Internet of Things (IoT) in Healthcare Market Size, Share & Industry Analysis, By Component (Devices, Software, and Services), By Application (Telemedicine, Patient Monitoring, Operations and Workflow Management, Remote Scanning, Sample Management, and Others), By End-User (Laboratory Research, Hospitals, Clinics, and Others), and Regional Forecast, 2024-2032

The global Internet of Things (IoT) in Healthcare Market size was valued at USD 139.74 billion in 2023 and is projected to grow from USD 175.61 billion in 2024 to USD 822.54 billion by 2032, exhibiting a CAGR of 21.3%  Asia Pacific dominated the internet of things in healthcare market with a market share of 40.32% in 2023.

The internet of things (IoT) in healthcare connects all the devices and operating machinery together and allows data transfer and storage using the internet. The growing demand for connected medical devices and automated remote patient care is likely to drive market growth. For the past several years, the healthcare sector of several developed countries has shifted its approaches to electronic health record systems from paper-based clinical records. The rapid development in technologies encourages the government to invest in IoT to enable healthcare services to be remotely available. Hence, government initiatives supporting technology development and acceptance are expected to drive the substantial growth for IoT in healthcare market.

The global impact of COVID-19 has been unprecedented and staggering, with the internet of things in healthcare witnessing a positive impact on demand across all regions amid the pandemic.

Internet of Things (IoT) in Healthcare Market Trends

Increasing Adoption of Wearable Healthcare Devices to Ensure Market Growth

Advancements in AI and sensors are enabling several people across the globe to detect and manage chronic health situations and avoid major illnesses on smaller devices. These devices are small enough to be worn on a wrist or penny-sized patch. According to a study, estimated shipments of wearable devices across the globe reached up to USD 190.4 million in 2022. Similarly, number of units of smartwatches and fitness trackers shipped globally was over USD 250 million in 2023. In addition, wearable medical sensors and devices made up to USD 130 million in the same year.

End users have increased the adoption of these devices due to their compactness and portability. These devices help people track their heart rate, physical activity, sleep patterns, and other important signs, promoting a better approach to health and wellness. However, according to a study, researchers have found certain barriers to adopting these devices. Inaccurate results include the inability to adopt new technologies quickly, the lack of skilled professionals who can guide people, and individuals' inconsistent use of these devices.

Thus, as these barriers are removed, wearable healthcare device adoption is expected to skyrocket in the coming years.

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Internet of Things (IoT) in Healthcare Market Growth Factors

Integration of Artificial Intelligence with Internet of Things (IoT) in Healthcare to Drive Market

IoT technology utilizes artificial intelligence (AI) capabilities to offer advanced solutions for healthcare providers, such as improving operational efficiency, prediction enhancement, automation, and optimization. The medical device manufacturers are also integrating AI technology into the devices to offer patient-centric devices. The AI-enabled IoT devices help healthcare providers in diagnosing and predicting the ailment in real-time. For instance, by improving the scan quality, AI can support healthcare workers in promptly diagnosing difficult scans such as cancers.

AI technology such as deep learning, natural language processing, and machine learning helps analyze the patient’s health. The integration of artificial intelligence with internet of things (IoT) in healthcare offers better detection and treatment capabilities and improved patient experience, which is also promoting the adoption of these technologies in the healthcare industry. For instance, during the lockdown in 2020, many hospitals implemented AI with IoT in three applications of telemedicine such as telediagnosis, healthcare information technology, and patient monitoring. This boosted the tracing and treatment facility of the hospital and government. Thus, the integration of artificial intelligence with IoT in healthcare is expected to boost the Internet of Things (IoT) in Healthcare market growth.

RESTRAINING FACTORS

Limitation in Protecting Privacy to Restrict Market Growth

The market is likely to face challenges regarding data privacy and varying algorithms. The healthcare industry is already at a high risk of a data breach due to the amount of patients' personal and health data it stores. Internet of Things (IoT) in healthcare uses machine learning, deep learning tools, smart and connected devices, and more for optimizing gathered insights. These tools exploit the user's sensitive data such as patient history, ailment data, insurance information, and payment transaction data. Further, as per the report of CheckPoint Technologies Ltd, due to the security risk of IoT in medical, millions of US patients are affected by healthcare breaches. Thus, the growing attacks on healthcare data are likely to hamper the demand for the technology.

Internet of Things (IoT) in Healthcare Market Segmentation Analysis

By Component Analysis

Growing Remote Monitoring Solutions to Drive Demand for Efficient Software

By component, the market is segmented into devices, software, and services.

The services segment is expected to gain a rapid growth rate during the forecast. This is owing to the rising implementation of IoT services that help in increasing operational efficiency along with driving cost reduction. The increasing demand for efficient data flow, enhanced medical systems, and improved decision-making capabilities will drive the demand for the segment.

The devices segment is likely to gain significant growth during the forecast period due to rising self-monitoring health trends. The growing demand for wearable devices is expected to surge the demand for connected medical devices in the healthcare industry.

The software segment is likely to dominate the segment share due to the growing technology applications in the industry. The IoT software used for monitoring the health of the patient and maintaining the device is expected to witness continuous growth during the forecast period. Based on software, the market is segmented into remote device management, data analytics, compliance and security, asset performance management, and others (data storage, electronic health record, etc.). Data analytics and remote device management to gain remarkable growth during the forecast period. The data analytics software is gaining traction in the healthcare industry due to its application in diagnosing patients and analyzing the collected information.

Compliance and security are anticipated to gain steady growth owing to the rising number of threats on the patient’s data due to cyber-attacks. Similarly, the implementation of asset performance management is also increasing in hospitals to help reduce machine downtime and minimize maintenance costs.

By Application Analysis

Availability of Advanced Wearable Medical Devices to Drive Remote Patient Monitoring

By application, the market is segmented into telemedicine, patient monitoring, operations and workflow management, remote scanning, sample management, and others (predictive device maintenance, medication management, etc.).

The patient monitoring segment is likely to witness the highest CAGR, followed by operations and workflow management during the forecast period. The increasingly connected medical devices and instruments are leading towards high adoption of operations & workflow management applications. Similarly, the growing number of wearable devices to track the real-time health of patients is likely to fuel the demand for patient monitoring.

The adoption of telemedicine is growing owing to the introduction of smart devices, the superior quality of video streaming, and the availability of internet facilities at remote locations. Apart from this, remote scanning is widely used in high-end medical imaging systems such as magnetic resonance imaging (MRI) devices, computerized tomography (CT) scans, and others. Health providers can directly access the patient’s report instantly from the data for further consultation.

By End-User Analysis

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Healthcare Industry’s Inclination towards Advanced Technologies to Fuel Hospital Growth

By end-user, the market is categorized into laboratory research, hospitals, clinics, and others (clinical tests, pathology, etc.).

The hospitals segment led the market in 2023 and is expected to grow with the highest CAGR during the forecast period. The adoption of IoT has increased customer experiences owing to the instant and real-time attention provided through connected devices. Thus, hospitals are extensively investing in IoT technology.

The rising adoption of wearable devices is expected to fuel IoT-powered clinics. Similarly, with its capabilities to provide real-time data analysis, laboratory researchers have started integrating the technology with the research work.

REGIONAL INSIGHTS

Geographically, the market is fragmented into five major regions such as North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America. They are further categorized into countries.

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Asia Pacific held the highest market share in the overall Internet of Things (IoT) in Healthcare market share in 2023. The same region is expected to continue to grow with the highest CAGR in the coming years. Catering to the wide demography of the countries such as China, India, South Korea, and others, the governments focus on eHealth solutions. As per the report of 2020, the government of China is adopting digital healthcare and telemedicine to provide support in rural and remote locations. India is expected to showcase a rapid growth rate during the forecast period. India’s rapidly growing population and the government’s vast digital investments are offering huge opportunities in healthcare.

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North America is estimated to account for a substantial market share after the Asia Pacific. The remarkable adoption of advanced technologies, including the internet of things across the industries in North America to fuel the market growth opportunity. The United States is likely to lead the market revenue owing to the rapid expansion of the healthcare industry. The changing lifestyle and more focus on health management are likely to drive the demand for wearable and remote patient monitoring services in the country. Europe is likely to witness significant growth during the forecast period. European countries such as France and the UK are rapidly adopting IoT in the healthcare industry. The increasing demand for mHealth, electronic health records, and telemedicine across the hospitals drives the market growth in the region.

Latin America to gain steady growth during the forecast period owing to the increasing government focus on enhancing the healthcare system of the countries. For instance, in February 2020, different Brazilian Ministries such as healthcare, innovation, and technology announced collaboration to integrate internet of things schemes in the healthcare sector.

The Middle East and Africa is anticipated to experience significant growth in the market. The countries majorly focus on investments in healthcare sectors to drive IoT in healthcare market growth. For instance, in September 2020, HBKiCare and Sure Universal launched a universal remote healthcare IoT platform to support healthcare facilities in the United Arab Emirates (UAE) and Israel. This is expected to boost the IoT in healthcare growth in the region.

List of Key Companies in Internet of Things (IoT) in Healthcare Market

Key Players Focus on Offering Better Industry Specific Solution through Strategic Partnership

The prominent players in the market are offering various IoT platforms and services to support the healthcare industry. These players are investing in research and development to provide a connected IoT solution that offers proper device management, patient care, improved clinical workflow, continuous patient monitoring, and more. The key players are strategically entering into partnership and collaboration to improve connected technology and solutions. Companies also offer a robust medical database collection that patients can use, doctors, and medical authorities for generating valuable insights.

List of Key Companies Profiled:

• Amazon, Inc. (U.S.)


• Cisco Systems, Inc. (U.S.)


• General Electric Company (U.S.)


• IBM Corporation (U.S.)


• Intel Corporation (U.S.)


• Microsoft Corporation (U.S.)


• SAP SE (Germany)


• Koninklijke Philips N.V. (Netherlands)


• Senseonics (U.S.)


• Wipro (India)

KEY INDUSTRY DEVELOPMENTS:

• January 2023 – HARMAN, a Samsung business, introduced a digital healthcare platform for healthcare and life science-focused businesses. With this, the company intends to offer businesses the ability to offer enhanced customer experiences.


• December 2020 – Amazon Inc. launched Amazon HealthLake, a HIPAA-eligible service for life sciences and healthcare organizations. Amazon HealthLake allows organizations to transform, store, and analyze all of their data in the cloud.


• September 2020 – Intel Corporation launched enhanced IoT capabilities in the 11th Gen Core for industries, including healthcare. It offers AI-powered diagnostics and high-resolution displays using its advanced medical imaging devices.


• October 2020 – Microsoft Corporation announced a strategic collaboration with ZEISS Group to enhance patient care through data-driven healthcare solutions. The companies aim to enhance treatment, device management and improve clinical workflow using a new digital connected solution.


• May 2019 – General Electricity Company announced a partnership with NASSCOM to launch and offer digital healthcare solutions and services in the market. The partnership aims to flourish digital healthcare through the Center of Excellence-Internet of Things (CoE-IoT) platform of NASSCOM.

REPORT COVERAGE

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The global market research report highlights leading regions across the world to offer a better understanding of the user. Furthermore, the report provides insights into the latest internet of things (IoT) in healthcare industry trends and analyzes technologies deployed at a rapid pace globally. It further highlights some of the growth-stimulating factors and restraints, helping the reader gain in-depth knowledge about the market.

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