GIA announces the release of a comprehensive global report on Medical Equipment Rental and Leasing markets. Global market for Medical Equipment Rental and Leasing is projected to reach US$56.8 billion by 2018, driven by rapid technological obsolesce, need for frequent and expensive upgrades, limited budgets and growing pressure to reduce healthcare expenditure.
The healthcare industry worldwide is growing, fuelled by demographic factors such as increased life-expectancy, aging population, rising incidence of chronic diseases, escalating national healthcare spending and expansion of private healthcare. Public and private healthcare organizations are under constant pressure to keep pace with the advancements in medical technology, and offer patients optimum treatment and care despite budget cutbacks. New equipment purchase involves high upfront costs, while rapid technology developments shorten the technology life-cycle (TLC) requiring frequent and expensive upgrades. With the productive life cycle of medical equipment becoming lesser than its operational life, medical equipment rental and leasing services provide strong financial benefits. Market acceptance of these services is additionally supported by the escalating costs of new sophisticated medical equipment.
Limited budgets of hospitals, healthcare practitioners, physicians, clinics, nursing facilities, diagnostics laboratories and blood banks, is also providing opportunities for growth in the market. Economic constraints and insufficient funding have the potential to affect the quality of healthcare services rendered. Also, with growing competition redefining the healthcare system, hospitals are under constant pressure to provide best in-class services at low costs. Medical equipment leasing, in this regard, enables healthcare facilities to access new technologies in times of need for a fee thereby reducing the pressure on capital funds. Leasing and rental services allow healthcare providers to closely match monthly payments with monthly patient throughput rates, thus optimizing profits and strengthening corporate bottom lines.
Leasing services are witnessing rapid growth largely because “leases" are easier to secure than loans, and offer a host of taxation and pecuniary benefits. Small healthcare facilities, homecare and hospice are forecast to emerge into robust end-users of leasing services.
The 2007-2009 economic recession, and the weak recovery witnessed in the following years have catalyzed opportunities for equipment leasing, among both large and small healthcare facilities. Rising debts, budget deficits, and fiscal consolidation needs are compelling developed economies to reform their healthcare systems and reduce healthcare expenditures. Limited budgets are creating the need for alternate financing options for healthcare devices and equipment among public and private medical institutions. In developing countries like China, India, Turkey and Russia, governments are undertaking ambitious goals to cost effectively overhaul and develop national healthcare infrastructure. All of these factors are expected to fuel growth in the medical equipment leasing market.
As stated by the new market research report on Medical Equipment Rental and Leasing, Europe represents the largest market worldwide. Developing regions like Asia-Pacific, Latin America and Middle East are forecast to emerge as the fastest growing markets with a projected CAGR of 7.4% over the analysis period.
Key players profiled in the report include Agfa Finance Corp., Apria Healthcare Group, De Lage Landen International B.V., GE Healthcare Financial Services, Hill-Rom Holdings Inc., National Technology Leasing Corp., Oak Leasing Ltd., Siemens Financial Services, Stryker Corporation, and Universal Hospital Services Inc., among others.
The research report titled “Medical Equipment Rental and Leasing: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, issues, drivers, company profiles, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections in US$ for all major geographic markets including the United States, Japan, Europe and Rest of World.