The global Durable Medical Equipment (DME) Market is estimated to be valued at US$ 196.4 billion in 2023 and is expected to exhibit a CAGR of 5.9% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Durable medical equipment refers to equipment used for medical purposes that provide therapeutic benefits to patients at home, clinics, or hospitals. These equipment are designed to withstand repeated use and are built to endurability standards. The market for durable medical equipment is driven by the growing aging population, rise in chronic diseases, and increasing demand for home healthcare services. DME includes devices such as wheelchairs, walkers, oxygen equipment, hospital beds, and therapeutic mattresses.
Market Key Trends:
One key trend observed in the durable medical equipment market is the rapid adoption of telemedicine and remote patient monitoring devices. With advancements in technology, healthcare providers are now able to remotely monitor patients' vital signs and provide teleconsultations, reducing the need for physical visits to clinics or hospitals. This trend has gained prominence during the COVID-19 pandemic, where social distancing and minimizing hospital visits have become crucial. Telemedicine and remote monitoring devices offer convenience, cost-effectiveness, and improved access to healthcare services, driving their demand in the market.
Porter’s Analysis
Threat of new entrants: The durable medical equipment market faces a medium level of threat from new entrants. While there are relatively low barriers to entry in terms of capital requirements and technology, there are significant regulatory requirements and certifications that new entrants need to comply with. Additionally, established players have strong brand recognition and customer loyalty, making it difficult for new entrants to gain market share.
Bargaining power of buyers: The bargaining power of buyers in the durable medical equipment market is high. Buyers, such as hospitals, healthcare facilities, and individual customers, have multiple options to choose from and can easily switch suppliers if they are not satisfied with the pricing or quality of products. This puts pressure on suppliers to offer competitive prices and high-quality products.
Bargaining power of suppliers: The bargaining power of suppliers in the durable medical equipment market is moderate. While there are many suppliers in the market, certain specialized components and materials used in the production of medical equipment may be controlled by a limited number of suppliers. This gives those suppliers some degree of power to negotiate prices and terms with manufacturers.
Threat of new substitutes: The threat of new substitutes is low in the durable medical equipment market. The equipment and devices used in healthcare settings have specific requirements and regulations that need to be met, making it difficult for alternative products to replace them. Additionally, the development and approval process for new medical devices is lengthy and costly, further reducing the threat of substitutes.
Competitive rivalry: The competitive rivalry in the durable medical equipment market is high. The market is highly fragmented, with numerous global and regional players competing for market share. These players constantly innovate and introduce new products to gain a competitive edge. Price competition is also intense, as buyers are price-sensitive and seek the best value for their money.
Key Takeaways
The Global Durable Medical Equipment Market Demand is expected to witness high growth, exhibiting a CAGR of 5.9% over the forecast period (2023-2030). This growth can be attributed to several factors, including an increasing geriatric population, rising prevalence of chronic diseases, and advancements in healthcare infrastructure.
In terms of regional analysis, North America is expected to be the fastest-growing and dominating region in the durable medical equipment market. The region has a well-established healthcare system, increasing healthcare expenditure, and a supportive reimbursement framework. Additionally, the presence of major key players in the region contributes to its dominance.
Key players operating in the durable medical equipment market include Stryker Corporation, Baxter International, Inc., Medtronic plc, Becton, Dickinson and Company, Medline Industries, Inc., Invacare Corporation, Sunrise Medical (US) LLC, ResMed, Inc., Drive DeVilbiss Healthcare, Inc. (Medical Depot Inc.), Hill-Rom Holdings, Inc., and others. These key players have a strong presence in the market and focus on product development, strategic collaborations, and mergers and acquisitions to strengthen their market position.
In conclusion, the durable medical equipment market is set to experience significant growth in the coming years. The market is characterized by intense competition among key players, high bargaining power of buyers, and moderate bargaining power of suppliers. Understanding these dynamics and market trends is crucial for stakeholders to make informed decisions and capitalize on the opportunities in this growing market.
