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Published Date: 2014-12-30Number of Pages: 101

Medical Equipment Rental Market (Device Types: Personal/Home Care Equipment, Electronic/Digital Equipment, Surgical Equipment, Durable Medical Equipment, Storage & Transport; End Users: Personal/Home Care & Institutional) - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2014 - 2020

Rising health care expenditure and increasing demand for novel medical equipment have led to a surge in the medical equipment manufacturing industry. However, product pricing is affected by the demand-supply gap or increased raw material costs. In either case, procuring new equipment is seen as an expensive proposition for several medical institutions, especially those with funding restraints. Renting/leasing medical equipment has emerged as a boon or an alternative to equipment purchasing to these medical institutions, benefitting the end-users or patients indirectly. Home care products have seen a similar pattern with a majority of products being quite expensive for acute care patients, as the duration of the product requirement is too small to avail any benefits in the long run. The rental market, therefore, has seen a surge in recent times, with preference of the personal/home care patients for smaller devices and of medical institutions for larger equipment. The multi-billion dollar medical equipment rental market is expected to rise by a little less than half by the end of the decade and would remain dynamic for the next few years.
 
The global medical equipment rental market has been segmented based on device category, end-users and geography. The device category has been further segmented into personal/home care equipment, electronic/digital equipment, surgical equipment, durable medical equipment, and storage and transport. The durable medical equipment segment accounted for the largest share of over 40% of the medical equipment rental market in terms of revenue in 2013. The segment is expected to lead the market during the forecast period from 2014 to 2020, expanding at a CAGR of over 5%. High cost and increased demand has led to the growth of the durable equipment rental segment. The trend is likely to continue due to the increasing geriatric population across the world.

Based on end-users, the medical equipment rental market has been segmented into personal/home care medical equipment rental and institutional medical equipment rental. The chronic and geriatric patients sub-segment accounted for the largest share of over 50.0% of the personal/home care medical equipment rental segment in 2013. It is expected to lead the market during the forecast period. The chronic and geriatric patients segment is expected to rise with the increase in the number of patients suffering from chronic illnesses and the increasing geriatric population.

Europe was the largest market for rental medical equipment in terms of revenue in 2013, followed by North America. Medical institutions in Europe aim to reduce costs through renting/leasing of medical equipment. However, North America is expected to surpass Europe in terms of market share during the forecast period due to the high adoption rate and increasing preference for rental medical equipment. Asia Pacific is anticipated to be the fastest growing market during the forecast period. Rapidly growing population and increasing government initiatives in emerging countries such as China and India are some of the factors attributed to the high growth rate in the region. In addition, the presence of a large number of companies manufacturing cheaper equipment and increasing investments by health care medical institutions would ensure steady market penetration and growth in the near future. 

The global medical equipment rental market is highly fragmented, with only a few large players dominating it. Apria Healthcare Group, Inc., Stryker Corporation, Hill-Rom Holdings, Inc. and Siemens Financial Services, Inc. exhibit the largest geographical reach with presence in multiple device categories and catering to varied end-user segments. Their presence in developed and emerging regions along with flexible offerings has made them attractive providers in the global market. Other companies include Centric Health Corporation, Hill-Rom Holdings, Inc., Nunn’s Home Medical Equipment, Port Huron Hospital Medical Equipment, US Med-Equip, Inc., Universal Hospital Services, Inc., Woodley Equipment Company Ltd., Walgreen Co., and Westside Medical Supply, Inc.

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Renting medical equipment is a growing trend in the present-day landscape of the healthcare industry. Several medical equipment rental companies in the market are offering refurbished devices for consumers, who demand newer versions of existing equipment at a more affordable cost. Hence, the global medical equipment rental market is anticipated to remain a viable and suitable option for most consumers in the foreseeable future.

Medical equipment comprises a group of several instruments. These instruments are used during surgical procedures or for patient care. High-end and novel medical equipment is needed only for specific situations or for routine periodic assistance, which is why renting these instruments has become the preferred mode for several medical institutions and practitioners. The global medical equipment rental market is broadly segmented by device type, geography, and end user.

The report on the global medical equipment rental market provides a detailed explanation of the competitive landscape keeping in focus key market players and their regional presence. The business strategies of these companies have been covered in the research study along with their product portfolio and an elaboration upon each product. Additionally, the report also provides recent developments of these companies and their impact on the market. A mix of primary and secondary research has been used to deliver valuable market estimates and forecasts in the report.

Overview of the Global Medical Equipment Rental Market

Growing costs of medical and pharmaceutical equipment and its direct impact on the bills have led to patients opting for more affordable options. Moreover, growth in the diabetic and geriatric populations has resulted in increasing demand for rental medical equipment. The resultant high cost savings and safeguard against technological obsolescence is expected to fuel the global medical equipment rental market.

The global medical equipment rental market was recorded at US$33,417.4 million in 2013 and, at a CAGR of 5.8% during the forecast period of 2014 to 2020, will reach a value of US$49,112.8 million by 2020. According to device type, the global medical equipment rental market is segmented into home/personal care equipment, surgical equipment, electronic/digital equipment, durable medical equipment, and storage and transport equipment. Durable medical equipment is currently the leading sector in the market and is expected to grow at a 6% CAGR during the forecast period. By end user, the global medical equipment rental market is divided into institutional medical equipment rental and personal/home care medical equipment rental. Personal/home care medical equipment rental is presently the leading sector and is anticipated to grow at a CAGR of 5% during the forecasting horizon.

Geographically, the global medical equipment rental market is classified into Asia Pacific, Rest of the World (RoW), North America, and Europe. Europe dominated the global medical equipment rental market with a 30% share in 2013. On the other hand, Asia Pacific is projected to show the fastest CAGR of 6% during the forecast period.

Though the global medical equipment rental market is expected to grow steadily, the lack of appropriate regulatory framework and poor pricing flexibility is expected to hamper growth of this market.

Companies mentioned in the research report

The global medical equipment rental market is highly fragmented in nature due to the presence of numerous significant device manufactures. These manufactures are generally small and medium enterprises (SME). The key companies operating in this market are Hill-Rom Holdings, Woodley Equipment Company, US Med-Equip, Centric Health, and Apria Healthcare.

Major geographies analyzed under this research report are:
  • Europe
  • North America
  • Asia-Pacific
  • Rest of the World
This report gives you access to decisive data such as:
  • Market growth drivers
  • Factors limiting market growth
  • Current market trends
  • Market structure
  • Market projections for the coming years
Key highlights of this report
  • Overview of key market forces propelling and restraining market growth
  • Up-to-date analyses of market trends and technological improvements
  • Pin-point analyses of market competition dynamics to offer you a competitive edge
  • An analysis of strategies of major competitors
  • An array of graphics and SWOT analysis of major industry segments
  • Detailed analyses of industry trends
  • A well-defined technological growth map with an impact-analysis
  • Offers a clear understanding of the competitive landscape and key product segments


 
 
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