Market for Refurbished Imaging Equipment

Even as healthcare systems across Europe recognize the potential of medical imaging equipment in diagnosing diseases and promoting demand for cost-effective refurbished medical imaging equipment, market participants are confronted with several critical concerns. Private healthcare institutions are the major end users of the refurbished medical imaging equipment market. The predominance of public institutions--that can afford new high-end equipment--over the private ones presents a significant challenge to market participants.

New analysis from Frost & Sullivan, an international growth consultancy company (Palo Alto, CA,USA), revealed that revenue in this market totaled U.S.$139.5 million in 2004 and is projected to reach $213.1 million in 2009.

"The proportion of public and private healthcare institutions is a key determinant of refurbished medical imaging equipment market's growth potential,” explained Srividya Badrinarayanan, a Frost & Sullivan industry analyst. "Nonetheless, anticipated increase in the number of private institutions is likely to mitigate this challenge and strengthen the market.”

Whereas quickly changing technology is a key driver for the refurbished medical imaging equipment market, it also forms a considerable challenge to market participants. New technology advancements slows down the decision-making process of users as they get confused about whether to purchase for new equipment or buy refurbished ones. Furthermore, many end users see refurbished equipment as older systems that cannot meet the specifications of the newer ones. It is crucial to educate end users that refurbished equipment is returned to original specifications and vary from used ones, to improve rate of acceptance of these products.

Contradictory rules and regulations as well as reimbursement laws across parts of Europe also hinder acceptance of the refurbished equipment. Standardization of norms is vital to deal with regional inconsistencies in uptake. Another considerable challenge is the low-quality products offered by local refurbishers. Original equipment manufacturers (OEMs), who are major participants in the market, undertake meticulous quality checks before selling refurbished equipment to their customers.

"Several local refurbishers make cosmetic changes to used systems and sell them off as refurbished equipment, marring the name of these products in the market,” noted Ms. Badrinarayanan. "Participants will have to focus on rendering superior quality refurbished equipment in order to develop robust and long-term customer relations.”

On the whole, increased procedure volumes and new technology advancements, combined with the demand for cost-effective but technologically sophisticated equipment continue to drive the European markets for refurbished medical imaging equipment.




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