Global market for IoT in Healthcare will reach USD 236.82 billion by 2025

Definition / Scope
Market Overview
Market Risks
Top Market Opportunities
Market Trends
Industry Challenges
Technology Trends
Pricing Trends
Regulatory Trends
Market Size and Forecast
Market Outlook
Technology Roadmap
Distribution Chain Analysis
Competitive Factors
Key Market Players
Strategic Conclusion
References
Appendix

Definition / Scope

The internet of things in the healthcare sector is the network of medical devices that are embedded with sensors, software, and other technologies. This technology uses connectivity to enable the direct capture, share, and monitor of data automatically.

In the healthcare sector, the internet of things technology is used for data collection, research analysis, monitoring electronic health records, observing patterns, notifying patients in case of imperfections in the pattern, and other healthcare data.

It assists to improve patient outcomes and empowers health care professionals to deliver superlative care. Based on the type of application and components, the global internet of things in the healthcare market is categorized into the following types:

Market Overview

The total market size of the global internet of things in the healthcare market is valued at USD 113.75 billion in the year 2019 and is expected to reach USD 128.53 billion in the year 2020.

Its market value is expected to grow at a CAGR of 13% within the forecasted time horizon of 2020-2025. Its market value is expected to reach USD 236.82 billion by the end of the year 2025.

Based on geography, the North American region is leading the global market with a market share of almost 45% of the total global internet of things in the healthcare market. The market size of this region is valued at USD 51.18 billion in the year 2019.

Based on the components, the services segment is leading the market with a market share of almost 64.10% of the total global internet of things in the healthcare market. The market size of this segment is valued at USD 72.91 billion in the year 2019.

Based on the type of application, the inpatient monitoring segment is leading the market with a market share of almost 22.08% of the total global internet of things in the healthcare market. The market size of this segment is valued at USD 25.11 billion in the year 2019.

Rising demand for self-health management services, increasing incidence rates of chronic diseases, increasing popularity and adoption of IoT services, and rising adoption of wearable technology are the factors responsible for the growth and development of the global internet of things in the healthcare market.

However, the dearth of professional technicians and the high cost of the development of the internet of things application might restrain the growth and development of this market.

The key market players engaged in the operation of its market are Agamatrix (US), Armis (US), Bosch (Germany), Capsule Technologies (US), Comarch SA (Poland), GE Healthcare (US), HQ Software (Estonia), Huawei (China), Medtronic (Ireland), etc.

Market Risks

Dearth of the professional technicians

Globally, the number of professional technicians competent in the operation of digital technologies including the internet of things, artificial intelligence, etc is quite limited. For instance, according to the European Commission, almost 37% of the employees don’t have basic digital skills in the context of Europe.

Along with this, advancement in science and technology has created the situation of re-skilling for the professional technicians periodically in accordance with dynamic advancement in the technology sector.

The World Economic Forum has estimated that almost 54% of the employees all over the world require re-skilling by the year 2022. Because of this, it has been expected that there will be almost 756,000 unfilled jobs in the information communication technology sector in the year 2020.

The scarcity of professional technicians in the sector of digital technology might restrain the growth and development of the global internet of things in the healthcare market.

Top Market Opportunities

Rising demand for self-health management service

Globally, the demand for self-health management services is in increasing trend. The global market for self-care medical devices is expected to grow at a CAGR of 4.7% within the forecasted time horizon of the year 2020-2025.

The global market for self-care medical devices to reach almost USD 20 billion by the year 2025. Because of this, the number of connected medical devices is expected to reach more than 50 billion over the next decade. The total amount of data created by IoT devices will reach more than 800 ZB per year by the end of the year 2021.

Along with this, the focus on active patient engagement is in a rising trend. For instance, GE Healthcare has developed a software program AutoBed for the patients, that has helped to reduce the wait times for 50% of the patients requiring an inpatient bed.

The rising demand for self-health management services is driving the growth and development of the global internet of things in the healthcare market.

Rising incidence rates of chronic diseases

Globally, the incidences and burden of chronic diseases are on a rising trend. Almost one in three adults has multiple chronic diseases worldwide. The major chronic illnesses in the globe are diabetes, cancers, cardiovascular diseases, respiratory diseases, genetic diseases, etc.

According to the World Health Organization, the prevalence of chronic diseases is expected to increase by 57% by the end of the year 2020. It has been estimated that chronic diseases will account for about 75% of total global deaths.

Here, almost 71% of the deaths will occur from ischemic heart disease, 75% from stroke, and 70% of the deaths from diabetes in developing countries. The rising incidences of chronic diseases are driving the use and adoption of the internet of things technologies in the healthcare market for the continuous monitoring of the patient health status and other utilities.

Along with this, the pandemic outbreak of the COVID-19 disease has enhanced the demand for the real-time monitoring of health & fitness devices, internet of things in the healthcare market.

For instance, according to the World Health Organization, artificial intelligence, cloud-based systems, and internet of things technologies have been used at field COVID-19 hospital of Wuhan, China to provide the constant monitoring of the vital diagnostic signs of COVID-19 such as temperature, heart rate, and blood oxygen levels.

Along with this, the government of India has launched a mobile-based application named Aarogya setu app to identify the population at risk for COVID-19 disease.

The secular trend of the rising chronic illnesses and the pandemic outbreak of the COVID-19 disease is creating a significant opportunity for the growth and development of the global internet of things in the healthcare market.

Market Trends

The factor driving the growth and development of the global internet of things in the healthcare market is the rise of digitalization, better accessibility to high-speed internet, increasing adoption of smart devices & wearables, mandatory regulations for the use of electronic health records, increasing adoption of wearable technology, interest in self-health measurement, rising interest of the startup companies in IoT, high research & development spending, growing geriatric population, rising popularity & adoption of IoT services.

The major driving factors for the global internet of things in the healthcare market are as follows:

Rising popularity and adoption of IoT services

Globally, the popularity and adoption of the internet of things technologies are in increasing trend. Most of the governmental and non-governmental organizations are focused on the use of the internet of things networks to enhance the performance and efficiency of day to day activities.

For instance, in a research study conducted among 3,100 IT enterprises including healthcare and business decision-makers across 20 countries almost by Aruba, network providing company, almost 87% of the healthcare organizations adopt and use the IoT services in the year 2019 to improve patient monitoring, fostering innovations, and reducing costs.

The rising popularity and adoption of the internet of things-based devices, services, and networks are driving the growth and development of the global internet of things in the healthcare market.

Rising adoption of wearable technology

Globally, the adoption of wearable technology in healthcare & other sectors is a rising trend. The market value of the global wearable technology market is valued at USD 27.91 billion in the year 2019. Its market value is expected to grow at a CAGR of 17.65% within the forecasted time horizon of 2020-2025.

Its market value will reach USD 74.03 billion by the end of the year 2025. The adoption of wearable technology is also rising in the healthcare sector. The global wearable healthcare devices market is expected to grow at a CAGR of 20.5% within the forecasted time horizon of 2020-2025.

The market value of the global wearable healthcare devices market is expected to reach USD 46.6 billion by the end of the year 2025. The wearable devices are connected with people through the internet of things technologies to monitor their health status, track physical activities, communication, and other purposes.

The rising adoption of wearable technology is creating a significant opportunity for the growth and development of the global internet of things in the healthcare market.

High cost associated with IoT infrastructure

The cost of the development of the IoT infrastructure and networks is quite high. For instance, the cost of the development of the ECG monitors ranges from almost USD 3,000 to USD 4,000 per unit while the cost of the development of the internet of things technology for fitness machines ranges from USD 30,000 to USD 35,000.

The average cost of the development of the simple internet of things application is about USD 30,000 while the cost of the development of the complex internet of things application is about USD 50,000.

The high cost associated with the development of the internet of things infrastructure & applications might restrain the growth and development of the global internet of things in the healthcare market.

Industry Challenges

Cyberattacks & data breaches concerns

Globally, the number of data breaches and cyberattacks is in increasing trend. On average, the constant rate of hacker attacks on computers is about 39 seconds and almost 16 attacks occurred every minute.

In the year 2019, more than 15 billion records were exposed in the data breaches and about 8.4 million distributed denial of service attacks have occurred. The trend of cybercrimes has even increased to a more extent after the pandemic outbreak of COVID-19 disease.

According to the US FBI, it has been estimated that cybercrimes have been increased by almost 300% after its pandemic outbreak. So, it is quite challenging for the key market players engaged in the global internet of things in the healthcare market to deal with cyberattacks and data breach concerns related to the violation of patient information.

Technology Trends

The adoption of new and advanced technologies is creating a favorable environment for the growth and development of the global internet of things in the healthcare market. Some of the key technological trends in this market are discussed as follows:

Artificial intelligence: The artificial intelligence technology assists the internet of things in the sector of data preparation, data discovery, visualization of streaming data, time series accuracy of data, etc.

Voice user interface: This technology assists in setting up the devices, giving commands, and receiving results through the voice command. The available digital assistant devices are HomePod, Alexa, Siri, and Google Assistant.

Digital twin technology: Through the use of this technology, the organizations provide a clear picture of the operation of machines and assist them to predict changes ahead of time.

Edge computing technology: This technology allows users to minimize latency, conserve network bandwidth, operate with quick decisions, and move the data for analysis and processing.

Pricing Trends

The price of the global internet of things in the healthcare market depends upon the component type, technology, application, functionality, and others.

For instance, the cost of the development of the ECG monitors ranges from almost USD 3,000 to USD 4,000 per unit while the cost of the development of the internet of things technology for fitness machines ranges from USD 30,000 to USD 35,000.

The cost of the development of IoT applications varies with the type of application sector.

For instance, the average cost of the development of the internet of things for medical & healthcare systems is about USD 30,000 while the average cost of the development of the internet of things application for media & infrastructure management is about USD 10,000 and USD 25,000 respectively.

Regulatory Trends

Some of the regulations directly or indirectly related to the global internet of things in the healthcare market are discussed as follows:

Health Information Technology for Economic and Clinical Health Act: This act was developed by the government of the US in the year 2009. This act has been developed to stimulate the adoption of electronic health records and supporting technologies associated with it.

Health Insurance Portability and Accountability Act: This act was developed by the US Department of Health and Human Services to prevent the sensitive patient data leakage of the patient without their knowledge and consent.

Fair Credit Reporting Act: This federal act was developed by the government of Canada to address the fairness, accuracy, and privacy of the personal information present in the files of the credit reporting agencies.

Market Size and Forecast

The total market size of the global internet of things in the healthcare market is valued at USD 113.75 billion in the year 2019 and is expected to reach USD 128.53 billion in the year 2020.

Its market value is expected to grow at a CAGR of 13% within the forecasted time horizon of 2020-2025. Its market value is expected to reach USD 236.82 billion by the end of the year 2025.

Based on geography

The North American region is leading the global market with a market share of almost 45% of the total global internet of things in the healthcare market. The market size of this region is valued at USD 51.18 billion in the year 2019.
The European region accounts for a market share of almost 30% of the total global internet of things in the healthcare market. The market size of this region is valued at USD 34.12 billion in the year 2019.
The APAC region accounts for a market share of almost 20% of the total global internet of things in the healthcare market. The market size of this region is valued at USD 22.75 billion in the year 2019.
ROW stands for the rest of the world, which includes the Middle East Africa region, and Latin America. This segment accounts for a market share of almost 5% of the total global internet of things in the healthcare market. The market size of this region is valued at USD 5.68 billion in the year 2019.

Based on the components

The services segment is leading the market with a market share of almost 64.10% of the total global internet of things in the healthcare market. The market size of this segment is valued at USD 72.91 billion in the year 2019.
The devices segment accounts for a market share of almost 15.38% of the total global internet of things in the healthcare market. The market size of this region is valued at USD 17.5 billion in the year 2019.
The system & software segment accounts for a market share of almost 20.51% of the total global internet of things in the healthcare market. The market size of this region is valued at USD 23.33 billion in the year 2019.

Based on the type of application

The inpatient monitoring segment is leading the market with a market share of almost 22.08% of the total global internet of things in the healthcare market. The market size of this segment is valued at USD 25.11 billion in the year 2019.
The telemedicine segment accounts for a market share of almost 21.94% of the total global internet of things in the healthcare market. The market size of this region is valued at USD 24.96 billion in the year 2019.
The medication management segment accounts for a market share of almost 19.30% of the total global internet of things in the healthcare market. The market size of this region is valued at USD 21.96 billion in the year 2019.
The clinical operations segment accounts for a market share of almost 13.61% of the total global internet of things in the healthcare market. The market size of this region is valued at USD 15.48 billion in the year 2019.
The connected imaging segment accounts for a market share of almost 13.61% of the total global internet of things in the healthcare market. The market size of this region is valued at USD 15.48 billion in the year 2019.

Market Outlook

The global internet of things in the healthcare market is expected to grow at the CAGR of 13% within the forecasted time horizon of 2020-2025 because of rising demand for self-health management service, increasing incidence rates of chronic diseases, increasing popularity and adoption of IoT services, and rising adoption of wearable technology.

Its market value will reach USD 236.82 billion by the year 2025.

Technology Roadmap

The adoption of new and advanced technologies is enhancing the capabilities and opportunities for the internet of things in the health care market.

The major technological trends in the global internet of things in the healthcare market are artificial intelligence, voice user interface digital twin technology, edge computing technology, blockchain, wearable technology, etc.

These technological changes occurring in the global internet of things in the healthcare market are driving the growth and development of its market.

Distribution Chain Analysis

The key stakeholders involved in the operation of this global internet of things in the healthcare market are raw materials manufacturers of IoT components, internet of things hardware & software suppliers, IoT service providers, and end-users.

The major end-users engaged in the global internet of things in the healthcare market are clinical research organizations, hospitals, clinics, research, diagnostic laboratories, and others.

At first, the raw materials required for the IoT components are developed and software vendors are engaged in the development of the software & applications related to IoT. The IoT applications are available through the service & solutions providers to the end-users of the healthcare industry.

Competitive Factors

The key market players engaged in this market are competing for the product portfolio expansion, high investment in research and development activities, mergers & acquisitions, geographical expansion, and collaborations.

For instance, Philips in collaboration with the open market to develop a remote sensor technology with a mobile messaging application named as e-Alert to notify the potential issue of MRI system.

IBM has collaborated with Medtronic (medical device company), to develop IQcast for diabetic patients to continuously monitor the glucose level of patients and predict the likelihood of the person experiencing a low-glucose event within almost 1-4 hours.

They are also focused on the development of advanced technologies and relevant updates for the internet of things. In 2020, Forescout has introduced new updates for the modern enterprise platform to maintain compliance and minimize the cyber-attacks & data breaches across the healthcare environment of organizations.

Key Market Players

The key market players engaged in the operation of the global internet of things in the healthcare market are Agamatrix (US), Armis (US), Bosch (Germany), Capsule Technologies (US), Comarch SA (Poland), GE Healthcare (US), HQ Software (Estonia), Huawei (China), Medtronic (Ireland), etc. Short profile of the key market players engaged in their market are discussed as follows:

Agamatrix: It is a US-based company engaged in the design, development, and manufacture of world-class products for diabetic care with accuracy, technology, and innovation.

Armis: It is the leading US-based agency engaged in the sector of the internet of things, informatics, medical, and unmanaged device security.

Bosch: It is a German-based multinational company engaged in the development and manufacture of power tools, security systems, home appliances, engineering, electronics, cloud computing, automotive parts, and the internet of things.

Capsule Technologies: It is the leading US-based multinational company engaged in the provision of medical device integration, clinical surveillance, and patient monitoring for the hospital and healthcare sector.

Comarch SA: It is a Poland based multinational company engaged in the provision of computer software for telecommunications, finance, banking, the service sector, and public administration.

GE healthcare: It is a US-based companyengaged in themanufacture and distribution of diagnostic imaging agents and radiopharmaceuticals for imaging modalities. The revenue of this company was valued at USD 19.78 billion.

HQ Software: It is an Estonia-based company engaged in the development and manufacture of software for the Internet of things, augmented reality, virtual reality, artificial intelligence, and machine learning.

Strategic Conclusion

The global internet of things in the healthcare market is growing at the CAGR of 13% within the forecasted time horizon of 2020-2025 because of rising demand for self-health management service, increasing incidence rates of chronic diseases, increasing popularity and adoption of IoT services, and rising adoption of wearable technology.

However, the dearth of professional technicians and the high cost of the development of the internet of things application might restrain the growth and development of this market.

References

Appendix

IoT= Internet of Things
USD= United States Dollar
CAGR= Compound Annual Growth Rate