Connected Drug Delivery Devices Market Analysis Report By Technology (Bluetooth, NFC), By Product (Connected Sensors, Integrated Connected Devices), By End User, And Segment Forecasts, 2018 - 2025

Industry Insights

The global connected drug delivery devices market size was valued at USD 138.9 million in 2017. It is anticipated to expand at a CAGR of 25.1% over the forecast period. Increased patient engagement and connectivity owing to rising penetration of the Internet of Things (IoT) is expected to drive the market over the forecast period.

Non-adherence to prescribed medications is a significant factor for increased disease burden and healthcare costs. The impact of non-adherence can include lower product consumption, suboptimal patient outcomes, and reduced drug sale. Connected drug delivery systems are used for improving patient adherence towards prescribed medications by physicians.

These products aid physicians in monitoring patient compliance to prescribed therapy and modify patient treatment accordingly. Increasing number of initiatives spreading awareness regarding the complexities caused by over or under the dosing of medicines are expected to promote the adoption of connected drug delivery devices.

Thus, increasing awareness regarding the adverse effects of non-adherence is likely to augment the market growth. Awareness about the advantages of connected systems over conventional systems is further expected to fuel the product demand, thereby driving the market over the next few years.

Product Insights

The sensors segment accounted for 72.6% of the global revenue share in 2017 and is expected to witness lucrative growth over the forecast period. Connected sensors are add-on devices that can be fitted over conventional drug delivery devices. These sensors are further classified into inhaler sensors and injection sensors.

Connected sensors are cheaper than integrated systems. They can be easily fitted on the existing devices and therefore, reduce the cost of switching from an already existing drug delivery device to an integrated one, which is more expensive. Thus, the adoption of these sensors in cost-sensitive economies is expected to be faster, which is anticipated to propel market revenue.

Integrated connected systems are anticipated to witness the fastest growth with a CAGR of 28.2% over the forecast period. These devices include a number of sensors encased in a single device. These products are complex as compared to the sensors and deliver more valuable insights to patients, as well as healthcare providers. They provide several added advantages over connected sensors, such as advanced sensing options.

Integrated systems are costlier owing to a number of complex functions. However, with increasing demand and entry of new companies in this space, the cost of production is expected to decrease. This factor is also expected to help boost the market growth.

Technology Insights

On the basis of technology, the products are categorized into Bluetooth, Near Field Communication (NFC), and other technologies, which include cellular and low power wide area networks. The Bluetooth segment led the market with the highest revenue share in 2017 and is expected to witness lucrative growth from 2018 to 2025. However, other technologies segment is expected to emerge as the fastest-growing segment in the next few years.

A large number of connected drug delivery systems work with Bluetooth as it is easily available and cheaper as compared to other technologies. For instance, Propeller Health’s add-on sensor used on respiratory inhalers and BIOCORP’s Datapen operate on Bluetooth technology. Moreover, the technology is compatible with most of the smartphones and media devices available in the market and is the most widely used technology. This is projected to drive the segment over the forecast period. Moreover, with the launch of Bluetooth 5 technology in 2016, the segment is expected to witness rapid growth in the next few years.

The anticipated launch of cellular technologies, such as 5G, in the coming years, is expected to enhance the quantity of information transferred among connected devices and thus, increase their speed. The use of 5G over the existing technologies like Bluetooth and NFC is expected to overcome their respective limitations, such as the requirement of a hub and a companion device or need for close proximity for data transfer. 5G would lead to increased coverage as compared to 4G and other means, such as Wi-Fi. Moreover, due to its high speed, the technology can transfer limitless data directly to the cloud without the need for a proximity device or a data hub, which is expected to boost the use of 5G cellular devices in the connected drug delivery devices market.

End-user Insights

On the basis of the end-user, the market has been segmented into healthcare providers and homecare centers. The healthcare providers segment led the market with a revenue share of 59.3% in 2017 and is expected to witness a lucrative market growth from 2018 to 2025. Increasing cases of diabetes, Cardiovascular Diseases (CVDs), Chronic Obstructive Pulmonary Disease (COPD), and other chronic diseases are anticipated to create the need for efficient health record systems. Connected drug delivery devices can solve this problem by not only monitoring drug dosage and delivery but also, effectively maintaining patient health records.

This in turn is expected to add to the product demand, particularly in the homecare settings. In addition, the growing geriatric population, which finds difficulty in maintaining medication compliance, is anticipated to fuel the adoption of these products. According to the United Nations, the global geriatric population was estimated to be around 962 million in 2017. Connected products can help deliver drugs even in the absence of healthcare providers without any errors and hence are anticipated to witness demand from the geriatric patient group.

Regional Insights

North America accounted for the largest revenue share of 2017 and is expected to lead the market over the forecast period. The region is also anticipated to witness the fastest growth owing to the quick adoption of the latest technologies and devices, high per capita healthcare expenditure, and rising awareness regarding the adverse effects of non-adherence to medication.

Europe is estimated to be the second fastest-growing market for connected drug delivery devices. Increased incidence of chronic diseases and the presence of a large target population base are the factors augmenting product demand in the region. In regions, such as Asia Pacific (excluding Australia and Japan), Latin America, and MEA, the demand for connected drug delivery devices is expected to remain low in the coming years.

The high price of these devices is anticipated to be one of the significant factors in impeding market growth in these regions. However, with the increasing number of market entrants the product prices are expected to decrease over time; this will support the market development in such countries.

Connected Drug Delivery Devices Market Share Insights

Some of the key companies operating in the global market are Propeller Health, Proteus Digital Health, Adherium, BIOCORP, and Merck. Most of these companies focus on new product and technological development, mergers and acquisitions, and partnership activities as part of their business expansion strategies.

Report Scope

Segments Covered in the Report

This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global connected drug delivery devices market report on the basis of product, end-user, technology, and region:

• Product Outlook (Revenue, USD Million, 2014 - 2025)

  • Connected Sensors

    • Inhaler Sensors

    • Injection Sensors

  • Integrated Connected Devices

    • Integrated Inhaler

    • Integrated Injection

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

  • Healthcare Providers

  • Homecare Centers

• Technology Outlook (Revenue, USD Million, 2014 - 2025)

  • Bluetooth

  • NFC

  • Other Technologies (Cellular, Low Power Wide Area Network)

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

  • North America

    • The U.S.

    • Canada

  • Europe

    • The U.K.

    • Germany

  • Asia Pacific

    • Japan

    • China

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa

    • South Africa