North America And Europe Group 2 Powered Mobility Devices Market Size, Share & Trends Analysis Report By Product Type (Powered Wheelchair, Power Operated Vehicle), By Payment Type, By Sales Channel, By Country, And Segment Forecasts, 2021 - 2028

Report Overview

The North America and Europe group 2 powered mobility devices market size was estimated at USD 4.1 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 15.3% from 2021 to 2028. This is largely attributed to the increasing incidence of disability and rising acceptance of group 2 powered mobility devices due to ease in driving and performing outdoor activities. The COVID-19 pandemic had severely disrupted the supply chain as a result of stay-at-home orders, transit limitations, and a shortage of labor.

COVID-19 has had a significant impact on global industries, particularly the medical industry, whether for prevention, diagnosis, or therapy. It has resulted in several significant changes in trends in medical devices and services which could not be predicted before the pandemic, which are expected to have long-term consequences. The epidemic has had a long-term negative influence on several sectors around the world. There were approximately 237,581,239 COVID-19 cases worldwide as of October 10, 2021, leading to over 4,849,802 deaths.

According to the U.S. Census Bureau, currently, more than 54 million adults aged 65 years and above are living in the country, accounting for about 16.5 % of the nation’s population. The number of older adults in the U.S. is large and growing; by 2050, the total number of adults ages 65 and older is projected to reach 85.7 million, accounting for about 20% of the entire U.S. population. Due to the rising geriatric population, the demand for group 2 powered mobility devices is growing. Mobility devices are being increasingly accepted by patients and physicians as they have proved exceptional in improving the Quality of Life (QOL). Due to increased awareness and rising acceptance, the demand for powered vehicles is expected to increase in the U.S.

Product launches from the existing pipeline are likely to expand as new technologies and clinically complex solutions are launched, which are expected to provide easy mobility options for disabled patients. LiNX technology is a next-generation technology built by Invacare Corporation for controlling powered devices. This new technology enables devices to enhance a user’s mobility through wireless connectivity and other innovative features. With the implementation of new technology and innovative features, acceptability and usage of mobility devices are expected to grow over the forecast period.

The power-operated vehicle is becoming increasingly popular among older people or people with disabilities due to its benefits, such as offering a better quality of life with free physical movement. Major players are customer-centric and design mobility devices as per customer need & comfort. For instance, In June 2020, Invacare launched Scorpius A- A foldable electric scooter. It weighs less than 30kg without the batteries with a driving range of 9 miles and is ideal for indoor and outdoor use.

Product Insights

The powered wheelchair segment held the largest revenue share of 64.6% in 2020 and is also anticipated to register significant growth over the forecast period. Powered wheelchairs are typically built with high-quality braking systems, particularly to stop accidental rolling. Most electric wheelchairs offer the convenience of being controlled by a simple joystick. Growing awareness about these features is expected to drive the segment over the forecast period.

The major trend behind the growth of the power chair segment is increased consumer demand for more portable chairs with long-lasting batteries. Currently, a fully charged power chair battery lasts for at least 8 hours; however, many companies are focusing on innovations to increase battery life. For instance, in February 2021, Invacare Corporation announced the launch of its next-generation power assist device—the e-motion (M25). These power-assist vehicles will be equipped with wheels that have powerful in-hub motors and lithium-ion batteries.

Payment Type Insights

The reimbursement segment held the maximum revenue share of 50.9% in 2020 and is likely to maintain its position during the forecast period. It is the compensation paid by a business for costs paid by a person from its own pocket like business expenses or insurance costs. The cost of the mobility devices can be reimbursed through various medical insurance like Medicare. The eligible user must meet all the criteria for receiving reimbursement.

Medicare covers the insurance of all powered wheelchairs, power-operated vehicles, and mobility devices. For claiming the insurance, the user must obtain an official prescription from a doctor, stating his/her condition and requirement of using a mobility device. Doctors examine the user face-to-face and review their need of getting a powered vehicle. Clinicians grant permission of purchasing a mobility device once the user meets all the necessary conditions for using a mobility device.

Sales Channel Insights

The retail segment dominated the North America and Europe group 2 powered mobility devices market and held the largest revenue share of 34.1% in 2020 as they have the advantage of personal touch and provide customization of products. Users can personally check the product and its features, and the personal touch between a customer and the product creates trust and assurance in the buying process. Many users of powered wheelchairs and other mobility devices are elderly who are not aware of online shopping. Hence, these groups of people are likely to prefer the traditional way of purchasing products, that is, via retail stores.

The direct sales segment held the second-largest revenue share in 2020 due to better marketing and demonstration of products or services directly to customers. Direct sales are in-person buying and selling of products; there is no third-party involvement in direct selling. The sales happen in a non-retail environment such as office, home, online, etc. The profit margin in direct selling is high as compared to other segments due to no intervention from middlemen.

Regional Insights

North America dominated the market and accounted for the largest revenue share of 79.4% in 2020. The region is also expected to witness a significant CAGR during the forecast period. The need for technologically advanced powered wheelchairs is increasing, primarily propelled by changing demographics. The growing geriatric population is boosting the demand for mobility devices such as powered wheelchairs and scooters.

There are around 170 wheelchair manufacturers in the U.S., with total revenue of USD 1.33 billion. Only five of these companies, however, achieved sales of over USD 100 million. Wheelchairs account for about 1% of all Medicare expenditure. This category includes 1.7 million people who use wheelchairs or scooters, as well as 6.1 million persons who use canes, crutches, or walkers.

Key Companies & Market Share Insights

Key market players are adopting a variety of strategic activities, such as the signing of a new partnership agreement, collaborations, mergers & acquisitions, and geographic expansion, with the goal of strengthening their product portfolio and gaining a competitive advantage. For instance, in October 2021, NSM acquired an independently owned and operated HME dealer in Red Deer, Alberta. This acquisition enhanced the company's commitment to Canadian clients, expanding its footprint. Some of the prominent players in the North America and Europe group 2 powered mobility devices market include:

• 1800 Wheelchair.com

• Wal-Mart Stores Inc.

• Pride Mobility Products Corporation

• Invacare Corporation

• Golden technologies

• National Seating & Mobility, Inc.

• Numotion

North America And Europe Group 2 Powered Mobility Devices Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at regional and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2028. For the purpose of this study, Grand View Research has segmented North America and Europe group 2 powered mobility devices market report on the basis of product, payment, sales channel, and region:

• Product Type Outlook (Revenue, USD Million, 2016 - 2028)

  • Powered Wheelchair

  • Power Operated Vehicle

• Payment Type Outlook (Revenue, USD Million, 2016 - 2028)

  • Reimbursement

  • Out-of-pocket

• Sales Channel Outlook (Revenue, USD Million, 2016 - 2028)

  • Retail

  • E-commerce

  • Direct Sales

  • Veteran Affairs 

• Regional Outlook (Revenue, USD Million, 2016 - 2028)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Spain