PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1320193
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1320193
Medical Devices Reimbursement Market size was valued at USD 460,700.1 Million in 2022, expanding at a CAGR of 10.8% from 2023 to 2030.
In the context of medical devices, reimbursement refers to the payment made to a healthcare practitioner by a public or private insurer or "payer" in exchange for the expenses associated with using the devices or carrying out the operation. The term "covered" refers to a product that has been paid for.
The growing prevalence of chronic diseases including cancer, diabetes, cardiovascular and others are expected to fuel the market expansion over the forecast period. For instance, globally, there were 17.0 million new instances of cancer and 9.5 million cancer-related deaths in 2018, according to estimates from the International Agency for Research on Cancer (IARC). Simply because of population expansion and age, it is anticipated that by 2040 there would be 16.3 million cancer deaths and 27.5 million new cancer cases worldwide. Due to the rising frequency of risk factors including smoking, poor food, physical inactivity, and fewer pregnancies in economically developing nations, the burden will likely grow in the future. In addition, according to the International Diabetes Federation, 783 million individuals, or one in eight, would have diabetes by 2045, a 46% rise. Thus, the aforementioned facts support the market growth over the projected period.
The Global Medical Devices Reimbursement Market is segmented based on Payer, Healthcare Setting, and Region.
Based on payer, the global Medical Devices Reimbursement market is segmented into public and private. The private segment is expected to dominate the market over the forecast period owing to the existence of a sizable private player base, the rise in the number of diabetic and cancer patients, and the growing need for improved treatment choices. On the other hand, the public segment is expected to capture a significant market portion over the analysis period. Public payers offer comprehensive services to businesses in the pharmaceutical and healthcare sectors. Because of the growing need for cost-effective operations and the rising incidence of chronic diseases throughout the world, public payers are becoming more and more in demand. The development of cutting-edge medical equipment and reimbursement infrastructure are two of the key drivers of the segment's growth, combined with an increase in the use of public payer services in established and emerging nations.
Based on the healthcare setting, the Medical Devices Reimbursement industry is segmented into hospitals, outpatient facilities and others. The hospital segment is expected to hold a significant market share over the forecast period. The need for medical device reimbursement in large-scale settings, including hospitals, is being driven by the rising prevalence of chronic diseases. Before being marketed to private institutions, many cutting-edge medical devices based on research are first tested at public hospitals. The private healthcare facilities keep a budget for purchases that includes money directly taken from patients for any excess funds. As a result, they have more cutting-edge medical equipment.
Geographically, this market is widespread in the regions of North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. These regions are further divided as per the nations bringing business. North America is expected to dominate the market during the forecast period. This is proven by the rising prevalence of chronic diseases in this area. According to the Centers for Disease Control and Prevention (CDC), chronic diseases including diabetes, cancer, heart disease, and stroke are the main causes of mortality in the United States and impact six out of ten people. Additionally, there are more healthcare facilities in this area, which is helping the industry to expand.
To launch technologically sophisticated goods and acquire a competitive edge, major firms are putting their attention on research and development. Medical device makers' technical breakthroughs will be fueled by an increase in payment for medical devices. Long-term, this will make it possible for improved healthcare outcomes and more cost-effectiveness. To boost their profit margins, the manufacturers of medical devices are also engaging in consulting services for the creation of appropriate reimbursement applications for regulatory bodies. Due to reimbursement being the largest obstacle for medical device makers to secure coverage and lure risk-averse investors, this tendency is predicted to increase.
In November 2022, the world's biggest worldwide team of regulatory and quality specialists, RQM+, the premier MedTech service provider, announced the opening of its reimbursement division. In addition to regulatory, quality, clinical, and laboratory services, RQM+ now offers extensive reimbursement services, facilitating market access for medical devices and diagnostics over their full product lifetime.