Medical equipment rentals provide patients temporary access to medical devices they may need while recovering from an illness or injury at home. This allows patients to continue necessary treatment without bearing high equipment purchase costs, helping to reduce overall healthcare expenditure. Devices commonly offered on rent include home oxygen systems, wheelchairs, crutches, continuous passive movement therapy devices, and hospital beds. The growing elderly population suffering from chronic diseases is driving significant demand for post-acute care at home. Renting medical devices makes home healthcare more affordable for payers as well as patients.
The global Medical Equipment Rental Market is estimated to be valued at Us$ 56.68 Mn in 2024 and is expected to exhibit a CAGR Of 6.7% over the forecast period 2024 To 2031, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The opportunity to reduce healthcare costs lies at the core of the medical equipment rental business. As patients are increasingly seeking cost-effective post-acute care solutions, the equipment rental model provides affordable access to devices without heavy capital investment. This improves accessibility of healthcare while easing the economic burden. With global medical costs projected to rise substantially, equipment rental can play a key role in moderating expenditure growth. The market players therefore stand to gain by promoting the savings potential of their rental offerings to a widening pool of cost-conscious consumers and care providers.
Porter's Analysis
Threat of new entrants: The medical equipment rental market requires high capital investment to procure technologically advanced medical equipment. This acts as a barrier for new companies to enter the market easily.
Bargaining power of buyers: Buyers have high bargaining power in this market as they can easily switch between rental service providers based on price and product offerings.
Bargaining power of suppliers: A few major players globally supply medical equipment, giving them significant bargaining power over rental service providers.
Threat of new substitutes: There exists no close substitute for rental services as buying equipment requires large capital outlay.
Competitive rivalry: The market witnesses intense competition due to occupancy of global players.
SWOT Analysis
Strength: Rental services help healthcare facilities access latest equipment without large capital investment and offer flexible payment options.
Weakness: Rental companies face risks regarding rapid technological changes and equipment obsolescence. Maintaining equipment and covering repair costs impacts profitability.
Opportunity: Growth in aging population and rising healthcare expenditure in developing nations present opportunities.
Threats: Economic slowdowns and regulations around reimbursed medical equipment limit market potential.
Key Takeaways
The Global Medical Equipment Rental Market Demand is expected to witness high growth. The market size for 2024 is estimated to be US$ 56.68 Mn and is forecast to reach US$ 94.08 Mn by 2031 at a CAGR of 6.7% during the forecast period from 2024 to 2031.
Regional analysis:
North America dominates the global market currently owing to significant healthcare spending and presence of major players. Asia Pacific exhibits the fastest growth rate on account of rising healthcare infrastructure and expanding medical tourism industry.
Key players operating in the medical equipment rental market include Akzo Nobel N.V., Axalta Coating Systems, BASF Coatings, Beckers Group, Berger Paints India Limited, Chugoku Marine Paints, Ltd., Hempel A/S, Jotun, Kansai Paint Co., Ltd., KCC Corporation, NIPSEA Group, PPG Industries, Inc., Teknos Group, The Chemours Company, and The Sherwin-Williams Company. Major players focus on strategic partnerships and collaborations to expand their product portfolios and geographical footprint.
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