The global wireless health market size was estimated at USD 47.5 billion in 2016 and is anticipated to expand at a CAGR of 23.5% over the forecast period. Increase in funding for digital health, advancements in wireless technologies, and rise in adoption of patient-centric approaches for disease management are among key factors contributing to the growth of the market. Gradual change toward value-based care in high-income countries is also an important growth driver.
Rising geriatric population and increase in prevalence of chronic diseases are some of the factors attributed to the growth of the market. There is a significant burden of chronic diseases worldwide. Key market players have developed several software, hardware, and services to improve management of these diseases, which ensures involvement of patients in the overall care management process.
Healthcare spending is increasing globally, with global health expenditure anticipated to increase from USD 7.83 trillion in 2013 to USD 18.28 trillion in 2040. The annual increase in healthcare spending is expected to be 2.7% in high-income countries, 3.4% in upper middle-income countries, 3.0% in lower middle-income countries, and 2.4% in low-income countries.
Key factors contributing to the rise in healthcare expenditure are incorporation of a fee-for-service model, rise in geriatric population, and increase in burden of chronic conditions. Pressure to cut down healthcare spending is rising globally as the cost of healthcare is growing faster than the growth of several economies. Technologically advanced healthcare IT products/services have the ability to reduce healthcare spending by improving care delivery.
A gradual transition from fee-for-service to a value-based care system is an important factor for the development of various solutions such as Population Health Management (PHM), care management, and patient engagement solutions by key players. Value-based care systems promote payments for quality, efficiency, and effectiveness of care delivery rather than quantity of care delivered by providers. The US CMS is under the process of shifting healthcare reforms to value-based care over the next five years through incorporation of bundled payments and other measures. This transition is also a major factor anticipated to reduce healthcare spending.
Increase in use of fitness devices is also a major factor driving the market. Demand for wearable fitness devices is rising globally owing to availability of technologically advanced products and their use in health monitoring. They are used for tracking all types of physical movements, owing to which they are increasingly used in improving exercise performance.
Wireless Personal Area Network (WPAN) emerged as the largest technology segment in 2016 with a revenue share of 36.2%. This can be attributed to increase in usage of wireless technologies in healthcare, growth in the trend of mHealth and telehealth, and increase in eHealth initiatives worldwide. Penetration of technology standards, such as Zigbee and Bluetooth, in healthcare applications is increasing. Owing to rise in penetration of WPAN in healthcare applications and continued research in this field, this segment is anticipated to exhibit the highest CAGR of 23.8% over the forecast period.
Wireless Local Area Network (WLAN) and Wireless Wide Area Network (WWAN) are also important technology segments in terms of revenue share. R&D pertaining to integration of WLAN and Worldwide Interoperability for Microwave Access (WiMAX) for healthcare applications such as physiological monitoring is rising. Various regional initiatives for implementation of healthcare IT infrastructure is also expected to propel the market.
WiFi4EU is an example of one such initiative. The European Commission announced the availability of free Wi-Fi connectivity to citizens and visitors at public places such as public buildings, parks, health centers, and museums. EC has announced a planned budget of EUR 120 million for a period of two years from 2017 to 2019 for the installation of Wi-Fi equipment.
Software emerged as the largest component type segment in 2016 with a revenue share of 41.7%. Key factors that can be attributed for this growth are increase in penetration of the Internet, rise in usage of IT in healthcare, and growth in number of regional eHealth initiatives. Moreover, companies are entering into strategic alliances with other market players to increase penetration of these solutions in healthcare.
Continuous technological advancements in IT and software is also a key factor boosting the market for wireless technologies. HealthSuite is a digital platform developed by Philips Wellcentive for clinical care. It is an open cloud-based platform for collecting, compiling, and analyzing clinical as well as other data from multiple sources and devices, including imaging and monitoring data, medical records, and personal devices and technologies. Analytics are used to derive insights on this platform.
The services segment is expected to clock in a lucrative CAGR of 24.7% owing to increase in demand for health and wellness monitoring systems and growth in the need for disease management. Moreover, increase in adoption of healthcare analytics and fraud management in developed regions is driving demand for these services.
The patient-specific application segment emerged as the largest revenue generator in 2016 with a share of over 56.0% in the wireless health market. Patient-specific applications are further segmented into physiological monitoring and patient communication and support. Increase in penetration of mobile phones and Internet connections, rise in number of mHealth applications, and growth in health consciousness among the population are some of the factors responsible for the growth of wireless health among patients.
The trend of ‘prescribing applications’ is also rising globally. Various initiatives are being undertaken for promoting and prescribing mHealth applications. Increasing number of “software as medical devices” are receiving FDA approval. In addition, data privacy policies have enabled safe use of mHealth applications. All these factors are increasing dependency on these applications.
Number of research initiatives pertaining to development of patient-centered applications are increasing. MyT1D Hero is being developed by researchers at the Michigan State University to connect parents and adolescents with type 1 diabetes for promoting self-management. This research is funded by America Diabetes Association.
Patients emerged as the largest end-use segment with a revenue share of 50.8% in 2016. Rise in prescribed applications, such as mHealth, telehealth, and wellness applications, growth in the trend of self disease management, and increase in chronic disease burden are some of the factors promoting market growth. Increasing trend toward use of wearable sensors for monitoring health parameters is also a significant factor driving the market.
The providers segment is expected to exhibit the highest CAGR of 24.9%. This can be attributed to increase in use of wireless technologies by healthcare providers. These applications, software, and platforms assist in improving operational efficiency along with ensuring timely care management and care delivery. They also reduce possible medical errors. Thus, dependency on these platforms in healthcare centers is rising.
PHM platforms, which provide real-time insights to healthcare providers for identifying and addressing care gaps, are an example of these platforms. They help providers improve patient outcomes along with cost reductions. They encompass various functions such as patient engagement, care management, analytics and business intelligence, and performance evaluation.
North America emerged as the largest market in 2016 with a share of over 49.0%. Some of the key factors that contribute to its share are increase in disease burden and rise in healthcare expenditure that demands cost-cutting measures. Moreover, improved healthcare IT infrastructure, increase in adoption of IT-enabled services, and rise in awareness among the population regarding wireless technologies are among few factors contributing to market growth. Increasing dependency on fitness devices by the population is positively influencing the market.
Healthcare expenditure in North America is anticipated to rise by approximately 4.6% annually from 2015 to 2019 and this is creating the need for cost-cutting initiatives. Payer trends shifting toward value-based payment models and emergence of platforms such as PHM, care management, and point-of-care solutions are among major factors that can be attributed to the growth of wireless health. Moreover, regional initiatives undertaken for development of eHealth and clinical interoperability are some factors reinforcing market growth.
Asia Pacific is anticipated to witness the highest CAGR of 25.7%. Some of the key factors attributed to rapid growth in this region are improving healthcare infrastructure, increase in penetration of the Internet, and growth in awareness about wireless technologies. Moreover, increase in geriatric population and rising burden of chronic diseases are expected to present significant growth opportunities for market. Governments of various countries are undertaking initiatives to promote eHealth and interoperability. In addition, various laws and standards are being introduced for securing patient information, thereby protecting patient interests.
The market is highly fragmented in nature with participants such as IBM; Allscripts; Cerner Corporation; Omron Corporation; Koninklijke Philips N.V.; Epic Systems Corporation; and Evolent Health, Inc. Key players are striving to increase their market share through strategies such as improvements in existing solutions and software platforms, development of new platforms, and strategic alliances with other market players.
For instance, in February 2016, Cerner Corporation announced a collaborative partnership with xG Solutions, Inc. and this was expected to provide the latter company access to Cerner’s platform HealtheIntent for managing outcomes and risks as a part of PHM. On the other hand, xG’s clinical content was expected to help enhance Cerner’s care management solutions HealtheCare and HealtheAnalytics. This collaboration will result in individualized patient assessment for various conditions, which can be integrated into the workflow and enable automated delivery of patient-specific medical plans for personalized care.
Base year for estimation
Actual estimates/Historical data
2014 - 2016
2017 - 2025
Revenue in USD Billion and CAGR from 2017 to 2025
North America, Europe, Asia Pacific, Latin America, Middle East & Africa
U.S., Canada, Germany, U.K., China, Japan, Brazil, Mexico, South Africa
Revenue forecast, company share, competitive landscape, growth factors, and trends
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This report forecasts revenue growth at global, regional, and country levels and provides an analysis on 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 wireless health market report on the basis of technology, component type, application, end use, and region:
Technology Outlook (Revenue, USD Billion, 2014 - 2025)
Component Type Outlook (Revenue, USD Billion, 2014 - 2025)
Application Outlook (Revenue, USD Billion, 2014 - 2025)
Patient communication and support
End-use Outlook (Revenue, USD Billion, 2014 - 2025)
Regional Outlook (Revenue, USD Billion, 2014 - 2025)
Middle East & Africa
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