Medical Equipment Rental Market Trends

Growth Drivers

• Expansion in remote healthcare facilities: The sudden transition toward home-driven care is converting the market globally, since providers and patients are demanding affordable alternative options to lengthy hospital accommodations. In this regard, a clinical study conducted by the AHRQ indicated that home healthcare diminishes hospitalization expenses by at least 45% with Medicare’s Home Health Prospective Payment System (HH PPS) further stimulating DME-based rentals for post-acute recovery, thus suitable for the market growth.
• IoT implementation and technological innovations: The aspect of progression, especially among smart medical devices, is effectively revolutionizing the market by augmenting patient outcomes, enhancing efficiency, and diminishing downtime. Besides, the FDA has accepted a huge number of IoT-based rental devices, including CPAP machines and remotely monitored ventilators, which lower equipment failure rates by almost 21%. Meanwhile, AI-powered analytical maintenance, which is backed by the NIH-funded research, deliberately optimizes rental logistics by reducing expenses by 38%, thereby bolstering the market exposure.

Historical Patient Growth & Market Evolution: Foundation for Future Expansion

Historical Patient Growth (2014–2024) in Key Markets

Manufacturer Strategies Shaping Market Expansion

Revenue Opportunities for Manufacturers

Challenges

• Barriers in patient affordability: The aspect of increased out-of-pocket expenses tends to prevent susceptible populations from getting access to rental equipment. For instance, Medicare’s 27% DME co-pay in the U.S. effectively deters 38% of seniors from renting required devices, such as oxygen concentrators, thereby causing a hindrance in the medical equipment rental market. Besides, low and middle-class patients in emerging economies experience steep gaps, with Nigeria’s National Health Insurance Authority (NHIA) covering only 15% of overall rental expenses and leaving approximately 88% of rare disease patients with the absence of support.
• Disjointed payer reforms: Unpredictable insurance coverage develops market accessibility obstacles across various regions, thereby negatively impacting the overall market globally. While Medicare Advantage plans in the U.S. covered almost 47% of DME rentals, domestic health systems in Spain reimbursed only 42%, along with India’s Ayushman Bharat, excluding overall outpatient rentals. This disintegration has pressurized manufacturers to maintain at least more than 55 pricing tiers that enhance operational expenses. However, Philips was able to combat this by operating with state governments to provide rentals with insurance package.