Report Overview

The India medical equipment financing market flourishing at a high rate owing to the expanding medical and healthcare industry along with rapidly growing research and development activities in this sector...

India Medical Equipment Financing Market- Industry Trends & Forecast Report 2028

The India medical equipment financing market was worth USD 3.9 billion in 2021 and is further projected to reach USD 9.3 billion by the year 2028, growing at a CAGR of 13.20% in the forecast period. The market is flourishing at a high rate owing to the expanding medical and healthcare industry along with rapidly growing research and development activities in this sector. Furthermore, an increasing number of medical equipment financing providers is also presenting lucrative growth opportunities to the market.

Medical Equipment Financing - Overview

Medical equipment financing refers to the loans and credits offered to doctors and business owners to acquire expensive medical equipment and devices. Medical and healthcare facilities such as hospitals, diagnostic centers, nursing homes, pathology labs, etc., commonly seek these medical equipment financing services. These services offer multiple repayment options for the convenience of the borrower along with customized solutions for financing new or refurbished machines.

India Medical Equipment Financing Market Forecast and Trends

Growth Drivers

Expanding Private Healthcare Facilities

The demand for diagnostic and treatment of various chronic and infectious diseases is rising with the surging population. However, the number of hospital beds per 1000 people in India is extremely low. As a result, the healthcare industry in India is considered to register significant growth over the next few years. Therefore, businesses are increasingly establishing private healthcare facilities to tap into the opportunities for the growing market, which will fuel the demand for medical equipment financing in India.

Increasing Number of Medical Equipment Financing Providers

With an increasing number of private healthcare facilities and the need for credit to support medical equipment, the medical equipment financing providers are also increasing in India at a high rate. Several established financial institutions are entering the market and new companies are also launching their products. Companies like Indusind Bank, Hero FinCorp, Madison Capital, etc., are some of the leading names in this industry. This is anticipated to present significant growth opportunities to the market.

Restraints                                                 

Difficulty in Credit Approval and Lack of Awareness

The private hospitals, especially in small towns, are unaware regarding the availability of medical equipment financing, which acts as a major restraining factor for the market growth. And even if they are aware, these services are not easily accessible to them. This is because credit approval is a tedious process and involves a lot of paperwork which includes books of accounts as well. Furthermore, the high rate of interest on loans further limits the demand for medical equipment financing in India.

Impact of COVID-19 on India Medical Equipment Financing Market

The COVID-19 pandemic outbreak in India presented lucrative growth opportunities to the India medical equipment financing market. The overwhelming surge in the COVID-19 affected patients pushed the entire healthcare system in India brink. Therefore, the private healthcare facilities had to resort to credit financing to expand their healthcare capacity and fulfill their needs for COVID-19 diagnostic equipment and other necessary medical accessories such as PPE kits and medical masses. This significantly flourished the growth of the India medical equipment financing market.

India Medical Equipment Financing Market - By Equipment

Based on equipment, the India medical equipment financing market is segmented into diagnostic equipment, therapeutic equipment, patient monitoring equipment, laboratory equipment, and medical furniture. The diagnostic equipment accounts for the largest share in the India medical equipment financing market because of the increasing prevalence of numerous chronic and infectious illnesses, as well as the demand for more rapid diagnostic tests. Furthermore, quick advancements in diagnostic equipment are a positive influence on the segment's growth.

India Medical Equipment Financing Market - By End-User

Based on end-user, the India medical equipment financing market is segmented into hospitals, clinics, laboratories and diagnostic centers, ambulatory surgical centers (ASCs), and others. The hospital's segment accounts for the largest market share owing to the increasing number of private healthcare facilities in India. Private hospitals are often dependent on loans and credit to acquire expensive medical equipment and devices such as anesthetic vaporizers, PET/CT scanners, etc., which is driving its market growth.

India Medical Equipment Financing Market - Regional Insights

Geographically, the India medical equipment financing market is segmented into Northern India, Southern India, Eastern India, and Western India. Southern India accounts for the largest share in the India medical equipment financing market owing to the strong healthcare sector in this region. The state has the most hospitals with all functioning specializations was Tamil Nadu, followed by Karnataka, West Bengal, and Kerala, according to a report by Niti Aayog, due to which the demand for medical equipment financing is also high.

Competitive Landscape

The leading market players in the India medical equipment financing market are HDFC Bank Limited, ICICI Bank Limited, State Bank of India, Siemens Financial Services Private Limited, Axis Bank Limited, Bajaj Finserv Limited, YES BANK LIMITED, IndusInd Bank Limited, Moneywise Financial Services Pvt Ltd (SMC Finance), Clix Capital Services Pvt. Ltd., Phillip Capital (India) Pvt. Ltd., and other prominent players.

The India medical equipment financing market is increasingly becoming fragmented with the increasing number of financial institutions entering the market. The companies are launching plans and services that suit the needs of different kinds and sizes of medical and healthcare organizations. Furthermore, the adoption of competitive strategies such as partnerships, mergers, acquisitions, collaborations, etc., is also prominent in this market.

Recent Development

• In September 2021, Kotak Mahindra Bank announced it have entered the medical equipment financing market by launching its healthcare financing solutions including healthcare infrastructure loans, medical equipment finance, and unsecured healthcare loans.

Scope of the Report

By Equipment

• Diagnostic Equipment

• Therapeutic Equipment

• Patient Monitoring Equipment

• Laboratory Equipment

• Medical Furniture

By Type

• New Medical Equipment

• Rental Equipment

• Refurbished Equipment

By End-User

• Hospitals

• Clinics

• Laboratories and Diagnostic Centers

• Ambulatory Surgical Centers (ASCs)

• Others

By Region

• Northern India

• Southern India

• Eastern India

• Western India