The mounting investments being made in healthcare internet of things (IoT) solutions by private and public organizations, surging penetration of connected devices in the healthcare sector, and burgeoning demand for effective and affordable medical treatment are expected to drive the IoT in healthcare market at a CAGR of 30.2% during the forecast period (2018–2023). The market revenue stood at $56.1 billion in 2017 and it is projected to reach $267.6 billion by 2023. Moreover, the booming elderly population, growing incidence of chronic and lifestyle-related diseases, and increasing applications of smartphone-based mHealth technologies also support the market growth.
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One of the key growth drivers of the IoT in healthcare market is the escalating investments being made in the healthcare sector by both private and public organizations. For example, the U.S. federal government enacted the Health Information Technology for Economic and Clinical Health (HITECH) Act and the Affordable Care Act (ACA) to provide incentives to healthcare providers for adopting electronic health record (EHR) solutions, infrastructural development, and workforce training. Further, the ACA also supports medication management initiatives for enhanced healthcare in the country.
The component segment of the IoT in healthcare market is classified into services, medical devices, and systems and software. In 2017, the medical devices generated the highest revenue, due to the increasing usage of IoT-based devices to monitor and analyze the medical condition of patients and provide constant notification to the caregivers about the condition of patients, for further treatment. Whereas, the systems and software category will exhibit the fastest growth during the forecast period, due to the surging penetration of telemedicine across the world.
Whereas, the Asia-Pacific (APAC) IoT in healthcare market is expected to witness the fastest growth throughout the forecast period. This can be ascribed to the soaring prevalence of chronic illnesses and growing geriatric population in the region. Additionally, the escalating investments being made by many public and private organizations in the HIT sector of the region will also boost the APAC market growth. In 2017, China generated the highest revenue, due to the surge in aging population and the implementation of several government initiatives aimed at promoting the adoption of IoT in the healthcare sector in the nation.
Thus, the soaring investments being made in the development and promotion of IoT solutions for healthcare and mounting collaborations among market players will propel market growth in the coming years.
