Internet of Things (IoT) in Healthcare Market Size, Share & Trend Report

Internet of Things (IoT) in Healthcare Market Size, Share & Trend Analysis Report By Component, By Connectivity Technology, By Application, By End-use, By Region, And Segment Forecasts, 2012 - 2022

  • Published Date: Feb, 2018
  • Base Year for Estimate: 2015
  • Report ID: 978-1-68038-857-2
  • Format: Electronic (PDF)
  • Historical Data: 2012 - 2015
  • Number of Pages: 141

Industry Insights

The global IoT in healthcare market size was estimated at USD billion 98.4 in 2016 and is anticipated to grow at a CAGR of 27.3% over the forecast period. Few key factors such as increasing geriatric population and technological advancements are anticipated to boost the IoT in the healthcare market. Growing awareness regarding advanced disease management tools such as telemedicine & remote patient monitoring and subsequently improvement in clinical outcomes is also expected to propel the market over the forecast period.

U.S. IoT in healthcare market

The penetration of smart technologies, such as telemedicine, remote disease management, and Health Management Information Systems (HMIS), further expand the scope of connected technologies in healthcare sector. In addition, technological advancements in smartphones, such as the ARM cortex M processor, and growing demand for the first-generation IoT medical devices, including smartwatches & fitness bands, are few factors indicating the penetration of connectivity technologies in the healthcare industry. 

The healthcare industry is striving to reduce the overall healthcare expenditure and make services more accessible, affordable, and of better quality. The rapid adoption of advanced technologies in the healthcare industry regarding database management, data analysis, and data transmission in real time through wearable user interface, hybrid cloud computing, and machine to machine (M2M) communication services is one of the key factors expected to drive the market.

Technological advancements in healthcare IT such as implementation of big data analytics, use of nanobots & robotic flight stimulator surgeries, increasing demand for effective treatment, and rising awareness regarding upgraded technologies among patients are few of significant factors driving the market growth. Rising demand for IoT networks in healthcare sector in owing to increasing prevalence of chronic diseases and growing hospital readmissions rates is one of the key factors impel the market growth.

Growing demand for home healthcare services, rising cost of advanced hospital equipment, and increasing geriatric & pediatric populations are among few key factors driving the demand for remote patient monitoring. According to the Healthcare Intelligence Network (HIN) benchmark report in 2014, over 27% of the U.S. population with multiple chronic conditions tend to target homebound treatment with remote monitoring programs.

Component Insights

As of 2014, software and systems emerged as the largest segment in terms of revenue share. Growing initiatives by various private companies, such as IBM, Wipro, and COMM Scope Solution, pertaining to the technologically advanced setup to monitor medical devices in real time is one of the key factors responsible for driving the software and systems market. In addition, continuously improving IT infrastructure and increasing investments by companies such as Harman International Company, IBM, and Wipro in the healthcare industry to innovate and revolutionize patient care systems is also driving the market.

Remote device management held the largest revenue share in software and systems segment in 2014. Some market propelling factors are rising demand for technologically advanced remote patient care programs, growing awareness regarding telehealth technology, and increasing prevalence chronic diseases. Rising awareness regarding the comprehensive benefits of remote patient monitoring technology, such as reduction in overall cost, ease of use, and greater access, is driving remote device management segment.

Medical devices emerged as the fastest growing segment with a lucrative growth rate of 28.3% owing to growing need for connected healthcare services among critically ill patient, reduction in costs, better treatment outcomes, and real-time disease management. IoT in medical devices provides continuous and remote patient monitoring. The use of various actuators, a network of sensors, and other mobile communication devices resulted in improved access to healthcare services.

Connectivity Technology Insights

Cellular technology emerged as the largest connectivity technology segment in 2014. Growing demand for IoT solutions in various verticals such as logistics & transportation, energy, wearable devices, and fleet management is expected to increase the demand for different kinds of connectivity technologies. Technological advancements in communication and connectivity industry, such as 4G & 5G cellular connectivity, & 3rd generation partnership project (3GPPP) and GSM/EDGE radio access network are also few considerable factors for largest revenue share.

Wi-Fi technology is also one of the important segments in terms of the market share. Wi-Fi provides improved connectivity in comparison with traditional connectivity technologies. This leads to faster access to patient health records in real time along with flexible and efficient clinical services. Thus, the penetration of Wi-Fi is increasing in medical centers.

Satellite segment is anticipated to grow at lucrative growth rate of 32.3% owing to the use of satellite technologies in various healthcare applications such as management of emergencies, facilitating patient mobility, and interconnectivity of medical data. However, rapid adoption of M2M technology in healthcare industry is expected to spur development of various connectivity technologies such as Wi-Fi, Bluetooth, and NFC, thereby driving connectivity technologies market.

End Use Insights

Hospitals and clinics accounted for the largest share in 2014. Increasing efficiency, reducing treatment cost, and growing focus on better patient care are few contributing factors for the largest share. Moreover, increasing awareness regarding the benefits of IoT implementation in healthcare centers is also a significant factor for the largest revenue share. The presence of various features of IoT in hospital services, such as intelligent data processing, reliable transmission, and comprehensive perceptions, provide support platform for the implementation of smart hospitals is further expected to drive adoption of IoT in hospitals and clinics.

Research and diagnostic laboratories segment is the second largest segment in terms of revenue share. Adoption of IoT in research and diagnostic centers enable reduction in diagnostic cost, improvement in patient care, and reduction of machine downtime accelerating the usage of connected equipment. The implementation of IoT is expected to increase among surgical centers, government institutes, and defense institutes owing to advantages associated such as easy setup, minimal maintenance cost, and user friendly instruments.

However, Clinical Research Organizations (CRO) is anticipated to be the fastest growing segment. Increasing demand for M2M technology in clinical trials, improvement in the speed of patient enrollment, increasing speed of outcome reporting, and growing awareness regarding the benefits of IoT in clinical trials are few factors expected to boost the market over the forecast period. For instance, PHT Corporation and Vodafone have announced a collaboration wherein tablets embedded with Vodafone M2M SIM will be launched for clinical research sites, which will allow participation of patients in trials to record symptoms and connect to a data portal.

Application Insights

Inpatient monitoring emerged as the largest application segments in 2014. Increasing demand for real-time disease management, continuous patient care services, and effective treatment outcomes are factors contributing to the largest revenue share. Telemedicine is another important segment in terms of the revenue share.

IoT in healthcare market

Telemedicine with IoT provides device interoperability, better security, and prompt decision making which is further anticipated to increase the efficiency of healthcare services. Penetration of IoT in telemedicine will enable remote monitoring of chronic illnesses and thereby improving its potential to efficiently treat patients to reduce travel, cost, and time. Moreover, greater medical device interoperability, faster scalability and real time monitoring are some of the factors expected to drive the telemedicine with IoT market.

However, medication management is expected to grow at a rapid rate over the forecast period. Increasing demand for effective patient safety from drug overdose or medicine omission, growing demand for advanced health information systems, and favorable government initiatives are the key factors expected to drive the market over the forecast period. The implementation of IoT in medication management ensures reduction of medication errors such as overdose, thereby ensuring patient safety.

Regional Insights

North America dominated IoT in the healthcare market in 2014. Few major contributing factors are the presence of a sophisticated healthcare IT infrastructure and data protection of EHR & IPR regulations. In addition, local presence of key players such as Microsoft & IBM, increasing research & development initiatives by the key players, and faster adoption of IoT in healthcare centers are also anticipated to boost its usage rate.

U.S. is the largest market in North America region. The U.S. market growth is attributed to technological advancements by key players and favorable initiatives for promoting penetration of IoT in healthcare. In September 2015, the U.S. government announced an investment of over USD 160 million in federal research and development technology partnership to create improved smart city services. Based on the estimates of IDC as of 2015, North American companies are reported to spend over 0.45% of revenue on IoT initiatives.

Asia Pacific is expected to emerge with the fastest growth rate of 31.3%. The key players in this region are investing over 0.34% of revenue for IoT initiatives. Growing government initiatives to encourage healthcare providers & other healthcare organizations to adopt EHR & EMR technology is one of the key factors anticipated to boost the market. Growing investments from nonprofit entities and private sectors to achieve improved clinical outcomes, seamless information exchange, and recognized cost savings is also expected to boost the market in this region.

IoT in Healthcare Market Share Insights

The market is oligopolistic with the dominance of Microsoft, Cisco, Philips, Cerner and IBM. The strategies adopted by these players for gaining the market share are development of products, acquiring start-ups with significant potential and increase in collaborative research initiatives. Furthermore, the research and development and product innovations are expected to increase owing to the funding provided by private and public players to support initiatives pertaining to IoT in healthcare. IBM announced an investment of USD 3 billion for supporting IoT. Microsoft developed a cloud platform, Microsoft Azure for enabling cloud based delivery of healthcare services.

Report Scope

Attribute

Details

Base year for estimation

2015

Actual estimates/Historical data

2012 - 2015

Forecast period

2016 - 2022

Market representation

Revenue in USD Billion and CAGR from 2015 to 2022

Regional scope

North America, Europe, Asia Pacific, Latin America, MEA

Country scope

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

Report coverage

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

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Segments covered in the report

This report forecasts revenue growth at global, regional, & country levels and provides an analysis on the industry trends in each of the sub segments from 2012 to 2022. For the purpose of this study, Grand View Research has segmented the global IoT in healthcare market report on the basis of component, connectivity technology, end-use, application, and region:

  • Component Outlook (Revenue, USD Billion, 2012 - 2022)

    • Medical Devices

      • Wearable External Devices

      • Implanted Medical Devices

      • Stationary medical devices

    • System and software

      • Remote Device Management

      • Network Bandwidth Management

      • Data Analytics

      • Application Security

      • Network Security

    • Services

      • System Integration Services

      • Consulting, Training, and Education

      • Support and Maintenance Services

  • Connectivity Technology Outlook (Revenue, USD Billion, 2012 - 2022)

    • Wi-Fi

    • Bluetooth Low Energy

    • ZigBee

    • NFC

    • Cellular

    • Satellite

  • Application Outlook (Revenue, USD Billion, 2012 - 2022)

    • Telemedicine

    • Medication Management

    • Clinical Operations

    • Inpatient Monitoring

    • Connected Imaging

    • Others

  • End-Use Outlook (Revenue, USD Billion, 2012 - 2022)

    • CRO

    • Hospitals and Clinics

    • Research and Diagnostic Laboratories

    • Others

  • Regional Outlook (Revenue, USD Billion, 2012 - 2022)

    • North America

      • U.S.

      • Canada

    • Europe

      • UK

      • Germany

    • Asia Pacific

      • Japan

      • China

    • Latin America

      • Mexico

      • Brazil

    • MEA

      • South Africa

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