Medical Equipment Rental Market Size, Share & Trends Analysis Report By End Use (Personal, Institutes, Hospitals), By Product (Storage & Transport, Durable, Surgical), And Segment Forecasts, 2020 - 2025

Report Overview

The global medical equipment rental market size was valued at USD 48.89 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 4.4% from 2020 to 2025. Growing adoption of medical assist devices coupled with rising economic crisis owing to speedy technological development is among the key trends stimulating market growth. Rising R&D activities in the medical device industry are resulting in the introduction of advanced variants with enhanced efficacy and effectiveness, which is leading to a surge in prices of various equipment.

A shift in trend from procuring to the leasing of devices has been observed over the past few decades in the healthcare industry. Healthcare providers across the globe are aiming towards improved infrastructural facilities and reduction in capital required to achieve the same. The trend is likely to stay, thereby will drive the market. However, the presence of insurance coverage for a few medical devices is expected to pose a threat to the rental/leasing market.

The shortened product lifecycle is another factor anticipated to stoke the growth of the market during the forecast period. Constant availability of advanced devices is leading to price hike and hence, causing a burden on healthcare providers. In order to keep up with the competition, healthcare providers need to pay keen attention to technological upgrades. Therefore, rising involvement in R&D is poised to propel the market. 

In addition, rising need for home healthcare owing to reduced hospital stays and widening geriatric and disabled patient pool is boosting the demand for rental devices. Increasing mishaps such as muscular dystrophy, spinal malfunctioning, and brain or skeletal injury/ disorders are leading to a rise in the pool of the disabled population. All these factors are working in favor of the market.

Availability of various grants and government provisions for the disabled population is projected to impede the growth of the market. Provision grants such as financial support for the procurement of equipment and funds for building infrastructural facilities for the disabled are lowering the need for renting equipment. This, in turn, is estimated to limit the market from realizing its utmost potential.

Medical Equipment Rental Market Trends

Growing geriatric population, which is prone to diseases that can lead to immobility, is expected to have a direct positive impact on demand for patient care devices, such as mobility devices, bathroom assist devices, and hospital furniture. In addition, the increasing incidence of paralysis and spinal injuries is leading to a rise in the disabled patient population. Other factors contributing to the increase in disabled population include growing prevalence of muscular dystrophy, arthritis, Parkinson’s disease, Huntington’s disease, and other CNS disorders.

Increase in concerns regarding palliative care, coupled with regulatory transformations for the same is expected to propel the market. The regulatory transformation or the programs adopted by hospitals for palliative care are boosting the demand for rental equipment. As a result, reduced hospitalization and long-term care patients shifting to home care is propelling the market for medical equipment rentals.

Increasing demand for world-class healthcare facilities in developing economies is likely to earn the attention of private and public players. Hence, the investment of government and private entities in improving the healthcare infrastructure is offering lucrative opportunities for healthcare service providers. Hospital grants and inclusion of favorable insurance policies are encouraging the purchase of home care and assist devices by patients, further propelling the market.

Despite the investment required to maintain good inventory in the rental business, there has been a constant increase in number of players operating in this sector. Absence of regulatory framework and operatory guidelines of rental market can boost the entry of new players. High demand for advanced equipment and quality of rental service are prime factors driving the rental market. Hence, excellent inventory management is the major competitive strategy adopted by existing players.

Product Insights 

Healthcare providers have been facing issues of unhandled frozen capital with frequent new product launches. Simultaneously, excess investment in medical device procurement is encouraging players to opt for rental devices in order to liquefy frozen capital. In addition, the purchase of new equipment involves spacing concerns, owing to which healthcare providers prefer leasing.

The durable medical equipment (DME) segment accounted for the largest share in the market. Rising need for mobility and assist equipment owing to the increasing number of disabled and geriatric population is contributing to the growth of the market. Among different DME, monitoring and therapeutic devices are likely to witness significant gain in rental revenues during the forecast period owing to rising demand for wireless monitoring devices and growing incidence of lifestyle diseases that require routine vital statistics analysis.

Personal mobility devices are also expected to experience healthy growth in demand during the same period. Introduction of technologically advanced products such as automated recliners and sling lifts is anticipated to supplement the growth of the market.

End-use Insights

The hospital segment accounted for the largest share in the market in 2017. The growth of the segment can be attributed to the rising patient pool and increasing government reforms regarding the adoption of advanced healthcare infrastructure. Over the past few years, equipment procurement has been observed to be substituted by financing systems such as renting/leasing. Soaring need for liquefying frozen capital along with rising issues regarding inefficient capital deployment are propelling the medical equipment rental market.

In addition, the convenience of splitting capital expenditure over a few months in case of rental services is poised to benefit healthcare providers. Moreover, rising concerns for diagnostic efficiency and enhanced patient output rates coupled with spiraling demand for lowered pre-therapeutic costs are projected to augment the overall market.

The personal/home care segment is estimated to emerge as the fastest-growing segment during the forecast period. Rising need for geriatric care centers and home healthcare devices is one of the primary factors spurring the growth of the segment. Increasing incidence of lifestyle-associated diseases such as obesity and diabetes and other disorders including cardiac conditions is likely to bolster the adoption of medical rental equipment.

Regional Insights

North America dominated the market in 2017 and is expected to remain dominant through 2025. Presence of a large number of service providers and high demand for technologically advanced products are escalating the growth of the regional market. The region faces issues of excess expenditure on the purchase of the latest therapeutic apparatus, which can be tackled by leasing equipment.

The region was followed by Europe in 2017 in terms of revenue. Rising prevalence of chronic diseases such as Parkinson’s, Huntington’s disease, and atherosclerosis, the proliferation of home health care services, and rapidly growing geriatric population are providing a fillip to the market in Europe. In addition, educational institutes and research laboratories are looking forward to reducing operational and procurement costs, leading to greater adoption of rental equipment globally.

The UK has an efficient public health coverage including reimbursement policies for disabled and geriatric population. In addition, the UK government has provisions such as grants for building of ramps, procurement of heating systems, and financial assistance for equipment & assistive devices for the disabled under the Disabled Facilities Grant (DFG). Hence, the availability of various grants and insurance inclusions for medical devices are restraining the market for rental equipment.

Asia Pacific is anticipated to exhibit the highest CAGR during the forecast period. Widening base of geriatric population and growing supportive government initiatives in developing economies are primary growth stimulants for the growth of the regional market.

China contributes a considerable share to the global medical equipment rental market. This can be attributed to rising pool of disabled patients, growing incidence of obesity, and rising number of small-scale manufacturers of home healthcare devices. Presence of a large number of market players, such as Jiangsu Ouman Electronic Equipment Co., Ltd.; Qingdao Luckmed Supplies Co., Ltd.; and Ningbo Label Medical Tech & Mfg Co., Ltd., providing rental equipment across the globe is fueling the growth of medical equipment rental market in the country.

Key Companies & Market Share Insights

The market is highly competitive in nature. Key participants include Hill-Rom Holdings, Inc.; Siemens Financial Services, Inc.; Nunn’s Home Medical Equipment; Westside Medical Supply; Universal Hospital Services, Inc.; and Woodley Equipment Company Ltd.

Some of the major parameters affecting the competitive nature of the market are burgeoning utilization of advanced devices for better healthcare services coupled with the increasing need for optimum utilization of capital. Prominent players are frequently undertaking mergers & acquisitions in order to expand their product portfolio and consolidate their position in the market.

Medical Equipment Rental Market Report Scope

Global Medical Equipment Rental Market Segmentation

This report forecasts revenue growth at global, regional, & country levels and provides an analysis of industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global medical equipment rental market report on the basis of product, end use, and region:

• Product Outlook (Revenue, USD Million, 2014 - 2025)

  • Surgical Equipment

  • Durable Medical Equipment        

    • Personal Mobility Devices

    • Bathroom Safety and Medical Furniture

    • Monitoring and Therapeutic Devices

  • Storage and Transport       

• End-use Outlook (Revenue, USD Million, 2014 - 2025)

  • Personal/Homecare

  • Institutional

  • Hospitals

• Regional Outlook (Revenue, USD Million, 2014 - 2025)

  • North America

    • The U.S.

    • Canada

  • Europe

    • The U.K.

    • Germany

  • Asia Pacific

    • India

    • China

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa

    • South Africa