According to a new research report from the IoT analyst firm Berg Insight, the installed base of medication compliance monitoring devices reached 4.4 million worldwide at the end of 2022.
Growing at a compound annual growth rate (CAGR) of 13.2 percent, the installed base will reach 8.2 million in 2023.
North America is the leading medication compliance monitoring market accounting for 63 percent of the market value in 2022. Government regulations significantly impact the market growth with the release of new CPT codes in the US, encouraging the adoption of connected health devices.
On a macro level, one of the main reasons for the high use of connected medication compliance monitoring solutions in North America is the high per-patient treatment costs in the US compared to other countries in the world.
Europe and the Rest of World accounted for around 24 percent and 13 percent of the market value respectively in 2022. The European region is gaining traction thanks to the introduction of digital health regulations in major economies such as Germany and France.
The definition of medication compliance monitoring includes products and services that assist the patients in adhering to a medication regimen. Medication compliance monitoring solutions include injected medication solutions, inhaled medication solutions, and pill bottles and dispensers. Medication compliance monitoring solutions incorporate connectivity, a companion smartphone application and algorithms to personalize patient care in real time.
Injected medication solutions is the largest segment of the market corresponding to 3.6 million connected devices. Injected medication solutions are offered in different forms such as insulin pumps, pens, autoinjectors, smart buttons, add-on sensors and pen caps. Notable vendors include top players by installed base such as Medtronic, Insulet and Tandem Diabetes. Additional key companies operating in this segment are Eli Lilly and Company, Merck Group, Noble International, Novo Nordisk, Phillips-Medisize and Roche.
The total installed base of inhaled medication solutions reached 181,000 devices worldwide in 2022. This market segment includes connected devices such as inhalers and smart inhaler sensors. The digital respiratory market is in an emerging state with multiple solution providers operating in this segment. Leading connected inhaled medication providers include Propeller Health, Adherium, Teva Pharmaceuticals and Aptar Group, as well as Amiko Digital Health, FindAir, Cognita Labs and NuvoAir.
The pill bottle and dispenser solution market reached an installed base of 640,000 units at the end of 2022. This segment includes pill boxes, automatic medication dispensers, pill bottles and smart blisters that assist in reminding, dispensing and recording the medication-taking behaviour of a patient. The pill bottle and dispenser solution segment is a fragmented market that is evolving quickly and includes both consumer-oriented technology companies and traditional healthcare incumbents such as MedReady, Evondos, Hero Health, Compliance Meds Technologies, AdhereTech, MedMinder and Spencer Health Solutions.
The global market for medication compliance management solutions is affected by several trends and developments that will have an impact on the competitive landscape during the forecast period. Changing demographics are driving the demand for home care, while technological developments and regulatory changes affect the competitive landscape for solution vendors. One major transition has been from traditional drug delivery to smart drug delivery, which has encouraged companies to adopt connected solutions.
Vatsala Raina, IoT Analyst, Berg Insight, says:
“AI technologies are finding its way into the medication compliance monitoring market and vendors are for instance working on solutions to enable early detection of acute exacerbation of respiratory diseases.”
At the same time, the industry is becoming more patient-centric which calls for integrated systems and improved interoperability of connected care solutions. New companies are entering the connected care market and connected medication management solutions are today at the center of attention for start-ups.