The global connected health and wellness devices market is forecasted to reach $612 billion by 2024, in part driven by increasing incidences of chronic diseases that require continuous health monitoring, according to a Grand View Research report.
In the next eight years, the demand for wearable medical devices and remote patient monitoring will increase due to both the shifting consumer preference towards a healthier lifestyle combined with the rise in lifestyle-associated diseases, according to research from the San Francisco-based market research and consulting firm.
The global market in 2015 stood at $123 billion, and the research report points to a number of trends that will spur further growth, such as the mass adoption of mHealth devices and the focused approach towards the adoption of Internet of Things (IoT) devices, including sensors and mobile communication devices. At the same time, skyrocketing healthcare costs, and an increased focus on reducing these costs, along with a growing awareness of connected health devices, is pushing healthcare organizations to incorporate innovative digital health strategies to meet the high patient volumes.
And, in general, there is a rising demand among healthcare organizations and health plans for greater access to patient health information which is a key factor in the connected health and wellness devices market growth.
In addition, government and non-profit organizations are creating future growth opportunities for digital health solutions with supportive initiatives, such as Healthcare Research and Quality (AHRQ) offering funds to expand health information systems.
The report also looked at several areas of growth. The healthcare IT segment, with a 46 percent market share, held the largest market share of the overall global connected health market, and the research report attributes this to the increasing need to meet the regulatory compliances and initiatives taken by the government. In addition, the benefits associated with the implementation of these services, such as high returns on investments and ease of access, are anticipated to boost the segment growth.
“The health information exchange segment is expected to exhibit a positive growth trend owing to the gradual rise in the acceptance of the patient-centric approach by healthcare providers and the demand for quality care services in the near foreseeable future,” the research report stated.
Over the next eight years, the healthcare analytics segment also is expected to show lucrative growth, owing to the rising pressure on hospitals to curb the spiraling healthcare costs, the availability of big data analytics, and the penetration of electronic health record systems in medical settings. “The growing need to improve value-based outcomes in the healthcare sector and the adoption of the patient-centric approach are the factors propelling the segment’s growth,” the report stated.
The report also looks at specific product segments. The software and services category in the wellness and health segment held the largest share of over 45 percent of the product segment in 2015 due to the incorporation of the value-based healthcare delivery system.
In addition, the introduction of technologically advanced personal medical devices will spur market growth through 2024. The report specifically calls out advanced ECG monitors, such as the device launched by Aerotel Medical Systems in February 2014, which is incorporated to enable the seamless transmission of patient ECG records directly to the doctor’s email account.
And, the individual consumer segment is anticipated to grow to $200 billion with a compound annual growth rate of 20 percent, due to an ongoing preference for personal medical devices to aid with continuous monitoring of chronic conditions such as type 2 diabetes and hypertension. Consumers are showing a preference for these devices, such as connected glucose monitors and insulin pumps, to help reduce hospital stays and costs of the treatments. “In addition, the rise in the preference of geriatric patients towards home healthcare creates the demand for connected health & wellness devices over the forecast period,” the report stated.
Looking at end-users, the research findings indicate that hospitals dominated the end-use segment as of 2015 with market revenue of more than $49 billion. The report credits this to the increasing adoption rate of EHR records and remote patient monitoring systems for effective management of chronic diseases and for enhanced operational efficiency.
The report calls out key players in the connected health and wellness devices market like Omron Healthcare, McKesson Corporation, Philips Healthcare, GE Healthcare, Fitbit, Medtronic and Apple.
“These market players are focusing on the development of cost efficient and technologically advanced devices, which offer comfort to the users. New product development and strategic alliances including partnership agreements, promotional activities, and acquisitions are instrumental in keeping market rivalry high,” the report stated.