The growing number of advancements in the U.S. medical device industry, rising preference for minimally invasive procedures, and increasing adoption of equipment insurance are the major growth factors for the U.S. endoscope repair market. Due to the aforementioned factors, the industry is projected to generate $603.6 million revenue in 2030, advancing at a CAGR of 9.3% during 2020–2030.
Due to the COVID-19 pandemic, the U.S. government took several measures to ensure that its economy is stable, such as the implementation of new economic plans. The country focused on the economic and health threats due to COVID-19. In such a scenario, endoscope equipment and repair service providers across the country faced a lot of challenges in 2020. This reflected a negative impact on the U.S. endoscope repair market.
The U.S. endoscope repair market is categorized into esophagoscope, colonoscope, laparoscope, arthroscope, bronchoscope, cystoscope, and others, on the basis of endoscope type. Among these, the esophagoscope category dominated the market during the historical period (2015–2020), and it is expected to dominate it during the forecast period as well. This will mainly be due to the increasing prevalence of gastrointestinal (GI) diseases, such as abnormal throat and gastroesophageal reflux disease (GERD).
The U.S. endoscope repair market is categorized into original equipment manufacturers (OEMs) and independent service organizations (ISOs), on the basis of service providers. Out of these, ISOs are expected to be the faster-growing category during the forecast period owing to the low cost and greater flexibility of their maintenance and repair services for the endoscopes of different OEMs.
Texas was the largest contributor to the U.S. endoscope repair market in 2020. This was majorly due to the high proportion of older people in the state, combined with the high prevalence of cancer. Furthermore, almost 83% of the annual healthcare spending in the state is attributed to government departments, such as the Texas Department of Aging and Disability Services (DADS), Texas Department of State Health Services (DSHS), Employees Retirement System (ERS), and Teacher Retirement System (TRS), which leads to the easy affordability of the equipment and repair services for end users.
Players in the U.S. endoscope repair industry have been involved in partnerships and acquisitions to gain a significant position. For instance, in February 2020, Agiliti Inc. acquired Mobile Instrument Service & Repair Inc., which specializes in servicing flexible and rigid endoscopes, powered surgical equipment, general and laparoscopic handheld instruments, video cameras and processing systems, case carts, and rolling stock sterilizers.
Similarly, in December 2018, Federal Street Acquisition Corp. and Agiliti Holdco Inc. (a subsidiary of Agiliti Inc.) entered into an amended and restated merger agreement, under which both the companies agreed to reduce the aggregate consideration paid to the selling equity holders of Agiliti Holdco Inc. from approximately $1.58 billion to $1.44 billion.
Some of the major players operating in the U.S. market for endoscope repair services include Olympus Corporation, Stryker Corporation, Steris Corporation, Agiliti Inc., J2S Medical, FUJIFILM Holdings Corporation, Pentax Medical Company, Total Scope Inc., Endoscopy Repair Specialist Inc., Associated Endoscopy Inc., Endoscopy Support Services Inc., and HMB Endoscopy Products.