The aging US population will keep demand for medical testing and related equipment steady
Los Angeles, CA (PRWEB) February 27, 2013
Although the $3.4-billion Medical Equipment Rental Manufacturing industry was slowed down by the recession, it is forecast to continue growing in the coming years. Over the five years to 2013, IBISWorld expects revenue to fall at an average annual rate of 1.6%, which actually includes an anticipated 0.7% increase from 2012 to 2013. According to IBISWorld industry analyst Nima Samadi, “After recession-related downturns, demand for medical equipment rentals has grown as a result of increased public and private health spending and new product introductions.”
The Medical Equipment Rental industry provides healthcare institutions with an alternative to purchasing medical equipment. Over the past five years, the number of sophisticated diagnostic tests that require technologically advanced equipment at hospitals and medical centers has kept demand steady for leased equipment rather than outright purchases. “Medical devices and machinery have high purchase costs and become obsolete quickly, two factors that encourage hospitals and medical centers to rent,” says Samadi. “Moreover, a lease can be put together much quicker than a loan for equipment purchase”
These trends are projected to continue during the five years to 2018. Demographic shifts and increases in healthcare funding will help demand for medical equipment rentals grow. The aging US population is a major factor driving demand because the occurrence of health issues that require the use of medical equipment is higher in the elderly population. This demographic is forecast to expand as a percentage of the total population during the five years to 2018, which will help maintain industry growth. Furthermore, IBISWorld estimates that federal spending on Medicare and Medicaid will increase over the period. The rise in spending will continue to support demand for medical equipment rentals.
The Medical Equipment Rental industry has a low degree of market share concentration, with the majority of its companies operating a single location. According to the US Census, 86.6% of industry operators have just one location, while only four companies have more than 25 locations. Over the past five years, only Universal Hospital Services increased its market share through merger and acquisition activity. In 2011, the company acquired Emergent Group, a leading provider of laser and mobile surgical equipment services, and the equipment rental divisions of two regional medical equipment manufacturers. Other major players include Kinetic Concepts and Hill-Rom. For more information, visit IBISWorld’s Medical Equipment Rental in the US industry report page.
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IBISWorld industry Report Key Topics
Companies in this industry rent and lease medical equipment to institutional customers. This industry specifically excludes companies that primarily rent and lease medical equipment to home care customers.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.