Medical Equipment Maintenance Market Overview
The global medical equipment maintenance market generated $16.1 billion revenue in 2018, and is projected advance at a CAGR of 8.7% during the analysis period (2019–2024), mainly on account of advancements in the medical devices industry, rising awareness for preventive equipment maintenance, and presence of stringent regulatory environment.
Based on equipment type, the medical equipment maintenance market is categorized into imaging, electrochemical, life support, surgical, and dental equipment. Among these, the imaging equipment category is expected to witness the fastest growth, with a CAGR of 9.2%, during the analysis period. Due to rising prevalence of diseases including cancer, the usage of imaging equipment has been on the rise, which results in wear and tear of the systems. This is expected to increase the demand for maintenance services for these devices in the near future.
Based on service type, the medical equipment maintenance market is classified into preventive and predictive, corrective, and operational services. Among these service types, the preventive and predictive maintenance category is expected to occupy the largest market share, of more than 60.0%, by 2024. This can be attributed to the increasing adoption of annual maintenance cost (AMC) agreements by hospitals and other end users globally, due to various benefits associated with these policies, such as low cost of repairs and regular check-ups of diagnostic imaging equipment.
Medical Equipment Maintenance Market Dynamics
Advancements and developments in terms of medical devices and diagnostic equipment are being witnessed in the healthcare industry, globally. With the global medical devices industry being highly diversified, the market players manufacture a variety of devices to diagnose and treat patients suffering with different medical conditions. Medical devices have a certain life span, and require maintenance or replacement in some cases, after a certain period of time. Therefore, the surging medical devices industry is predicted to drive the medical equipment maintenance market during the forecast period.
Moreover, a number of medical devices can be used in various applications and are not specific to just one area of clinical application. For instance, surgical scalpels, dissecting scissors, dressing forceps, catheters, feeding tubes, and various other devices can be used in multiple surgeries. Similarly, imaging devices, such as magnetic resonance imaging (MRI) systems, computed tomography (CT) scanners, ultrasound systems, and X-ray imaging systems are used in multiple clinical applications. In order to increase their life span, these devices require proper maintenance.
Montana State Hospital launched a preventative maintenance program, in August 2017, to increase the useful life of buildings and equipment, and to ensure safety of personnel and patients, who are using the hospital facilities. Moreover, the University of Michigan hospital has an equipment management program to ensure safety and reliable operation of medical equipment and effective treatment of patients, throughout the University of Michigan Hospitals and Health Centers (UMHHC).
Under this program, each classification of device is assigned a preventive maintenance inspection strategy and scheduled to ensure that the equipment provides accurate and reliable information to clinicians. It is safe for both patients and operators, and is utilized to its fullest capacity in order to optimize patient care. All these factors are expected to significantly boost the growth of the medical equipment maintenance market during the forecast period.
Besides, presence of stringent regulatory framework makes medical equipment maintenance a compulsory requirement for end users. For instance, the U.S. Centers for Medicare and Medicaid Services (CMS) regulations, as well as a wide range of other mandates and guidelines, including accreditation requirements (such as the Joint Commission [TJC], Healthcare Facilities Accreditation Program [HFAP], and Det Norske Veritas [DNV]), state department of health rules, and equipment recalls and alerts from the U.S. Food and Drug Administration (USFDA) and original equipment manufacturers (OEMs), necessitate compliance with a variety of requirements related to equipment maintenance by hospitals. With such regulatory bodies in place, the adoption of medical equipment maintenance services by hospitals and other healthcare facilities is likely to increase, which would drive the growth of the medical equipment maintenance industry during the forecast period.
Medical Equipment Maintenance Market Competitive Landscape
Ongoing acquisitions and collaborations among players in the medical equipment maintenance market are resulting in improved services, accurate diagnosis, and increased market reach and share of players.
For instance, in January 2019, InterMed Group acquired Horizon CSA LLC, a U.S.-based provider of clinical engineering solutions for biomedical and imaging services at healthcare organizations. The acquisition of Horizon’s portfolio makes InterMed a sizeable player in the East Coast of the U.S. Similarly, in November 2017, Alpha Source Inc., a healthcare technology company, acquired BC Technical Inc., a provider of all major medical imaging systems and technologies. Through this acquisition, Alpha Source Inc. has become an independent full service, imaging services, and equipment repair solutions company in the U.S.
Leading players in global medical equipment maintenance market include General Electric Company, Siemens AG, Koninklijke Philips N.V., Canon Medical Systems Corporation, Shimadzu Corporation, Hitachi Ltd., and Olympus Corporation, among others.