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| Report Code: A12056 | Nov 2023 | Pages: NA | ||
| Tables: NA | Charts: NA |
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Pandemic disrupted the entire world and affected many industries.
Get detailed COVID-19 impact analysis on the Medical Equipment Financing Market
Request Now !The need of time is staying up to date with advancements in medical equipment but it can be an expensive prospect. That’s why many health care professionals need medical equipment financing to obtain the tools and machines they need. A medical equipment loan or lease helps those professionals get the equipment they need to bring in new and returning patients, helping them increase cash flow and build their reserves. With the continuous advancement in medical technology, it has become a necessity to opt for the best-in-class medical equipment for excellent healthcare services. However, advanced diagnostic systems are expensive and are difficult for medical practitioners and hospitals to afford through their funds. There arises the need for medical equipment funding with low monthly instalments and flexible loan models.
Covid-19 Scenario Analysis:
The forthcoming of Covid-19 outbreak caused an increase demand to diagnostics, PPE, medical oxygen, ventilators and other life-saving products and expensive medical equipment’s resulting a need in finance for these equipment’s. The COVID-19 pandemic is one of the most serious challenges faced by the financial services industry in nearly a century. The COVID-19 impact on banking is severe – fall in demand, lower incomes, production shutdowns - and will adversely affect the business of banks. The situation is exacerbated by staff shortages, inadequate digital maturity, and pressure on the existing infrastructure as firms scramble to deal with the impact of COVID-19 on financial services.
Top impacting factors: Market Scenario Analysis, Trends, Drivers and Impact Analysis:
Equipment financing refers to the practice of taking out a loan to pay for equipment over time. By choosing to finance equipment, borrower will eventually own the asset outright. This works well for organizations with strong credit and for mature technologies or for assets with a long life expectancy. In the medical device market, the typical lease term is between three and five years. At the end of the initial term, borrower has the option to purchase, renew, extend, or return the equipment. As a technologically driven field, leasing medical equipment often proves to be one of the most financially efficient ways to ensure your practice or facility has up to date equipment without tying up significant capital.
On the topic of capital allocation, many organizations utilize a lease to efficiently manage their cash flow. The lower monthly payment and flexible end of term options operationalize the use of the equipment. While most equipment financing is collateralized debt, the loan amount may impact borrower’s available line of credit. Since medical equipment, such as CTs and MRIs, can cost several hundred thousand dollars, the best practice is to work closely with financing partners. Another aspect of financing is the additional interest cost. Debt source and your credit will determine the interest rate which should be factored into the total cost of ownership.
Drivers:
Technological Innovation:
There has been a tremendous growth in the medical equipment industry. Rapid technological advancements combined with AI technology has leveraged the medical industry potential. This is the major factor contributing to the demand and magnetizing doctors, physicians, and others toward the equipment financing market. The highly advanced and expensive equipment’s has made hospitals, and diagnostic centres to opt for financing. Â
Trade War and Global Healthcare needs rise:
The trade war between China and the U.S. has contributed to increase the cost of certain medical equipment imported from China. These factors have contributed to increased cost of medical equipment, thus compelling the end-users to opt for medical equipment financing for purchasing. Also, increasing prevalence of chronic diseases has fuelled the growth of advanced medical equipment to provide efficient medical care to patients.
Diagnostic equipment industry, a billion-dollar market, is set to progress rapidly in both developed and developing nations:
Furthermore, the rising prevalence of diseases, increasing preferences of multiple assays over conventional assay, and increasing adoption of personalised medicine are among the few factors propelling the market for diagnostic medical equipment financing, globally. The rising number of infectious diseases and limited affordability in developing regions augment the market growth for diagnostic medical equipment financing.
Restrains:
Factors such as high expenditure for maintaining hospital equipment causes a decline in the medical equipment financing market as investors are more inclined on maintaining the already bought equipment rather than investing in a new one. This may pose a major challenge to the overall market. Furthermore, the current pandemic of COVID-19 has had a major impact all over the world resulting in a lack of medical equipment and hospital staff altogether.
Nevertheless, funds raised for ailing to the patients fighting the coronavirus may pose a major help to the world and add a boost to the market as well. This, coupled with the advent of artificial intelligence into the medical sector and the help provided by robot assistants in medical diagnostic procedures are likely to create lucrative growth opportunities for the market in the coming years.
Regional Analysis:
Geographically, North America held the dominant medical equipment financing market share in 2020. This is owing to the highest finance rate for medical equipment in the region, coupled with continuous investments in medical equipment and infrastructures in the region. Europe ranks second in the market on account of the increasing adoption of artificial intelligence technology-based medical equipment financing and developing healthcare infrastructure investments.
Asia Pacific is likely to register steady growth in the forecast period on account of emerging finance industries, developing healthcare infrastructure, and medical facilities in the region especially in the emerging nations. Furthermore, the market in Latin America and the Middle East and Africa will witness stable growth on account of lack of awareness and poor understanding of financing guidelines among the population.
Key Market Players analysis:
The global medical equipment financing market witnesses the presence of multiple vendors which further intensifies the market competition. However, companies such as Hero FinCorp, and National Funding have established a leading position owing to their affordable financial solutions, acquisition policies, and excellent customer-provider relationships. Apart from this, these players have a well-established portfolio and offer low monthly installments and varied loan options to medical practitioners. Other players are engaging in collaborative efforts such as contracts and agreements, joint ventures, and others to attract high medical equipment financing market revenue in the coming years.
Some of the key market players operating in the global medical equipment financing market share are First American Healthcare Finance, National Funding, CIT Group Inc. and TimePayment among others. These market players are implementing various strategies such as acquisitions and collaborations, in order to capitalize high revenue share in medical equipment financing industry.
Key Benefits of the Report
Questions answered in the Medical Equipment Financing Report
Medical Equipment Financing Market: Global Opportunity Analysis and Industry Forecast, 2020-2030 Report Highlights
| Aspects | Details |
|---|---|
| By End-users |
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| By Device Type |
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| By Device Finance Type |
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| By Region |
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| Key Market Players | HDFC Bank,, Macquarie Group Limited, First American Healthcare Finance,, National Funding,, CMS Funding,, Toronto-Dominion Bank,, Bajaj Fiserv,, Amur equipment Finance,, TIAA Bank,, Société General S.A., |
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