Market Trends of Global Healthcare Equipment Leasing Industry
Durable Medical Equipment Segment is Expected to Show a Significant Growth in the Healthcare Equipment Leasing Market
The healthcare equipment leasing market, especially the Durable Medical Equipment (DME) segment, is undergoing notable transformations and witnessing robust growth. An aging population, strategic initiatives, and a growing preference for home-based care primarily fuel the demand for DME.
Key to the DME market’s evolution are strategic acquisitions and partnerships, which bolster service capabilities and diversify product offerings. Such maneuvers enable companies to stay attuned to market dynamics and fortify their competitive stance. For instance, in February 2024, MasVida Health, a leading provider of durable medical equipment rental solutions, strategically acquired Joerns Healthcare, a long-term care equipment sales and services specialist. This acquisition broadened MasVida’s reach and strengthened its rental services in crucial United States regions like Florida, Georgia, Louisiana, Oklahoma, and Texas. By leveraging Joerns’ established equipment platform, MasVida is poised to meet the escalating demands of long-term care providers, ensuring timely access to essential products. This move underscores a prevailing consolidation trend in the DME segment, with companies aiming to amplify their service offerings and geographical presence.
Similarly, Shineco Inc. made headlines in September 2024 with a strategic investment in Beijing Oriental Meitong Technology Co. Ltd. (Meitong Technology). Meitong specializes in shared durable medical equipment, catering to healthcare facilities and individual patients. Following the acquisition, Meitong Technology unveiled an ambitious plan to venture into the healthcare equipment rental market. This strategic move reflects a keen recognition of the rising demand for flexible rental solutions across various healthcare sectors, particularly as the industry shifts towards home-based care models.
As the elderly population increasingly seeks medical assistance, the demand for durable medical equipment is set to soar. This demographic change highlights the rapid expansion of rental options tailored for home care. For instance, in October 2023, Trace Medical inked a long-term distribution pact with Outset Medical, focusing on renting the Tablo Hemodialysis System. This collaboration taps into the surging demand for home-based dialysis, granting Home Medical Equipment (HME) providers access to vital technology for kidney disease management. Utilizing Trace Medical’s expansive distribution network, the agreement caters to the burgeoning patient base desiring accessible home treatment. Such trends resonate with the industry’s broader pivot towards patient-centric care, spotlighting the pivotal role of rental services in enhancing patient outcomes.
Similarly, as reported by State and Health Care, England's population aged 65 and older hit 11 million in 2023. Projections indicate a 10% rise over the next five years, followed by a substantial 32% increase by 2043. This translates to an uptick of 1.1 million individuals in the next five years and 3.5 million by 2043. Of particular note is the 85+ age bracket, which has the highest likelihood of needing health and care services. This demographic shift, the demand for the healthcare equipment leasing market is poised to grow.
Given demographic shifts, rising chronic illness prevalence, and a pronounced tilt towards home healthcare, the DME segment in the healthcare equipment leasing market is poised for substantial growth.
North America is Expected to Show a Significant Growth and Expected to do Same in the Forecast Period
North America, with the United States at the forefront, commands a significant share of this market. This dominance is fueled by technological advancements, escalating healthcare expenditures, and strategic acquisitions.
The region cements its leadership status with its robust healthcare infrastructure and a notable uptick in partnerships and innovations in equipment leasing services. Major market players are expanding their portfolios through strategic acquisitions in the healthcare equipment leasing sector. For instance, in August 2023, Medical Healthcare Solutions reintroduced its medical equipment rental services, now enhanced with proprietary software designed to streamline the rental process. This upgrade boosts operational efficiency for healthcare facilities and positions the company to better address the varied needs of practitioners.
Similarly, Valley Charities broadened its medical equipment rental program in January 2023 by augmenting its inventory and setting up a specialized storage and maintenance location. Such moves underscore a proactive strategy to elevate service offerings and cater to the surging demand for medical equipment rental.
Technological innovations are pivotal in propelling growth in the healthcare equipment leasing arena. In July 2024, US Med-Equip, headquartered in Houston, unveiled a streamlined solution for hospital bed orders. By retraining a machine-learning model and integrating robotic process automation (RPA), the company has simplified the ordering mechanism and bolstered operational efficiency, enabling quicker responses to patient needs.
Such technological strides are vital for leasing companies to stay competitive in a swiftly changing market. By harnessing cutting-edge technologies, these companies can elevate service delivery and adapt to the evolving demands of healthcare facilities.
North America's healthcare equipment leasing market, buoyed by strategic acquisitions, technological breakthroughs, and a rising appetite for adaptable solutions, stands tall as a global leader. With its robust healthcare infrastructure and unwavering commitment to innovation, North America is set to maintain its supremacy in the healthcare equipment leasing domain for the foreseeable future.
