Services and software within the Internet of Things in healthcare sector will drive significant growth over the next few years, with new research forecasting the global market to reach $136.8 billion by 2021.
Asia-Pacific is projected to be the fastest growing region in the market, registering a CAGR of 17.0% during 2015 and 2021.
According to Allied Market Research, services and software segments collectively occupy a dominant share of the market, with patient monitoring applications to maintain the lead position with $72.7 billion over the forecast period.
The research indicates the global IoT in healthcare market is anticipated to grow at a significant pace, owing to easy availability of wearable smart devices, increasing need for stringent regulations and decreasing cost of sensor technology.
Furthermore, the launch of technological advanced devices (smart shirts, smart lenses, smart bands and others) and analytics software, rising incidence rates of chronic diseases, surging demand for cost-effective treatment and disease management, better accessibility of high speed internet and implementation of favorable government regulatory policies, are also expected to fuel the growth of this market.
Improvement in healthcare infrastructure in developing economies, increase in government support, and high R&D investments by major players for developing better IoT infrastructure are expected to offer potential growth opportunities to the market, Allied Market Research explains.
However, factors such as high costs associated with IoT infrastructure development, data privacy and security concerns, lack of awareness in developing economies and limited technical expertise are projected to restrain the market growth.
The services segment contributed for more than half of the market share in the overall IoT healthcare market in 2015, the research reveals.
The segment covers architecture services for integration, consulting services for training & teaching and application development services for support & maintenance.
Additionally, the devices segment is expected to grow at highest growth rate during the forecast period owing to novel technological advancements and increasing popularity of wearable sensor devices.
The research says the patient monitoring application segment is projected to dominate the market throughout the forecast period. The patient monitoring segment covers in-patient hospitalised patients, remote patient monitoring and tele-health services.
High adoption of IoT services in remote patient monitoring and growing awareness among individuals would further foster the growth of patient monitoring segment, the research shows.
Key findings of the study: