There are many advantages to pulse oximeters for hospital or clinic patients, home health individuals and even mountain climbers, athletes, and pilots. They are particularly convenient due to their noninvasive method of measurement; they measure only pulsations of the area tested. With a pulse oximeter, there is no need to measure a sample of blood directly. Pulse oximeters in all forms are useful for determining the need for a person or patient to receive supplemental oxygen; patients in intensive care, operating recovery, emergency care settings, and even pilots in unpressurized cabins can benefit from the use of pulse oximeters.

Pulse oximeters can also be of particular benefit in diagnosing sleep disorders such as sleep apnea. Portable varieties, such as the fingertip oximeter, also allow for easy at-home blood-oxygen level monitoring. Portable oximeters are also used by athletes and mountain climbers who have a need to monitor and measure blood-oxygen levels either during exercise or at high altitudes respectively.

Although they were not widely adopted in the United States until the late 1980s, pulse oximeters have since become increasingly widespread, with usage increasing year over year. They are now a virtual fixture in most health care facilities.