by The medical equipment rental market provides cost-effective and innovative alternatives in accessing medical equipment by avoiding large upfront investments and maintenance costs. Medical equipment such as wheelchairs, surgical equipment, patient monitors, nebulizers, and crutches are commonly rented for short term usage. The rental market enables healthcare facilities to fulfill equipment needs for periodic medical events and optimize cash flows. The rental services also include maintenance, repair, and calibration of devices.
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. The key players focus on new product launches and strategic acquisitions to sustain their market presence.
The major opportunities in the market include increasing healthcare expenditure across developing nations and growing need for home healthcare devices. Technological advancements are expanding equipment rental options for non-invasive surgeries and portable monitoring devices.
Technological advancements in medical science have increased life expectancy and necessitated continuous medical equipment usage. Advancements in material science are making equipment more durable for rentals. Digital connectivity and IoT integration enable remote monitoring of rented medical devices.
Market drivers
The primary driver boosting the Medical Equipment Rental Market Share is the rising cost of healthcare infrastructure and medical devices. Purchasing medical equipment requires huge investments, which impacts cash flows of hospitals and clinics. Renting equipment on an operational expenditure model optimizes budget allocation for healthcare providers. Further, temporary needs for specialized equipment during medical campaigns or events encourage the rental model over investments. This makes the market an attractive alternative.
Current challenges in Medical Equipment Rental Market
The medical equipment rental market is facing numerous challenges currently which can hamper its growth potential. High initial costs of procurement of various medical equipments is a major roadblock. Though rental services provide an alternative to outright purchases, the rental rates need to balance between being affordable for users and profitable for rental service providers. This remains a significant challenge. Additionally, technological advancements are constantly happening in the medical field with new and upgraded products launched regularly. This shortens the useful life of existing equipments and increases replacement needs. It poses maintenance and inventory management challenges for rental service providers to timely upgrade their fleets. Further, lack of proper standardization in rental contracts and terms of service across regions and service providers adds complexity for users and medical facilities.
SWOT Analysis
Strengths: Wide range of medical equipments available on rental basis helps healthcare facilities optimize costs without compromising on product choices. Rental services also provide flexibility to upgrade equipments as and when required.
Weaknesses: Rental service providers have to make large capital investments to procure modern medical equipments. Their profit margins depend on efficient fleet utilization which remains a challenge.
Opportunities: Growing healthcare expenditures and increasing preference for rental over purchases especially among smaller facilities offer significant market opportunities. Expanding telemedicine and home healthcare will further boost demand.
Threats: Competition from resale markets of refurbished equipments can impact rental businesses. Technological obsolescence remains a constant threat requiring companies to keep updating inventories.
Geographical Regions
North America currently dominates the medical equipment rental market in terms of value, accounting for over 35% share. This is attributed to factors like presence of major market players, rapid technological advancements, growing healthcare costs pushing facilities to optimize through rentals.
Asia Pacific is projected to witness the fastest market growth during the forecast period. This is largely due to improving access to healthcare across developing nations, increasing investments by both public and private players to strengthen medical infrastructures and rising medical tourism. China, India and otherAssociation countries represent huge untapped opportunities for rental service providers.
The medical equipment rental market value is highly concentrated in developed regions of North America and Europe currently. This is due to well-established healthcare systems and higher acceptance of rental models in these markets. The United States alone accounts for over 30% of global market revenue.
However, the Asia Pacific region is emerging as the fastest growing market for medical equipment rentals globally. Countries like China, India, Indonesia, Thailand and Vietnam are expected to spearhead future growth dynamics. Significant government focus on boosting healthcare access and quality of care across vast population bases is creating a favorable environment for rental businesses to cater to infrastructure needs. Increasing medical tourism and private sector investments are additional growth drivers in Asia Pacific.
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
