Medical Devices Reimbursement Market is Estimated to Witness High Growth Owing to Opportunity of Expanding Coverage Options
Medical devices reimbursement helps patients obtain devices that improve their quality of life and manage health conditions. It covers a range of products from complex surgical equipment to simple supplies. However, patients often struggle with the cost and lack of coverage for certain medical equipment and services. This creates a large unmet need. 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 Opportunity:
The opportunity of expanding coverage options presents significant growth prospects for the medical devices reimbursement market. Currently, coverage and payment policies vary greatly, with some payers not covering newer life-changing devices. To address unmet financial needs, companies are collaborating with payers to determine appropriate methods for reimbursement. They are also broadening the types of services covered under various government-sponsored programs. Increased adoption of value-based contracts tying reimbursement to patient outcomes also supports market growth. If more payers offer comprehensive coverage for medically necessary equipment and procedures, it can improve access and drive the demand for reimbursement services over the forecast period.
Porter's Analysis
Threat of new entrants: New entrants face high capital requirements for R&D, manufacturing, and obtaining regulatory approvals. Established key players have significant economies of scale and brand recognition advantage.
Bargaining power of buyers: Buyers have significant bargaining power as the market has many established players. Buyers can negotiate on price and demand value-added services.
Bargaining power of suppliers: Suppliers of raw materials and components have moderate bargaining power due to the availability of substitute components and commoditization of materials.
Threat of new substitutes: Threat of new substitutes is moderate as technologies in medical devices are evolving at a steady pace.
Competitive rivalry: The market is highly competitive due to the presence of major global players and biosimilars/generic competition intensifying price wars.
SWOT Analysis
Strength: Vast product portfolios, strong brand recognition, global presence and distribution networks.
Weakness: High R&D and marketing costs, pricing pressures from payers, regulatory approvals are time consuming.
Opportunity: Increasing healthcare expenditure, growing geriatric population and demand for minimally invasive surgeries. Untapped markets in developing countries.
Threats: Product recalls, litigation costs, reimbursement policy changes, currency fluctuations impact profitability. Increase in biosimilar/generic competition.
Key Takeaways
The Global Medical Devices Reimbursement Market Size is expected to witness high growth at a CAGR of 7.5% during the forecast period of 2023 to 2030. The market size is projected to reach US$ 543.04 Mn by 2024.
Regional analysis: North America dominates the market currently due to the presence of major players, higher healthcare spending, and supportive regulatory environment for new approvals. Asia Pacific is expected to be the fastest growing region owing to rising medical tourism, health insurance penetration and economic growth.
Key players: 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.
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