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

Internet of Things (IoT) in Healthcare Market Size, Share & Trends Analysis Report By End Use, By Component, By Connectivity Technology (Cellular, Wi-Fi, Satellite), By Application, And Segment Forecasts, 2018 - 2025

  • Published Date: Nov, 2018
  • Base Year for Estimate: 2017
  • Report ID: 978-1-68038-857-2
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2016
  • Number of Pages: 140

Industry Insights

The global IoT in healthcare market size was valued at USD 120.2 billion in 2017 and is anticipated to exhibit a CAGR of 20.2% over the forecast period. Growing adoption of wearable technology, rising investments to implement digital technologies in healthcare settings, and emergence of connected care are key factors boosting the adoption of the Internet of Things in the healthcare industry. Technological advancements, growing geriatric population, and rising prevalence of chronic conditions are also positively impacting the market.

According to a research conducted by network provider company Aruba in 2017, nearly 87.0% of healthcare organizations globally will have adopted Internet of Things by 2019 as compared to 60.0% in 2017. Researchers surveyed approximately 3,100 IT enterprises, including healthcare and business decision makers, across 20 countries. This study concluded that healthcare companies have introduced IoT to improve patient monitoring, foster innovations, and reduce costs.

U.S. IoT in healthcare market

Emergence of connected technology has significantly benefited the healthcare sector. These devices are majorly used for patient monitoring, taking readings, observing patterns, and notifying patients in case of any abnormalities. The technology is also used in monitoring at-risk patients and making informed decisions.

Reduction in emergency room wait time is also one of the notable benefits of IoT, which has greatly accelerated its adoption in medical management. Key players are developing innovative software programs to address various health issues. For instance, to address one such issue of emergency room wait times, GE Healthcare developed a software program, AutoBed, which was piloted at Mt. Sinai Medical Center in New York. This software helped in reducing wait time for 50.0% individuals in need of an inpatient bed.

Growing use of connected technology in healthcare settings for management of operational workflows as well as clinical tasks is also one of the key factors driving the market. It has enabled market players to develop a platform that aids in notifying future downtime of systems by issuing an automatic alert. Philips, in collaboration with OpenMarket, developed a remote sensor technology with mobile messaging called e-Alert, which notifies any potential issue of MRI systems before its downtime. This technology won the Most Innovative IoT Solution award in 2017.

Component Insights

As of 2017, the services segment held the largest share of 45.1% in the overall market. System integration services, training and education, support and maintenance, and consulting are among key service offerings in the market. Growing demand for uninterrupted data flow between people and devices to boost efficiency of medical systems, enhance security, and improve informed decision making in real time are some of the factors driving the segment.

Medical devices is another major segment in terms of revenue share. With the emergence of Internet of Things, dependency on connected wearable, implantable, and stationary medical devices has increased for health monitoring. Growing need for connected health services among critically ill patients, geriatrics, and pediatric population, reduced cost of care, better treatment outcomes, and real-time disease management are some of the factors boosting segment growth.

The system and software segment is expected to exhibit the highest CAGR of 21.6%. This can be attributed to factors such as growing investments by market participants to develop innovative connected solutions for the life science industry, technological advancements, and rising adoption of digital technologies and connected systems in health centers. Moreover, need to manage massive patient records is rising in developed economies, which is positively impacting demand for software solutions.

Connectivity Technology Insights

Cellular technology emerged as the leading segment in 2017. Cellular connectivity technology allows users to send massive amounts of data over long distances. Cellular networks are increasingly used for medical applications such as remote patient monitoring as it enables data from devices to be collected and made available to healthcare professionals in real time.

Cellular technology is regarded as a safe, conducive, and faster connectivity solution for remote monitoring. It also enhances portability, usability, and versatility for connected medical devices. Technological advancements in communication and connectivity are also driving the segment.

The satellite segment is anticipated to register a lucrative CAGR of 24.4% over the forecast period. Use of satellite technology in various life science applications has increased. These applications include management of emergencies, interconnectivity of medical data, and facilitating patient mobility. Provision of connectivity across wide areas covering remote locations has further increased demand for satellite connectivity for various applications such as telemedicine.

End-use Insights

Hospitals and clinics accounted for the dominant revenue share in the global IoT in healthcare market in 2017, fueled by improved functional and operational efficiency gained by hospitals due to the incorporation of Internet of Things. These solutions enable improved disease management, enhanced patient experience, and better treatment outcomes, resulting in enhanced care delivery. Apart from patient management, these solutions allow hospitals in management of inventory, billing and medical records, real-time communication, medication compliance, and hospital workflows, which improves operational efficiency.

Increased investments by hospitals to accelerate adoption of digital technologies is also responsible for the segment’s large revenue share. A shifting trend from fee-for-service toward value-based care in developed economies is also among driving the adoption of Internet of Things in hospitals. In developing economies such as India, adoption of these solutions is rising on account on growing need to improve quality of care.

The clinical research organizations segment is expected to exhibit a CAGR 20.9% over the forecast period. Growing adoption of IoT solutions to improve accuracy of clinical research is a key factor for segment growth. Dependency on these solutions has increased by clinical research organizations to improve patient recruitment and retention process, which are potential issues that could derail the number of clinical studies.

Application Insights

Inpatient monitoring held the leading revenue share in 2017. Increasing demand for patient monitoring and emergence of connected devices are key factors driving this segment. Rising demand for enhanced patient care and safety through real-time and remote monitoring of vital signs is further driving demand for IoT solutions for inpatient monitoring. Increasing adoption of smart wearable devices is another key driver boosting segment growth.

Global IoT in healthcare market

Key players are focusing on the development of innovative inpatient monitoring solutions or devices to enhance healthcare systems. For instance, GE Healthcare has a comprehensive product portfolio for patient monitoring solutions, such as care ports, patient monitors, and networking and various NIBP cuff accessories. Koninklijke Philips N.V, Drägerwerk AG & Co. KGaA, Biotronik, and Boston Scientific are some other providers of IoT solutions for inpatient monitoring.

The medication management segment is expected to exhibit the highest CAGR of 21.4% over the forecast period. Growing adoption of healthcare information systems, rising need to reduce medication errors and improve patient safety, and increasing adoption of mHealth solutions for medication management are factors driving the segment. Rising focus of market players to develop innovative solutions in the field of medication management is also boosting segment growth.

Regional Insights

In 2017, North America dominated the market in terms of revenue, accounting for 37.0% of the market. Growing adoption of healthcare IT solutions, presence of key players, availability of sophisticated infrastructure, and legislative initiatives such as HITECH Law, 2009 are among key factors responsible for increased adoption of IoT solutions in the region. Rising initiatives to curb medical expenses, resulting in shifting trend from fee-for-service to a value-based model, have also given the market a significant boost.

U.S. accounted for the largest revenue share in North America and this trend is expected to continue over the forecast period. Technological advancements and various government initiatives promoting the adoption of digital platforms in the life science industry are key factors contributing to its dominant share. There are various initiatives being undertaken to develop eHealth and clinical interoperability, which is driving the market.

Asia Pacific is expected to register the highest CAGR of 21.4% over the forecast period. Improving healthcare IT infrastructure, rising initiatives for promoting connected health services, and gradually increasing adoption of advanced technologies such as smart wearables are some of the factors contributing to market growth. Growing investments by medical device and pharmaceutical players in this region is also expected to drive the market in the coming years.

IoT in Healthcare Market Share Insights

Microsoft, Philips, Cisco, IBM, and Cerner are among the major players developing innovative solutions. Investments in R&D, collaborations with other industry participants, and service differentiation are among the key strategies adopted by these players to gain competitive edge. For instance, in 2016 IBM collaborated with Pfizer to develop a system to improve clinical research on Parkinson’s disease.

Report Scope



Base year for estimation


Actual estimates/Historical data

2014 - 2016

Forecast period

2018 - 2025

Market representation

Revenue in USD Million and CAGR from 2018 to 2025

Regional scope

North America, Europe, Asia Pacific, Latin America, Middle East & Africa

Country scope

U.S., Canada, Germany, U.K., France, Italy, Spain, Russia, Netherlands, Sweden, Japan, China, India, Australia, Singapore, Brazil, Mexico, South Africa, Saudi Arabia

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, and country levels and provides an analysis of latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research, Inc. 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 Million, 2014 - 2025)

    • 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 Million, 2014 - 2025)

    • Wi-Fi

    • Bluetooth low energy

    • ZigBee

    • Near field communication

    • Cellular

    • Satellite

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

    • Clinical research organizations

    • Hospitals and clinics

    • Research and diagnostic laboratories

    • Others

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

    • Telemedicine

    • Medication management

    • Clinical operations

    • Inpatient monitoring

    • Connected imaging

    • Others

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

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

      • Spain

      • Italy

      • France

      • Russia

      • Sweden

      • Netherlands

    • Asia Pacific

      • China

      • Japan

      • India

      • Australia

      • Singapore

    • Latin America

      • Brazil

      • Mexico

    • Middle East & Africa

      • South Africa

      • Saudi Arabia

Key questions answered by the report
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