July 23, 2024

Medical Equipment Rental Market Is Estimated To Witness High Growth Owing To Growing Preference For Cost-Effective Treatment Options

Market Overview

The medical equipment rental market involves renting or leasing of various types of medical equipment to healthcare providers and patients. This includes Durable Medical Equipment (DME) such as respiratory equipment, motorized wheelchairs, ambulatory devices, hospital beds and daily living aids. Renting medical equipment provides cost-effective alternative to expensive equipment purchases. It allows healthcare providers to access advanced medical technologies without significant upfront investment.

Market Dynamics

The market is primarily driven by growing preference for cost-effective treatment options. Renting medical devices helps reduce the financial burden on healthcare providers and patients. It allows healthcare facilities, especially small hospitals and clinics, to serve more patients without over-investing in medical devices and technologies. According to the American Hospital Association, medical equipment represents about 4–6% of total hospital costs. Rental services help lower these expenses.

In addition, growing need for short-term medical equipment is fueling the demand for rental services. Conditions such as COVID-19 pandemic created surge in demand for specialized medical devices such as ventilators for short-term support. Rental services facilitated healthcare facilities to meet these temporary medical equipment needs in an economical manner.

Medical Equipment Rental market SWOT Analysis

Strength:

– Wide range of medical equipment available on rent which provides flexibility to healthcare facilities.
– Equipment renting removes huge capital investment and operational costs for healthcare providers.
– Rental services provide latest medical technologies which helps in improved patient care.

Weakness:

– Rental prices of specialized medical equipment are often higher than buying them.
– Rented equipment may require frequent maintenance and repairs increasing operational costs.

Opportunity:

– Growing geriatric population and rising cases of chronic diseases will boost demand for medical equipment renting.
– Advent of telemedicine and home healthcare is opening new opportunities for medical equipment rentals.

Threats:

– Intense competition among existing rental service providers can lead to price wars.
– Technological advancements may make existing rented equipment obsolete quickly.

Key Takeaways

The Global Medical Equipment Rental Market is expected to witness high growth, exhibiting CAGR of 5.0% over the forecast period, due to increasing prevalence of chronic diseases. The market size for 2022 was US$ 46.9 Bn.

Regional analysis

North America dominated the global market in 2022 owing to rising healthcare spending and presence of major rental service providers in the US. Asia Pacific is expected to be the fastest growing market during the forecast period supported by growing medical tourism industry and increasing healthcare investments in emerging countries like China and India.

Key players

Key players operating in the Medical Equipment Rental market are 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., among others. These players are focusing on new product launches and strategic collaborations to strengthen their market position.

Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it