The European refurbished medical imaging equipment market generated $139.5 million in revenue in 2004, and is projected to reach $213.1 million in 2009, according to a report recently published by Frost & Sullivan.
The proportion of public and private healthcare institutions is a key determinant of the market's growth potential, however, according to Frost & Sullivan industry analyst Srividya Badrinarayanan. A predominance of public institutions that can afford new high-end equipment over private institutions can pose a significant challenge to market participants.
An anticipated increase in the number of private institutions is likely to mitigate this challenge, however, and strengthen the market, Badrinarayanan said.
Frost & Sullivan also said that while rapidly evolving technology is a major driver for the refurbished imaging equipment market, it also forms a substantial challenge for vendors. New technology introduction slows down customers' decision-making processes, as they become baffled as to whether to purchase new or refurbished equipment.
Also, many end users perceive refurbished equipment to be old systems that fail to meet the specifications of new models. Frost & Sullivan said that end users must be educated to improve the acceptance rate of these products.
Other barriers to acceptance include differing rules and regulations, as well as reimbursement laws across parts of Europe. Another significant challenge to the market is the low-quality products delivered by local refurbishers, Frost & Sullivan said.
By AuntMinnie.com staff writers
June 15, 2005
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