Medical Devices Reimbursement Market

The report intends to track the global medical devices reimbursement market size and trends as the market experiences some major shifts and expects over a billion-dollar revenue by the end of 2030.

Market Analysis Brief

At present, private insurers are compensating healthcare providers for the costs incurred due to the use of medical devices, also known as, medical devices reimbursement. Patients’ medical costs, inclusive of the cost of using medical devices, are paid by the patient's health insurance providers, or by the government. It is worthwhile to note that growing technological advancements in electronic health records (EMR) and the rising prevalence of chronic ailments are translating significant growth opportunities for the global medical devices reimbursement market. Either the amount of individual medical devices is reimbursed fully or based on the medical treatment wherein medical devices were used.

Patients, and healthcare providers alike are actively reaping the gains of reimbursement policies, accelerating the demand for medical device reimbursement. Onset of the remote monitoring era has become an imperative to treat patients suffering from chronic diseases. Rising burden of chronic diseases is creating tailwinds for remote monitoring, assuring influential growth across the global medical devices reimbursement market. 

Key Report Findings

• The global medical devices reimbursement market size will exceed the US$1 Bn mark by 2029-end
• The rising burden of chronic ailment drives the market to sound maturity
• Ongoing technological development in EMR domain paves the potential avenues for the market
• North America is anticipated to stand tall as a beacon in the global medical devices reimbursement market
• Aetna, UnitedHealth Group, Humana, Cigna, and Allianz are the top market players spearheading innovation across the medical devices reimbursement industry

Growth Drivers

Growing Pervasiveness of Chronic Ailments

The World Health Organization (WHO) records over 41 million fatalities due to non-communicable diseases, every year. Evidently, cardiovascular diseases are responsible for most NCD deaths, 17.9 million people per annum. Cancers, chronic respiratory diseases, and diabetes are leading causes accountable for deaths every year

An incessantly rising prevalence of chronic ailments has left a significant impact on the healthcare industry, and demand for affordable medical devices and healthcare services has become more pronounced.  In this backdrop, the growing pervasiveness of chronic diseases is creating a burgeoning effect on the growth of the medical devices reimbursement market, throughout the forecast period. 

Growing Geriatric Population

Recently, there has been a consistent rise in the worldwide geriatric population, accelerating the demand for medical device reimbursement. This has raised concerns as elderly people are more susceptible to developing infections and associated complications.

As per the latest Population Division by the United Nations Department of Economic and Social Affairs (UN DESA), 1 out of 6 people in the world will be over 65 age bracket, by 2050. This figure has mounted up from 1 out of 11 people in 2019.

Across the various economies, there is an anticipated two times rise in the populace falling in the 65+ age group. However, the global life expectancy for people beyond 65 years is likely to increase by 19 years. 

Favourable Take of Governments

An alarming rise in healthcare expenditure is unveiling numerous opportunities for the players operating in the global medical devices reimbursement market, stimulating stakeholder interest in healthcare reimbursement. Furthermore, the impact of chronic diseases cannot go unnoticed, affecting a significant proportion of the global population. The rise in chronic ailments, as well as the healthcare costs has coerced government entities to take drastic steps in the direction of culminating the detrimental impact of chronic ailments and lessening the burden on healthcare providers.

As a critical enabler of the healthcare industry, governments are consistently drafting robust initiatives and levying taxes on imports, to enhance the quality of healthcare and minimise costs. Such strategic moves are creating a breeding ground for the key players in the market to come up with innovative solutions.

Overview of Key Segments

Public Segment Holds Immense Market Value

On a payer basis, the market is bifurcated as public, and private. Among these, the public segment is projected to outdo the other segment owing to greater calls for cost-efficient operations and the increasing prevalence of chronic disease on the global front.

Nonetheless, the private segment shall also grow at a sustained pace attributing to the substantial presence of private players in the global medical devices reimbursement market. 

Hospitals Segment to Garner a Major Market Share

Considering the healthcare setting, the market is divided into outpatient facilities, hospitals, and others. Under this, the hospitals segment has gained tremendous traction in the medical devices reimbursement market. During the forecast timeframe, the segment is likely to maintain the status quo owing to the rising prevalence of chronic ailments and the growing need for medical device reimbursement in large-scale settings.

On the other hand, the outpatient facilities segment is also likely to witness notable growth, underpinned by soaring investments in R&D, the growing burden of chronic diseases, and the rising need for medicines and their cost-efficient production.

Regional Segment

North America’s Primacy Remains Intact

Holding a prominent share of approximately half of the global medical devices reimbursement market revenue in 2020, North America is expected to sustain its dominance throughout the forecast period. The market is majorly driven by the spikes in rates of a number of severe illnesses. The market here is reaping the gains of a streamlined reimbursement mechanism, which is much more sophisticated as compared to other areas. This has propelled the committees to update the list of devices every two years, enabling the inclusion of the most advanced goods in the reimbursement scheme.

With evolutionary changes in regulatory landscapes and growing pressure on the healthcare sector to curtail costs, the demand for medical device reimbursement has also risen. Significantly, the market in Europe is projected to expand amid such elevated demand for medical devices and healthcare facilities. 

In Asia Pacific, there has been a remarkable rise in healthcare expenditure and an escalation in the frequency of chronic diseases. The trend is prominent in fast-developing nations such as China, Japan, South Korea, and India. This has created the demand for efficient healthcare management systems, and hence, these economies are embracing the policies used by the US, and European nations.

Leading Industry Participants

Aetna, UnitedHealth Group, Humana, Cigna, and Allianz fall under the league of dominant players operating in the global medical devices reimbursement market. These organisations are setting their sights on establishing an effective healthcare system leveraging policies already laid down in financially thriving economies.

Regional Classification of the Global Medical Devices Reimbursement Market is Listed Below:

North America

• U.S.
• Canada

Europe

• Germany
• France
• Spain
• U.K.
• Italy
• Russia
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Southeast Asia
• Rest of Asia Pacific

 Latin America

• Brazil
• Mexico
• Rest of Latin America

Middle East and Africa

• GCC
• South Africa
• Rest of Middle East & Africa