The medical device reimbursement market includes various medical equipment and services that aid medical professionals in diagnosis, monitoring, and treatment of medical conditions as well as diseases. Devices ranging from sophisticated medical imaging systems and analytical equipment to basic disposable products such as syringes and bandages are classified under this market. With rising healthcare costs, medical device manufacturers are focused on developing affordable devices to make healthcare accessible and reduce the economic burden. Moreover, major players are involved in comprehensive insurance coverage and reimbursement programs to boost the adoption of high-end medical technologies.
The global medical devices reimbursement market is estimated to be valued at US$ 543.04 Mn in 2023 and is expected to exhibit a CAGR of 7.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Rising demand for cost-effective healthcare services is expected to drive the growth of the medical devices reimbursement market over the forecast period. Healthcare costs have witnessed substantial increase over the past few years. To curtail these rising costs and make medical devices more affordable for both patients and providers, private and public insurance payers are focusing on developing comprehensive reimbursement policies and programs. This encourages higher adoption of medical technologies and makes quality care more accessible.
Moreover, the development of affordable medical devices by key players as highlighted in the market overview section is also boosting the demand for reimbursement programs. By offering reimbursements, insurance pays ensure commercially viable markets for innovative medical technologies developed at lower costs by manufacturers. This collaboration between reimbursement agencies and device developers aims to provide both quality and affordable care to customers.
Segment Analysis
The medical devices reimbursement market is segmented into diagnosis devices, therapeutic devices, monitoring devices, diagnosis and monitoring hospitals, therapeutics hospitals and others. The monitoring devices segment is dominating the market owing to growing preference for home healthcare and increasing adoption of remote patient monitoring devices. The monitoring devices segment monitors health indicators such as blood pressure, pulse rate, sugar levels etc. at home with ease which is driving the growth of this segment.
PEST Analysis
Political: The government policies supporting the healthcare sector through initiatives such as Medicare, Medicaid are promoting the growth of this market. However, uncertainty in regulatory policies can hamper the market growth.
Economic: Rising healthcare expenditure and increasing disposable income is fueling the demand for medical devices and subsequent reimbursement claims. Higher demand is positively impacting the market.
Social: Growing geriatric population suffering from chronic diseases is propelling the demand for medical devices and reimbursement facilities for treatment. Rapid shift towards home healthcare is further boosting the market growth.
Technological: Continuous innovations in medical devices with remote connectivity capabilities are supporting home healthcare. Integration of AI and IoT is enabling remote monitoring of health indicators. Advanced technologies are also streamlining the reimbursement process.
Key Takeaways
The Global Medical Devices Reimbursement Market Size is expected to witness high growth over the forecast period.
Regionally, North America dominates the market due to presence of favorable reimbursement policies and advanced healthcare infrastructure. Developing regions like Asia Pacific are expected to offer lucrative opportunities owing to growing healthcare expenditure and improving medical facilities.
Key players operating in the medical devices reimbursement market are Regeneron Pharmaceuticals, Inc., Eli Lilly and Company, AstraZeneca PLC, GlaxoSmithKline plc, Sanofi SA, Roche Holding AG, Novartis AG, Merck & Co.Inc., Pfizer Inc., Johnson & Johnson, Takeda Pharmaceutical Company Limited, Moderna, Inc., BioNTech SE, CSL Limited, Sinovac Biotech Ltd.
