Internet of Things in Healthcare Market Size, Share & Trends Analysis Report By Component (Medical Devices, System & Software, Services), By Connectivity Technology, By Application, By End-use, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global internet of things in healthcare market size was valued at USD 252.1 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 16.8% from 2023 to 2030. The market is driven by the increasing usage of smartphones, smart devices, and wearables to monitor patients. Also, the increasing adoption of remote patient monitoring for improved out-of-hospital care boosts the market. Along with this, rising investments in implementing digital technologies in healthcare institutions, and the emergence of connected care are the key factors boosting industry growth. Technological advancements and the growing geriatric population coupled with the rising prevalence of chronic conditions are also positively impacting the market expansion.

Increasing applications of smart devices and wearables in healthcare, such as glucometer, tablets, smartphones, smartwatches and headphones, heartrate cuff, bands and others, is expanding the scope of internet of things, especially in healthcare as they give special attention to access the patients remotely. Moreover, the tracker system in these devices enables to access patients in emergency by sending emergency alerts to seek medical help. Technological advancements in smartphone technology for improving disease diagnosis are anticipated to drive the growth of the internet of things in the healthcare market. Moreover, smartphones offer benefits such as large storage capacity, ease of use, and portability, making them an optimal solution for monitoring and diagnostic services.

Growing affordability and reduction in hardware costs are driving the demand for smartphones in the market, which in turn is expected to drive the growth of the market. In addition to this, measures are taken to improve the security of the data. For instance, in December 2022, Palo Alto Networks, announced medical IoT security a Zero Trust Security for medical devices. This will enable the healthcare providers to manage the connected devices securely and quickly. It is a type of cybersecurity that provides security to the data of the organization by verifying every individual user and device.

High penetration of smartphones is also one of the significant factors boosting the growth of internet of things in healthcare market. As per The Mobile Economy 2022, smartphone penetration was 67% of the global population in 2021 and is expected to reach 85% by 2025. Increase in the number of mobile subscriptions is also contributing to an increase in the demand for IoT solutions. Rise in the number of mobile subscriptions in emerging economies such as India, China, Indonesia, Bangladesh, and some African & Latin American countries is expected to further drive the market growth. In addition, continuous improvements in network infrastructure and growing network coverage are also creating opportunities for the key players to grow in the market. Moreover, the usage of mobile devices is rising among physicians.

The outbreak of COVID-19 had a positive impact on the IoT in the healthcare market. During the pandemic, the risk of getting infected with novel coronavirus while treatments and patient visits to the hospital was rising. This has led hospitals and healthcare systems adopt IoT in healthcare diagnosis increasingly to avoid the spread of viral infection. For instance, in February 2022, The Government of India announced two projects to enhance digital health for the people to fight against the pandemic. The government has projected to launch open platform including digital registries for doctors, other healthcare providers; novel healthcare identities; global access to digital healthcare facilities. Such advancements boost the global market. Moreover, after the COVID-19 pandemic, there is a surge in the adoption of telemedicine in healthcare sector which fosters the global market.

Component Insights

By component, the medical devices segment held the largest share of 37.8% in 2022. This is attributed to the large scale-adoption of medical devices owing to the increasing need for efficient and cost-effective solutions for delivering healthcare services. For instance, medical devices are connected with IoT sensors to offer healthcare professionals a continuous stream of real-time health data such as glucose monitoring, heart rate, and blood pressure. In addition, the growing demand for self-monitoring devices such as wearable devices is expected to surge the demand for connected medical devices in the healthcare sector. Several key players and universities are launching novel medical devices for self-monitoring of health indicators. For instance, in January 2022, Abbott introduced biowearables for self-monitoring of major nutritional health indicators. Such, initiatives are driving the medical devices segment.

The system & software segment is anticipated to exhibit a rapid CAGR during the forecast years. This growth is attributed to the technological advancements and growing investments by operating players for the development of novel connected solutions for the life science industry. For instance, in September 2021, McKesson launched a rapid return solution for health systems, which helps health systems and hospitals increase the amount of credit received for returned pharmaceuticals & OTC products, simplify the returns process and expedite credit processing. Furthermore, the increasing adoption of connected systems and digital technologies in health centers may boost the segment during the study period. The need for managing medical records is rising in developed economies such as the U.S., which is positively influencing the demand for software solutions.

Connectivity Technology Insights

By connectivity technology, the cellular segment held the largest share of 22.3% in 2022. Cellular technology enables us to send a huge amount of data over a long distance. Cellular networks have wide range of applications. In healthcare, they are used for remote patient monitoring as it allows data from devices to be collected and made available to healthcare professionals in real-time. Therefore, it is regarded as a faster, safer, and more conducive connectivity solution for remote monitoring. Cellular connectivity technology also improves usability, versatility, and portability for connected medical devices.

The LPWANs segment is expected to witness rapid growth over the forecast period. This is attributed to the exclusive features of LPWAN such as low power consumption and long range of communication for wireless monitoring and new healthcare applications. For instance, LPWAN is well suited in telemedicine applications for providing data in case of poor weather conditions causing increased error rates. CR-LPWAN adapts modulation schemes to the appropriate band for enhanced performance during poor weather conditions. Hence, advantages associated with LPWANs in healthcare industry are likely to boost the segment during the review period.

Application Insights

By application, the telemedicine segment held the largest share of 31.7% in 2022. The increasing prevalence of chronic diseases and the rising demand for patient monitoring are the major factors contributing to the segment’s share. Recent advancements in telemedicine technology coupled with the launch of telemedicine services are fueling the demand for IoT solutions. For instance, in May 2021, Lytus Technologies, a platform services company has launched its telemedicine services along with a network of local health centers in India offer additional services beyond virtual care. Moreover, key players in internet of things in healthcare are focused on the development of innovative telemedicine solutions or devices for improving the healthcare system. For instance, CareClix offers a broad range of telehealth and telemedicine services through high-definition video examinations and remote consultations.

The patient monitoring segment is anticipated to witness rapid growth over the forecast period. The growing prevalence of chronic diseases such as diabetes, cancer, and congestive heart failure is significantly contributing to the adoption of patient monitoring services, which in turn is expected to boost the demand for IoT solutions in healthcare. According to International Diabetes Federation, in 2021, about 537 million adults were living with diabetes globally and the number is estimated to increase to 643 million by 2030 and 783 million by 2045. Moreover, the growing demand for home healthcare services, the rising cost of advanced hospital equipment, and the increasing geriatric population are some of the factors driving the demand for patient monitoring and are thus, expected to boost segment growth during the study period.

End-use Insights

The hospitals and clinics segment captured the highest revenue share of 55.4% in 2022. Improved operational and functional efficiency gained by hospitals due to IoT is a key factor propelling the growth of the market. For instance, these solutions help hospitals in the management of real-time communication, medical records & billing, hospital workflows, and medication compliance improving overall operational efficiency. In addition, IoT solutions allow enhanced treatment outcomes, disease management, and patient experience leading to improved care delivery. Moreover, increasing investments by hospitals for accelerating the adoption of digital technology is another factor contributing to the segment share.

The clinical research organizations (CROs) segment is anticipated to expand at a significant pace with a CAGR of 17.0%. The rising implementation of IoT solutions for enhancing the accuracy of clinical research is a major factor fuelling the segment. CROs have augmented the widespread use of these solutions for improving patient retention and recruitment process, which are potential issues in clinical research. Hence, these capabilities are estimated to drive the segment during the forecast period.

Regional Insights

In 2022, North America dominated the internet of things in healthcare market with a share of 43.2%. The increased usage of telehealth, e-prescribing, mHealth, and other HC IT technologies as a response to COVID-19, as well as increased government requirements & support for IoT solutions in healthcare, are the primary growth factors driving the market. Furthermore, rise in the number of hospitals, advanced research organizations, universities, and medical device manufacturers has a positive impact on market growth. Increase in adoption of electronic health records is increasing significantly in the U.S. As per the Health IT reports until 2021, nearly 9 out of 10 U.S.-based physicians have adopted EHR. Thus, high adoption rate also plays a crucial role in boosting the market growth.

Asia Pacific is anticipated to witness the fastest growth over the forecast period. This is due to the improvement in healthcare infrastructure & increase in healthcare expenditure in developing Asian countries, owing to the growth in the adoption of advanced technology to cut down medical costs & streamline hospital workflow, are the key drivers of demand for IoT in healthcare in the region. Moreover, several government initiatives and supportive programs are also boosting the adoption of such technologies. For instance, in Australia, the state, as well as the federal government, support healthcare IT at their level. State-level programs, such as HealthSmart, and nationwide programs, such as HealthConnect, are examples of government programs undertaken to increase the integration of IoT solutions in healthcare.

Key Companies & Market Share Insights

Various strategies such as product development, partnerships, funding, investments, etc. adopted by key players is driving the internet of things in the healthcare market. For instance, in June 2022, the company launched Allia platform, which was designed for minimally invasive image-guided surgery. The platform was designed through a multiyear collaboration with surgeons and interventionists. Allia was designed with the purpose of improving workflow efficiency, enhancing user experience, and increasing the adoption of image guidance in daily practice. Some prominent players in the global internet of things in the healthcare market include:

• Medtronic

• Cisco Systems, Inc.

• IBM Corporation

• GE Healthcare

• Microsoft Corporation

• SAP SE

• Infosys Limited

• Cerner Corporation

• QUALCOMM Incorporated

• Amazon

• Intel corporation

• Wipro ltd

Internet of Things in Healthcare Market Report Scope

Global Internet of Things in Healthcare Market Report Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global IoT in the healthcare market report based on component, connectivity technology, application, end-use, and region:

• Component Outlook (Revenue, USD Million, 2018 - 2030)

  • 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, 2018 - 2030)

  • Cellular

  • Wi-Fi

  • Bluetooth

  • LPWANs

  • Zigbee

  • RFID

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Telemedicine

  • Patient Monitoring

  • Connected Imaging

  • Clinical Operations

  • Medical Management

  • Others

• End-use Outlook (Revenue, USD Million, 2018 - 2030)

  • Hospitals and Clinics

  • Clinical Research Organizations

  • Research and Diagnostic Laboratories

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Spain

    • Sweden

    • Norway

    • Denmark

  • Asia Pacific

    • Japan

    • China

    • India

    • South Korea

    • Australia

    • Thailand

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • MEA

    • South Africa

    • Saudi Arabia

    • UAE

    • Kuwait