Healthcare Equipment Leasing Market to Grow by USD 28.41 Billion (2024-2028), Rising Equipment Costs Driving Revenue, with AI Transforming the Market – Technavio

NEW YORK, Nov. 19, 2024 /PRNewswire/ — Report with the AI impact on market trends – The global healthcare equipment leasing market  size is estimated to grow by USD 28.41 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  8.23%  during the forecast period. High cost of healthcare equipment is driving market growth, with a trend towards uberization of medical equipment financing. However, growing popularity of refurbished healthcare equipment  poses a challenge.Key market players include Agfa Gevaert NV, Avtech Capital LLC, Baxter International Inc., Blackstone Inc., CWB Financial Group, Dext Capital LLC, De Lage Landen International BV, First Citizens Bancshares Inc., General Electric Co., Koninklijke Philips N.V., Lease Corporation of America, Madison Capital LLC, Med One Group, Meridian Group international Inc., Mizuho Leasing Co. Ltd., National Technology Leasing Corp., Oak Leasing Ltd., Rotech Healthcare Inc., Siemens AG, and Stryker Corp..

AI-Powered Market Evolution Insights. Our comprehensive market report ready with the latest trends, growth opportunities, and strategic analysis- View Free Sample Report PDF

Key Market Trends Fueling Growth

The healthcare equipment leasing market is thriving as healthcare providers turn to leasing models for affordable access to essential medical equipment. Equipment types include medical imaging such as MRI machines, CT scanners, and X-ray machines, surgical equipment, diagnostic equipment, therapeutic equipment, and durable medical equipment like ventilators, oxygen tents, and nebulizers. Leasing allows providers to offer quality care for chronic diseases, preventive healthcare, and healthcare awareness, while managing equipment obsolescence and maintenance costs. Leasing agreements involve monthly rental fees, legal agreements, and tenant responsibilities. Equipment types range from medical devices like MRI machines, CT scanners, and X-ray machines to laboratory items, testing supplies, personal protective equipment, and accessories. Financial sponsors support leasing for care homes, private hospitals, and healthcare facilities. Leasing models offer payment deferrals, restructuring, and supply chain benefits. Equipment maintenance includes preventive maintenance, component replacement, engineer labor, and uptime guarantees. Equipment types include ventilators, breathing equipment, and durable medical equipment like wheelchairs and hospital beds. Leasing also covers volume-based and value-based care, and includes accessories, care homes, and long-term care facilities. 

The healthcare equipment leasing market is experiencing significant growth in the current business climate. With the leasing industry surpassing the trillion-dollar mark, the trend towards equipment leasing is expected to expand. Three primary factors are driving this growth: the entry of major healthcare equipment manufacturers, the preference for asset financing, and the Uberization of healthcare services. The market is characterized by a high level of competition, with numerous players vying for market share. 

Insights on how AI is driving innovation, efficiency, and market growth- Request Sample!

Market Challenges

• Healthcare providers face numerous challenges when it comes to procuring medical equipment through leasing. Leasing models offer flexible financing options for various types of equipment, including medical imaging, surgical, diagnostic, therapeutic, and durable medical equipment. However, selecting the right leasing model can be complex. Equipment obsolescence, quality care, and maintenance are significant concerns. MRI machines, CT scanners, X-ray machines, ultrasound machines, and other advanced medical devices require regular preventive maintenance and component replacement. Legal agreements between the healthcare facility (tenant) and equipment leasing company (financial sponsor) must outline monthly rental fees, uptime guarantees, and 24/7 call center support. Medical equipment expenditures for items like ventilators, breathing equipment, oxygen tents, nebulizers, catheters, transfer benches, hospital beds, patient lifts, wheelchairs, and personal protective equipment add up quickly. Long-term care facilities, care homes, private hospitals, and healthcare facilities all require a range of rental equipment for volume-based and value-based care. Chronic diseases, healthcare awareness, and healthcare policies impact the demand for medical equipment. Preventive healthcare initiatives and the handicapped population further increase the need for glucose monitoring devices, insulin pumps, and other diagnostic tools. Payment deferrals, restructuring, and supply chain challenges can impact leasing agreements. Accessories, laboratory items, and testing supplies are essential components of healthcare equipment leasing. Equipment leasing providers must offer a comprehensive range of medical devices and services to meet the diverse needs of their clients. Ultimately, healthcare providers seek reliable, high-quality equipment to deliver the best possible care to their patients.
• Refurbished medical equipment presents an affordable alternative for healthcare providers seeking to acquire necessary equipment without incurring high costs. Manufacturers face competition from vendors offering refurbished equipment, which is priced 6-7 times lower than new equipment. Small and mid-sized hospitals and diagnostic centers often choose refurbished equipment over leased options due to the warranty coverage, which can range from a few years depending on the equipment’s type and manufacturing year. This trend poses a challenge to the global healthcare equipment leasing market.

Insights into how AI is reshaping industries and driving growth- Download a Sample Report

Segment Overview 

This healthcare equipment leasing market report extensively covers market segmentation by

1. End-user 

• 1.1 Hospitals
• 1.2 Diagnostic centers
• 1.3 Clinics
• 1.4 Others

Product 

• 2.1 Durable medical equipment
• 2.2 Surgical and therapy equipment leasing
• 2.3 Personal and home-care equipment
• 2.4 Digital and electronic equipment leasing
• 2.5 Storage and transport equipment leasing

Geography 

• 3.1 North America
• 3.2 Europe
• 3.3 Asia
• 3.4 Rest of World (ROW)

1.1 Hospitals-  The hospitals segment, consisting of smaller hospitals and government-funded general hospitals, dominates the global healthcare equipment leasing market. Smaller hospitals require upgrades to technologically advanced equipment, such as digital mammography devices, to cater to their affluent patient base. Leasing is a cost-effective solution for these hospitals, allowing them to access the latest equipment without significant upfront investment. Conversely, government-funded hospitals face budget constraints and turn to diagnostic centers for advanced diagnostics. Leasing or asset financing enables these hospitals to acquire cutting-edge diagnostic devices and surgical systems, enhancing their capabilities while managing financial resources efficiently. These factors underpin the growth of the hospitals segment in the healthcare equipment leasing market during the forecast period.

Download complimentary Sample Report to gain insights into AI’s impact on market dynamics, emerging trends, and future opportunities- including forecast (2024-2028) and historic data (2018 – 2022) 

Research Analysis

The healthcare equipment leasing market refers to the provision of financing solutions for healthcare providers and organizations to acquire medical equipment through leasing agreements instead of purchasing outright. This market encompasses various types of medical equipment, including imaging equipment such as MRI machines and CT scanners, surgical equipment, diagnostic equipment, therapeutic equipment, ventilators, durable medical equipment, and laboratory items like chemistry immunoassay analyzers. Leasing models offer flexibility, lower upfront costs, and potential tax benefits for tenants, making it an attractive option for care homes, private hospitals, and other healthcare facilities. Financial sponsors play a crucial role in facilitating these leasing arrangements, enabling healthcare entities to access the latest medical devices and technology without significant capital expenditures. Monthly rental fees are agreed upon in legal contracts between the lessor and the tenant. This market caters to a wide range of medical equipment, from essential items like ventilators to advanced diagnostic and imaging equipment.

Market Research Overview

The healthcare equipment leasing market plays a crucial role in enabling healthcare providers to access advanced medical equipment for delivering quality care to patients. Leasing models offer flexible financial solutions for procuring medical imaging equipment such as MRI machines, CT scanners, and X-ray machines, as well as surgical and diagnostic equipment like ultrasound machines. This includes physical therapy equipment, preventive healthcare devices for managing chronic diseases, and laboratory items. Equipment obsolescence and maintenance are significant considerations, with leasing agreements often including uptime guarantees, preventive maintenance, and component replacement. Leasing also provides access to the latest medical devices, including ventilators, durable medical equipment, and accessories, for care homes, private hospitals, and healthcare facilities. Financial sponsors, medical equipment providers, and healthcare facilities enter into legal agreements for monthly rental fees, covering various medical devices and rental equipment. This includes breathing equipment, testing supplies, personal protective equipment, and glucose monitoring devices. Payment deferrals, restructuring, and supply chain considerations are also addressed in these agreements. Long-term care and home care facilities benefit from leasing, as they can access essential equipment like oxygen tents, iron lungs, nebulizers, catheters, transfer benches, hospital beds, patient lifts, and wheelchairs. Leasing models promote volume-based and value-based care, ensuring efficient use of resources and cost savings.

Table of Contents:

1 Executive Summary

2 Market Landscape

3 Market Sizing

4 Historic Market Size

5 Five Forces Analysis

6 Market Segmentation

• End-user
• Hospitals
• Diagnostic Centers
• Clinics
• Others
• Product
• Durable Medical Equipment
• Surgical And Therapy Equipment Leasing
• Personal And Home-care Equipment
• Digital And Electronic Equipment Leasing
• Storage And Transport Equipment Leasing
• Geography
• North America
• Europe
• Asia
• Rest Of World (ROW)

7 Customer Landscape

8 Geographic Landscape

9 Drivers, Challenges, and Trends

10 Company Landscape

11 Company Analysis

12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research

Jesse Maida

Media & Marketing Executive

US: +1 844 364 1100

UK: +44 203 893 3200

Email: [email protected]

Website: www.technavio.com/

SOURCE Technavio

Go to Source