Global Healthcare Equipment Leasing Market Size

Healthcare Equipment Leasing Market Analysis

The healthcare equipment leasing market is expected to register a CAGR of 15.56 % during the forecast period (2022-2027).

Covid-19 has significantly impacted the market growth due to the rise in the adoption of leasing healthcare equipment to withstand the high traffic of Covid-19 patients. According to the news published by the Eqmarket equipment Leasing and Finance Foundation in August 2020, receivables have held up quite well so far, indicating that businesses were in relatively good shape before the crisis, and COVID-19 has improved the equipment leasing and finance industry's confidence. In addition, according to the DLL financial solutions partners, in August 2020, there was a significant shift in demand for healthcare equipment. Many of the company's partners and clients at DLL have experienced quickly changing budgets and equipment requirements. Flexible financing alternatives have been able to respond to shifting needs by allowing for the speedy deployment of critical assets as well as the preparation for an influx of future procedures. This shows that the market has a significant impact of COVID-19 on it.

The major factors driving the growth of this market include the high cost of healthcare equipment, rise in demand for advanced healthcare equipment, rising number of hospitals and clinics offering advanced care, and tax benefits of leasing equipment, among others.

Rising partnerships for medical equipment financing in the small and mid-size hospitals in underdeveloped and developing countries are expected to propel the growth of this market over the forecast period. For instance, in May 2021, GE Healthcare and NSIA Banque Côte d'Ivoire have partnered with International Finance Corporation (IFC's) Africa Medical Equipment Facility to support healthcare providers in Cameroon, Côte d'Ivoire, Kenya, Rwanda, Senegal, Tanzania, and Uganda access essential medical equipment to help small businesses in Africa's health sector strengthen their response to COVID-19 and other pressing healthcare challenges.

In addition, in February 2020, Wells Fargo & Company established a vendor financing arrangement with Siemens Healthineers, which will provide hospitals and health systems across the United States with competitive, comprehensive financing choices. Siemens Healthineers clients will be offered comprehensive and affordable financing alternatives through the Wells Fargo Medical Equipment Finance Program, which will help with technology acquisition. Such initiatives will lead to increased adoption of medical equipment leasing services by healthcare organizations, driving the market growth.

Moreover, according to the study published in EMBO reports, titled 'To buy or to lease in April 2020, academic core facilities can save money by leasing rather than buying scientific instruments, allowing them to keep technologically ahead of the competition while maintaining predictable and constant prices. Leasing, in its different forms, has become an appealing technique for acquiring a wide range of products due to the growing speed of technological progress. Such benefits of leasing over purchasing the healthcare equipment will therefore lead to rising in demand for leasing medical equipment, driving the market growth.

However, highly expensive medical equipment degradation for the lessor and the need to continuously replace the on-demand equipment and keep pace with the technological advancements are the factors that are expected to hinder the market growth.