The Internet of Things (IoT) in healthcare is transforming how the industry operates by enabling the collection, analysis, and utilization of real-time data to improve patient care, streamline clinical processes, and reduce costs. In 2023, the global IoT in healthcare market reached a valuation of USD 222.24 billion. The growth in this sector is driven by rising disposable income, increasing healthcare expenditure, greater health awareness, and widespread adoption of smart devices. The market is expected to grow at a CAGR of 19.1% between 2024 and 2032, reaching a projected value of USD 1,071.59 billion by the end of the forecast period.
This growth trajectory is a reflection of the global shift toward a more technology-driven healthcare system, which is revolutionizing patient care, diagnostics, and even operational efficiency.
Market Drivers
1. Rising Disposable Income
Increased disposable income among the global population is a significant driver of the IoT in healthcare market. As individuals’ financial resources expand, there is greater access to advanced healthcare services and smart medical devices. This growth in disposable income has also led to higher investments in healthcare technology, both at the consumer level (for personal healthcare devices) and institutional level (for hospitals and clinics).
With more consumers able to afford premium services, healthcare providers are motivated to invest in IoT-based devices that provide personalized care. From wearable health monitors to connected healthcare ecosystems, the increased affordability of these technologies has created a strong demand across both developed and emerging markets.
2. Rising Healthcare Expenditure
Healthcare expenditure is rising globally due to the aging population, chronic disease prevalence, and higher expectations for advanced medical care. Countries are allocating larger portions of their GDP toward healthcare, pushing for the adoption of IoT solutions. These technologies enable improved diagnostics, enhanced patient monitoring, and automated processes, making healthcare more efficient and cost-effective in the long run.
Governments and private entities are investing in IoT infrastructure to reduce healthcare costs, optimize operational efficiency, and improve patient outcomes. This increased spending on healthcare services is accelerating the development and deployment of IoT-based devices across the medical sector.
3. Increasing Health Awareness
Health awareness is at an all-time high, largely due to the widespread availability of information and global health campaigns. Consumers are more proactive about managing their health, which has led to the increased use of IoT devices such as wearable fitness trackers, smart medical monitors, and telemedicine platforms.
People now rely on IoT-driven health solutions to track fitness, monitor chronic conditions, and stay informed about their health in real-time. This has been further fueled by the ongoing digital health revolution, which is helping to bridge the gap between patients and healthcare providers through connected technologies.
4. Growing Adoption of Smart Devices
Smart devices have become integral to the healthcare ecosystem. The growing adoption of devices such as connected pacemakers, smart insulin pumps, fitness trackers, and blood pressure monitors has created a thriving environment for IoT in healthcare. These devices collect vital patient data, allowing healthcare professionals to make data-driven decisions in real-time.
The integration of smart devices with healthcare systems allows seamless monitoring and tracking of patients, even from remote locations, significantly improving patient care and reducing the need for in-person visits. As more people adopt wearable and connected devices, the market for IoT in healthcare continues to expand.
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Competitor Landscape
1. B. Braun Melsungen AG
B. Braun Melsungen AG is a global leader in medical and pharmaceutical devices. The company has embraced IoT technologies to enhance healthcare services by integrating real-time monitoring and data analytics into its product offerings. Through connected devices, B. Braun provides healthcare professionals with the tools to monitor patients’ vitals, manage medications, and perform remote diagnostics.
B. Braun’s significant market share can be attributed to its focus on developing smart medical devices such as infusion pumps, which connect to hospital systems for real-time monitoring and data collection. The company is leveraging IoT technologies to streamline hospital workflows and improve patient safety.
2. Zimmer Biomet Holdings, Inc.
Zimmer Biomet specializes in musculoskeletal healthcare, offering IoT-enabled products and services designed to improve patient outcomes in orthopedic surgeries. The company has developed smart devices that aid in post-surgical care, providing remote monitoring of recovery progress through IoT platforms. These devices allow healthcare providers to track patient recovery in real-time, minimizing complications and improving rehabilitation processes.
Zimmer Biomet has also made strides in integrating IoT into wearable rehabilitation devices, enhancing mobility and post-surgical recovery in patients through continuous monitoring and data analysis.
3. Medtronic Plc.
Medtronic Plc is a dominant player in the healthcare technology space and is renowned for its advancements in IoT solutions for medical devices. The company has integrated IoT into a variety of medical devices such as glucose monitors, pacemakers, and insulin pumps. By leveraging IoT, Medtronic enables continuous monitoring of patients’ health conditions, providing real-time data that helps in the management of chronic diseases like diabetes and heart conditions.
Medtronic’s IoT innovations have enabled remote monitoring of patients, allowing healthcare providers to intervene quickly in case of medical emergencies. The company is a key contributor to the IoT healthcare landscape, particularly in the area of chronic disease management.
4. Ortho Baltic, UAB
Ortho Baltic is an innovative company specializing in the design and manufacture of patient-specific orthopedic devices. By adopting IoT technology, Ortho Baltic is revolutionizing the field of personalized healthcare. The company uses 3D printing and IoT-enabled devices to create custom-fit implants for patients. These IoT devices track post-surgical progress and alert healthcare providers to any complications.
Ortho Baltic has expanded its offerings by integrating IoT into its range of orthopedic devices, improving patient outcomes through continuous monitoring and predictive data analytics.
Market Trends
1. Telemedicine and Remote Monitoring
One of the most prominent trends in the IoT healthcare market is the rise of telemedicine and remote patient monitoring. The COVID-19 pandemic accelerated the adoption of telehealth services, as it offered a convenient way for patients to receive medical care from home. IoT-enabled devices play a crucial role in this shift, allowing doctors to monitor patients’ vitals remotely and manage chronic conditions without requiring hospital visits.
This trend is expected to continue growing as more healthcare providers embrace remote monitoring solutions to enhance patient care and reduce the burden on healthcare facilities.
2. AI and Big Data Integration
The integration of artificial intelligence (AI) and big data analytics with IoT devices has the potential to transform the healthcare industry. IoT devices generate vast amounts of data, and AI-powered analytics platforms can process this data to provide valuable insights into patient health. Predictive analytics, powered by AI, allows healthcare professionals to detect early warning signs of diseases, predict patient outcomes, and customize treatment plans accordingly.
The combination of IoT, AI, and big data is expected to drive significant advancements in personalized healthcare and improve the efficiency of healthcare delivery systems.
3. Wearable Technology
Wearable technology, including smartwatches and fitness trackers, is rapidly gaining popularity among consumers. These devices monitor heart rate, sleep patterns, physical activity, and other health metrics, providing users with real-time health insights. Wearables are also being used in clinical settings to monitor patients with chronic conditions such as diabetes or cardiovascular disease.
As wearable technology continues to evolve, healthcare providers are finding new ways to integrate these devices into treatment plans, further driving the growth of the IoT healthcare market.