As high-tech equipment and technology are employed more frequently, there will be a greater demand for healthcare financing solutions, which will accelerate market growth.
Covid-19 Impact & Market Status
The epidemic had a detrimental effect on the healthcare finance solutions market. The early limits set by the government to stop the virus' spread and the global downturn in healthcare activity were the main causes of negative growth in 2020. For instance, according to a piece written by the Equipment Leasing & Finance Association (ELFA), the volume of the equipment finance market decreased by 7% in 2020. The COVID-19 epidemic, which engulfed the globe and revolutionised the healthcare industry, was to blame for the decline. Additionally, in 2020, the volume of financing solutions for medical imaging equipment fell by 2.9%. The negative effects of the pandemic were, however, lessened in 2021 by loosening regulations and a significant rise in demand for medical equipment. As a result, the market had a sharp recovery in 2021, which would be expected to continue throughout the projection period. The healthcare sector is a dynamic one that is growing quickly. An increase in healthcare demand and costs is the result of advances in digital technology, an increase in disease prevalence, and the launch of cutting-edge medications and medicines.
Hospital and Health Systems Sector to hold the most market share
Due to an increase in hospitals and health systems, the hospital & health systems category accounted for the greatest portion of the global revenue in 2021, or more than 24.50%. Hospitals require financial support due to regularly changing laws, rising patient expectations, and the growth of healthcare access.
Healthcare institutions must simultaneously provide patients with the best possible care and the desired results. On the other hand, due to an increase in the number of such facilities being built around the world, the outpatient surgical centres sector is predicted to see the quickest CAGR over the projected period.
Equipment and Technology Finance Segment to boost the market
More than 45.00% of total revenue in 2021 came from the equipment and technology finance category, which led the global market. This is because of the substantial setup costs and the expensive medical equipment that necessitates funding. Digital technology could enhance patient experiences in the future by growth in recent years access to medical care and related help.
North America to dominate the Healthcare Finance Solutions market
In 2021, North America dominated the market and generated more than 38.5% of the total revenue worldwide. Modern medical technology is widely adopted in the area. Additionally, a rising elderly population, an increase in chronic sickness cases, and supportive government measures would all contribute to the area market's expansion. Due to the existence of several significant businesses, the area is expected to expand profitably throughout the course of the projected period. Patients' total healthcare expenses are increasing as a result of the United States' leadership in the research and manufacture of technologically sophisticated healthcare products.
Parties can raise funds for a range of healthcare needs, such as the acquisition of medical equipment, the renovation of infrastructure, and the payment of medical bills, through a group of financial hub solutions called as "healthcare financing solutions." These technologies enable the most efficient collection and financing of healthcare-related services by facilitating a more effective financial flow.
The fact that the government is supporting efforts to build the healthcare infrastructure is a key driver in the market's expansion. The primary factors driving market expansion are rising healthcare expenses and a rise in digital use in the healthcare sector.
The global market for healthcare finance solutions, which was projected to be worth USD 141.2 billion in 2022 and reach USD 238.1 billion by 2029, is expected to grow at a CAGR of 8.6% between 2022 and 2029. Rapid urbanisation, a shift in lifestyle, and an increase in disposable income in both developing and industrialised nations will all have an impact on how quickly the market for healthcare financing solutions grows. The demand for early diagnosis, the prevalence of chronic diseases, and the growing older population will all hasten the growth of the market for healthcare financing solutions.
The continual need to improve performance and procedures as well as the requirement for cutting-edge tools and technology are some of the factors fuelling the industry's growth. An increase in the incidence of chronic diseases, an increase in the number of elderly people worldwide, and advancements in early detection are driving up global healthcare costs.
Commerce Bancshares, Koninklijke Philips, General Electric Company, Siemens Financial Services, Gemino Healthcare Finance, Thermo Fisher Scientific, Stryker, Oxford Finance, TCF Capital Solutions, and CIT Group are a few of the major companies operating in the global healthcare finances solutions market analysis.
Latest Innovations in the Global Healthcare Finance Solutions Market: A Snapshot
- In July 2021, CIT Group Inc. served as the principal arranger of a $100 million financing for Cornerstone Healthcare Group Holdings Inc.'s long-term acute care hospital segment.
- Oxford reported in February 2022 that it had closed a $50 million secured debt term loan with the clinical-stage biotech start-up OncoResponse.
Healthcare Finance Solution Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2028||USD 238.1 billion|
|Growth Rate||CAGR of 8.6 % during 2021-2028|
|Segment Covered||Equipment Type, Healthcare Facility Type, Service, Regions|
|Regions Covered||North America, Europe, Asia Pacific, Middle East and Africa, South America|
|Key Players Profiled||Commerce Bancshares, Koninklijke Philips, General Electric Company, Siemens Financial Services, Gemino Healthcare Finance, Thermo Fisher Scientific, Stryker, Oxford Finance, TCF Capital Solutions|
Key Segments of the Global Healthcare Finances Solutions Market
Equipment Type Overview, 2019-2029 (USD Billion)
- Diagnostic/Imaging Equipment
- Specialist Beds
- Surgical Instruments
- Decontamination Equipment
- IT Equipment
Healthcare Facility Type Overview, 2019-2029 (USD Billion)
- Hospitals & Health Systems
- Outpatient Imaging Centres
- Outpatient Surgery Centres
- Physician Practices & Outpatient Clinics
- Diagnostic Laboratories
- Urgent Care Clinics
- Skilled Nursing Facilities
- Other Healthcare Providers
Service Overview, 2019-2029 (USD Billion)
- Equipment And Technology Finance
- Working Capital Finance
- Project Finance Solutions
- Corporate Lending
Regional Overview, 2019-2029 (USD Billion)
- The U.S
- The UK
- Rest of Europe
The Asia Pacific
- Rest of Asia Pacific
- Rest of South America
The Middle East and South Africa