Medical Equipment Rental Market is Estimated to Witness High Growth Owing to Technological Advancements Reducing Equipment Costs

The global medical equipment rental market is estimated to be valued at US$56.68 billion in 2024 and is expected to exhibit a CAGR of 6.7% over the forecast period from 2024 to 2031.

Advancements in technologies are resulting in the production of affordable medical equipment suitable for renting, thus driving the growth of the market.

The medical equipment rental market involves renting medical devices such as durable medical equipment, rental therapy equipment, personal mobility devices, surgical equipment, electronic/digital equipment and storage and transport products. Rented medical equipment enables healthcare providers to temporarily use medical devices without major capital investments. This rental model is beneficial for both, healthcare facilities and patients. It allows healthcare providers to access advanced medical technologies according to patient needs in a cost-effective manner. Patients have easy access to crucial medical devices without worrying about the high costs.

Key players operating in the medical equipment rental market are AkzoNobel 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.

Key Takeaways

Key players: 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.

Key opportunities: The growth of the medical equipment rental market is favored by increasing demand from emerging economies and rise in prevalence of chronic diseases. Furthermore, technological advancements reducing equipment costs and growing preference for rental models over purchases are creating new opportunities.

Technological advancements: Advancements resulting in miniaturization and digitalization of medical devices have significantly reduced equipment costs. This has enabled affordable renting options and driven the adoption of rental models. Developments in materials, manufacturing techniques and portable healthcare devices are further supporting market growth.

Market Drivers

The major driver for the Medical Equipment Rental Market Demand is the growing need to control healthcare costs. Rental models provide an economical alternative to buying expensive medical equipment. It allows optimized resource utilization for healthcare providers. Additionally, short equipment life cycles due to continuous technological upgrades encourage the rental model over purchases. Rising disease burden worldwide is increasing demand for medical services and diagnostic tests. This augment the need for medical equipment, thereby fueling market revenues.

Current Challenges in Medical Equipment Rental Market

The medical equipment rental market is facing the challenge of high initial costs associated with the purchase of medical devices. Hospitals and healthcare facilities are often reluctant to make large capital investments in expensive medical equipment due to budget constraints and reimbursement issues. Renting medical equipment provides an economically viable solution as it reduces the upfront costs and enables healthcare providers to use advanced medical devices on a pay-per-use basis. However, determining the right equipment to rent and ensuring cost-effectiveness over the rental period remains a challenge for many end-users.

SWOT Analysis

Strength: Renting offers healthcare facilities flexibility to upgrade/replace equipment without large capital outlays. This enables access to latest medical technologies.
Weakness: Rental contracts are often long term binding commitments. Hidden maintenance costs can reduce savings over ownership.
Opportunity: Growing preference for rental over ownership especially among small clinics and hospitals in developing countries present major market opportunities.
Threats: Intense competition among rental companies limits pricing flexibility and bargaining power of customers. Regulatory uncertainty regarding reimbursements affects demand.

Geographical Regions of Concentration

North America currently accounts for the largest share of the global medical equipment rental market, both in terms of value and volume. This is attributed to the presence of well-established rental companies, rising demand for cost-effective solutions from healthcare providers, and favorable reimbursement policies driving equipment rentals in the region. Europe is the second largest market for medical equipment rentals, driven by factors such as the increasing focus on quality healthcare and constrained healthcare budgets necessitating alternative financing options.

Fastest Growing Geographical Region

The Asia Pacific region is poised to register the fastest growth in the medical equipment rental market during the forecast period. This rapid growth can be attributed to factors such as rising medical tourism, increasing healthcare spending, growing awareness about rental models, and expanding fleet of private hospitals adopting flexible financing options for medical devices in developing Asian countries. The emergence of regional rental companies is further enhancing the accessibility of advanced equipment across Asia Pacific markets.

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Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)