Healthcare Equipment Rental Market Poised for Steady Growth: Projected to Reach USD 86.8 Billion by 2030

(MENAFN- P&S Intelligence) According to the latest market research study published by P&S Intelligence, the healthcare equipment rental market was valued at USD 59.1 billion in 2023. It is expected to grow at a CAGR of 5.7% from 2024 to 2030, reaching USD 86.8 billion by 2030.

Key Market Drivers

The healthcare equipment rental market is primarily driven by improvements in healthcare infrastructure, impacting both demand and supply:

• Hospital Infrastructure Investments: Upgrades in hospital infrastructure worldwide have increased the demand for medical instruments, especially in modernized healthcare facilities.

• New Healthcare Facilities: The establishment of new healthcare facilities, particularly in emerging economies such as India and China, contributes to the growing need for rental services.

• Rising Equipment Costs: Healthcare providers are opting for rental services as a cost-effective solution, with additional tax benefits encouraging this trend.

• Public Investments: Significant investments by public organizations globally, including the U.S., India, and China, to upgrade healthcare infrastructure directly impact the demand for medical instruments and rental services.

Dominance of Durable Medical Equipment

• Market Share: Durable medical equipment holds a significant 35% market share due to its repetitive and frequent use.

• Increasing Demand: The growing disabled and elderly population is driving the demand for mobility aids and assistive devices.

• Revenue Growth: Monitoring and therapeutic equipment are expected to see substantial rental revenue growth, driven by the need for wireless monitoring devices for daily vital checks and the rising prevalence of lifestyle-related diseases.

Hospitals as Major End Users

In 2023, hospitals dominate the end-user segment with a 40% share, driven by advancing government guidelines for enhanced medical infrastructure and an increasing patient count. Hospitals are increasingly renting devices instead of purchasing them outright, motivated by the need to dissolve frozen capital and address concerns over inefficient capital distribution.

North America Leads the Market

In 2023, North America dominated the market with a value of USD 29.5 billion, attributed to:

• High Demand for Advanced Items: The region's need for technically advanced items and the presence of numerous leasing service providers.

• Cost-Effective Alternatives: Rising device prices and the subsequent reduction in spending on the latest therapies drive the trend towards instrument rentals.

• U.S. Healthcare Industry Growth: The U.S. healthcare industry is projected to grow at a CAGR of 5.8%, supported by an increased incidence of chronic diseases, solid medical infrastructure, systemic development, expanding healthcare demand, and the presence of major industry players.

• Hospital Data: According to the American Hospital Association, the U.S. had 6,129 hospitals in 2022, with 34,011,386 admissions and total hospital expenses reaching USD 1,213,881 million. The high healthcare demand among U.S. citizens leads to the purchase of new sophisticated and costly medical equipment, prompting mid-sized and small hospitals to opt for leasing.

MENAFN27072024005304011875ID1108488377