Germany Smart Healthcare Market Size, Share & COVID-19 Impact Analysis, By Product (Electronic Health Record, Smart Medication Delivery, Telemedicine, RFID Systems, mHealth, and Others), By Application (Health Data Storage, Monitoring and Treatment, Inventory Management, and Others), and by End User (Hospitals & ASCs, Homecare Settings, and Others) and Forecast, 2020-2027

The Germany smart healthcare market size was USD 6.87 billion in 2019 and is projected to reach USD 33.09 billion by 2027, exhibiting a CAGR of 21.9% during the forecast period.

Smart healthcare refers to the usage of various technologies such as wearable devices, the internet of things (IoT), and mobile internet and devices to undertake various healthcare procedures such as the tracking of vital parameters, and also doctors’ consultations. While it has witnessed considerable growth across the developed and emerging markets, the growth of the market in Germany is anticipated to be exceptionally high. The growth in the country is expected to be strong and robust during the forecast period due to strong adoption amongst the German populace coupled with the positive initiatives from the German Government. While there have been certain concerns raised by patient advocates regarding such widespread adoption of this type of healthcare across all the spheres of the German healthcare system, the market is poised for remarkable growth in the forthcoming years.

German Market to Record a Boost in Smart Healthcare Amid COVID-19 Pandemic

The impact of the COVID-19 pandemic on certain healthcare IT markets such as smart healthcare is expected to be exceedingly positive in comparison to certain medical devices, and pharmaceuticals markets. The COVID-19 impact on the market in Germany is gauged to be positive as due to the restrictions enforced by the German Government, several healthcare procedures have been shifted to telemedicine or mHealth. Hence, for healthcare procedures where the patient is not necessitated to visit hospitals, there has been greater adoption of smart healthcare to undertake these procedures from the convenience of one’s home. Furthermore, in this real time of the pandemic, the German government has also created and supported initiatives to boost the greater adoption of digital healthcare solutions, to limit the spread of infection. Hence, as of now, the 2019-20 coronavirus pandemic is expected to have a positive impact on the German market.

LATEST TRENDS

Strong Initiatives towards Smart Healthcare to Bolster Expansion

The most critical trends of the market are the positive initiatives undertaken towards the reimbursement of the segments such as telemedicine in the new digital health laws. For example, the telemedicine consultations which were not permitted under the German healthcare laws until 2018, are not only permitted but also promoted. Apart from the promotion, the telemedicine services are also reimbursed under the state health insurance agency, whose services approximately 90% of the German populace avail. Hence, an increasing number of market players are focusing on the introduction of digital healthcare solutions in Germany. In a market characterized as a dynamic market, the number of domestic players such as emerging startups is also focused on increasing their market presence. This is expected to boost the demand for smart healthcare in Germany as the awareness among the German population will increase in the coming days. Besides, positive reimbursement measures are expected to further boost its adoption.

DRIVING FACTORS

Increasing Adoption of Telemedicine and mHealth to Surge Growth

Some critical drivers of the German market are the substantial adoption of various technologies such as mHealth, and telemedicine by the German population. The market in Germany is particularly poised for growth during the forecast period due to the recent legislative changes supporting the greater adoption of digital health. The recent legislative changes which include favorable reimbursement policies for these digital health market solutions are expected to aid the market. Furthermore, the general population in Germany has been subjected to increasing awareness regarding the various advantages of new technologies in healthcare. A number of advantages include greater access to care, efficient treatment and management of disorders, and effective cost savings. Factors as such are projected to further boost the market growth during the forecast period.

Recent Developments in Legislature to Boost Smart Healthcare Adoption

One of the other critical driving factors of the market in Germany during the forecast period includes the recent legislative changes in the digital health law of the country. Apart from supporting the greater adoption of telemedicine, and mHealth, the law also makes important provisions for electronic health records (EHR). For instance, the new legislation has also stated that all the individuals under the statutory health insurance (SHI) will have the electronic health records made available for them. What is particularly expected to drive the adoption in Germany, is that close to 90% of the German population are covered under the statutory health insurance (SHI), and the remaining 10% of the German populace is covered by private insurers, who are also expected to reimburse various smart type of healthcare solutions under the new law. Hence, significant investments in R&D and the increasing involvement of major and emerging players in the development of various technologies is expected to boost market growth during the forecast period.

RESTRAINING FACTORS

Data Privacy Concerns to Limit Market Growth

One of the most critical factors impacting the greater adoption in the German market is the concerns associated with the patient’s data privacy. This viewpoint has led to under adoption of smart healthcare as an equivalent and appropriate substitute for conventional treatment in a number of diseases. Numerous clinical publications point to the fact - that there are strong concerns associated with breaches of confidential data. After the passing of the recent digital health legislature in Germany, many patient advocates have emphasized certain limitations of the law. These factors are anticipated to limit the market growth of the market during the forecast period.

SEGMENTATION

By Product Analysis

mHealth Segment to Grow at Faster Pace during 2020-2027

On the basis of product, the market includes electronic health records, smart medication delivery, telemedicine, RFID systems, mHealth, and others. The telemedicine segment held a dominant share of the market in 2019. The dominance is owing to the greater adoption of telemedicine by the general population coupled with the favorable regulatory changes in German digital health law. The mHealth segment is projected to be the second most dominant segment and also the fastest-growing segment owing to a strong usage of healthcare applications on mobile devices. The electronic health segment is expected to register a substantial market share due to the increasing usage of these healthcare product offerings by German healthcare institutions coupled with the recent mandates passed by the German legislature supporting its adoption.

The smart medication delivery, and RFID systems segment is anticipated to register a lower germany smart healthcare market share in the forecast period. This is primarily due to the fact that a number of these product offerings in the stages of development.

By Application Analysis

Monitoring and Treatment Segment Dominated the Market in 2019

Based on application, the market is segmented into health data storage, monitoring and treatment, inventory management, and others. The monitoring and treatment segment primarily dominates the market because of extensive new product launches in this segment, coupled with greater adoption of these technologies. Health data storage is the second most dominant segment because of their extensive usage across all types of healthcare institutions such as hospitals. While the inventory management segment accounted for a comparatively lower market share, they are also witnessing greater demand due to their usefulness in the management and tracking of supplies in the healthcare institution’s inventory.

By End User Analysis

Homecare Settings to Register a Higher CAGR during the Forecast Period

On the basis of end users, the market is segmented into hospitals & ASCs, homecare settings, and others. The hospitals & ASCs segment is anticipated to have the highest share in the market during the forecast period. This dominance is attributable to the fact, due to strong numbers of hospitals and ASCs in Germany, coupled with the strong usage of digital healthcare solutions in these institutions for several uses, has led to the strong market share of the segment. The homecare settings segment is expected to grow at a comparatively higher CAGR during the forecast period. This is primarily because an overwhelming proportion of the German population has adopted smart healthcare for usage in homecare settings such as telemedicine and mHealth. The others segment consists of all the other medical technology and healthcare institutions in Germany such as rehabilitation centers.

KEY INDUSTRY PLAYERS

Established Market Leaders in Smart Healthcare Such as GE Healthcare (General Electric Company), and Siemens Healthineers AG (Siemens Healthcare GmbH) to Dominate Market

The German market depicts a competitive scenario that includes the presence of established players in the market such as GE Healthcare, and Siemens to emerging domestic market players such as InterComponentWare (ICW), eGym, Ada, Clue, and Freeletics. In the present scenario, GE Healthcare (General Electric Company), and Siemens Healthineers AG (Siemens Healthcare GmbH) are leading the German market in 2019, accounting for a strong market revenue share. Also, other established players of North America, and other regions in Europe such as Cerner, and Resideo Technologies Inc., will look forward to expanding their market presence in Germany for reasons such as the German Government’s mandate of an EHR for all the individuals under the statutory health insurance (SHI). Furthermore, as of September 2019, there were an estimated 1,379 health technology start-ups in Germany. This includes InterComponentWare (ICW), eGym, Ada, Clue, and Freeletics. These emerging start-ups have a strong focus on digital healthcare solutions and especially in terms of telemedicine, and mHealth. These emerging and leading companies are also focusing their efforts on strategic collaborations with established players to increase their presence in the German market.

LIST OF KEY COMPANIES PROFILED:

• GE Healthcare (General Electric Company) (Chicago, U.S.)


• Siemens Healthineers AG (Siemens Healthcare GmbH) (Munich, Germany)


• Abbott (Lake Bluff, U.S.)


• Olympus Corporation (Tokyo, Japan)


• Resideo Technologies Inc. (Austin, U.S.)


• Cisco (San Jose, U.S.)


• IBM (Armonk, U.S.)


• Cerner Corporation (Kansas City, U.S.)


• Allscripts Healthcare Solutions, Inc. (Chicago, U.S.) 

KEY INDUSTRY DEVELOPMENTS:

• May 2020 – Resideo Technologies announced the up-gradation of LifeStream v5.7 and Genesis Touch v3.8 with text messaging and video scheduling features


• October 2019 – Cerner announced the launch of a new cognitive health platform, EHR training framework.

REPORT COVERAGE

The Germany smart healthcare market research report provides a detailed analysis of the market and focuses on key aspects such as prevalence of chronic diseases in Germany, regulatory and reimbursement scenario in Germany, key industry developments, technological advancements, new product launches (by major players), and impact of COVID-19 outbreak on the market. Besides this, the report offers market insights into the market trends and highlights key industry dynamics. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the German market over recent years.

Report Scope & Segmentation