The global reprocessed medical devices market size was valued at USD 1,141.1 million in 2014.The rising significance and need for medical waste disposal is a high impact rendering driver of the reprocessed medical devices market.
The consequential pressure on hospitals and other healthcare settings to operate under a limited budget and the long-term cost efficiency associated with reprocessing are significant growth drivers of the overall industry. The aforementioned can also be attributed to the low cost involved in reprocessing as compared to costs incurred in the manufacturing of the original equipment.
Moreover, the rising concern pertaining to a high volume of waste and landfills generated globally is instrumental in shifting the focus towards reprocessing. In addition, the rising initiatives to confine waste, such as the European Commission's 7th Environment Action Programme, are involved in promoting there processing of materials and incineration.
Furthermore, the market is expected to exhibit exponential growth owing to the increasing preference of physicians towards single-use reprocessed devices as a patient safety measure due to the reduced risk of infection and a step towards significant medical waste reduction. As per Practice Health, single-use reprocessed medical devices (SUDs) are efficient towards the reduction of waste in hospitals and holds the same standard as that of an original device, thereby generating the demand for the industry during the forecast period.
North America Reprocessed Medical Devices Market, By Type, 2012 - 2022 (USD Million)
The cardiovascular segment dominated and constituted over 55.0% of the overall reprocessed medical devices market, as a consequence of its increasing incorporation in cardiac surgeries, such as cardiac positioning and stabilization devices, diagnostics electrophysiology catheters, and blood pressure cuffs, in a wide range of diagnostic, blood pressure monitoring, and surgical applications in 2014.
The segment is also anticipated to grow lucratively at a CAGR over 20.0% owing to the rising number of critical as well as non-critical cardiovascular reprocessed products approved by the FDA. In the cardiovascular segment, diagnostic electrophysiology catheters held the largest share owing to cost savings and a similar degree of efficacy exhibited by these devices in comparison to the original device.
As per the study published by National Institutes of Health, reprocessed diagnostic electrophysiology catheters resulted in a 41.2% reduction in the total costs incurred. Moreover, the laparoscopy segment held the second largest share of the market due to the rising demand for minimally invasive techniques, thus presenting opportunities for more reprocessing approvals, spearheading the growth for the laparoscopic segment during the forecast period.
Hospitals held a substantial share of over 46.0% of the overall end-use segment as a consequence of the high pressure pertinent to cost containment and waste reduction resulting from a wide range of diagnostics, therapeutic, and surgical applications in 2014. The segment is expected to grow at a lucrative CAGR of over 20.0%due to the growing outsourcing activities for reprocessing to third-party vendors.
As per the study published in PubMed, the National Institutes of Health, approximately 45.0% of hospitals in the U.S. outsourced reprocessing to third-party reprocessing organizations in 2007. Moreover, as per the report of the European Commission, Hospital care constitutes the highest share of healthcare spending of 41.0% followed by the ambulatory care, which stands at 25.0%.These key growth factors are anticipated to widen the consumer base for the industry players thereby enabling further expansion of reprocessed medical devices market in the foreseeable future.
North America held the largest revenue share of overall reprocessed medical devices market in 2014 at over 50.0%. The presence of government and intergovernmental waste management organizations involved in the implementation of sustainable waste disposal strategies and optimization of profitability without compromising patient safety are responsible for widening the base for potential growth prospects for the industry in North America.
It is followed by Europe in terms of revenue share owing to the presence of favorable government initiatives, such as rising drug prescription price, reduced funding opportunities, expensive operative procedures and high prices, associated with the manufacturing of the original device is bolstering the need for reprocessing in Europe.
Asia pacific is expected to be the fastest growing region over the forecast period due to the presence of untapped opportunities in emerging economies. These countries include China and India, with increasing focus towards overall cost reduction. Furthermore, rising investment of industry players in the form of manufacturing facility set up in this region is predicted to present with a higher degree of growth potential during the forecast period.
Competitive Market Share Insights
The key players of reprocessed medical devices industry include Stryker Sustainability Solutions, Integrity Medical Systems, Inc., Centurion Medical Products Corporation, Suretek Medical, Sterilmed, Inc., Medisiss, VANGUARD AG, AGITO Medical A/S, DRE Medical Equipment, Midwest Reprocessing Center, Radiology Oncology Systems, Inc., Philips Healthcare, EverX Pvt. Ltd., GE Healthcare, Siemens Healthcare, Block Imaging International, Inc., ReNu Medical, Inc., Soma Technology, and Hygia Health Services, Inc.
The industry is competitive in nature and key players are involved in strategic alliances such as product approvals, mergers& acquisitions, involving in sustainable medication waste reduction programs to better penetrate the industry. For instance, in June 2015, Intalere Choice, a subsidiary of Intalere, Inc., entered into an agreement with HYGIA Health Services, for enhancing the supply of reprocessed medical devices, which is anticipated to help in business expansion.
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