Medical Equipment Rental Market Expected to Reach $94.5 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Medical Equipment Rental Market," The medical equipment rental market was valued at $56.0 billion in 2022, and is estimated to reach $94.5 billion by 2032, growing at a CAGR of 5.4% from 2023 to 2032. The medical equipment rental market refers to the industry involved in the rental or leasing of various medical devices, equipment, and instruments used in healthcare settings. The medical equipment rental market encompasses a wide range of products, including mobility aids like wheelchairs, crutches, and walkers; patient monitoring devices such as pulse oximeters and blood pressure monitors; respiratory equipment like oxygen concentrators and ventilators; hospital beds and furniture like electric beds and patient lifts; surgical instruments such as operating tables and anesthesia machines diagnostic imaging equipment like X-ray machines and MRI scanners; and rehabilitation equipment including physical therapy devices and orthopedic braces.

Factors that drive the growth of the medical equipment rental market include, cost efficiency, increase in demand for rental medical equipment in hospitals and surge in disabled patient population. Purchasing medical equipment can be a substantial financial burden for hospitals, especially for expensive and specialized equipment. By opting for rental services, hospitals can access the required equipment without making a large upfront investment. Renting allows hospitals to allocate their financial resources more efficiently and divert funds towards other critical areas of patient care. For instance, according to the latest study (2023) by Med One Group LLC, (a leading player in medical equipment rental market) nearly 80% of the hospital choose to lease the medical equipment. In addition, the rising number of disabled individuals has contributed to the expansion of the medical equipment rental market. In addition, disabilities can result from various causes such as accidents, chronic illnesses, or age-related conditions.

For instance, according to the World Health Organization, in 2023, it was reported that around 1.3 billion people experience significant disability. This represents 16% of the world’s population.Furthermore, the aging population and the prevalence of chronic diseases are significant drivers shaping the medical equipment rental market. With advancing age, individuals are more likely to require medical interventions and support systems to manage their health conditions. Chronic diseases, such as cardiovascular disorders, respiratory illnesses, and diabetes, are increasingly common and often require long-term monitoring and treatment.

For instance, according to the 2022 factsheet of the World Health Organization, by 2030, 1 in 6 people in the world is projected to be aged 60 years or over. By 2050, the world population of people aged 60 years and older is projected to be 2.1 billion. The number of people aged 80 years or older is expected to reach 426 million by 2050. In addition, the growing emphasis on home healthcare has significantly impacted the medical equipment rental market. The surge in demand among patients to receive medical care in the comfort of their homes increases the need for rental equipment. Home healthcare enables patients to recover in a familiar environment while reducing the burden on healthcare facilities and reducing overall healthcare costs. This factor has prompted healthcare providers and equipment rental companies to expand their offerings and provide specialized medical rental equipment tailored for home use.However, stringent regulatory compliance restrains the market growth.

Medical rental equipment providers must comply with various licensing and certification requirements imposed by regulatory bodies, such as health departments and medical device authorities. Obtaining and maintaining these licenses and certifications can be time-consuming and costly. Failure to meet the necessary requirements can lead to legal consequences and the inability to operate in certain markets.On the basis of type, the market is classified into durable medical equipment, electronic medical equipment, storage and transport equipment, and others.

The durable medical equipment segment accounted for the largest share in 2022 and is also expected to remain dominant during the forecast period, owing to increasing demand for long-term patient care and the rising prevalence of chronic diseases such as asthma, paralysis, and diabetes that require the consistent use of specialized equipment such as oxygen supplies, wheelchairs, crutches, and blood testing strips for diabetics respectively. On the basis of end user, the market is classified into hospitals, home care, and others. The hospital segment occupied highest share in 2022 owing to adoption of rental medical equipment by hospitals because it has emerged as the most cost effective and flexible option. The home care segment is estimated to reach $29497.4 million by 2032, at a significant CAGR of 6.0% during the forecast period, owing to the preference towards the home care by the geriatric population and the disabled peoples.

On the basis of region, North America is anticipated to dominate the market for medical rental equipment in 2022. This is attributed to the surge in geriatric population, emphasis on patient-centric care and availability of medical rental equipment on E-commerce and online platforms. However, Asia-Pacific is expected to register a noteworthy CAGR throughout the forecast period, owing to the large pool of patient population, rise in medical tourism, and development in healthcare infrastructure.

This surge in demand created a significant spike in rentals for these essential medical devices. The COVID-19 had a profound impact on the medical equipment rental market. It created an unprecedented surge in demand, necessitated the provision of additional equipment and PPE, disrupted supply chains, and prompted healthcare facilities to explore rental options for financial flexibility.

Key Findings of The Study

• On the basis of type, the durable medical equipment segment was the highest contributor to the market in 2022.
• On the basis of end user, the hospital segment dominated the market in terms of revenue in 2022. However, the homecare segment is anticipated to grow at the highest CAGR during the forecast period.
• On the basis of region, North America generated the largest revenue in 2022. However, Asia-Pacific is anticipated to grow at the highest CAGR during the forecast period.