sciatica, and other nerve disorders is driving the heightened demand for healthcare equipment. Notably, Type-2 diabetes in India is projected to nearly double from 72 million in 2019 to 134 million by 2025, as per the Indian Council of Medical Research (ICMR), the Institute for Health Metrics and Evaluation, and the Public Health Foundation of India. Moreover, the International Diabetes Federation estimates 463 million diabetics globally in 2019, further contributing to the anticipated growth in the healthcare equipment sector. However, the market may face challenges due to the elevated costs of medical equipment and issues related to reimbursement within the medical device industry, imposing constraints on market growth.

IMPACT OF COVID-19 ON THE HEALTHCARE EQUIPMENT MARKET

The COVID-19 outbreak has yielded both positive and negative repercussions on the market. Countries remain at risk of severe pandemic infections. Many pharmaceutical and biotech companies are directing their research and development efforts toward creating new medications or leads for combating the coronavirus infection. The pandemic disrupted the supply chain, resulting in global shortages of critical medical equipment. Consequently, several nations took proactive measures to address shortages, such as importing equipment or establishing domestic production. Simultaneously, the production of vital medical devices in the United States aimed to eliminate trade barriers while ensuring product quality and market stability. However, challenges such as counterfeiting and overpricing of imported healthcare facilities are expected to impede market growth. Notably, certain medical devices experienced a surge in demand during the pandemic, exemplified by the heightened need for ventilators among COVID–19 patients in critical conditions.

MARKET DRIVERS:

The market is witnessing expansion due to the escalating trend of increased healthcare spending and the dynamically evolving healthcare landscape.

A burgeoning geriatric population, augmented per capita disposable income, and an enhanced quality of life are intricately linked to the rising costs of healthcare. Medical expenditures significantly surpass those in the 60+ age group compared to the 15–30 age group. The global elderly population is rapidly growing, resulting in extended life expectancies but also an increased prevalence of comorbidities. While healthcare infrastructure worldwide is advancing, barriers related to affordability and accessibility hinder the widespread reach of healthcare and medical equipment. Addressing low accessibility and affordability issues necessitates augmented healthcare funding. Substantial increases in overall healthcare spending are envisioned to enhance access to healthcare equipment facilities and foster innovation in medical device production. Consequently, these factors are poised to positively impact market growth.

There is a growing demand for portable devices as the focus shifts toward homecare settings.

The surge in chronic diseases and the corresponding treatment burden on healthcare systems globally have prompted the development of new and user-friendly medical equipment. Market entities are investing significantly in the research and development of easily deployable medical equipment for treating chronic diseases. This aligns with government initiatives to transition patients to home care settings. These endeavors have resulted in the creation of portable and wearable technology that patients can use at home without requiring professional assistance.

MARKET LIMITATIONS:

The substantial costs associated with healthcare equipment are likely to impede market growth.

The medical device industry has undergone significant changes, including technological advancements and design upgrades over the past decade. The elevated costs of such equipment, encompassing increased purchase and maintenance expenses, contribute to an overall escalation in device costs and ownership. Complex devices, incorporating multiple components like chips, batteries, sensors, and other accessories, necessitate regular servicing, augmenting the financial burden on patients. Additionally, medical device reimbursement poses a challenge to the adoption of this technology in underdeveloped countries.

Establishing a networked ecosystem and designing suitable medical devices is a complex undertaking.

The demand for compact, lightweight, and cost-effective medical equipment of higher quality is on the rise in specialized healthcare settings. Electromagnetic compatibility is imperative for medical devices, encompassing both emission and immunity to transmitted electromagnetic waves, along with design-related electromagnetic compatibility procedures. The integration of connected medical devices into the existing healthcare system, particularly within the Internet of Medical Things (IoMT) ecosystem, requires extensive collaboration among diverse stakeholders. The IoMT, connecting medical equipment, software applications, health systems, and services, demands coordinated efforts from multiple service providers to ensure proper functionality. However, issues often arise among these service providers and stakeholders, affecting end-user service and system performance. This complexity can lead to system failures, emphasizing the need for careful consideration in the design and implementation of a robust medical electronics ecosystem.

HEALTHCARE EQUIPMENT MARKET – BY DEVICE TYPE

• Diagnostic Imaging Equipment
• Electrosurgical Equipment
• Orthopedic Devices
• Cardiovascular Devices
• Diagnostic Imaging
• IVD
• MIS
• Diabetes Care
• Ophthalmic
• Dental
• Nephrology
• General Surgery
• Endoscopic Devices
• Laboratory Equipment
• Others

The healthcare equipment market is categorized by device type, encompassing Diagnostic Imaging Equipment, Electrosurgical Equipment, Orthopedic Devices, Cardiovascular Devices, Diagnostic Imaging, IVD, MIS, Diabetes Care, Ophthalmic, Dental, Nephrology, General Surgery, Endoscopic Devices, Laboratory Equipment, and Others. The increasing use of real-time diagnostic testing for precise identification of chronic and infectious illnesses, such as diabetes, cancer, HIV/AIDS, among others, positions the in-vitro diagnostics (IVD) sector for accelerated growth during the projection period. Cardiology devices are anticipated to gain significant market share, with cardiovascular devices playing a crucial role in the detection and treatment of heart problems and other leading causes of global mortality. ECGs, defibrillators, pacemakers, cardiac rhythm management devices, catheters, grafts, heart valves, and stents are among the frequently utilized cardiovascular devices. The surge in coronary heart diseases, including heart attacks and cardiomyopathy, contributes to the global burden of cardiac mortality, propelling the cardiology devices market. Additionally, advancements in surgical robot technology and increased adoption by healthcare professionals are expected to propel the minimally invasive surgery (MIS) market. The prevalence of diabetes and retinal diseases is predicted to drive the use of diabetic care and ophthalmic equipment, fostering the healthcare equipment market's growth.

HEALTHCARE EQUIPMENT MARKET – BY END-USER

• Hospital
• Diagnostic Imaging Centers
• Dialysis Centers
• Ambulatory Surgical Centers
• Dental Clinics & Speciality Clinics
• Other

The healthcare equipment market, based on end-users, is divided into hospitals, Diagnostic Imaging Centers, Dialysis Centers, Ambulatory Surgical Centers, Dental Clinics & Speciality Clinics, and others. Hospitals dominated the market in 2020, attributed to the increasing number of multispecialty and community hospitals, particularly in emerging economies. The emphasis on frequent patient diagnosis and early treatment, driven by healthcare organizations and government initiatives, has elevated public awareness and contributed to the market's growth. Clinics and other categories are projected to experience a substantial CAGR due to increased funding from public and private entities in small and medium-sized clinics and long-term care centers globally, enhancing healthcare infrastructure.

HEALTHCARE EQUIPMENT MARKET - BY REGION

• North America
• Europe
• Asia Pacific
• South America
• The Middle East and Africa

The medical device market, organized by region, comprises North America, Europe, Asia Pacific, Latin America, The Middle East, and Africa. North America led the healthcare equipment market, with an estimated value of USD 160.7 billion in 2020. This dominance is attributed to appropriate reimbursement policies, a well-developed healthcare infrastructure, rapid adoption of modern medical technology, and the presence of prominent firms. The region's increasing incidence and prevalence of chronic illnesses have led to a rise in diagnosis and treatment rates. The European market is anticipated to grow rapidly, propelled by increased healthcare spending, well-established infrastructure, and greater adoption of novel diagnostic and treatment technologies. The focus on transitioning medical treatment to home care settings and the introduction of portable medical equipment contribute to significant growth. The Asia Pacific is poised for accelerated growth due to the rising incidence of various diseases and increased market player focus on expanding in developing markets like China and India to meet patient demand.

HEALTHCARE EQUIPMENT MARKET - BY COMPANIES

1. GE Healthcare
2. Siemens Healthineers
3. Koninklijke Philips N.V.
4. Medtronic plc
5. FUJIFILM Holdings Corporation
6. Canon, Inc.
7. Agfa-Gevaert Group
8. Carestream Health, Inc.
9. Drägerwerk AG & Co. KGaA
10. Hitachi Medical Corporation
11. Althea Group
12. Olympus Corporation
13. B. Braun Melsungen AG
14. KARL STORZ GmbH & Co. KG
15. Aramark Services, Inc

SIGNIFICANT DEVELOPMENTS IN THE HEALTHCARE EQUIPMENT MARKET

ACQUISITION: In March 2021, FUJIFILM Corporation acquired the Diagnostic Imaging-related Business of Hitachi, Ltd. (Japan). This strategic move aims to advance research and development, production, commercialization, and maintenance services for diagnostic imaging systems, including CT, MRI, X-ray, ultrasound systems, and other medical-related goods and services.

PARTNERSHIP: In December 2019, GE Healthcare (US) entered into a six-year service agreement with Affidea in the Netherlands, focusing on imaging technology. This collaboration underscores a commitment to providing enhanced services in the realm of medical imaging.

PARTNERSHIP: Siemens Healthineers (Germany) and Kantonsspital Baden (KSB, Switzerland) solidified an eight-year technology agreement in February 2021. This collaborative effort encompasses the acquisition and maintenance of medical imaging systems, technology management, and the advancement of telemedicine solutions. The partnership reflects a shared dedication to enhancing healthcare through innovative technology and comprehensive solutions.