The U.S. durable medical equipment (DME) market is on a strong growth trajectory, driven by a rising incidence of chronic diseases, increasing demand for home healthcare, and favorable reimbursement reforms. According to latest projections, the market is expected to grow from US$ 70.5 billion in 2025 to US$ 103.3 billion by 2032, expanding at a CAGR of 5.6% during the forecast period. This growth outlook is a step up from the 4.5% CAGR observed between 2019 and 2024, signaling robust expansion opportunities for manufacturers and suppliers.
Durable medical equipment encompasses a broad range of devices including mobility aids, monitoring systems, oxygen therapy devices, sleep apnea machines, and therapeutic equipment. These products are critical for the long-term management of patients with chronic conditions, rehabilitation needs, and disabilities.
Rising Burden of Chronic Diseases Fuels Demand
Chronic diseases continue to be the most prominent driver of DME demand in the U.S. According to the America’s Health Rankings 2023 annual report, nearly 133 million individuals, or 43% of the U.S. population, were living with one or more chronic conditions in 2022. Key diseases such as diabetes, cardiovascular ailments, arthritis, asthma, chronic kidney disease, and cancer contribute heavily to hospitalizations, thereby creating consistent need for durable medical equipment.
The Centers for Disease Control and Prevention (CDC) reports that over 38 million Americans are living with diabetes, while another 98 million adults are prediabetic. Such alarming statistics underscore the need for continuous monitoring devices and at-home therapeutic systems, which remain vital for disease management.
Key Market Highlights
Monitoring and therapeutic devices are expected to account for 54.7% market share in 2025, owing to rising long-term monitoring needs for diabetes, cardiovascular issues, and respiratory diseases.
Hospitals are projected to hold 43.8% market share in 2025, supported by bulk procurement of DME for emergencies and inpatient care.
Southeast U.S. is anticipated to command 29.4% share in 2025, boosted by high retiree populations and elevated demand for home-use equipment.
Manufacturers are increasingly partnering with home health agencies to streamline deployment of DME across patient groups.
Customization of DME for pediatric and bariatric populations is opening new growth avenues.
Market Dynamics
Policy Reforms and Medicare Flexibility Drive Adoption
Policy reforms and reimbursement flexibility are expected to significantly improve access to DME across the U.S. The Centers for Medicare and Medicaid Services (CMS) have been instrumental in shaping the industry landscape. The Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) Competitive Bidding Program helped reduce Medicare spending by approximately US$ 1.6 billion between 2013 and 2018.
In 2021, CMS temporarily suspended the program for most product categories, thereby giving suppliers greater flexibility and patients better access to devices. Moreover, the transition toward value-based care models is likely to further improve coverage and enhance patient confidence in durable equipment.
Financial Barriers Restrict Access Outside Public Programs
Despite the favorable policy environment, financial challenges persist for individuals outside Medicare and Medicaid coverage. The Peterson-KFF Health System Tracker (2023) revealed that U.S. citizens spend an average of US$ 1,650 annually in out-of-pocket healthcare costs. DME constitutes a major portion of these expenses, particularly for disabled and chronically ill patients.
Although Medicare Plan B covers 80% of approved costs, patients must shoulder the remaining 20%, which can be overwhelming for high-cost devices such as motorized wheelchairs, infusion pumps, or advanced monitoring systems. Private insurance gaps and underinsurance exacerbate the affordability issue for middle-income households.
Rural Healthcare Gaps Create New Opportunities
The closure of rural hospitals and physician shortages have created significant opportunities for mobile and at-home DME services. According to the Chartis Center for Rural Health, more than 130 rural hospitals closed in the past decade, leaving underserved communities with limited access to care.
Manufacturers and local distributors are now focusing on door-to-door delivery services and remote monitoring solutions, bridging the gap in rural healthcare infrastructure. By expanding mobile distribution networks, DME suppliers are expected to tap into a growing market of patients requiring respiratory aids, mobility devices, and monitoring equipment in remote areas.
Key Market Trend: Predictive Healthcare and Smart Devices
The U.S. healthcare system is shifting from reactive care toward predictive and preventive healthcare, creating demand for innovative durable equipment. Devices that facilitate early disease detection and continuous monitoring are gaining traction.
AI-enabled devices, particularly in diabetes and cardiovascular disease management, are at the forefront of this transformation. Companies such as Livongo Health are leveraging artificial intelligence to provide personalized insights, enabling patients to manage conditions more effectively. Continuous glucose monitors, wearable cardiac monitors, and smart inhalers are emerging as vital tools for early detection and cost reduction in chronic disease management.
Category-Wise Insights
By Product: Monitoring and Therapeutic Devices Lead
Monitoring and therapeutic devices will dominate the market with over 54% share in 2025, primarily driven by rising demand for continuous monitoring of conditions such as diabetes and hypertension. Neuromonitoring is becoming integral to surgical procedures, while respiratory monitoring systems remain essential for COPD and sleep apnea patients.
Personal mobility devices, including wheelchairs, scooters, and rollators, are also poised for steady growth, supported by the rapidly aging population. The U.S. Census Bureau predicts that by 2030, 1 in 5 Americans will be over 65, intensifying the demand for mobility solutions.
By End-Use: Hospitals Remain the Largest Consumers
Hospitals are expected to capture 43.8% share in 2025, as they continue to procure advanced equipment for emergency rooms, surgical wards, and inpatient care. Expansion of hospital networks, such as the launch of Orlando Health’s orthopedic hospital in Florida in 2023, is further accelerating demand for patient beds, monitoring equipment, and rehabilitation devices.
Meanwhile, home healthcare remains a growing segment, as patients increasingly prefer cost-effective, convenient at-home treatment options. Rising adoption of portable oxygen therapy devices, CPAP machines, and glucose monitors highlights this trend.
Regional Insights
West U.S.
The West U.S. market is growing steadily, supported by a rapidly aging population. California alone is expected to see a 40% rise in its senior population by 2040, driving demand for home oxygen therapy, mobility aids, and sleep apnea machines. While states like California benefit from advanced healthcare access, rural states such as Arizona face challenges, with 60% of rural residents reporting difficulty accessing medical equipment.
Southeast U.S.
The Southeast remains the largest regional market, projected to hold 29.4% share in 2025. High prevalence of COPD in states such as Tennessee and Louisiana continues to drive demand for nebulizers and oxygen concentrators. North Carolina, having recently expanded Medicaid under the Affordable Care Act (ACA), is expected to see rising adoption of home healthcare solutions.
Midwest U.S.
The Midwest is burdened with some of the highest obesity rates in the country, contributing to rising cases of arthritis, cardiovascular diseases, and diabetes. States like Ohio, Indiana, and Missouri reported obesity rates above 35% in 2022. As a result, demand for bariatric equipment, insulin pumps, and reinforced mobility aids is surging. However, lack of Medicaid expansion in states such as Kansas continues to limit access for low-income populations.
Competitive Landscape
The U.S. DME market is highly competitive, with a mix of global manufacturers, regional suppliers, and emerging startups. Companies are increasingly investing in technological innovation, AI integration, and remote usability to strengthen their positions. Partnerships, acquisitions, and product launches are shaping the industry’s competitive dynamics.
Recent Developments
Supernus Pharmaceuticals received FDA approval in February 2025 for its Onapgo infusion pump to treat Parkinson’s disease, marking a significant step in wearable infusion technology.
Abbott Laboratories launched its over-the-counter continuous glucose monitor, Lingo, in September 2024, targeting non-insulin users seeking proactive health monitoring.
Drive DeVilbiss Healthcare acquired Mobility Designed Inc.’s product portfolio in July 2024, expanding its mobility and rehabilitation equipment offerings.
Major Companies
Invacare Corp.
Sunrise Medical
Arjo
Medline Industries, Inc.
GF Healthcare Products, Inc.
Carex Health Brands, Inc.
Cardinal Health
Drive DeVilbiss Healthcare
NOVA Medical Products
Kaye Products, Inc.
Inogen, Inc.
Thermo Fisher Scientific Inc.
Abbott
Medtronic
Baxter
B. Braun SE
Boston Scientific Corporation
BD
Outlook
The U.S. durable medical equipment market is set for healthy growth, propelled by demographic shifts, chronic disease prevalence, and rising adoption of predictive healthcare solutions. Despite affordability challenges for uninsured or underinsured populations, ongoing Medicare reforms, expansion of home healthcare, and technological innovation are expected to unlock substantial opportunities. By 2032, the industry is forecasted to cross the US$ 100 billion mark, establishing itself as a cornerstone of the U.S. healthcare ecosystem.
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