Thursday, 25 August 2016

Reprocessed Medical Devices Market - Worldwide Market Shares, Strategies, and Forecasts 2014 to 2020

The global market for reprocessed medical devices features a markedly high level of consolidation, with Stryker Sustainability Solutions, Inc. alone holding a share of nearly 62% of the overall market in 2013, reports TMR in a recent market research report. Well-managed supply channels and a strong distribution network have allowed the company to take a coveted spot in the global reprocessed medical devices market.
Owing to the prominence of a few vendors in the market, entry barriers for new vendors are high. Along with the dominance of a very small number of companies, factors such as the requirement of a steady supply of used medical devices, regulatory control exercised by several supervisory bodies, and the necessity of strong distribution networks are challenging new vendors in the global reprocessed medical devices market. However, developing economies, with vast growth opportunities and a highly unorganized reprocessing industry could allow easy admittance to new vendors. Some more of the market’s notable participants are Hygia Health Services, Inc., Centurion Medical Products Corporation, Medline ReNewal, SterilMed, Inc., and SureTek Medical.
The global reprocessed medical devices market is expected to exhibit an exceptional 19.3% CAGR by revenue over the period between 2014 and 2020. The market had a revenue-wise valuation of US$898.7 mn in 2015. In terms of volume, the global market is expected to rise to 56.04 mn by 2020.
Rising Pressure on Reducing Medical Waste and Demand for Reducing Medical Costs Drive Market
That using reprocessed medical devices could help healthcare facilities in saving big bucks is not a difficult guess. The Association of Medical Device Reprocessors (AMDR) states that any typical hospital could save anywhere between US$500,000 to US$2 mn a year using reprocessed medical devices. What’s more, orthopedic surgery centers could save up to US$20,000 per operating room a year by employing reprocessed medical devices. Such vast savings are the chief factor that reprocessed medical devices appeal to healthcare industries across the globe, no matter how strong or weak the economy of a country.
In developed economies, the rising demand to bring down healthcare expenses along with the several regulations requiring proper disposal or reuse of medical devices with a view of reducing the volumes of medical waste are working in favor of the medical devices reprocessing industry. In developing and under-developed economies, on the other hand, the potential of reprocessed medical devices in bridging the gap between the vast demands for healthcare facilities and their absence, especially in remote areas, could allow the global reprocessed medical devices market achieve traction.
Reluctance in Adopting Used Products in Developed Economies and Preference for In-house Reprocessing in Emerging Ones Hinder Market’s Growth
In certain developed countries such as the U.K. and France, healthcare providers and surgical centers are highly reluctant regarding the use of reprocessed medical devices. The lack of awareness and negative perception about the safety, product quality, and efficacy of reprocessed medical devices are key to the low adoption of reprocessed medical devices in such regions.
In developing countries, such as India, China, Singapore, and many other countries in the Middle East, Africa, and Asia Pacific, the large-scale adoption of professionally reprocessed medical devices is hindered due to the high preference for in-house reprocessing.
The lack of specific regulatory guidelines governing the process of medical device reprocessing has helped flourish the intake of easily and economically reprocessed medical devices recovered through in-house processing. This factor is expected to emerge as a key challenge to the overall development of the global reprocessed medical devices market in emerging economies in the next few years.
Cardiovascular Devices Take the Lead
The segment of cardiovascular devices saw the most traction, with 13.69 mn devices reprocessed and/or sold globally in 2015. In terms of revenue as well, the segment of reprocessed cardiovascular devices held the dominant position, with a valuation of US$599.3 mn in the same year. Geography-wise, North America emerged as the clear leader in the global reprocessed medical devices market as of 2015.
This review is based on a recent report published by Transparency Market Research, titled “Reprocessed Medical Devices Market Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2014 - 2020.”

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