Connected Healthcare Market Size, Share & COVID-19 Impact Analysis, By Type (mHealth services, mHealth devices, and e-Prescription), By Function (Remote patient monitoring, Clinical Monitoring, Telemedicine, and Others), By Application (Diagnosis & Treatment, Monitoring Applications, Wellness & Prevention, Healthcare Management, and Others), By End User (Hospitals & Clinics and Home Monitoring), and Regional Forecast, 2021-2028

The global connected healthcare market size was USD 62.29 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with the market witnessing a positive demand shock across all regions amid the pandemic. Based on our analysis, the market  exhibited a stellar growth of 53.6% in 2020. The market is projected to grow from USD 51.68 billion in 2021 to USD 297.95 billion in 2028 at  CAGR of 28.4% in the 2021-2028 period. The sudden rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

Connected healthcare is a healthcare management system that covers technology to provide healthcare services remotely. It includes the use of mHealth devices, mHealth services, and e-prescription. Factors such as growing research in the healthcare sector and increased interoperability coupled with digital data management and active support from the government supplement the market growth. For example, in April 2019, the National Digital Health Blueprint (NDHB) report launched by the Indian Government emphasized leveraging efficient and effective delivery of all the digital healthcare services in the country. Such initiatives are expected to accelerate the market growth during the forecast period.

COVID-19 Pandemic Has a Positive Impact on Market Growth

COVID-19 could lead to a permanent development in the use of various connected healthcare products and services. Pandemic boosted the adoption and usage of multiple technologies such as telemedicine, e-prescription, and so on, due to increased demand among healthcare providers (HCPs) and patients. COVID-19 has considerably influenced many companies to implement and update new technology and laying the groundwork for a new standard of care. For instance, in January 2021, Validic, a healthcare company that offers products like remote-monitoring devices, sensors, and wearables, launched Validic impact. It is a remote patient monitoring solution designed to be fully integrated into electronic health records (EHR) and care management. Further, the company launched a COVID-19 rapid response solution that enabled clinicians and HR administrators to enroll thousands of people using self-reported data and alerts to monitor COVID-19 symptoms. Therefore, the pandemic has given impetus for companies to accelerate the adoption of these services.

LATEST TRENDS

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Growing Adoption of Blockchain technology to Augment Market Growth

Data security remains to be a concern across industries, including healthcare.  Blockchain technology is evolving as an opportunity for the healthcare industry to more proficiently and securely manage, store, and access patient records, etc. As per an article by the blockchain council, the blockchain-based platform guards the patient identity and maintains a record of origin. In May 2018, Medicalchain launched its telemedicine platform, MyClinic.com, where patients can have doctor consultations through video and use MedTokens to pay for consultations.

Additionally, many companies are incorporating blockchain technologies to protect patient’s data. For instance, BurstIQ, a big data & software company provides platform that helps healthcare companies safely and securely manage huge amounts of patient data. Companies blockchain technology allows the safekeeping, sharing or license of data while maintaining strict compliance with HIPAA rules, i.e. the right to control your health information disclosures.

DRIVING FACTORS

Personalized Healthcare Solutions to Augment the Market Growth

Personalized healthcare can provide solutions to chronic health problems and many lifestyle diseases by evolving technologies based on recent discoveries in genomics, behavioral sciences, diagnostics, and & clinical medicine. In September 2020, Roche represented a remote patient monitoring solution that facilitates healthcare professionals to oversee people with diabetes outside of care setting.

Additionally, companies globally have realized the ability to use personalized healthcare solutions to increase skills and profitability. As per McKinsey, the market has seen exceptional activities such as a higher level of venture funding. For Example, Teladoc Health, in October 2020, announced the acquisition of Livongo for USD 18.5 billion, which will help the company accelerate virtual care delivery such as remote monitoring. Therefore, such personalized healthcare solutions and company funding are constructing a solid foundation for the connected healthcare industry and thus accelerating the connected healthcare market growth.

Growing Use of Smart Phones and Wearable Devices to Propel Market Growth

As technology continues to transform patient care and the patient's desire to monitor their own health has increased, the adoption of smartphones and wearable devices which brings a new set of advantages to the market. Wearable devices such as trackers, blood pressure monitors, glucose meters help track activities as calories burned, heart rate, distance traveled, etc. By using these devices, the costs suffered for regular checkups are substantially reduced as patients can examine self-medical parameters. For instance, in May 2020, Philips received clearance from the U.S. Food and Drug Administration (FDA) for its wearable biosensor (Philips Biosensor BX100), which will help manage confirmed and suspected COVID-19 patients in the hospital.

Additionally, several companies are developing mHealth services globally. For Example, as per Sensor Tower Inc. article, European regions spending in health & fitness category mobile apps soared by 70.2 percent year-over-year growth in 2020 to an estimated USD 544.2 million as people are looking for ways to keep themselves fit.

RESTRAINING FACTORS

High-Capital Expenditure and Technological Barriers to Limit the Market Growth

In spite of the massive potential of connected healthcare products and services, technological and infrastructure barriers are hampering the market growth. There are huge costs required for installing necessary devices, systems, and equipment connected with real-time measurement of healthcare parameters, thus reflecting as a crucial restraint to the market.  Moreover, despite increasing usage of products like mHealth apps, many developing countries are lacking in the adoption of these technologies & products pertaining to issues regarding the availability of high-speed internet with high bandwidth and storage integration and transmission of data which is further limiting the market growth.

SEGMENTATION

By Type Analysis

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Increased Adoption of Smartphones and other Wireless Technology to Propel Market

The market is segmented into mHealth services, mHealth devices, and e-prescription.

The mHealth services segment dominated the market in 2020 due to the increased adoption of smartphones and mhealth apps. As per the state of mobile internet connectivity report 2020, around 3.8 billion people were using mobile internet by the end of 2019, increasing 250 million compared to the previous year, 2018. Growth in smartphone usage will help the population access many healthcare services through wireless technology, therefore stimulating the adoption of mHealth services. MHealth devices segment is growing moderately due to the ease and cost-effectiveness of using wearable devices and increasing government initiatives towards health. The e-Prescription segment is also projected to propel the market growth owing to factors such as  the increasing adoption of EHR solutions and increased focus on reducing medical errors.

Additionally, introducing several platforms and the entrance of new market players with colossal funding is strengthening the market globally. For example, in March 2021, CirrusMD, a provider of on-demand virtual care services, raised USD 20 million in a Series C round of funding led by Blue Venture Fund.

By Function Analysis

Increased Adoption of Telemedicine as Preferred Mode of Medical Care to Boost Services Segment’s Growth

The global market is categorized into remote patient monitoring, clinical monitoring, telemedicine, and others based on the function.

The telemedicine segment dominated the market in 2020 and is expected to emerge as the fastest-growing segment in forecast duration due to factors such as the surging adoption of telemedicine services. For example, according to Multidisciplinary Digital Publishing Institute (MDPI) journals survey, up to 89% of patients prefer telemedicine as an acceptable form of medical care. This is therefore, likely to boost the segmental growth. Additionally, according to Mckinsey's research, the massive shift to virtual care has been observed. The number of telehealth visits has been reported approx. 50 to 175 higher as compared to pre-pandemic.

Remote patient monitoring is growing faster due to factors such as the constant rise in the geriatric population. For instance, as per the Hindu center for politics and public policy article, persons aged 65 or over in 2020 are around  727 million. The proportion of the aged population is expected to increase from 9.3 percent in 2020 to approximately 16.0 percent by 2050.

By Application Analysis

Rising Adoption of Products like mHealth Apps to Boost Wellness and Prevention Segment’s Growth

The global market is categorized into diagnosis & treatment, monitoring applications, wellness & prevention, healthcare management, and others.

The wellness and prevention segment dominated the market in 2020 and this market is expected to emerge as the fastest-growing segment during the projected timeframe. Connected healthcare involves the convergence of health technology and is increasingly seen as an integral part of the social care and wellness sectors. For Example, in October 2019, According to NCBI, around 70% of mHealth apps target the consumer wellness and fitness segment, promoting the market's growth.

By End-User Analysis

Increased adoption of Products by Hospitals & Clinics to Increase the Growth of This Segment

By end-user, the market is categorized into hospitals & clinics and home monitoring.

The hospitals & clinics segment emerged as the dominant segment in the market in 2020. In Feb 2021, according to connected health (OAE Publishing Inc), In the U.S., there are around 200 telemedicine networks with 3500 service sites. About 50% of all U.S. Hospitals have adopted some form of connected health for remote patient monitoring, and 80% of European countries have telemedicine services implemented. Therefore, increased adoption of digital health technologies by hospitals in various regions is augmenting the market growth.

REGIONAL INSIGHTS

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The market size in North America stood at USD 27.20 billion in 2020. The region dominated the global market in 2020 due to increasing healthcare costs, growing adoption of smartphones, rising demand for connected healthcare products, and remote patient monitoring. For instance, in May 2020, According to Mckinsey, there is an enormous upsurge in the use of telehealth services in the U.S. The adoption of telehealth services by consumers increased by 46% in 2020 and 11% in the previous year 2019 to avoid exposure to covid-19 and substitute the canceled visits.

Europe marked the second leading position in the market due to the significant increase in the use of smartphones by individuals and physicians. Furthermore, the increase in remote patient monitoring services to monitor various health and medical conditions from a remote location propels the market growth. According to Healthcare IT News, in 2020, the Digital Healthcare Act (DVG) officially allowed doctors in Germany to prescribe medications through apps to their patients.

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Furthermore, Asia Pacific is anticipated to show the fastest growth in the region owing to the increased adoption rate of smart wearable devices and rising demand for mHealth services. According to Health Catalyst white paper, a collision of influential factors such as the continued shift to telemedicine and virtual care is boosting the market growth. Latin America and the Middle East & Africa will have a slower growth rate due to the lesser awareness and reluctance to adopt connected healthcare in low-income countries.

KEY INDUSTRY PLAYERS

Mergers & Acquisitions and Venture Capital Investment with Other Participants to Help Companies Grow

The global connected health is a fragmented market with several major players. Companies, such as Cerner Corporation, Koninklijke Philips N.V, Teladoc, GE healthcare, and other healthcare companies are constantly making efforts to reach the maximum customers to expand their products and services and increase the adoption of connected healthcare. Moreover, mergers and partnerships among key players are also attributable to the development of the market. For instance, in January 2021, Optum, a health services company (part of UnitedHealth Group), and Change Healthcare, a leading healthcare technology company, have agreed to combine to offer software and data analytics, technology-enabled services, advisory and revenue cycle management services focused on serving health care.

LIST OF KEY COMPANIES PROFILED:

• Allscripts Healthcare, LLC. (Chicago, Illinois, U.S.)


• Cerner Corporation (North Kansas, Missouri, U.S.)


• Koninklijke Philips N.V (Amsterdam, Netherlands)


• McKesson Corporation (Irving, Texas, U.S.)


• Apple Inc. (California, U.S.)


• Omron Corporation (Osaka, Japan)


• GENERAL ELECTRIC COMPANY (Massachusetts, U.S.)


• Fitbit Inc. (California, U.S.)


• IBM Corporation (Armonk, New York, U.S.)


• NXGN Management, LLC (Irvine, California, U.S.)

KEY INDUSTRY DEVELOPMENTS:

• April 2021 – Siemens Healthineers AG announced the successful completion of the acquisition of Varian Medical Systems, Inc. Siemens Healthineers, along with Varian, is building a strategic partnership named "EnVision" to establish an all-inclusive digital, diagnostic and therapeutic ecosystem that includes treatment management. Siemens Healthineers will leverage AI-assisted analytics to advance the development and delivery of data-driven precision care.


• July 2020 –  Teladoc Health, Inc., a leading company in virtual care, announced that the completion of acquisition InTouch Health. This acquisition will provide innovative telehealth capabilities linking providers to one another in complex medical environments. On the other side, teladoc will connect the care experience through outpatient, and home care settings, confirming greater access to high-quality care and better health results.

REPORT COVERAGE

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The global connected healthcare market research report provides a detailed industry analysis of the market and focuses on key aspects, such as leading companies, type, function, application, and end users. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses significant factors contributing to the market's growth in recent years.

Report Scope & Segmentation