MEDICAL EQUIPMENT RENTAL MARKET ANALYSIS

The global medical equipment rental market was valued at US$ 46.9 Bn in 2022 and is forecast to reach a value of US$ 69.1 Bn by 2030 at a CAGR of 5.0% between 2023 and 2030. The global medical equipment rental market is experiencing strong growth due to the rise in burden of chronic diseases and increasing demand for advanced healthcare equipment worldwide. Moreover, rising number of hospitals or medical facilities and rising adoption of leasing healthcare equipment is expected to boost growth of the market. However, factors such as non-adherence to the standards and lack of coverage provided in insurance are expected to hamper the market growth.

Global Medical Equipment Rental Market: Regional Insights

Based on geography, the global medical equipment rental market is segmented into North America, Latin America, Europe, Asia Pacific, Middle East, and Africa.

Among regions, North America is expected to gain highest share in the market during the forecast period owing to the rise in burden of chronic diseases, rise in demand for healthcare services, rise in demand for medical equipment, and well-established healthcare infrastructure in the region. For instance, in January 2023, Turn Medical partnered with USME (US Med-Equip) to widen access to the start-up’s first product for critically ill people with severe respiratory issues. The partnership accelerates hospitals’ access to Turn Medical’s Pronova-O2 Automated Prone Therapy System, an automated hospital bed that rotates patients to a prone position onto their abdomen.

Moreover, Europe and Asia Pacific are also expected to witness significant growth in the global medical equipment rental market owing to the rise in patient pool (due to rise in burden of chronic diseases), rise in demand for medical equipment, rise in demand for healthcare services, and well-established healthcare infrastructure in these region. For instance, IRM Europe is one of the leading provider of rental medical equipment. IRM Europe supplies equipment for clinical trials, as well as pays attention to developing nations, where several patients couldn’t afford to use costly medical equipment due to inadequate medical infrastructure.

Figure 1. Global Medical Equipment Rental Market Share (%), by Region, 2023

To learn more about this report, request sample copy

Global Medical Equipment Rental Market Drivers:

Rise in patient pool to augment market growth

One of the key factors expected to people the growth of the global medical equipment rental market over the forecast period is the rise in patient pool (due to rise in burden of chronic diseases across the world). According to the American Hospital Association, more than 133 Billion people in the U.S., nearly half the population, suffer from at least one chronic disease. This number is about 15 Billion higher than just a decade ago, and this number is expected to reach around 170 Billion by 2030. With the increase in number of patients, the burden on the hospitals is also increasing, which in turn increases the demand for rental medical equipment.

High demand for healthcare equipment to drive market growth

Another factor which is driving the growth of the medical equipment rental market is the increasing demand for advanced healthcare equipment. For instance, with the rise in patient pool and increase in number of hospitals and clinics across the globe, the demand for advanced healthcare equipment is also increasing with the rapid pace. In April 2022, Getinge, a manufacturer of medical and life sciences equipment, collaborated with the International Finance Corporation (IFC) to help increase access to medical equipment across Africa. Getinge joined the IFC’s initiative to help healthcare providers in East and West Africa get better access to life-saving equipment.

Global Medical Equipment Rental Market Opportunities:

Rising number of hospitals or medical facilities around the world is expected to provide significant growth opportunities for players in the medical equipment rental market. For instance, according to the American Hospital Association, 2022 report, in total, there were about 6,093 hospitals in the United States in 2022, and the total number of hospital admissions were 33,356,853. Such a high number of hospitals and hospital admissions in the United States lead to the increasing demand for advanced healthcare equipment in mid and small size hospitals. This in turn drives the demand for rental medical equipment, leading to the market growth.

Rising adoption of leasing healthcare equipment is expected to offer lucrative growth opportunities for players in the global medical equipment rental market. For instance, in May 2023, The Nigeria Sovereign Investment Authority (NSIA) announced the launch two flagship companies namely the NSIA Advanced Medical Service Ltd. (MedServe) and the Equilease Systems Limited (Equilease). EquiLease is a specialized equipment leasing service provider. It will provide medical equipment leasing services, leveraging its strategic advantage to catalyze investments in healthcare institution and facilitating the acquisition of equipment to improve the quality of healthcare in Nigeria.

Global Medical Equipment Rental Market Trends:

High demand for durable equipment is a recent trend

Durable medical equipment (DME) describes medical devices and supplies ordered by a healthcare provider for a patient's routine, long-term use. People now prefer postoperative and long-term care at home, and DME is any medical equipment used in the home to aid in a better quality of living. Thus, with the increasing demand for home care services across the globe, the demand for durable medical equipment is also increasing with a rapid pace. This trend is expected to continue over the forecast period, driving the growth of the market.

Increasing demand for home healthcare is another trend

With the help of at-home, self-administered testing kits or solutions, players in the market are able to support chronic and preventive care virtually and in patients' homes while facilitating patient-centric primary care experiences for a wider range of medical conditions. Thus, there is an increase in demand for such home-use equipment. This trend is also expected to continue over the forecast period, driving the growth of the medical equipment rental market.

Global Medical Equipment Rental Market Restraints:

Non-adherence to the standards to hamper market growth

One of the key factors expected to hamper growth of the global medical equipment rental market is the non-adherence to the standards. Most of the rental medical equipment available in the market does not qualify for their quality as laid down by the security standards for the patients. Moreover, most of medical equipment are not certified due to not maintaining the required standards and the device performing poorly. This proves to be a menace as the providers of rental medical equipment do not follow the standards set by the authority.

Lack of insurance coverage to hinder market growth

Another factor which is hampering the growth of the medical equipment rental market is the lack of coverage provided in insurance. Very few rental medical equipment come with proper insurance coverage. Changes in reimbursement policies from Medicare, Medicaid, and/or private insurance companies can affect rental providers’ revenue. Insurance agents should be aware of these changes and help their clients navigate the complexities of the reimbursement landscape. As the awareness about it is low, consumers end up spending a lot on renting these equipment.

Figure 2. Global Medical Equipment Rental Market Share (%), by Product, 2023

To learn more about this report, request sample copy

Global Medical Equipment Rental Market Segmentation:

The global medical equipment rental market report is segmented into Product, End-Use, and Region.

Based on Product, the market is segmented into Surgical Equipment, Durable Medical Equipment (DME), and Storage and Transport. Out of which, Surgical Equipment Segment is expected to dominate the medical equipment rental market over the forecast period and this is attributed to the increasing number of surgical procedures across the globe.

Durable Medical Equipment (DME) Segment is also expected to witness significant growth in the near future and this is owing to the growing demand for home care services.

Based on End-Use, the market is segmented into Personal/Home Care, Institutes and Laboratories, and Hospitals. Out of which, Personal/Home Care Segment is expected to dominate the market over the forecast period and this is attributed to the increasing demand for home healthcare or rise in demand for personal/home care equipment.

Hospitals Segment is also expected to witness robust growth in the near future and this is owing to rise in burden of chronic diseases and rise in demand for healthcare services.

Global Medical Equipment Rental Market: Key Developments

In May 2023, YNB Healthcare announced the launch of the medical equipment rentals, a one-stop solution for all healthcare needs. The company offers an array of services; such as 24/7 ambulance services, home nursing care, medical equipment rentals, ICU setup at home, lab tests, diagnostics services, medicine delivery at home, and funeral services, all at affordable rates.

In March 2022, BioSig Technologies, Inc. announced a partnership agreement with Summit Blue Capital for implementing a leasing and finance program for the Company's PURE EP System.

In September 2021, Agiliti agreed to buy Sizewise Rentals, a medical equipment rental company based in the United States. Sizewise serves over 3,000 customers in the acute and post-acute care markets by manufacturing and distributing specialist hospital beds, surfaces, mobility equipment, and patient handling equipment.

In February 2020, Wells Fargo & Company launched vendor financing relationship with Siemens Healthineers, which will provide hospitals and health systems across the U.S. with competitive, comprehensive financing choices.

Global Medical Equipment Rental Market: Key Companies Insights

The global medical equipment rental market is highly competitive. This is attributed to the rise in adoption or demand for rental medical equipment across the world, as a result, market players are focusing on launching novel products in the market.

Some of the key players in the global 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.

*Definition: Renting medical equipment is on the rise as many nations worldwide are financially struggling due to which there are fewer budgets for healthcare facilities. Medical equipment rental is a suitable option for those who have limited financial means and find it difficult to get a loan.