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Feb 27, 2020 7:00 PM ET

Medical Equipment Maintenance Market to Grow at a CAGR of 10.4% | Opportunities and Challenges for New Market Entrants

iCrowd Newswire - Feb 27, 2020

The medical equipment repair market are rising focus on preventive medical equipment maintenance, growth in associated equipment markets, adoption of innovative funding mechanisms, and the increasing purchase of refurbished medical equipment. The objective of the report is to define, describe, and forecast the medical equipment repair market size based on device type (imaging equipment, Electromedical Equipment, Endoscopic Devices, Surgical Instruments, and Other Medical Equipment), service type, service provider, end user, and region.

MarketsandMarkets forecasts the medical equipment maintenance market to grow from USD 28.97 billion in 2018 to USD 47.49 billion by 2023, at a Compound Annual Growth Rate (CAGR) of 10.4% during the forecast period. 

Opportunity: Emergence of ISOs

The medical equipment maintenance and services sector was initially dominated by OEMs. However, OEMs typically charge more than third-party vendors, and often take longer for maintenance, resulting in higher associated costs as well as downtime. This situation, especially given the backdrop of continuing austerity measures and the need for cost-curtailment in global healthcare systems, has led to the emergence of ISOs dedicated to solely providing maintenance services.

With a strong team of experts, these organizations can cater to customers in situations where OEMs fail to offer satisfactory and time-efficient solutions. Moreover, ISOs offer services for multiple brands of medical devices, providing end users with a central, independent management platform for uniform service delivery across all asset groups, while reducing maintenance costs. This also helps reduce operating expenses and capital spending. According to hospitals and patient advocacy groups, ISOs typically charge 30–50% less than OEMs for maintaining and repairing equipment.

Competition among third-party service companies and insurance brokers has also driven down response times and the cost of services. Additionally, ISO contracts have become highly flexible, with negotiable or varied stipulations for parameters, such as response times and spare part costs (for example, whether they are included in a fixed price or charged separately). Considering their advantages as compared to OEMs, the preference for ISOs has increased among end users. The opportunities presented in the ISOs market is expected to draw a number of companies in this sector in the coming years.

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Challenge: Interoperability Issues Survival of players in a highly fragmented and competitive market.

The medical equipment maintenance market is highly fragmented and competitive and comprises a broad range of players, including multinational companies and small local players. With a number of service providers offering similar services, the cost is a major factor that influences end users selecting a vendor.

However, it is usually a challenge for service providers to offer the best-in-class services to customers at a lower cost. Also, the emergence of ISOs is increasing the pressure on OEMs to reduce the price of their service contracts. In this situation, it becomes difficult for players to remain competitive in the market; as a result, a number of larger companies look for consolidation. However, smaller companies do not have the same option, which affects their long-term survival in the medical equipment maintenance market.

North America is expected to lead the Medical Equipment Maintenance Market in 2023

On the basis of the region, the market is segmented into North AmericaEuropeAsia, and the RoW. In 2018, North America is expected to account for the largest share of the market, followed by Europe, The largest share of the North American market is attributed to the factors such as the rise in aging population and incidence of lifestyle-related diseases, access to quality healthcare, well-established healthcare infrastructure, high adoption of advanced technology, and the presence of prominent players.

In 2018, Europe is expected to hold the second-largest share. Factors such as expanding patient population, rising focus on early diagnosis, growing number of diagnostic imaging procedures, and strategic agreements, partnerships, and collaborations between service providers and end users are expected to fuel market growth in this region.

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Leading Companies

The market is highly competitive, with the presence of both OEMs and ISOs. GE Healthcare (US), Koninklijke Philips N.V. (Netherlands), Siemens Healthineers (Germany), Toshiba Medical Systems Europe (Germany), FUJIFILM Holdings Corporation (Japan), Carestream Health, Inc. (U.S.), Agfa-Gevaert Group (Belgium), and Drägerwerk AG & Co. KGaA (Germany) are some of the leading OEMs.

Aramark Services, Inc. (US), BC Technical, Inc. (US), Alliance Medical Group (UK), Althea Group (Italy), Avensys UK Ltd. (UK), and Grupo Empresarial Electromédico (Spain) are some of the leading ISOs operating in the Medical Equipment Maintenance Market.

Contact Information:

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MarketsandMarkets™ INC.
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Keywords:    Medical Equipment Maintenance Market

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