Healthcare Satellite Connectivity Market Report

Healthcare Satellite Connectivity Market Analysis By Component (Medical Device, Software, Services), By Connectivity (Mobile Satellite, Fixed Satellite), By End-use, By Application, And Segment Forecasts, 2014 - 2025

Published: May 2017  |  75 Pages  |  Format: PDF  |  Report ID: GVR-1-68038-844-2

Industry Insights

The global healthcare satellite connectivity market size was valued at USD 5.1 billion in 2016 and is projected to grow with CAGR of 7.1% during the forecast period. The rising healthcare expenditure toward development of eHealth, telemedicine, telehealth, and other mHealth solutions is one of the key contributors to the growth of the market.

The usage of different technology platforms is increasing rapidly as hospitals and medical institutions are focusing more toward efficiency and improved delivery of services to patients. The rising prevalence of chronic diseases, advancing age of the population, and rise in overall medical service costs are leading to increasing adoption of technology in the healthcare industry. Many rural areas still lack healthcare infrastructure, skilled workforce, and access to quality health services. The integration of technology-enabled services along with satellite connectivity assists in providing improved access to better health services to such deprived areas. The implementation of satellite connectivity enables digital imaging, remote patient monitoring, e-learning & consultation, and access to life sessions to improve the knowledge of medical professionals located at a distance.

U.S. healthcare satellite connectivity market, by component, 2014 - 2025 ($Billion)

U.S. healthcare satellite connectivity market

Government initiatives play a vital role in increasing the adoption of satellite-enabled technology in healthcare as large investments are required in deploying solutions like telemedicine and mobile healthcare. Various governments are focusing on improving infrastructure in remote areas for better monitoring of diseases, delivery of professional training, and improved collection of patient’s data. For instance, the Luxembourg Ministry of Foreign and European Affairs, SES S.A. (a provider of satellite communications), and German Doctors, a Nongovernmental Organization (NGO) have launched a satellite connectivity based e-Health platform at the German Doctor’s hospital in Buda. This platform named SATMED will help improve healthcare provision and provide accessible eHealth services to the remote areas of the island of Mindanao.

Component Insights

The system & software segment held the majority of revenue share in 2016 accounting for about 49.7%. Various software are available for management of patient database, medical records, and other operations. The growing demand of data analytics in healthcare and rapid implementation of technology in medical services contribute to the large share of the segment.

The services segment is expected to emerge as the fastest growing segment over the forecast period with a CAGR of 7.5%. Rising demand for seamless data flows between people and devices to boost efficiency of medical devices, enhance security, and enable informed decision-making in real-time are some of the factors that are expected to drive the growth of this segment.

System integration services, consulting, training & education, and support & maintenance services are the various technology-based services in the healthcare market. Growing demand for seamless data flows between people and devices to boost efficiency of the medical devices, enhance security, and enable informed decision-making in real-time are some of the factors that are expected to drive the services segment.

Application Insights

The satellite technology in eHealth was the dominating segment on 2016. The increasing number of government initiatives in various regions, rising concern for patient safety, and an upsurge in demand for effective delivery of care services are some of the key contributors of the market growth.

The others segment is anticipated to emerge as the fastest growing segment with a CAGR of 8.6% during the forecast period. The others segment includes applications such as connected imaging, emergency services & disaster response, and distance education. Advanced miniaturized equipment is used to transfer data to the medical center through the satellite systems during emergencies and in response to disasters or rescue operations.

For instance, the European Space Agency's DELTASS (Disaster Emergency Logistic Telemedicine Advanced Satellite System) is a space-based system that assists in disaster response activities and in management of medical-aid in natural disasters. In these cases, the satellite communications help complement the damaged terrestrial communications. The growing adoption of satellite technology and Internet of Things (IoT) in connected imaging is expected to drive the growth of this segment in future.

End-use Insights

The hospitals & clinics segment held the majority of the market in 2016 with a share of 65.3% and is expected to continue its dominance over the forecast period. The increasing demand for efficient management of hospital operations, streamlining the workflow, increasing focus on improved patient safety, rising need to reduce the associated high costs, and reduce the errors in prescription & dispensing are some of the factors that contribute to the large share of the segment.

There has been a growing adoption of technology in streamlining and managing the operations of hospitals and clinics. Adopting of technological solutions in core activities of a hospital results in various benefits such as remote monitoring of a patient’s data, data analysis from Real-Time Location Systems (RTLS) to maintain a central database record of all patients, and real-time monitoring of patient conditions, which enable provision of enhanced treatments.

Rising awareness about such benefits is a key factor expected to boost the usage of information technologies in hospitals and clinics. The growing focus on improved patient safety and achieving clinical efficiency is also a key contributing factor for increasing usage of satellite communication technology in hospitals and clinics.

Connectivity Insights

Based on connectivity, the market is segmented as Fixed Satellite Services (FSS) and Mobile Satellite Services (MSS). The FSS segment was the dominating segment in 2016 due to its rising usage and increased application in eHealth and telemedicine. However, the MSS segment is expected to be the fastest growing segment with a CAGR of 10.5% over the forecast period.

FSS in healthcare is anticipated to grow rapidly owing to the growing demand for data transmission and connectivity. The FSS operates using the ground station at a given position, which is fixed to a specific location and uses the Very Small Aperture Terminal (VSAT) technology to enable high-speed data transmission to users across different locations.

The use of mobile stationary services is growing rapidly due to technological advancements such as use of mobile apps, sensors, real-time patient monitoring, and asset tracking. The rising consumption of voice and data services from emerging areas such as eHealth, telehealth, and emergency & disaster response is anticipated to significantly boost growth over the forecast period.

Global healthcare satellite connectivity market, by connectivity, 2016 (%)

Global healthcare satellite connectivity market

Regional Insights

In 2016, North America dominated the market with a revenue share of 35.4%. The growing adoption of internet infrastructure & connectivity along with the rising number of Internet users is leading to the growth of the satellite connectivity market in the region. The presence of high-speed Internet, advanced telecommunication technologies, and increasing need of integration of such technologies in healthcare are boosting the growth of the market in North America. In addition, rise in chronic diseases that require critical care and presence of sophisticated healthcare infrastructure are further likely to drive market growth over the forecast period.

The U.S. is the largest market in the region due to a wide usage of telehealth and related services. Various government as well as nongovernment initiatives are boosting the penetration of information technologies in healthcare. The National HIT initiative promotes Health IT, which includes interoperability, adoption, privacy & security, and collaborative governance. This initiative aims to save 10% of overall healthcare expenditure.

Insurance providers are also collaborating with telemedicine providers for a number of their health plans. For instance, in 2014, the Blue Cross Blue Shield Association collaborated with the provider American Well in order to provide telemedicine services to approximately 3.5 million of its members. This trend is further strengthening the market growth in the U.S.

Asia Pacific is anticipated to be the fastest growing region with a CAGR of 8.5%. The region is witnessing increasing spending on healthcare, growing adoption of advanced technologies, and rising government initiatives for adoption of digital & advanced technologies for better outcomes. For instance, in India, the government launched a telemedicine initiative called “Sehat” in 2015 in line with its vision of Digital India. The aim of this initiative is to connect healthcare centers & facilities all over the nation and provide access to improved care to all the citizens.

Competitive Insights

Some of the key players operating in the market include Inmarsat plc; Hughes Network Systems LLC, SES S.A., X2nSat, Expedition Communications, Globalstar, and Eutelsat. The market players focus on delivering high quality & secure services that help streamline the administrative processes and lower the costs of the healthcare sector.

Report Scope

Attribute

Details

Base year for estimation

2016

Actual estimates/Historical data

2014 - 2016

Forecast period

2017 - 2025

Market representation

Revenue in USD Million and CAGR from 2017 to 2025

Regional scope

North America, Europe, Asia Pacific, Central & South America, Middle East & Africa

Country scope

U.S., Canada, Germany, UK, China, India, Brazil, Mexico, South Africa

Report coverage

Revenue forecast, company share, competitive landscape, growth factors and trends

15% free customization scope (equivalent to 5 analysts working days)

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Segments Covered in the Report

This report forecasts revenue growth and provides an analysis on the industry trends in each of the sub segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the healthcare satellite connectivity market on the basis of component, application, end-use, connectivity and region:

  • Component Outlook (Revenue, USD Million; 2014 - 2025)

    • Medical Device

      • Wearable External Devices

      • Implanted Medical Devices

      • Stationary Medical Devices

    • System & Software

      • Remote Device Management

      • Network Bandwidth Management

      • Data Analytics

      • Application Security

      • Network Security

    • Services

      • System Integration Services

      • Consulting, Training & Education

      • Support & Maintenance Services

  • Application Outlook (Revenue, USD Million; 2014 - 2025)

    • eHealth

      • Telemedicine

      • Clinical Operations

    • Others

      • Connected Imaging

  • End-use Outlook (Revenue, USD Million; 2014 - 2025)

    • Clinical Research Organization (CRO)

    • Hospitals & Clinics

    • Research & Diagnostic Laboratories

    • Others

  • Connectivity Outlook (Revenue, USD Million; 2014 - 2025)

    • Mobile Satellite Services (MSS)

    • Fixed Satellite Services (FSS)

  • Regional Outlook (Revenue, USD Million; 2014 - 2025)

    • North America

      • U.S.

      • Canada

    • Europe

      • Germany

      • UK

    • Asia Pacific

      • Japan

      • China

    • Latin America

      • Brazil

      • Mexico

    • MEA

      • South Africa

      • Nigeria

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