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The global healthcare equipment leasing market size is estimated to grow by USD 28.41 billion at a CAGR of 8.23% between 2023 and 2028.
Most of the share in the healthcare equipment leasing market is of low-end hospitals and diagnostics centers. The growing demand for leasing equipment by these low-budget facilities is owing to the several advantages offered by this equipment, such as the lower initial expenditure for acquiring assets, the tax-deductible features, and easy tax returns on leased equipment. It also offers a more flexible term compared with loans. In addition, start-ups catering to the needs of the patients in the growing economies will also contribute toward market growth. The contribution of the global key players to help the upcoming start-up is also contributing to market growth. For instance, key players like Oak Leasing Ltd. (Oak Leasing) offer various asset financing or leasing options for new start-ups. Therefore, the growing demand for leasing equipment among small hospitals is expected to drive the growth of the healthcare equipment leasing market during the forecast period.
Technavio has segmented the market into End-user, Product, and Geography
It also includes an in-depth analysis of drivers, trends, and challenges. Our report examines historical data from 2018-2022, besides analyzing the current market scenario.
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The market share growth by the hospitals segment will be significant during the forecast period. The hospitals segment comprises smaller hospitals and government-funded general hospitals. Hospitals are the leading end-users in the healthcare equipment leasing market. Smaller hospitals have technologically improved versions of many devices, including digital mammography devices.
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The hospitals segment was the largest and was valued at USD 15.65 billion in 2018. They have highly skilled physicians and technicians to cater to the needs of an economically affluent section of individuals, and hence, they need to undertake period upgrades of healthcare equipment technologically. Therefore, leasing technically sound mammography equipment is the most convenient way of doing so without investing a huge amount of money. The high initial investments needed for the installation and maintenance of advanced healthcare equipment have prevented many hospitals from purchasing high-end healthcare equipment. Therefore, these hospitals opt for asset financing or leasing to acquire the latest and most advanced diagnostics devices and surgical systems. These factors will drive the growth of the hospitals segment of the healthcare equipment leasing market during the forecast period.
The durable medical equipment segment is growing at a significant pace owing to high demand among end-users, easy availability, and the availability of reimbursement coverage. The segment has witnessed growth owing to easy affordability and significantly high demand as the equipment falls under the category of basic equipment, which all hospitals must possess for facilitating quality healthcare and meeting patient demand. Further, with the rise in the older adult population, the demand for DME also increases at a significant rate. Thus, the continuous rise in the elderly population and the availability of favorable reimbursement coverage for the equipment under the Medicare policy will drive the growth of the DME segment of the healthcare equipment leasing market during the forecast period.
The surgical and therapy equipment leasing segment is growing at a steady rate owing to the high demand for surgical equipment from surgeons. The demand for leasing surgical equipment is primarily driven by low-budget medical facilities with budget constraints and their demand for ever-changing surgical technologies. The major advantages of leasing surgical equipment are flexible financing options and better cost-effectiveness. In addition, with the rise in the prevalence of chronic kidney disorders, demand for surgical and therapy equipment is likely to increase among end-users. Thus, the vast usage of surgical and therapy equipment will drive the growth of the surgical and therapy equipment leasing segment of the healthcare equipment leasing market during the forecast period.
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North America is estimated to contribute 36% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that will shape the market during the forecast period. The healthcare equipment leasing market in North America is expected to grow at a significant rate owing to the rising adoption of leasing equipment coupled with a rising target population. During the forecast period, equipment leasing and financing will remain an important way of acquiring imaging diagnostics equipment. In addition, the demand for the latest technologies, such as positive emission tomography (PET), is very high among all imaging modalities. Apart from these, the surgical and therapy segment is also expanding across North America and is expected to drive the demand for equipment leasing and financing.
In addition, several new hospitals, diagnostic centers, and other healthcare facilities across North America prefer to lease healthcare equipment. The number of hospitals in North America is increasing consistently. Several new hospitals across North America prefer to lease healthcare equipment. Therefore, the establishment of new healthcare facilities in the region is expected to drive the growth of the healthcare equipment leasing market in North America during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market. The report also includes detailed analyses of the competitive landscape of the market and information about 19 market companies, including:
Agfa Gevaert NV - The company offers leasing solutions for healthcare equipment by creating flexible, comprehensive packages appropriate to one's budget, which cover everything from medical technology and IT hardware and software to communications, archiving, and information systems.
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
There are multiple factors influencing market growth. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges.
Continuous technological advances coupled with shorter product lifecycles are notably driving market growth. The main challenges faced by end-users, especially mid-sized, small healthcare centers and physician offices, are related to purchase decisions or budgets for medical equipment. Similarly, the rising need for improved healthcare is demanding the use of upgraded medical equipment and technology. Further, regional expenditure on new diagnostic imaging equipment is expected to rise in India, followed by China. On the other hand, the financing scenario is completely different in Europe. For instance, in Western Europe, the policies restrict the available financial options despite the dire need for technological advancement. Russia and Turkey witness a similar scenario.
However, healthcare facilities in these countries require technologically advanced medical equipment to improve healthcare services. Thus, rapid technological advances in healthcare equipment and the replacement of old equipment with newer ones through leasing options will drive the growth of the global healthcare equipment leasing market during the forecast period.
Automation of equipment financing is an emerging trend shaping the market growth. The demand for equipment financing is rising with better services. This will further intensify the automation process. As the demand for leasing is high, end-users demand instant quotes, funding, and improved services. Automation of financing services is the main factor that will facilitate market growth. Further, the process of underwriting and origination also needs to be automated. On the other hand, automated lead generation software, self-serve shopping experience, and online marketing are expected to drive the growth of the global healthcare equipment leasing market.
Further, the market exhibits significant opportunities in automated underwriting. To facilitate the process, the banks and financial institutions provide a quote and, in some cases, funds on the same day. This process is expected to boost the market in the coming years. These factors will drive the growth of the healthcare equipment leasing market during the forecast period.
Aggressive marketing strategies by OEMs to boost sales of new healthcare equipment are a significant challenge hindering market growth. Companies are using online marketing and promotional strategies to offer better product accessibility to consumers and increase the product sales of their new equipment. Online marketing strategies also help vendors minimize setup, distribution, and operational costs. Many large and small vendors are selling airway management products online, which increases the convenience for consumers. Emerging companies are also focusing on online marketing and direct delivery of masks to consumers to increase their sales and market shares. Many small and large vendors, such as Medical Expo and IndiaMART, sell healthcare equipment online.
In addition, some organizations offer a paid training program for handling medical imaging and radiation therapy. For instance, the American Society of Radiologic Technologists is one such association where healthcare professionals who are working in medical imaging and radiation therapy get training on various types of medical imaging equipment. Thus, the availability of online purchase options will limit the growth of the healthcare equipment leasing market during the forecast period.
The market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Healthcare Equipment Leasing Market Customer Landscape
The healthcare equipment leasing market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Healthcare Equipment Leasing Market Scope |
|
Report Coverage |
Details |
Page number |
178 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.23% |
Market Growth 2024-2028 |
USD 28.41 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
7.41 |
Regional analysis |
North America, Europe, Asia, and Rest of World (ROW) |
Performing market contribution |
North America at 36% |
Key countries |
US, Germany, UK, France, and China |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
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. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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