Quadruple Growth Forecasted for IoT Healthcare Market
Growing demand for remote patient monitoring, mHealth technologies, and advanced healthcare information system, as well as increasing prevalence of chronic disease and rising government support are driving the market for IoT healthcare. Valued at $56.1 billion in 2017 by P&S Intelligence, the IoT healthcare market is projected to witness a CAGR of 30.2% during the forecast period 2018–2023. The study also estimated its 2023 size to be $267.6 billion.
When talking specifically of the healthcare sector, internet of things (IoT) refers to all the medical devices that can communicate with each other via sensors, in-built software or internet connection. On segmenting the IoT healthcare market by component, we get medical devices, systems and software, and services as the three categories. Among these, the medical devices category dominated the domain in 2017 with 44.6% revenue share. These devices record patients’ medical data and send it over to the cloud for storing, sharing, and analyzing.
IoT-enabled medical devices allow for real-time disease management and lead to healthcare cost reduction. These also help in getting patients discharged quickly and reduce the need for follow-up visits by sending the medical data directly to the doctor via the internet. In this way, these allow for remote patient monitoring, which is of special necessity to the elderly, who are more prone to diseases and cannot always visit a healthcare facility. Therefore, a rise in the demand for connected medical devices and remote patient monitoring are having a positive effect on the domain progress.
Another factor driving the IoT healthcare market progress is advancements in health information and management technologies. As the healthcare sector is fragmented, there are numerous professionals for treating patients with a specific disease. Thus, a coordination lack between doctors and patients has resulted in fragmentation of medical information, creating the demand for an integrated system, capable of compiling the data. A positive consequence of the need for enhanced doctor-patient communication was the emergence of mHealth mobile apps that record and share patient data effectively.
Growing prevalence of lifestyle-related and chronic diseases has created the need for constant self-monitoring of health parameters. Several mHealth apps help people keep a check on their glucose levels, heart rate, blood pressure, and other vitals. These apps and connected medical devices have popularized the use of IoT in personalized healthcare management, as these also record the disease progression, and help patients in scheduling appointments and managing medication. The rising smartphone use has led to an increase in mHealth app downloads, further impacting the IoT healthcare market positively.
Similarly, on the basis of technology, the domain can be divided into BLE, Wi-Fi, ZigBee, NFC, satellite, and cellular. Among these, Wi-Fi led the IoT healthcare market in 2017 with 41.8% revenue contribution. The reason for this is the growing adoption of Wi-Fi tools and gadgets in hospitals for transferring data to and from the cloud. This is also why, as per the study, the Wi-Fi category is expected to advance with the highest CAGR (32.1%) during the forecast period.
Hence, we see that advancements in technology, allowing for remote patient monitoring and real-time disease management, will continue to drive the IoT healthcare market progress.