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.
Get more insights on Medical
Equipment Rental Market
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Author:
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)
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