The Medical Equipment Rental Market is estimated to be valued at US$ 46.9 Bn in 2022 and is expected to exhibit a CAGR of 5.0% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The medical equipment rental market involves renting durable medical equipment such as MRI machines, CT scanners, anesthesia machines, operating room equipment and patient monitors. These devices are rented by healthcare facilities for a short-term basis to meet the rising demand for medical services. Renting provides a cost-effective solution to hospitals and clinics to access advanced medical technologies without requiring large capital investment.
Market Dynamics:
The growth of the medical equipment rental market is driven by the rising healthcare expenditure worldwide and growing preference for rental over equipment purchases. Healthcare spending has been increasing annually with the aging population and rise in chronic diseases. Renting medical devices reduces upfront capital costs for hospitals. It allows facilities to have access to modern equipment for a flexible period as per their requirements. Moreover, rental companies offer maintenance, repair and software upgrades services, reducing the operational costs for hospitals.
Segment Analysis
The global medical equipment rental market can be segmented based on equipment type, end user and region. Based on equipment type, the market is segmented into durable medical equipment and non-durable medical equipment. Among these, the durable medical equipment segment is expected to dominate the market during the forecast period. Durable medical equipment includes items which serve medical purpose and can withstand repeated use such as wheelchairs, hospital beds, ventilators, etc. These equipment have longer life span and are reused multiple times. Based on end user, the market is segmented into institutional and personal user. The institutional user segment accounts for the largest share owing to increasing incidence of chronic diseases leading to surge in demand for medical equipment at healthcare facilities.
PEST Analysis
Political: Regulations related to healthcare such as Affordable Care Act in the US have positively impacted the medical equipment rental market by increasing access to healthcare services.
Economic: Rising geriatric population and increase in per capita healthcare expenditure has contributed to market growth. However, fluctuating reimbursement policies in various countries impact the adoption of rental model.
Social: Growing preference for rental services over equipment purchase due to benefits such as low investment and operational costs.
Technological: Advancements in medical equipment with features such as portability, wireless connectivity has increased their applications at healthcare facilities as well as homecare settings.
Key Takeaways
The Global Medical Equipment Rental Market size was valued at US$ 46.9 Bn in 2022 and is expected to witness high growth, exhibiting a CAGR of 5.0% over the forecast period of 2023-2030. Rise in incidence of chronic diseases and growing need for medical equipment at healthcare facilities are the major factors driving the demand for rental services.
Regionally, North America dominates the global market and is expected to maintain its lead over the forecast period. This is attributed to well-established healthcare systems in countries like US, rising geriatric population and growing trend of home healthcare. Asia Pacific is anticipated to witness fastest growth during the same period owing to increasing healthcare spending and infrastructure development in emerging economies like India and China.
Key players operating in the medical equipment rental market include U.S. Med-Equip, Inc., Hill-Rom Holdings, Inc., Siemens Financial Services Inc., Nunn’s Home Medical Equipment, Westside Medical Supply, and Universal Hospital Services, Inc. Major players are focusing on inorganic growth strategies such as acquisitions to expand their product portfolio and geographical presence. For instance, in January 2020, Hill-Rom acquired Voalte to expand its digital health solutions.
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