The medical equipment rental market includes services for renting or leasing medical equipment to healthcare providers and patients. Some common types of medical equipment available on rent include mobility equipment, personal safety power tools, electronics, home care solutions, and medical furniture. The rental option provides flexibility to healthcare facilities and patients to access medical equipment for short-term needs without incurring high capital costs. This rental model is gaining popularity as it improves asset utilization and cash flows.
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 Dynamics
Rising healthcare expenditure remains the primary driver propelling the growth of the medical equipment rental market. According to data by the Centers for Medicare and Medicaid Services National Health Expenditure Projections 2018-2027, healthcare spending in the United States is expected to rise at an average annual rate of 5.5% from 2019-2027 and reach nearly 20% of GDP by 2027. High costs associated with purchasing medical equipment is encouraging more healthcare providers and patients to opt for rental options. Additionally, the temporary need for certain types of equipment during procedures or recovery also necessitates renting medical devices rather than purchasing them. This temporary requirement of equipment further supplements the demand for rental services in the industry.
SWOT Analysis
Strength: The medical equipment rental market offers several advantages over equipment purchase for healthcare providers. Renting allows access to advanced equipment without large upfront costs, reducing financial risks. It provides flexibility to upgrade equipment as needs change. Renting also eliminates responsibilities of equipment maintenance, repair and disposal, helping healthcare providers focus on core operations.
Weakness: Rental agreements come with recurring costs dents long-term savings compared to outright purchases if demand remains steady long-term. Rented equipment may lack customized features important for some specialized medical applications. Renting also means losing resale value at the end of the rental term whereas purchased assets can be sold later.
Opportunity: Growing healthcare expenditure worldwide is driving greater demand for advanced medical technologies. This increases the need to access innovative equipment without large investments, benefiting the rental market. Rising patient volumes also put pressure on providers to scale services quickly through temporary equipment rentals. Untapped regional markets, especially in developing countries, offer significant headroom for growth.
Threats: Intense competition among rental service providers restricts their bargaining power against large equipment manufacturers. Supplier consolidation could negatively impact equipment availability and rental term flexibility. Downturns in broader economic conditions may cause some healthcare providers to defer equipment upgrades, temporarily dampening rental demand.
Key Takeaways
The Global Medical Equipment Rental Market Demand is expected to witness high growth between 2024 to 2031. Advances in medical technologies are driving greater demand for state-of-the-art equipment to improve patient outcomes. Rental models provide an affordable route for healthcare providers to access innovative solutions.
Regional analysis:
North America currently dominates the medical equipment rental market attributed to substantial healthcare spending and broad insurance coverage in the region. However, the Asia Pacific region is poised to emerge as the fastest growing market owing to increasing patient volumes, expanding medical infrastructure and rising accessibility in developing countries.
Key players operating in the medical equipment rental market are 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. The market is fairly consolidated with leading companies focusing on product innovation and expanding into high growth regions through strategic acquisitions and partnerships.
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