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The Global Healthcare Equipment Leasing Market is estimated to grow by USD 25,026.35 million at a CAGR of 7.82% between 2022 and 2027.
Small and mid-sized healthcare centers struggle with budget constraints when purchasing medical equipment. The demand for improved healthcare requires upgraded technology, but high costs hinder keeping up with innovations. Leasing equipment has emerged as a feasible option to meet changing demands. Financial providers like Siemens offer leasing solutions with advanced equipment. Key players target growing economies like India and China, enhancing leasing policies. Rapid technological progress and leasing options is boosting the market growth for healthcare equipment.
This healthcare equipment leasing market research report extensively covers market segmentation by product (durable medical equipment, surgical and therapy equipment leasing, personal and home-care equipment, digital and electronic equipment leasing, and storage and transport equipment leasing), end-user (hospitals, diagnostic centers, clinics, and others), and geography (North America, Europe, Asia, and Rest of World). It also includes an in-depth analysis of drivers, trends, and challenges.
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Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growing demand for equipment leasing from low-budget healthcare facilities is notably driving the medical equipment financing market growth. Most of the share in the global 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. Further, the leased equipment does not require a down payment. Therefore, healthcare facilities can obtain equipment without affecting their cash flow.
By leasing the equipment, healthcare facilities can easily upgrade them in the future and can offer improved and accurate treatment according to patients evolving needs. With rising budget issues from the government, even large hospitals are opting for flexible asset financing and leasing techniques. In addition, start-ups catering to the need 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. Thus, the growing demand for leasing equipment among small hospitals is driving the global medical equipment financing & leasing market.
Automation of equipment financing is a major trend in the medical equipment financing market. 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 and 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 market. For instance, on average, up to six out of 1,000 banks provide automatic lease adjudication. 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 medical equipment financing & leasing market in the coming years.
The growing popularity of refurbished equipment is a major challenge impeding the medical equipment financing market. The market is witnessing tough competition among key players such as De Lage Landen International, and OEMs such as Siemens Healthcare that offer leasing solutions through their subsidiaries. The market is highly fragmented, with the presence of many Tier I, Tier II, and Tier III players, along with a sizeable number of OEMs. The established OEMs are also entering the global market. They are strategically tapping the existing opportunities by tying up with local suppliers and are offering leasing solutions for end-users who do not have the financial resources to purchase new equipment.
OEMs such as Siemens have marked their presence in the new healthcare equipment sales and leasing market. However, this intense competition may affect market growth negatively. OEMs also face entry barriers as existing key players have marked their presence in the leasing business with greater market share. Owing to this tough competition, OEMs are offering leasing solutions along with additional service support to generate recurring revenue from end users. One of the main disadvantages is the overall cost of leasing the equipment for a longer duration is often much higher than the total cost of the equipment. Thus, the dominance of the key players, coupled with the disadvantages of leasing equipment, will hinder medical equipment financing & leasing market growth.
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
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the medical equipment financing market.
Philips International BV - The company operates under multiple segments including diagnosis and treatment, and personal health with a high focus on diagnosis and treatment.
The healthcare equipment leasing market report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The medical equipment financing market share growth by the durable medical equipment segment will be significant during the forecast period. The global durable medical equipment market is growing at a significant pace owing to high demand among end-users, easy availability, and the availability of reimbursement coverage.
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This market 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 care and meeting patient demand. In addition, the cost of DME is steadily rising, which is forcing end-users to opt for leasing. Moreover, the availability of full insurance coverage from various insurance providers will have a positive impact on segment growth during the forecast period. Further, the lack of uniformity in government regulations in various countries, especially in the UK, to cut down the healthcare cost impacts the market in a positive way, leading end-users to opt for equipment on lease. Furthermore, DME can also be used in homecare settings as well. 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 segment growth 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 shape the medical equipment financing & leasing market during the forecast period.
The medical equipment financing 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 during the forecast period.
The outbreak of the COVID-19 pandemic had a mixed impact on the demand in North America as the supply chain network for healthcare equipment came to a halt in 2020 and at the beginning of 2021. However, in 2021, the mass vaccination drives and other government initiatives resulted in the removal of lockdown restrictions and the resumption of business operations. This resulted in an increase in demand for leasing healthcare equipment, which is expected to drive the growth of the medical equipment financing & leasing market during the forecast period.
The healthcare equipment leasing market research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Healthcare Equipment Leasing Market Scope |
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Report Coverage |
Details |
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Page number |
161 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 7.82% |
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Market growth 2023-2027 |
USD 25,026.35 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
7.02 |
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Regional analysis |
North America, Europe, Asia, and Rest of World (ROW) |
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Performing market contribution |
North America at 36% |
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Key countries |
US, Germany, UK, France, China, US, Germany, UK, France, and China |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Agfa Gevaert NV, Avtech Capital LLC, CIT Group Inc., CWB National Leasing Inc., Dext Capital LLC, Hill Rom Holdings Inc., Jocova Financial Services Corp., Lease Corporation of America, Madison Capital LLC, Med One Group, Meridian Group international Inc., Mizuho Leasing Co. Ltd., Oak Leasing Ltd., Philips International BV, Rabobank Group, Siemens AG, Stryker Corp., Teachers insurance and annuity association of America, Tokyo Century Corp., and Blackstone Inc. |
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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 |
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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 Drivers, Challenges, and Trends
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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