Durable Medical Equipment Rental Market Size, Share & Trends Analysis Report By Application, By End-use (Personal/Home Care, Institutes & Laboratories, Hospitals), By Region, And Segment Forecasts, 2021 - 2028

Report Overview 

The global durable medical equipment rental market size was valued at USD 24.2 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 4.8% from 2021 to 2028. This growth can be attributed to the high demand for home care and the high costs of medical equipment as well as the increasing need to curb healthcare expenditure. The market is also driven by the increasing geriatric and disabled population, leading to rising demand for long-term care as well as personal mobility and safety devices. 

Rental services require short-term arrangements as compared to leasing and are much economical than buying. Benefits of rental services are immediate accessibility, flexible terms allowing extension options, little capital outlay, inclusive of service coverage (in some cases). These benefits of rental services are expected to fuel market growth.

Some companies like Block Imaging, include service coverage in the rent prices. Preventive maintenance, parts replacement and engineer labor, uptime guarantee, and 24/7 call centers are some of the features provided by the durable medical equipment (DME) rental providers. These featured services, thus, help in reducing the quality concerns associated with DME rental services. Since the target population for these devices is mostly elderly or disabled individuals, having access to such services promotes no hassles and a better standard of living.

Rapid technological advancements leading to early product obsolesce is one of the factors promoting consumers and healthcare organizations to adopt DME rental services. For instance, walking aids with advanced accessories are being developed, which provide more comfort to the users, while rollators are a sophisticated version of traditional wheelchair or walker. Such advancements are anticipated to encourage DME rental services as it provides access to new and advanced products to consumers. Upgrading medical devices is a key marketing strategy adopted by renting companies to generate additional revenues.

Furthermore, the COVID-19 pandemic is also straining hospital systems across the globe and is adversely affecting the financials of several hospitals and small-medium clinics. This, in turn, is anticipated to reduce future expenditures on capital equipment by these healthcare settings, thereby hampering the purchase of capital-intensive equipment and favoring preference for rental equipment by these healthcare settings. Hence, we can also conclude that the pandemic has presented the rental industry with lucrative opportunities and one can expect the introduction of new participants into the market space over the next 3-5 years.

Application Insights

The bathroom safety and medical furniture segment dominated the market for DME rental and held the largest revenue share of 56.4% in 2020. This can be attributed to the rising prevalence of chronic diseases requiring long-term care leading to increasing demand for rental services for equipment such as mattresses, bedding, anti-skid bathroom ware, and toilet safety rails. According to the WHO, by 2050, nearly 130.0 million individuals are expected to suffer from Osteoarthritis (OA) across the globe, out of which more than 30% are estimated to be severely disabled by the disease. This is anticipated to restrict their mobility and render several bedridden. The high prevalence of such chronic conditions is thus, anticipated to increase the demand for home care and rental medical equipment services.

Based on application, the market for DME rental is categorized into personal mobility devices, monitoring and therapeutic devices, and bathroom safety and medical furniture. The personal mobility devices segment is anticipated to witness rapid growth over the forecast period due to the availability of technologically advanced, compact, and portable mobility aids. Furthermore, the rising incidence of rheumatoid arthritis and osteoporosis is also anticipated to contribute to segment growth.

End-use Insights

The hospitals' segment dominated the market for DME rental and accounted for the largest revenue share of 59.2% in 2020. This can be attributed to the bulk leasing, relatively high patient influx, increasing pressure to curb expenses, & the high need for technologically advanced products in these healthcare settings. Furthermore, renting allows the hospital settings to offer a variety of products to the patients, from which they can choose ones that are most suitable to their needs. Whereas, if the hospitals purchase the product, they usually end up taking a prototype that may not be suitable for each patient. This is a key factor promoting the adoption of leasing by hospitals.

Other segments under the end-use segment include personal/home care, and institutes and laboratories. The personal/home care segment is anticipated to witness rapid growth over the forecast period owing to increasing preference for home healthcare amongst the geriatric and disabled population.

Regional Insights

North America dominated the DME rental market and accounted for the largest revenue share of 32.5% in 2020. Recent economic slowdown, growing geriatric population, and high prevalence of lifestyle-associated diseases are anticipated to contribute towards the region's market growth. Moreover, an increasing number of government initiatives that aim to curb healthcare expenditure levels are anticipated to facilitate market growth. For instance, in May 2018, Committee for a Responsible Federal Budget and the Concerned Actuaries Group collaborated to discuss the accessibility of the health care system and management of the rising costs that threaten the current system.

In Asia Pacific, the market for DME rental is anticipated to witness lucrative growth over the forecast period. This can be attributed to the patient pool leading to high demand for healthcare infrastructure. Furthermore, the presence of government initiatives to increase the affordability and accessibility of patient assist devices and the growing geriatric population is also anticipated to segment growth. For instance, according to UNFPA, by 2050, the elderly (60 years and above) population in the Asia Pacific region is estimated to be around 1.3 billion, thereby increasing demand for durable medical equipment in the region. The high demand coupled with the high cost of this equipment is, in turn, anticipated to increase the demand for DME rental services since renting is a cost-effective alternative.

Key Companies & Market Share Insights

The market for DME rental is highly competitive, marked by the presence of a large number of domestic as well as international players. The key players that dominated the regulatory market in 2020 include Hill-Rom Holdings, Inc.; Siemens Financial Services, Inc. GE Healthcare. This market is inclusive of device manufacturers as well as distributors that are entering the rental space. Hence, the level of competition is extremely high and is expected to be maintained so over the forecast period as well. However, owing to the large target population, the industry still represents huge opportunities for participants.

For instance, in an attempt to empower their clients in making the best suitable decision, certain vendors like Siemens are offering both DME rental and purchase options to their clients. Furthermore, GE healthcare also helps its customers with their financial analysis and then aid in making the appropriate decision. Certain vendors also work along with their clients, in order to help them in funding decisions regarding DME rental services whereas some are developing products at a lower cost without comprising on support and quality level. The supportive services offered by vendors have increased the attractiveness of the DME rental services. Some of the prominent players in the durable medical equipment (DME) rental market include:

• Hill-Rom Holdings, Inc.

• Stryker Corporation

• Getinge Ab.

• Siemens Financial Services, Inc

• Nunn’s Home Medical Equipment

• Westside Medical Supply

• Universal Hospital Services, Inc

• Woodley Equipment Company Ltd

• GE Healthcare

• C.N.Y Medical Products Inc.

• All American Medical Supply Corp.

• Homepro Medical Supplies, LLC

Durable Medical Equipment Rental Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2028. For the purpose of this report, Grand View Research has segmented the global durable medical equipment rental market report on the basis of application, end-use, and region:

• Application Outlook (Revenue, USD Billion, 2016 - 2028)

  • Personal Mobility Devices

  • Bathroom Safety and Medical Furniture

  • Monitoring and Therapeutic Devices

• End-use Outlook (Revenue, USD Billion, 2016 - 2028)

  • Personal/Homecare

  • Institutes and laboratories

  • Hospitals

• Regional Outlook (Revenue, USD Billion, 2016 - 2028)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa

    • South Africa

    • UAE