February 29, 2024

Medical Equipment Rental Market Driven By Continued Growth In Healthcare Spending

The medical equipment rental market provides patients and healthcare providers an alternative to outright equipment purchases by making specialized medical technologies more accessible on an as-needed basis. Rental equipment ranges from home health care devices like wheelchairs and walkers to complex items like MRI and CT scanners used in hospitals and outpatient imaging centers. The rental model helps healthcare facilities manage expenditures more flexibly as usage levels fluctuate and allows private practitioners and surgery centers to have temporary access to costly devices that would see limited long term use. Renting eliminates upfront capital costs and ongoing maintenance fees, and equipment can be easily exchanged when new technology becomes available.

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 key trends:

The medical equipment rental market is expected to expand significantly over the next few years due to rising healthcare costs and growing demand for quality medical services. Emerging trends that will drive market growth include:

– Increased focus on containment of capital expenditures: Healthcare facilities are under growing pressure to control costs and boost efficiency. Renting equipment on an as-needed basis rather than owning helps lower maintenance and storage expenses. Many are shifting spend from Capex to operational budgets through rental programs.

– Growth of ambulatory surgery centers: More procedures are moving to outpatient settings like ASCs where a rental model makes more sense. ASCs require temporary access to expensive devices but don’t want steep capital and maintenance costs. Renting allows flexibility to upgrade periodically.

– Technological advancements: Frequent product launches mean equipment becomes outdated quickly. Rental programs help facilities adopt new innovations without major investments each time. Rentals provide a low-risk way to trial new technologies before committing to purchases.

– Aging population: Rise in chronic diseases and life expectancy is driving demand for diagnostic tests and treatments. Renting helps hospitals and clinics expand service capacity at lower short term cost as more complex cases are treated on an outpatient basis.

 

Porter’s Analysis

Threat of new entrants: The high initial investment and stringent regulatory requirements pose barriers to new entrants in the medical equipment rental market.

Bargaining power of buyers: Individual buyers have low bargaining power due to the specialized nature of medical equipment. However, large hospitals and institutions have higher negotiating power.

Bargaining power of suppliers: A few large players dominate the supply of specialized medical equipment, giving them strong bargaining power over buyers.

Threat of new substitutes: Equipment renting offers flexibility over outright purchases, limiting threat of substitutes.

Competitive rivalry: The medical equipment rental market sees close competition among existing players to expand service offerings and geographic reach.

Key Takeaways

The Global Medical Equipment Rental Market Demand  is expected to witness high growth. The market size for 2024 is US$ 56.68 Mn with a CAGR of 6.7% during the forecast period of 2024 to 2031.

Regional analysis:

 

North America dominates the global Medical Equipment Rental market currently. This is attributed to factors such as rising healthcare expenditure, presence of major market players, and advancements in healthcare infrastructure. The Asia Pacific region is anticipated to witness the fastest growth owing to increasing medical tourism, rising healthcare demand, and growing private healthcare sectors in emerging 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 seeing increased mergers and acquisitions by existing players to enhance their product and service portfolio.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it