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HomeScience NewsHealthcare Equipment Rental Market Will Reach USD 86.8 Billion By 2030

Healthcare Equipment Rental Market Will Reach USD 86.8 Billion By 2030

In 2023, the healthcare equipment rental market was valued at USD 59.1 billion and is projected to grow at a CAGR of 5.7% from 2024 to 2030, reaching USD 86.8 billion by 2030. 

Market Drivers 

Improving healthcare infrastructure is a key driver for the healthcare equipment rental market, impacting both demand and supply aspects: 

Investments in hospital infrastructure upgrades worldwide have led to a higher demand for medical instruments, especially in modernized healthcare facilities. 

The establishment of new healthcare facilities, particularly in emerging economies like India and China, contributes to the growing need for healthcare equipment rental services. 

Rising equipment costs prompt healthcare providers to opt for rental services as a cost-effective solution, coupled with tax benefits that encourage rental usage. 

Significant investments by public organizations globally, such as in the U.S., India, and China, to upgrade healthcare infrastructure, directly impact the demand for medical instruments and equipment rental services. 

The rising costs of purchasing medical equipment drive healthcare providers to opt for rental services as a cost-effective alternative. This factor, combined with the tax benefits associated with renting, encourages healthcare facilities to utilize equipment rental solutions. 

Durable Medical Equipment Category Holds Significant Share 

Durable medical equipment accounts for a major share of 35% due to its suitability for repetitive and frequent use. 

The growing disabled and elderly population is driving the demand for mobility aids and assistive devices, boosting this category’s growth. 

Monitoring and therapeutic equipment are expected to experience substantial rental revenue growth, particularly due to the increasing need for wireless monitoring devices for daily vital checks. 

This demand is boosted by the rising prevalence of lifestyle-related diseases. 

Hospitals Are Largest End Users 

In 2023, on the basis of end-user, the hospitals category is dominating, with a share of 40%, this can be credited to the advancing government guidelines about the growth of enhanced medical infrastructure and the increasing count of patients. In recent years, hospitals have started to rent a variety of devices, instead of wholly buying them. 

Moreover, the growing need for dissolving frozen capital, along with the rising worries regarding inefficient capital distribution, is propelling the need for medical device leasing. 

North America Is Dominating the Market  

In 2023, the North American region is dominating the industry, with a value of USD 29.5 billion. This can be credited to the high need for technically enhanced items and the presence of a huge count of leasing service providers. 

The increase in device prices results in less money spent on the latest therapies, which in turn drives a trend towards the use of instrument rentals as cost-friendly alternatives. 

The U.S. healthcare industry is anticipated to grow at a CAGR of 5.8%, supported by increased incidence of chronic diseases, solid medical infrastructure, systemic development, expanding healthcare demand, and the existence of major industry players. 

Based on the American Hospital Association, the United States had 6,129 hospitals, in 2022, which admitted 34,011,386 people, and the total expenses for hospitals reached USD 1,213,881 million. 

A high healthcare demand among U.S. citizens may lead to the purchase of new sophisticated and costly medical equipment, forcing mid-size and small hospitals to opt for leasing rather than purchasing due to growing needs. 

SOURCE: P&S Intelligence

 

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