Medical Equipment Rental and Leasing Market Size, Share, Growth, and Industry Analysis, By Type (Finance Lease Direct Lease, Manufacturer’s Financial Leasing, Sale and Leaseback), By Application (Hospital, Home), Regional Insights, and Forecast To 2032

Updated On: 22 April 2024

medical equipment rental and leasing market Report Overview

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The global medical equipment rental and leasing market size was USD 52870 million in 2022 and will reach USD 65680 million in 2028, at CAGR of 3.7% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with medical equipment rental and leasing market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over. 

Medical equipment rental and leasing are services provided to healthcare facilities, medical practitioners, and institutions that allow them to access and use various types of medical equipment without the significant upfront costs associated with purchasing. These services are particularly beneficial for healthcare providers who may require specialized or expensive equipment on a temporary or periodic basis.

The medical equipment rental and leasing market has been growing steadily over the years. Factors driving this growth include technological advancements in medical equipment, healthcare cost containment efforts, and the need for healthcare providers to stay up-to-date with the latest technology.

COVID-19 Impact: Pandemic Positively Impacted the Market Due to Increased Demand for Medical Equipment

The pandemic led to a surge in demand for specific medical equipment, such as ventilators, oxygen concentrators, and personal protective equipment (PPE). Hospitals and healthcare facilities needed to quickly ramp up their capacity to treat COVID-19 patients, leading to a higher demand for medical equipment rental and leasing of these critical items. With the need to reduce the burden on hospitals and minimize the risk of virus transmission, there was a growing interest in home healthcare. This led to an increased demand for rental and leasing of medical equipment designed for use in homes, such as home oxygen therapy equipment, hospital beds, and mobility aids. The increased adoption of telemedicine during the pandemic also impacted the type of equipment needed. Remote patient monitoring equipment and telehealth infrastructure became more important, potentially driving demand for rental or lease agreements in this area.

Latest Trends

"Increasing Demand for Cost-Efficiency to Fuel Market Growth"

Healthcare facilities, including hospitals and clinics, have been seeking cost-effective solutions to manage their budgets. Renting or leasing medical equipment offers a more affordable option compared to outright purchases, as it eliminates the need for a large upfront capital investment. The rapid pace of innovation in the healthcare industry has led to frequent updates and improvements in medical equipment. Renting or leasing equipment allows healthcare providers to access the latest technology without the burden of owning outdated or obsolete equipment. Medical equipment rental and leasing have become more popular for short-term needs. Facilities can lease equipment for specific projects, seasonal demand, or temporary increases in patient load, offering greater flexibility in managing their equipment inventory. Rental and leasing companies often include maintenance and support services as part of their packages. This can be especially attractive to healthcare providers as it ensures that the equipment remains in optimal working condition throughout the lease period.

medical equipment rental and leasing market Segmentation

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• By Type Analysis

According to type, the market can be segmented into Finance Lease Direct Lease, Manufacturer’s Financial Leasing, Sale and Leaseback.

• By Application Analysis

Based on application, the market can be divided into Hospital, Home.

Driving Factors

"Rising Healthcare Costs to Drive Market Growth"

The high cost of purchasing new medical equipment can be a significant financial burden for healthcare facilities. Renting or leasing medical equipment provides a cost-effective alternative, allowing them to access the latest technology without a substantial upfront investment. Rapid advancements in medical technology result in equipment becoming obsolete more quickly. Renting or leasing allows healthcare providers to keep up with the latest innovations without the long-term commitment of ownership. This is a significant driver of the medical equipment rental and leasing market growth.

"Financial Flexibility and Regulatory Compliance to Accelerate Market Demand"

Renting or leasing medical equipment offers financial flexibility. It allows healthcare organizations to allocate their capital to other critical areas, such as hiring staff or expanding facilities, instead of tying up funds in expensive equipment purchases. The healthcare industry is heavily regulated, and equipment must meet specific standards and regulations. Renting or leasing providers often ensure that the equipment they offer is compliant with these regulations, reducing the burden on healthcare providers to maintain compliance.

Restraining Factor

"High Cost to Restrict Market Growth "

Acquiring medical equipment can be expensive, and this high upfront cost can deter some healthcare providers from opting for medical equipment rental and leasing. This is particularly true for smaller healthcare facilities with limited budgets. Some highly specialized medical equipment may not be readily available for rental or leasing, making it challenging for healthcare providers to access the latest technology without purchasing it outright.

medical equipment rental and leasing market Regional Insights

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"Presence of Key Players in North America Anticipated to Drive Market Expansion "

North America holds leading position in medical equipment rental and leasing market share. The presence of advanced healthcare facilities, a well-established healthcare system, and a high demand for medical equipment, including diagnostic and therapeutic devices, have contributed to the growth of this market. Additionally, the need for cost-effective solutions and the constant technological advancements in medical equipment have fuelled the rental and leasing market in this region.

Key Industry Players

"Adoption Innovative Strategies by Key Players Influencing Market Growth"

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio.

The top key players in the market are Agfa Finance Corp., Direct Capital Corp., De Lage Landen International B.V., GE Industrial Finance, Hill-Rom Holdings, Inc., IBJ Leasing Company Ltd., National Technology Leasing Corp., Oak Leasing Limited, Prudential Leasing, Inc. The strategies to develop new technologies, capital investment in R&D, improve product quality, acquisitions, mergers, and compete for the market competition help them to perpetuate their position and value in the market. Besides, collaboration with other companies & extensive possession over market shares by the key players stimulates market demand.

List of Market Players Profiled

• Agfa Finance Corp. (U.S.)
• Direct Capital Corp. (U.S.)
• De Lage Landen International B.V. (The Netherlands)
• GE Industrial Finance (U.S.)
• Hill-Rom Holdings, Inc. (U.S.)
• IBJ Leasing Company Ltd. (Japan)
• National Technology Leasing Corp. (U.S.)
• Oak Leasing Limited (U.K.)
• Prudential Leasing, Inc. (U.S.)

Report Coverage

This report examines an understanding of the medical equipment rental and leasing market’s size, share, and growth rate, segmentation by type, application, key players, and previous and current market scenarios. The report also collects the market’s precise data and forecasts by market experts. Also, it describes the study of this industry’s financial performance, investments, growth, innovation marks, and new product launches by the top companies and offers deep insights into the current market structure, competitive analysis based on key players, key driving forces, and restraints that affect the demand for growth, opportunities, and risks.

Furthermore, the post-COVID-19 pandemic’s effects on international market restrictions and a deep understanding of how the industry will recover, and strategies are also stated in the report. The competitive landscape has also been examined in detail to provide clarification of the competitive landscape.

This report also discloses the research based on methodologies that define price trend analysis of target companies, collection of data, statistics, target competitors, import-export, information, and previous years’ records based on market sales. Moreover, all the significant factors which influence the market such as small or medium business industry, macro-economic indicators, value chain analysis, and demand-side dynamics, with all the major business players have been explained in detail. This analysis is subject to modification if the key players and feasible analysis of market dynamics change.