Global IoT in healthcare market is expected to reach nearly USD 410 billion by 2022 according to a new report by Grand View Research Inc.
The introduction of technologically advanced connected medical devices, penetration of smart phones, and use of software automation, to enable faster patient testing, and provide better accuracy, ease of usage, and portability are expected to serve the Internet of Things in healthcare market as high-impact rendering drivers over the forecast period.
The global IoT in healthcare market was valued at USD 58.4 billion in 2014. Key factors attributing to the market expansion include the increasing prevalence of various chronic diseases, rising global geriatric population, increasing demand for short-term and long-term healthcare services.
Additionally, the growing awareness levels pertaining to the technologically advanced disease management systems, and improvement in patient monitoring, data management and overall healthcare outcomes are expected to positively impact growth over the forecast period.
The proliferation of Internet of Things in healthcare has been beneficial in chronic disease management, remote clinical monitoring and assisted living, wellness and preventive care. Introduction of technologically advanced smart phones, mobile apps, assistive medial and personal fitness devices are playing a significant role in the market expansion.
These developments have simplified and automated the critical processes of data collection, electronic record maintenance, data analysis and various other processes to enable fast and accurate healthcare services. For instance, products such as fitness bands, CARE medical history bracelet, NFC-enabled medical ID bracelet, medical jewelry are enabling transmission of vital medical data form patient’s location to the medical staff in real time.
2012 – 2022 (USD Billion)
The component segment of the IoT in healthcare market is divided into medical devices, systems & software, and services. Medical devices constitute of wearable medical devices, implantable medical devices, and stationary medical devices.
In 2015,wearable medical devices held over 60% of the market share owing to their ease of use, huge penetration of smartphones across the globe and growing awareness among the population regarding personal fitness, disease management and early disease diagnostics.
The component segment is expected to witness a shift in the usage pattern of the connected devices and also shift in healthcare delivery models over the forecast period. Implantable medical devices are expected to witness lucrative growth of over 30% through the forecast period.
These medical devices are specially used for detecting and monitoring the patient’s healthcare data in real time for better disease management and remote monitoring. For instance, in May 2014, the FDA approved permanently implanted wireless sensor, Cardio MEMS HF System to monitor the patients’ pulmonary artery pressure (PA). These devices are mainly used for monitoring heart failure patients and type 1 diabetic patients.
The systems and software segment is segmented as remote device management, network bandwidth management, data analytics, application security, and network security. These systems and software’s are primarily used for controlling and monitoring the network devices under one network administrator, managing the bandwidth for better data transmission, faster analysis of healthcare records, and data protection across the healthcare environment. However, the service segment is further segmented into system integration services, consulting, training & educating, and support & maintenance.
Connectivity Technology Insights
The connectivity technology segment is segmented into Wi-Fi, Bluetooth Low Energy (BLE), ZigBee, cellular, and satellite. In 2015, cellular technology held the maximum share of 25.4% owing to the technological advancements, very high usage of smart phones, tablets, and user-friendliness.
Furthermore, growing demand for a large scale accessible communication technology, increasing awareness regarding the better affordability& resilient connectivity technology by the combination of local and near field technology such as Wi-Fi, Bluetooth, and NFC, are amongst the few factors that are expected to drive the Internet of Things in healthcare market over the forecast period.
The IoT in Healthcare market is segmented based on application, into telemedicine, inpatient monitoring, clinical operations, medication management, and connected imaging. Growing demand for real time disease management, improved patient care services, effective and efficient treatment outcome are amongst the key factors that are expected to drive the market over the forecast period.
Moreover, Telemedicine is anticipated to grow at a very fast rate owing to increasing prevalence rate of long term disorders and introduction of technological advancements in tele-health such as healthspot, handheld telemedicine kits by MedWeb, telehealth in iPad, PhysioGlove, health-e-chair by ComwellMedical, and RP-Vita telemedicine Robot. As a result of technological innovations and improvement in healthcare outcomes, telemedicine and other technology enabled services are expected to have a lucrative growth over the forecast period.
Hospitals and Clinics segment dominated the overall Internegt of Things in Healthcare Market in terms of revenue share with over 32% in 2015. Key factors attributed for the high share include high procedure volumes using cloud based technology, growing demand for cloud based hospital hygiene systems, increasing government initiatives, rising level of health conscious population, and growing initiatives for reducing healthcare expenditure
In 2014, North America was highest revenue generating region with revenue of over USD 18.9 billion. Key factors attributed for the large share include high level of R&D initiatives in IoT, presence of sophisticated healthcare infrastructure coupled with high level of disposable income, and technological advancements in the field of medical devices and healthcare software.
Asia Pacific is expected to register a lucrative CAGR of over 30% over the forecast period. High economic growth in this region over the past decade has significantly improved the healthcare infrastructure; IT enabled services and overall per-capita income, and disposable income levels. Changes in lifestyle habits across these regions and easy affordability of the smart phones and other devices are anticipated to significantly boost the Internet of Things in healthcare market over the forecast period.
The industry is oligopolistic in nature and is dominated by players such as Microsoft, Philips, Cisco, IBM, and Cerner. Key players in an attempt to gain a lucrative market share are adopting strategies such as development of specialized products for specific applications, increase in collaborative R&D and acquiring new startups with high potential.
Moreover, the increase in investment from various private and public entities for supporting IoT initiatives are expected to significantly boost the R&D, and new product commercialization in the near future. For instance, Microsoft has developed the Microsoft Azure cloud platform to enable cloud based delivery of various healthcare services. IBM has announced an investment of approximately USD 3 billion for Internet of Things (IoT), which is further expected to drive growth.