Report Overview

South Africa Medical Equipment Financing Market - Industry Trends & Forecast Report, 2029

South Africa Medical Equipment Financing Market size was estimated to be worth USD 920.09 million in 2022. During the forecast period between 2023 and 2029, the South Africa Medical Equipment Financing Market size is projected to grow at a CAGR of 7.12%, reaching a value of USD 1,390.16 million by 2029. Major growth factors for the South Africa Medical Equipment Financing Market include rising investments in healthcare infrastructure and inflated cost of medical equipment. Furthermore, rapidly changing medical equipment technology and the integration of advanced technologies, such as AI, are anticipated to offer lucrative growth opportunities to the South Africa medical equipment financing market.

Medical Equipment Financing – Overview

Medical equipment financing is the term used to describe the financial assistance that different lenders, such as financial institutions and leasing companies, provide to healthcare professionals to help them purchase medical equipment, such as surgical equipment, diagnostic tools, and patient care equipment. The types of financing that are available, such as loans, leases, or rental agreements, depend on several factors, including the borrower's creditworthiness, the intended use of the equipment, its price, and its type.

South Africa Medical Equipment Financing Market

Growth Drivers

Rising Healthcare Expenditure and Developing Healthcare Infrastructure

Public and private healthcare spending is increasing in South Africa due to the rising prevalence of both communicable and non-communicable diseases. Healthcare, the public sector's financial shortage is impeding residents' ability to obtain healthcare services. Therefore, the healthcare industry is turning to financing for medical equipment to upgrade its infrastructure. Healthcare establishments can get the newest medical equipment with financing instead of having to pay the entire cost up front. It guarantees that medical practitioners will always be able to provide their patients with the best care possible by giving them access to innovative and effective technologies.

Restraints

Issues Concerning Delays in Approval of Medical Equipment Financing

Financing makes purchasing equipment easier, but throughout the financing period, interest payments could drive up overall expenditures. Technology is advancing so quickly that there is a chance the equipment will become obsolete before the financing period is up, leaving the facility with outdated equipment. Furthermore, financing agreements usually demand a term commitment. Early termination of these agreements may result in fines or other costs. These factors might serve as a significant barrier to the growth of South Africa Medical Equipment Financing Market.

South Africa Medical Equipment Financing Market

Segmental Coverage

South Africa Medical Equipment Financing Market – By Equipment

Based on equipment, the South Africa Medical Equipment Financing Market is segmented into diagnostics equipment, therapeutic equipment, patient monitoring equipment, laboratory equipment, and medical furniture. The diagnostics equipment segment holds the largest share of the South Africa Medical Equipment Financing Market. The low diagnosis rate of diseases in South Africa due to healthcare accessibility along with the high cost of diagnostics equipment contribute to the market demand for medical equipment financing in the country. Furthermore, the rising integration of artificial intelligence in medical diagnostics is anticipated to present lucrative growth opportunities to the market participants during the forecast period.

South Africa Medical Equipment Financing Market – By Type

Based on type, the South Africa Medical Equipment Financing Market is segmented into new medical equipment, rental equipment, and refurbished equipment. The refurbished medical equipment segment accounts for the highest share of the market. Refurbished equipment is defined as previously owned equipment that has been examined, tested, enhanced, and restored to a usable state. South Africa has a strong demand for refurbished equipment due to its lower cost and budgetary restraints in this economy.

South Africa Medical Equipment Financing Market – By End User

Based on end users, the South Africa Medical Equipment Financing Market is segmented into hospitals, clinics, laboratories & diagnostic centers, and others. The hospitals segment dominates the South Africa Medical Equipment Financing Market. According to the International Trade Administration, the public sector is the largest buyer of medical supplies and equipment, especially for primary healthcare. With South Africa’s favorable healthcare initiatives towards universal healthcare under the proposed National Healthcare Insurance and rising investments towards public healthcare systems to improve infrastructure and accessibility, the demand for medical equipment financing market is projected to surge during the forecast period.

Competitive Landscape

Major players operating in the South Africa Medical Equipment Financing Market include Merchant West Asset Finance, MediFin, MediCoop CFI, Centrafin, IFC, Wesbank, Standard Bank, Access Bank Plc, and Fin Medical Loans. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Equipment

• Diagnostics 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 & Diagnostic Centers

• Others

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. South Africa Medical Equipment Financing Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Rising Healthcare Expenditure and Developing Healthcare Infrastructure
         2. Increasing Price of Medical Equipment
      2. Restraints
         1. Higher Risk of Obsolescence of Medical Equipment Act
         2. Issues Concerning the Delay in the Approval of Medical Equipment for Some Health Issues Treatment
      3. Opportunities
         1. Growing Geriatric Population
         2. Government Initiatives
      4. Challenges
         1. Lack of awareness
   3. Equipment Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. South Africa Medical Equipment Financing Market Overview
   1. Market Type & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Equipment
         1. Diagnostics Equipment
         2. Therapeutic Equipment
         3. Patient Monitoring Equipment
         4. Laboratory Equipment
         5. Medical Furniture
      2. By Type
         1. New Medical Equipment
         2. Rental Equipment
         3. Refurbished Equipment
      3. By End User
         1. Hospitals
         2. Clinics
         3. Laboratories & Diagnostic Centers
         4. Others
5. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. South Africa Medical Equipment Financing Company Market Share Analysis, 2022
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
6. Impact of Covid-19 on South Africa Medical Equipment Financing Market
7. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
   1. Merchant West Asset Finance
   2. MediFin
   3. MediCoop CFI
   4. Centrafin
   5. IFC
   6. Wesbank
   7. Standard Bank
   8. Access Bank Plc
   9. Fin Medical Loans
   10. Other Prominent Players
8. Key Strategic Recommendations
9. Research Methodology
   1. Qualitative Research
      1. Primary & Secondary Research
   2. Quantitative Research
   3.  Market Breakdown & Data Triangulation
      1.  Secondary Research
      2.  Primary Research
   4.  Breakdown of Primary Research Respondents, By Region
   5.  Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

List of Figures

Figure 1       South Africa Medical Equipment Financing Segmentation 

Figure 2       South Africa Medical Equipment Financing Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2022

Figure 4       South Africa Medical Equipment Financing Market, By Value (USD Million), 2019–2029 

Figure 5       South Africa Medical Equipment Financing Market Share, By Equipment, By Value, 2019–2029 

Figure 6       South Africa Medical Equipment Financing Market Share, By Type, By Value, 2019–2029 

Figure 7       South Africa Medical Equipment Financing Market Share, By End User, By Value, 2019–2029 

List of Tables

Table 1        South Africa Medical Equipment Financing Market, By Value (USD Million), 2019–2029 

Table 2        South Africa Medical Equipment Financing Market Share, By Equipment, By Value, 2019–2029 

Table 3        South Africa Medical Equipment Financing Market Share, By Type, By Value, 2019–2029 

Table 4        South Africa Medical Equipment Financing Market Share, By End User, By Value, 2019–2029 

Table 5        Merchant West Asset Finance Company Overview

Table 6        Merchant West Asset Finance Financial Overview

Table 7        MediFin Company Overview

Table 8        MediFin Financial Overview

Table 9        MediCoop CFI Company Overview

Table 10      MediCoop CFI Financial Overview

Table 11      Centrafin Company Overview

Table 12      Centrafin Financial Overview

Table 13      IFC Company Overview

Table 14      IFC Financial Overview

Table 15      Wesbank Company Overview

Table 16      Wesbank Financial Overview

Table 17      Standard Bank Company Overview

Table 18      Standard Bank Financial Overview

Table 19      Access Bank Plc Company Overview

Table 20      Access Bank Plc Financial Overview

Table 21      Fin Medical Loans Company Overview

Table 22      Fin Medical Loans Financial Overview