U.S. Group 2 Powered Mobility Devices Market Size Report By Product Type (Powered Wheelchairs, Power Operated Vehicle), By Payment Type, By Sales Channel (Retail, e-commerce, Direct Sales, Veteran Affairs), And Segment Forecasts, 2018 - 2025

Industry Insights

The U.S. group 2 powered mobility devices market size was valued at USD 921.8 million in 2016. Growing number of people living with disabilities is one of the crucial factors contributing to market growth. Moreover, increasing geriatric population and rising acceptance of powered mobility devices for various outdoor activities are anticipated to provide a boost to the market. Surging demand for these devices among long-term and home care patients and increasing incidence of rheumatoid arthritis & osteoporosis are also expected to drive the market over the forecast period. 

In U.S., it is estimated that around 2.2 million people use wheelchairs for their day-to-day mobility needs. Spiraling demand from organizations such as the U.S. Department of Veterans Affairs and advancements in powered mobility devices are poised to augment the market. Supportive government initiatives are helping in streamlining overall reimbursement procedures based on patient’s medical criteria. This may aid in increasing number of customers covered under the group 2 category, which is expected to propel the market.

According to the U.S. Department of Commerce, in 2015, there were more than 50 million people above 65 years of age in U.S., which accounted for 15% of the total population. Demand for powered mobility devices is growing due to rising geriatric population. Elderly individuals with limited mobility prefer battery-operated wheelchairs or scooters over manual vehicles as the former give them freedom to move independently, without any external support. Acceptance of mobility devices among patients and physicians is on a rise as they have proved to be exceptional in improving quality of life. Thus, due to increasing awareness and rising acceptance, demand for battery-operated vehicles is poised to increase in U.S.

Product Type Insights

The powered wheelchairs segment accounted for the leading share of more than 62.0% in the U.S. market in 2016. As of 2016, high commercial availability of group 2 powered wheelchairs and higher average selling price of these products as compared to scooters are contributing to the growth of the segment. Moreover, growing popularity of battery operated wheelchairs in U.S. and rising consumer awareness about advantages of these products over scooters will further support the growth of the segment during the forecast period.

Powered wheelchairs are motorized vehicles designed for patients with weak upper extremities caused by a neurological or muscular condition. These wheelchairs are necessary for patients who cannot perform mobility-related daily activities with walkers, canes, or manually operated vehicles. Powered scooters are designed for use in homes and improve the ability of people with chronic disabilities to cope with basic mobility activities. These patients require sufficient strength and postural stability to operate powered scooters effectively.

Payment Type Insights

The out-of-pocket payment type dominated the U.S. group 2 powered mobility devices market with a share of 84.3% in 2016. The reimbursement segment accounted for a smaller market share in 2016 due to stringent policies and documentation requirements. However, the segment is projected to witness a strong growth rate primarily due to government initiatives to streamline reimbursement procedures, which may increase the number of patients being covered.

Reimbursement is provided for power operated vehicles and wheelchairs by federal insurance as well as private insurance. Medicare classifies mobility devices into different groups, which have separate eligibility criteria for reimbursement. In general, Medicare reimburses 80% of the device cost, while remaining 20% is paid by patients.

Sales Channel Insights

In 2016, direct sales channel was the highest revenue generator. The segment will also exhibit the highest CAGR during the forecast period and will therefore, retain its position through 2025. Presence of a large customer base, which includes customer groups (Physiotherapy Associates, U.S. Physical Therapy, and others), independent online channels, and third-party distributors, is one of the key factors anticipated to boost the sales of powered mobility devices in U.S. over the forecast period. Direct sales can be done through catalogues, presentation, or through a company’s website. The profit margin is higher in direct sales as compared to other sales channels.

Complex Rehab Technology (CRT) products are sold through various retail outlets. These retail outlets stock mobility devices manufactured by various manufacturers and have trained professionals. Retail stores have the advantage of personal touch and provide customization of products. In recent times, a large number of e-commerce players have entered the powered mobility devices market. Online channels facilitate direct communication with manufacturers. However, some consumers find it difficult to take a decision of purchasing a wheelchair without physically inspecting it.

The U.S. Department of Veterans Affairs is also one of the customer groups. However, in our study we have considered it as a separate sales channel. Although the normal process of obtaining mobility devices can take 3 to 6 months, veterans can avail benefits of priority manufacturing for Veteran Affairs. Most Veteran Affairs vehicles are customized as per demand, which takes an average of 4 to 12 weeks for delivery, depending on the patients’ requirements.

U.S. Group 2 Powered Mobility Devices Market Share Insights

Key players operating in the market include Golden Technologies; Pride Mobility Products Corporation; Invacare Corporation; National Seating & Mobility; Numotion; 1800wheelchair.com; EZ Lite Cruiser; Shoprider Mobility Products, Inc.; and Medical Depot, Inc. (Drive DeVilbiss Healthcare).

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at country level and provides an analysis on industry trends in each of the sub-segments from 2013 to 2025. For the purpose of this study, Grand View Research, Inc. has segmented the U.S. group 2 powered mobility devices market report on the basis of product type, payment type, and sales channel:

• Product Type Outlook (Revenue, USD Million, 2013 - 2025)

  • Powered Wheelchairs

  • Power Operated Vehicle

• Payment Type Outlook (Revenue, USD Million, 2013 - 2025)

  • Reimbursement

  • Out-of-Pocket

• Sales Channel Outlook (Volume, Units; Revenue, USD Million, 2013 - 2025)

  • Retail

  • E-commerce

  • Direct Sales (excluding VA)

  • Veteran Affairs