Medical Equipment Maintenance Market Overview
The global medical equipment maintenance market size was valued at $13,553.8 million in 2016, and it is forecasted to register 10.8% CAGR during 2017-2023 to reach $27,484.2 million by 2023. Among the different devices undergoing maintenance services, imaging equipment held the largest share in 2016, due to the increasing use of these equipment in the diagnosis of various disease, and high cost of new devices.
GLOBAL MEDICAL EQUIPMENT MAINTENANCE MARKET, BY DEVICE TYPE, $M (2013 - 2023)
Other than imaging equipment, endoscopic devices, surgical instruments, electromedical equipment, life support devices, and dental equipment are the medical equipment for which maintenance service are provided.
Among the two types of imaging equipment, the medical equipment maintenance market during the forecast period is expected to witness faster growth in advanced imaging modalities, at a CAGR of 12.0% during the forecast period, as compared to primary imaging modalities. The higher growth in advanced imaging modalities will be driven by its wider application, high cost, and its increasing adoption by a large number of hospitals and laboratories, as compared to primary imaging modalities.
Preventive maintenance was the most used service type in the medical equipment maintenance industry in 2016. The largest share of preventive maintenance is attributable to the tendency of hospitals and other end users to avoid the cost of corrective maintenance, which is much higher than preventive maintenance cost; and increasing adoption of the annual maintenance cost (AMC) policies by hospitals and other end users of medical equipment. Owing to these factors, the preventive medical equipment maintenance market is also expected to register the fastest growth, with a CAGR of 11.5% during the forecast period.
Original equipment manufacturers (OEMs) were the largest service provider in the medical equipment maintenance industry, followed by independent service organizations (ISOs), and in-house maintenance. The OEMs category is also expected to witness faster growth as compared to other service providers on account of better service quality and increasing adoption of AMCs from the OEMs. During the forecast period, medical equipment maintenance in private-sector organizations is expected to witness faster growth than public-sector organizations due to increasing expenditure on maintenance medical devices by private hospitals.
Globally, North America is the largest market for medical equipment maintenance services, followed by Europe, Asia-Pacific, Latin America, and Middle East & Africa. Asia-Pacific is predicted to garner the fastest growth in the market during the forecast period, owing to the growing medical device industry in the region, greater emphasis on repair and maintenance of the equipment than new purchase, and increasing prevalence of diseases requiring medical equipment for diagnosis and treatment.
Medical Equipment Maintenance Market Dynamics
The emerging trends in the medical equipment maintenance industry are the preference of multi-vendor contracts by end users, and the adoption of equipment maintenance insurance for various medical equipment. In order to reduce the complexities and additional expenses associated with separate services provided under agreement by various manufacturers, key players are inclining towards multi-vendor contract benefits. For instance, Koninklijke Philips N.V., offers RightFit service agreements for imaging systems, patient monitoring and ultrasound machines. The high costs of installing and maintaining medical devices increases the demand for insurance of such products. Insurance programs reimburse the cost of repair and maintenance of medical equipment; therefore, a majority of hospitals and other end users of medical equipment are adopting insurance policies.
Growing healthcare and medical devices industry is a key driver of the medical equipment maintenance market. Healthcare industry is undergoing rapid changes in emerging economies due to rising government expenditure, increasing number of hospitals, increase in the number of surgeries, and rising healthcare awareness. In emerging economies, such as India, China, Brazil and Mexico, governments are increasingly spending on healthcare.
According to World Bank, Brazil spent 8.3% of its $2.5 trillion GDP on healthcare in 2014. Similarly, China and Mexico spent 5.5% and 6.3%, respectively, of their GDP on healthcare, in 2014. Technological advancements in the medical device industry, drive the overall growth of medical equipment market. The growth in medical equipment market means more number of medical devices being used by various end users. These equipment have certain life span and require maintenance during and replacement after this period. Maintenance of medical devices increases their life span and helps to counter the increasing healthcare cost. Medical device equipment maintenance is also required to prevent infections caused by the use of medical devices during surgeries. Therefore, the growth in the medical devices industry drives the demand of medical equipment maintenance services.
Moreover, in some countries, there are regulations that makes maintenance of medical equipment mandatory for healthcare providers. For instance, in the U.S., the Centers for Medicare & Medicaid Services (CMS) regulations necessitates compliance with a variety of requirements related to equipment maintenance by hospitals. As per the CMS regulations, a hospital’s reimbursement depends on its compliance with the most recent regulations. All these factors lead to the growth of the medical equipment maintenance market.
Medical Equipment Maintenance Market Competitive Landscape
Key players in the medical equipment maintenance market are partnering with healthcare organizations and other end users via long term contracts for providing maintenance service for medical equipment as well as other services. For instance, in February 2017, Siemens Healthineers, a subsidiary of Siemens AG, signed a five-year partnership with hospitals in Turkey, operated by DiA Holding and Turkish Ministry of Health. Under the partnership, Siemens Healthineers agreed to provide the hospitals with laboratory services along with laboratory technical staff, design, medical equipment and its services and maintenance. The partnership offered these services to the hospitals in Turkey worth $109.3 million (€100 million).
Some of the other key players operating in the medical equipment maintenance market include General Electric Company, B. Braun Melsungen AG, Koninklijke Philips N.V., Fujifilm Holdings Corporation, Canon Inc., Aramark Corporation, TBS Group S.p.A., Hitachi Ltd., Agfa Gevaert, and Drägerwerk AG & Co. KGAA.