The medical equipment rental market involves renting various medical equipment and devices to hospitals, clinics, patients, and other healthcare facilities. Devices like wheelchairs, home patient monitoring devices, surgical equipment, and therapy machines are some examples that enable on-demand access to expensive medical tools without huge upfront costs. By renting equipment, healthcare providers can benefit from the latest technologies while managing their budgets efficiently.
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.
Key Takeaways
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.
Growing demand for rental equipment is being witnessed as it provides flexibility to healthcare facilities to get medical devices on short notice basis as per changing needs. It allows hospitals to focus more on patient care rather than buying expensive devices they may not use regularly.
Rapid global expansion of healthcare infrastructure especially in developing regions is another factor boosting the Medical Equipment Rental Market Demand. Various players are tapping opportunities in Asia Pacific and Middle East & Africa to meet the rising medical needs through convenient rental models.
Market Key Trends
One of the major trends driving growth in the medical equipment rental market is the rising adoption of telehealth. The Covid-19 pandemic accelerated the use of virtual care delivery methods. Telehealth allows remote monitoring of patients using rental equipment like ECG machines, ventilators and oxygen concentrators at home. This model of care not just increased access but also reduced burden on hospitals through more efficient resource utilization. Cost effectiveness of renting compared to outright purchase makes telehealth a sustainable option going forward as well.
Porter’s Analysis
Threat of new entrants: The medical equipment rental market requires high initial investments and has stringent regulatory approval process which makes entry difficult for new players.
Bargaining power of buyers: Large number of regional and local suppliers in the market increases choices for buyers to choose from with competitive pricing.
Bargaining power of suppliers: The presence of various equipment manufacturers allows buyers to negotiate on price with flexibility of choosing suppliers.
Threat of new substitutes: No direct substitutes exists for medical equipment rentals however equipment sales is an indirect substitute.
Competitive rivalry: The market has the presence of global as well as regional players intensifying competition on the basis of product features, service offerings, pricing and quality.
Geographical Regions
North America accounts for the largest share of around 35% of the global medical equipment rental market in terms of value owing to presence of major players, frequent product launches, technological advancements and expansions.
Asia Pacific region is poised to grow at the fastest CAGR during the forecast period due to increasing healthcare expenditure, rising disposable incomes, growing geriatric population and prevalence of chronic diseases propelling demand. Rising medical tourism is also supporting the market growth in the region.
Geographical Regions
Europe holds the second largest market share globally with major countries being Germany, UK and France contributing significantly. Factors such as favorable government policies to promote rental services over purchases and presence of major OEMs and leasing companies drive the market.
Rest of world regions including Latin America and Middle East & Africa are growing markets and expected to provide lucrative opportunities for market players due high unmet medical needs of large populations in these areas.