North American Medical Equipment Maintenance Industry To Prosper in Coming Years

From $17.4 billion in 2019, the global medical equipment maintenance market revenue is predicted to surge to $45.1 billion by 2030. According to the estimates of the market research company, P&S Intelligence, the market will demonstrate a CAGR of 9.4% from 2020 to 2030 (forecast period). The market is being driven by the rapid advancements being made in medical devices, enactment of strict regulations, and growing public awareness about preventive maintenance all over the world. 

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The expansion of the medical device industry is propelling the growth of the medical equipment maintenance market. In recent times, the healthcare sector has witnessed several rapid advancements, especially in diagnostic equipment. Moreover, the players operating in the industry are actively focusing on manufacturing high-quality diversified products with the help of advanced technologies and exhaustive research and development (R&D) activities. These devices have a certain lifespan and need replacement or maintenance after a certain period of time. 

Besides, the growing public awareness about the significance of preventive medical equipment maintenance is also driving the expansion of the medical equipment maintenance market. For example, the World Health Organization has laid down guidelines for infection control and hospital hygiene, which focus heavily on equipment maintenance. Due to this factor, many healthcare providers are actively incorporating maintenance services for several devices. For example, Montana State Hospital implemented a preventive maintenance program in August 2017 for increasing the useful life of equipment and building and ensuring the safety of patients and personnel. 

Depending on equipment type, the market is divided into electromedical, surgical, life support, dental, and imaging categories. Out of these, the imaging equipment category dominated the market in 2019. This was because of the fact that this device is heavily used for the diagnosis of several medical conditions, such as neurological issues, heart diseases, and tumors. When service provider is taken into consideration, the market is classified into independent service organizations (ISOs), in-house, and original equipment manufacturers.

Amongst these, the ISO category is predicted to register the fastest growth in the market in the coming years. This is credited to the high cost of the services provided by OEMs, which is subsequently propelling the popularity of ISOs. Across the globe, North America contributed the highest revenue to the medical equipment maintenance market in the past, and this trend is predicted to continue in the coming years as well. This is attributed to the mushrooming population of geriatric people, increasing number of hospitals, rising prevalence of diseases, and surging use of medical imaging systems in the region. As per the data released by the American Hospital Association in January 2019, in 2017, the total number of registered hospitals in the U.S. was 6,210.

Hence, it can be safely said that the demand for medical equipment maintenance services will surge sharply in the coming years, mainly because of the growing incidence of diseases and rising public awareness about hygiene all over the world.

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Government Regulations Boosting U.S. Medical Equipment Maintenance Market Size

The technological innovations in the medical device sector, increasing awareness about preventive medical equipment maintenance, and presence of a strict regulatory environment are the most important factors that will drive the growth of the U.S. medical equipment maintenance market during 2020–2030 (forecast period). The advance, at a CAGR of 9.2%, will increase the size of the market from $8,262.2 million in 2019 to $21,358.3 million by 2030.

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The U.S. healthcare system uses advanced medical devices and associated products to offer high-quality facilities to patients. Healthcare professionals are optimistic about technological advancements such as automatic relocation machinery and hyper-automation, which utilize artificial intelligence (AI) and machine learning. These medical devices with cutting-edge technology need regular software updates and physical maintenance on a regular basis, which will boost the U.S. medical equipment maintenance market growth during the forecast period.

Maintaining medical equipment regularly, to offer patients the best-possible care and reduce the risk of mishaps, is mandatory in the U.S. The country has a stringent regulatory framework that requires end-users to follow preventive maintenance procedures and programs recommended by original equipment manufacturers (OEMs). End-users who do not want to comply with the OEMs' recommendations have to get a waiver executed and approved by the state department of health. Such a stringent framework will contribute significantly to the demand for medical equipment maintenances services in the nation in the future.

The equipment type segment is categorized into imaging, dental, life support, electromedical, surgical, and endoscopes. Of these, the imaging equipment category held the largest share in the industry in 2019. The increasing installation of advanced imaging modalities, including magnetic resonance imaging (MRI) and computed tomography, and primary imaging modalities, such as ultrasound and digital X-ray, will drive the growth of the U.S. medical equipment maintenance market during the forecast period. The high cost and extensive usage of these devices creates the need for regular maintenance.

Further, the service segment of the U.S. medical equipment maintenance market is divided into the operational, corrective, and preventive categories. Among these, the preventive maintenance category generated the highest revenue in 2019, and it is projected to demonstrate the fastest growth during the forecast period. This will be a result of the growing implementation of annual maintenance contract (AMC) policies by hospitals and other end-users in the U.S., as this guarantees a particular number of servicing and maintenance sessions for a monthly/quarterly, or yearly fee.

Of the 50 states, Texas accounted for the largest U.S. medical equipment maintenance market share in 2019, and it is expected to maintain its dominance during the forecast period. This can be attributed to the increasing expenditure on healthcare and presence of an umpteen number of hospitals in Texas. Government agencies, such as the Texas Health and Human Services Commission (HHSC), Texas Department of State Health Services (DSHS), and Texas Department of Aging and Disability Services (DADS), account for around 83% of all the healthcare spending annually, thereby contributing significantly to the market growth.

Therefore, the market is expected to be driven by government initiatives and the advancing medical device sector.

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