The worldwide medical equipment reimbursement market size is expected to reach USD 581.6 million by 2024. Owing to an impressive CAGR of 11.5% through 2034, the industry is set to reach USD 1727.2 million by the end of the forecast period.
A remarkable transition in healthcare systems is observed, which focuses on the value-based care model for patients. To cater to this increasing trend within the competitive space, leading organizations are investing heavily in reducing the costs of medical instruments.
| Attributes | Key Insights |
|---|---|
| Estimated Worldwide Medical Equipment Reimbursement Market Size in 2024 | USD 581.6 million |
| Projected Medical Equipment Reimbursement Industry Value in 2034 | USD 1727.2 million |
| Value-based CAGR from 2024 to 2034 | 11.5% |
Digitization of the medical infrastructure might reduce the complexity of various medical instruments, helping healthcare professionals achieve the desired goal. This trend is expected to augment the size of the ecosystem during the forecast period.
A measurable rise in healthcare expenditure can be observed, which is likely to create prospects for the competitive space. Due to the growing investments in digital medical equipment, prospects for reimbursement of such instruments are increasing.
To elevate digital healthcare infrastructure, governments of different countries are supporting the sector with the formulation of different policies. This favors the designing of favorable reimbursement policies, uplifting prospects for key players in the medical equipment reimbursement industry. Financial support, which is a key factor in upsurging the adoption of digital medical instruments, is provided by governments, driving prospects for the ecosystem.
Monitoring and controlling vital parameters of patients remotely is possible with the adoption of telehealth and digital medical facilities. Real-time tracking can be enabled, which is likely to benefit the demand for digital medical instruments. This rising demand is subsequently to drive the realm.
With the evolution of technology, innovations in healthcare systems have been spurred. This factor assists the adoption of cutting-edge facilities, which must be secured. This urgency elevates the demand for reimbursement of innovations, driving the ecosystem.
Governments of various countries have started streamlining regulatory policies for approval. This has reduced the time for the inclusion of any new policies. Such favorable legal factors are likely to upsurge the demand for reimbursement for medical equipment.
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The global medical equipment reimbursement industry overview suggests that the sector is set to progress during the era ranging from 2023 to 2033 at a CAGR of 12.4% through the first half (H1), whereas the industry is set to progress at a CAGR of 11.9% during the next half (H2).
| Particulars | Value CAGR |
|---|---|
| H1 | 12.4% (2023 to 2033) |
| H2 | 11.9% (2023 to 2033) |
| H1 | 11.5% (2024 to 2034) |
| H2 | 11.2% (2024 to 2034) |
Owing to recent consumer trends in the medical equipment reimbursement market, the competitive landscape is set to advance at 11.5% in the first half of the period (H1) of the period 2024 to 2034, whereas the next half period (H2) is likely to advance at a CAGR of 11.2%. The depreciation in the progress rate of the sector is 90 BPS for the first half (H1) and 70 BPS during the subsequent half (H2).
Telehealth Adoption Drives Worldwide Medical Equipment Reimbursement Market Size
The necessity of telehealth devices and services spurred after the pandemic era. Pertaining to remote patient monitoring and providing accurate diagnosis, the role of telehealth operations became crucial.
Such facilities are expected to surge in the forecast period due to the growing popularity of convenience provided by such facilities. The trend is fueled by the growing investments in the upgradation of medical services.
To cater to efficient telehealth diagnosis and treatment, cutting-edge tools, and equipment must be acquired by healthcare facility providers. This factor drives the demand for appropriate reimbursement policies, ensuring better operation of such devices. As the trend of the acquisition of telehealth facilities increases, the competitive space is expected to be driven significantly during the forecast period.
To increase the accuracy and efficiency of medical instruments, medical experts are keen on the adoption of cutting-edge technology. This gives rise to the need for digital medical infrastructure, including different monitoring equipment and key diagnostic tools. This rising demand is creating lucrative prospects for reimbursement policies, and the trend is expected to drive the ecosystem impressively through the next decade.
Prevalence of Chronic Diseases to Drive the Demand in the Forecast Period
The medical equipment reimbursement market future forecast projects a spike in the prevalence of chronic illnesses. The number of cases of patients suffering from serious diseases is expected to rise in the future.
This surge in diseases like Alzheimer's, Parkinson’s, cancer, pulmonary diseases, and many more is expected to drive the demand for cutting-edge equipment. The demand for digital healthcare instruments is also expected to rise due to this factor.
Advanced patient monitoring techniques are expected to elevate the demand for better infrastructure, which in turn, drives the demand for reimbursement policies.
The probability of such chronic diseases management is expected to increase with the rising geriatric population. Various physical, physiological, and psychological disorders are expected to increase with this increasing number, driving the demand for digital medical equipment for better patient handling. Such factors are likely to augment the competitive space, driving the ecosystem.
Complex Reimbursement Processes might Affect the Progress of the Realm
Complexities in reimbursement policies and the time taken to complete the said procedure might affect many growth factors influencing the medical equipment reimbursement market.
The optimization of the healthcare infrastructure in key emerging regions might not prove efficient for emerging players due to the tediousness of the process. This might affect the progress of the size of the competitive space.
Principal Consultant
The global medical equipment reimbursement market size and growth statistics suggest that the size of the competitive space was elevated from USD 292.9 million, measured in 2019, to USD 521.6 million in 2023. Pertaining to this development, the sector attributed a CAGR of 10.9% during the historical period.
The global landscape started gaining momentum during the historical period as consumers started becoming aware of the necessity of reimbursement policies. This factor played a pivotal role in driving the demand for such policies in the healthcare sector, elevating the size of the competitive space.
Developed countries emphasized adding better facilities under the belt, focusing on the enhancement of security for the healthcare infrastructure. Pertaining to this growing awareness, healthcare service providers in developed countries adopted such policies and trends early.
Fueled by government initiatives, this early adoption phase spurred the demand for such reimbursement policies in different avenues of the healthcare sector. The rate of adoption of new digital medical instruments was also high during the era, marking the necessity of such policies.
The accelerated spread of chronic diseases surged the demand for remote patient monitoring. To cater to the demand, new monitoring equipment was introduced in the competitive space, which required to be secured. Such factors governed the historical period.
The forecast period is projected to mark the progress of emerging sectors in the competitive space. The diversification of the ecosystem is likely to be witnessed in the future. This is a key driver during the forecast era.
The focus on preventive healthcare is also likely to govern the demand for better medical instruments, driving the need for relevant reimbursement policies.
Owing to the expanded technological infrastructure, large-scale organizations in the Tier 1 category can expand globally, bolstering the presence of firms in the global landscape. The reach of organizations is impeccable due to the elevated differentiation standards. Such differentiation can be achieved with the help of cutting-edge technology, which can be expensive.
Despite expensive technology being used, the affordability and returns delivered by the technology are more. Due to this, organizations operating in the said category use this infrastructure, aiming for a better reach among consumers.
With strategies, including mergers, acquisitions, partnerships, and collaborations, large-scale businesses can access different pockets across the globe, thereby diversifying the industry's reach. To meet changing consumer trends and demands, alterations in production and supply cycles are possible due to the robust infrastructure.
As a result, changes in consumer demands do not affect such firms heavily. As far as the capacity to generate revenue is concerned, large-scale organizations are capped above USD 100 million. In the given scenario, the Tier 1 category holds a 63.5% share of the ecosystem.
Small-scale and medium-scale businesses falling under the Tier 2 category, on the other hand, possess lesser revenue generation capacity. Due to the limited reach across the world, the Tier 2 category firms can not access global industries. On the contrary, the local environment can be penetrated more effectively, and the main source of revenue is generated from the local sectors.
Such firms are capped below USD 50 million, and such organizations can expand by lending key resources to global organizations. Exports can be another method to generate more revenue. In the given context, the Tier 2 category secures 24.2% industry share in 2024.
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With the rising importance of a robust legal framework in North America, the demand for proper reimbursement policies is expected to surge. This factor is likely to drive the worldwide medical equipment reimbursement market size.
With the emphasis on elevating healthcare infrastructure in Europe, prospects for allied industries are expected to increase. This creates opportunities for key players in the medical equipment reimbursement industry.
The government initiatives to uphold the healthcare sector in Asia-Pacific might fuel the sector’s growth.
Forecast CAGRs from 2024 to 2034
| Countries | Forecasted CAGR |
|---|---|
| The United States of America | 3.6% |
| The United Kingdom | 4.1% |
| India | 13% |
The projected enlargement of the industry in the United States is likely to occur at a CAGR of 3.6% through 2034.
Due to the technological evolution in the country, the healthcare infrastructure has been developed and bolstered. Leading organizations in the country expect cutting-edge medical facilities that can elevate the standard of treatments.
Higher healthcare expenditure is another fueling factor that drives the necessity of reimbursement policies. Due to such factors, the ecosystem is expected to grow in the country.
The estimated growth in the medical devices reimbursement market size and share in the United Kingdom is likely to occur at 4.1% through the forecast era.
The inclination of medical service providers in the United Kingdom is observed to be increasing toward digitization. Digital health technologies are acquired. As a result, the requirement for medical reimbursement surges.
Value-based services have gained traction in the country recently and are likely to project an optimistic future. This creates another key driver for the ecosystem in the country.
The government of India is aiming to elevate the accessibility of the healthcare infrastructure in the country. The affordability of the same is aimed to improve to increase the reach among the rural population.
To cater to the growing healthcare needs of the population, various programs have been implemented. Such efforts include the growing focus on the growth of the rural infrastructure.
Such factors create prospects for the acquisition of new medical instruments, and therefore, prove to be critical drivers for the industry. Owing to the medical equipment reimbursement market's current scenario and prospects in India, the competitive space is set to advance at the highest CAGR of 13% through 2034.
The elevated demand for cutting-edge medical facilities drives the demand for the acquisition of relevant technologies. To ensure safe and reliable operations, reimbursement policies play a vital role.
Private payers provide reliability and hospitals provide a wider canvas for the acquisition of such technology, driving such segments.
| Category | Payer Type- Private |
|---|---|
| Industry Share in 2024 | 89.5% |
The attractiveness of coverage options increases due to the increase in flexibility and diversity in coverage choices offered by private payers. Pertaining to such offerings, healthcare providers and patients can rely on private payers.
The approval process with private payers is more streamlined, which elevates the trustworthiness and speed of operation. Digital medical equipment can be adopted faster due to such processes. Such factors drive the popularity of private payers, driving the demand for the segment.
With the elevated infrastructure and resource availability in hospitals, diagnosis and treatment can be accelerated, offering more comfort to patients. Hospitals show a rising inclination toward the adoption of digital medical equipment.
With the rising technological acquisition, reimbursement of such tools becomes the top priority of healthcare professionals. Due to this, the demand for such policies in hospitals is expected to surge. Economies of scale often prove to be fruitful for hospitals, elevating the demand for reimbursement policies in hospitals.
| Category | Healthcare Setting- Hospitals |
|---|---|
| Industry Share in 2024 | 57% |
With the elevated infrastructure and resource availability in hospitals, diagnosis and treatment can be accelerated, offering more comfort to patients. Hospitals show a rising inclination toward the adoption of digital medical equipment.
With the rising technological acquisition, reimbursement of such tools becomes the top priority of healthcare professionals. Due to this, the demand for such policies in hospitals is expected to surge. Economies of scale often prove to be fruitful for hospitals, elevating the demand for reimbursement policies in hospitals.
The competitive landscape of the medical equipment reimbursement industry is cluttered due to the excessive presence of various organizations operating in the sector. The emergence of new entrants within the competitive space is difficult and can be achieved through penetration.
Key players in the medical equipment reimbursement industry expand in the global landscape using strategies like acquisitions, mergers, collaborations, and partnerships. The following key recent developments are augmenting the worldwide medical equipment reimbursement market size
Based on the payer type, the competitive space is segmented into Public and Private sectors.
Key healthcare settings of the competitive space include Hospitals, Outpatient Facilities, and Other Healthcare Settings.
North America, Latin America, Western Europe, Eastern Europe, South Asia and Pacific, East Asia, and The Middle East and Africa are the key contributing regions to the industry.
The medical equipment reimbursement industry is likely to advance at a CAGR of 11.5% through 2034.
The industry is likely likely reach USD 1727.2 million by 2034.
The ecosystem is set to reach USD 581.6 million in 2024.
The private payer segment is likely to hold 89.5% of the industry share in 2024.
The medical equipment reimbursement sector in the United States is likely to progress at a CAGR of 3.6% through 2034.
1. Executive Summary
2. Industry Introduction, including Taxonomy and Market Definition
3. Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments
4. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections
5. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034
5.1. Payer Type
5.2. Healthcare Setting
6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Payer Type
6.1. Public
6.2. Private
7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Healthcare Setting
7.1. Hospitals
7.2. Outpatient Facilities
7.3. Other Healthcare Settings
8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region
8.1. North America
8.2. Latin America
8.3. Western Europe
8.4. South Asia and Pacific
8.5. East Asia
8.6. Middle East and Africa
9. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
10. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
11. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
12. South Asia and Pacific Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
13. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
14. Middle East and Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
15. Sales Forecast 2024 to 2034 by Payer Type and Healthcare Setting for 30 Countries
16. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard
17. Company Profile
17.1. United Health Group
17.2. Aetna
17.3. Cigna
17.4. Humana
17.5. Allianz
17.6. Aviva
17.7. Nippon Life Insurance
17.8. CVS Health
17.9. Wellcare Health Plans
17.10. BNP Paribas
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