IoT Healthcare Market

Market Overview

The global IoT healthcare market share was valued at USD 99.58 billion in 2022. It is projected to reach USD 486.34 billion by 2031, growing at a CAGR of 19.27% during the forecast period (2023–2031).

IoT can enhance the quality of treatment doctors provide and safeguard patients' health and well-being. In recent years, the healthcare industry has seen a dramatic uptick in using IoT solutions for asset tracking, monitoring, and upkeep. The healthcare sector can profit from IoT because of its end-to-end connectivity, low cost, and ability to report and monitor in real-time, collect and analyze data, and provide remote medical support. Wearable and other technologies made possible by the Internet of Things have also improved patients' quality of life. The Internet of Things (IoT) in healthcare primarily serves two functions: better illness management and lower healthcare expenses.

Market Dynamics

Market Driving Factors

Increased Adoption of Smart Devices and Wearable

Smartphones, tablets, and phablets, as well as wearables like fitness trackers, heart rate monitors, blood pressure monitors, sleep trackers, and more, all play a role in the collection, transport, and analysis of data between a device and a remote sensor. There has been a rise in the need for healthcare applications, which has fueled growth in the loT in the healthcare market as more and more people use smart gadgets and wearables. The capabilities of many wearable devices, especially ones helping people with chronic illnesses, have attracted much attention. These wearable tech gadgets keep track of the user's vitals all day long and wirelessly sync the information with other devices (such as smartphones and PCs) when the user is ready to view it.

Market Restraining Factors

Outdated Infrastructure Hindering the Digital Growth of the Medical Industry

In healthcare, outdated facilities are a well-known problem. It is well known that many healthcare providers are currently struggling with outdated IT systems. When it comes to introducing cutting-edge tech, these businesses need the help of skilled workers. The market is projected to be stymied by factors such as internet outages, which reduce the efficiency of rugged IoT devices, and aging infrastructure, which slows the digital development of the healthcare sector. The internet of things (IoT) healthcare market is expected to face challenges in the form of an expansion of attack surfaces brought on by an increase in IoT devices as a result of data security restrictions and the integration of multiple devices and protocols, which could lead to data overload and inaccuracy.

Key Market Opportunities

Government Initiatives for Promoting Digital Health

To advance digital health, governments in several nations have launched programs. The healthcare system is being restructured, and rules mandating electronic health records (EHR) are only two examples of the steps being taken to bring about this change. The internet of things (IoT) healthcare market is boosted by several factors, including an increase in investment, a rise in the number of internet users, and the demand for healthcare in remote regions. Government initiatives to promote digital health and a low doctor-to-patient ratio are expected to create lucrative prospects for market participants.

Regional Analysis

The global IoT healthcare market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.  

North America Dominates the Global Market

North America is the most significant shareholder in the global IoT healthcare market and is expected to grow during the forecast period. The Internet of Things (IoT) Healthcare Market in North America covers the United States, Canada, and Mexico. Increases in active patient involvement and patient-centric care and the development and widespread acceptance of high-speed network technologies for IoT connectivity fuel the market's expansion. Government measures to promote digital health and the low doctor-to-patient ratio that has led to growing reliance on self-operated health platforms present lucrative prospects for market participants. The United States has a large share of the North American internet of things (IoT) healthcare industry because of the widespread adoption of connected healthcare devices and the increasing interest in and funding healthcare IoT solutions.

Europe is expected to grow during the forecast period. As a result, cutting-edge software and hardware are used to make essential medical tasks less taxing for patients. The IoT healthcare market in Europe is anticipated to be driven by healthcare providers' widespread adoption of IoT technology to offer remote monitoring solutions. Markets in Germany and the United Kingdom are predicted to expand rapidly because of rising numbers of individuals suffering from chronic diseases such as chronic obstructive pulmonary disease (COPD), respiratory ailments, and disorders. Additionally, as people become more aware of the importance of physical fitness and health, there is a rising need for self-health management strategies. The increased availability of health information has led to a rise in demand for various medical wearable devices across the region.

Due to the rising demand for IoT healthcare components in Asia Pacific's developing nations like China and India, the region is expected to expand at the fastest rate over the forecast period. The IoT healthcare market in the Asia Pacific is increasing because of rising internet penetration, increasing desire for better medical care and growing numbers of people using cloud computing. Medical software in China's healthcare industry is expected to deliver real-time scenario data from IoT devices, as reported by the Healthcare Information and Management Systems Society Middle East (HIMSS).

Brazil also took the lead in Latin American income, and it's expected that trend will continue into the foreseeable future. The most significant percentage of life science industry income is attributable to technological developments and various government initiatives encouraging the adoption of digital platforms in the industry. Furthermore, several initiatives to develop e-health and clinical interoperability are underway, driving the market. The economy of Argentina is projected to expand at a faster rate than any other regional market. The healthcare industry is gradually adopting cutting-edge technology thanks to better healthcare IT infrastructure, more initiatives to promote connected healthcare services, and a growing patient population.

Segmental Analysis

The global IoT healthcare market is segmented by component, application, and end-user.

By Components Analysis

Based on components, the global market is bifurcated into medical devices, services, and systems & software.

The systems & software segment is the highest contributor to the market and is expected to grow during the forecast period. The primary emphasis on device management and integration, information security, data collecting, and data analytics that help decrease delivery time and project costs bodes well for the systems and software industry, which is expected to present substantial growth potential. The systems and software market is divided into remote device management, network bandwidth management, data analytics, application security, and network security. Deployment/integration services, consultancy services, and support/maintenance services are all subsets of the larger service offering.

By Application Analysis

Based on application, the global market is bifurcated into telemedicine, workflow management, connected imaging, inpatient monitoring, medication management, and others.

The inpatient monitoring segment is the highest contributor to the market and is expected to grow during the forecast period. In-patient monitoring is the ongoing assessment of a patient's vital signs to inform management decisions and therapeutic measures. It offers several different monitoring setups for accumulating physiological data, which can then be evaluated and saved in gateways and clouds. Since this application entails constant observation or measurement of patients' physiological functioning to inform management decisions and therapeutic approaches.

By End-User Analysis

Based on end-user, the global market is bifurcated into hospitals, surgical centers, and clinics, clinical research organizations (CROS), governments, and others.

The hospitals segment is the highest contributor to the market and is expected to grow during the forecast period. Increased use of the Internet of Things (IoT) enabled medical devices by healthcare providers to boost the effectiveness of care delivery and allow patient-centric care delivery services are driving this industry forward. The rising prevalence of chronic care disorders like diabetes, cardiovascular disease, arthritis, and cancer has put a strain on hospital resources. The volume of patient data created is expanding exponentially, paralleling the increase in the total number of patients being treated. The Internet of Things (IoT) allows for the smooth integration of all hospital equipment with the hospital's information systems, improving the clinical and administrative processes within and beyond the healthcare organization. It also aids in reducing the overall cost of care and the length of time patients spend in the hospital.

Recent Developments

1. October 2022- Medtronic plc, a world leader in healthcare technology, has announced three significant approvals for the Hugo robotic-assisted surgery (RAS) system in different parts of the world.
2. October 2022- Cisco Provides Game-Changing Innovations for Cloud Operators to Reduce Power Consumption and Increase Efficiencies in Operations.