The medical equipment financing market is speculated to exhibit steady growth by 2030 owing to the skyrocketing cost of healthcare equipment across the globe. In addition, rising demand for medical equipment, along with technological advancements in developed countries, is likely to boost market growth in the study timeframe.
During the coronavirus pandemic, due to the lack of medical equipment, such as ventilators, MRI scanners, and therapeutic equipment in developing nations, the market witnessed a rise in demand. Notably, governments from nations that had faced such challenges following the COVID-19 outbreak provided healthcare equipment financing, further supporting market expansion.
Moreover, major players in the medical equipment financing market have been engaging in various growth strategies like acquisitions and collaborations with public and private organizations to attain a competitive edge in the sector, which has been favorable for the global industry. For instance, in March 2022, National Funding Inc., a U.S.-based specialty finance company, invested in Finova Capital, a merchant financing company, to expand its working capital funding and small business loan offerings.
To cite another instance, in May 2022, CIT Group Inc., an American financial services company, lent around $22 million to AZ Banner Investments LLC, a domestic LLC in Arizona, to refinance Chandler Medical Plaza. The Chandler Medical Plaza consists of advanced surgery and imaging systems handled under Banner Health, one of the largest non-profit healthcare systems in the U.S.
The medical equipment financing market has been bifurcated in terms of end-use, equipment, type, and region.
With reference to equipment, the medical equipment financing industry has been divided into medical furniture, therapeutic equipment, diagnostics equipment, laboratory equipment, and patient monitoring equipment. The medical furniture segment was valued at around $7.1 billion in 2021 due to growing demand from healthcare facilities to deliver optimum care and patient comfort.
Based on type, the medical equipment financing market has been categorized into refurbished equipment, new medical equipment, and rental equipment. The rental equipment segment is anticipated to grow at a CAGR of around 7.1% over the analysis period. This growth is attributed to the introduction of favorable policies by governments to accommodate the escalating demand for medical equipment in developing nations.
In terms of end-use, the market has been divided into ambulatory surgical centers, hospitals, laboratory & diagnostic centers, and clinics. The market share from the clinics segment surpassed $27.6 billion in revenue in 2021 on account of the rising cost of healthcare equipment.
In the regional frame of reference, the Latin America medical equipment financing market contributed to around 4.6% of the overall industry revenue in 2021 as a result of the growing medical device market in the LATAM region.