The medical devices reimbursement market comprises private and public health insurance that covers costs associated with medical devices like surgical equipment, implants, prosthetics, wheelchairs, and dental devices. Medical devices play a crucial role in providing healthcare services and improving the quality of life for many individuals. Their usage ranges from implantable devices like pacemakers, stents, joints replacement to diagnostic devices like x-rays, ultrasounds, MRI machines and portable monitoring solutions.
The global medical devices reimbursement market is estimated to be valued at US$ 543.4 Mn in 2023 and is expected to exhibit a CAGR of 8.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Medical Devices Reimbursement Market is Expected to be Flourished by Significant Rise in Medical Devices Adoption: Rising prevalence of chronic diseases coupled with increasing awareness regarding availability of advanced medical devices for treatment and management of diseases is driving the adoption of medical devices across the globe. As per the estimates by American Association of Medical Devices (AAMD), nearly 6 million patients are implanted with medical devices each year in the United States alone. Growing reliance on medical devices for treatment is projected to boost the medical devices reimbursement rates over the forecast period.
Increasing healthcare expenditure is also fueling the healthcare insurance schemes that covers costs associated with medical devices: Rising healthcare expenditure and demand for advanced healthcare infrastructure has prompted government bodies and private insurers to formulate favorable reimbursement policies for medical devices and related services. According to world Bank data, global current healthcare expenditure is expected to grow at an annual rate of 5.4% through 2025. Growing healthcare spending is anticipated to boost healthcare insurance sector and spur demand for medical devices reimbursement programs.
Segment Analysis
The medical devices reimbursement market is currently dominated by the hospitals sub-segment. Hospitals account for over 60% of the market share as they serve a large number of patients and conduct a high volume of diagnostic tests, surgical procedures, and other complex treatments which utilize various medical devices. The availability of advanced medical devices, favorable reimbursement policies for inpatient care, and the growing burden of chronic diseases have further enhanced the adoption of medical devices across hospitals globally.
PEST Analysis
Political: Globally, governments are undertaking various initiatives to expand healthcare access and strengthen reimbursement frameworks. Favorable regulations around public and private insurance coverage for medical devices are boosting market growth.
Economic: Rising healthcare spending powered by growing economies, disposable incomes, and increasing elderly population is a key driver. The out-of-pocket costs for devices are pushing demand for reimbursements.
Social: An aging population and increasing lifestyle diseases have augmented the need for advanced diagnostic testing and treatment involving medical technologies. This is escalating reimbursement claims.
Technological: Continuous innovations are widening the applications of medical devices. Digitization is enhancing reimbursement processes by enabling online submission of claims and direct payments to healthcare providers and patients.
Key Takeaways
The Global Medical Devices Reimbursement Market Growth is expected to witness high over the forecast period. Regionally, North America currently accounts for the largest share owing to the developed healthcare infrastructure and favorable reimbursement policies in countries like the US and Canada. With rising healthcare expenditures, the Asia Pacific region is emerging as the fastest growing market with countries like China and India experiencing exponential growth.
Regional analysis
North America holds the dominant share of over 40% in the global market and is expected to continue leading. The presence of advanced healthcare facilities, strong reimbursement frameworks under Medicare and Medicaid, and high adoption of new medical devices drive the US market. Canada is another major regional market benefitting from universal healthcare and adoption of innovative technologies.
Key players
Key players operating in the medical devices reimbursement market are BNP Paribas, CVS Health, Aviva, Allianz, Humana, Cigna, Aetna, Wellcare Health Plans Inc., UnitedHealth Group Inc., and Nippon Life Insurance Company. These players manage large patient pools and offer a broad range of reimbursement solutions to healthcare providers as well as individuals. UnitedHealth Group, with its subsidiaries Optum and UnitedHealthcare, has emerged as the clear market leader owing to the scale of its operations and strong client networks across the US.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it