GLOBAL IOT AND VIRTUAL HOSPITAL MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

The global IoT and virtual hospital market size is expected to reach US$ 47.24 Bn by 2030, from US$ 14.51 Bn in 2023, exhibiting a compound annual growth rate (CAGR) of 18.4% during the forecast period.

The Internet of Things (IoT) and connectivity is transforming the healthcare industry by enabling virtual hospitals. IoT devices allow for remote patient monitoring which improves access and quality of care while reducing costs. These virtual care solutions utilize wearable sensors and smart medical devices connected via internet to transmit data like vitals, activity levels and other health metrics of patients to doctors even when not physically present.

There are different types of IoT medical devices used in virtual hospitals. Wireless sensors can be worn on the body or embedded in clothing to constantly track things like heart rate, blood pressure, oxygen levels, and others. Implantable devices also transmit data from inside the body. Remote monitoring systems integrate these readings and generate alerts if any concerning changes occur. Furthermore, virtual physician consultations allow real-time audio and video appointments digitally through smart devices. This eliminates travel needs for routine follow-ups while providing faster treatment decisions through digital access to the complete medical history and test results of individuals remotely. However, such new technologies do raise issues around data privacy and security that need addressing to assure patients. 

Global IoT and Virtual Hospital Market- Regional Insights

• North America is expected to be the largest market for IoT and Virtual Hospital during the forecast period, accounting for over 35.7% of the market share in 2023. In the North America region, the application segment of remote patient monitoring currently leads the growing Internet of Things (IoT) and virtual hospital market. Advancements in connected healthcare technologies over the past few years have enabled more robust remote monitoring of patients, especially among those with chronic conditions. In the North American region, the application segment of mHealth also holds significant promise for future growth within IoT and virtual care delivery. The penetration of smartphones and wearable devices has created new possibilities for disease self-management and decentralized care. For instance, a non-profit initiative in several major U.S. cities equipped uninsured individuals with monitoring kits connected to smartphone apps. Users were empowered to track their blood sugar, blood pressure, and other biometrics independently and share results seamlessly with local clinics for oversight. Initial outcomes suggest this 'virtual clinic' model could expand access to basic services for underserved groups at lower costs than traditional methods. As enabling technologies become more integrated into daily life and affordable care becomes a pressing social issue, similar innovations are likely to drive further the adoption of mHealth applications regionally.
• Asia Pacific is expected to be the second-largest market for IoT and virtual hospitals, accounting for over 25.2% of the market share in 2023. Within the Asia Pacific region for the global IoT and virtual hospital market, the component segment consists of the hardware, software and services, and connectivity devices sub-segments. Software and services accounts for the largest share among these sub-segments due to the rapidly growing adoption of cloud computing and software-as-a-service (SaaS) models across APAC nations. According to data from the Non-Profit Organization Alliance for Affordable Internet, cloud adoption increased substantially in Southeast Asia from 2018 to 2021, with Indonesia, Malaysia, Philippines, and Vietnam experiencing over 50% annual growth rates. This rapid shift to cloud-based systems among businesses and governments has driven significant demand for various IoT and healthcare software, from medical record management solutions to remote patient monitoring platforms. Major industry players like Philips, GE Healthcare, and Siemens Healthineers have expanded their software portfolios targeting the Asia Pacific IoT and virtual hospitals market.
• Europe is expected to be the fastest-growing market for IoT and virtual hospital, with a share of 19% during the forecast period. The growth of the market in Europe is driven by a growing aging population and need for quality care. The National Health Service in the U.K. reported that over 25% of hospital beds in 2019 were occupied by patients that could be monitored remotely. This has prompted several hospitals to invest in remote patient monitoring devices and platforms to help curb healthcare expenditure. Remote monitoring allows chronically ill patients in rural areas to be supervised daily without travelling long distances to clinics. It also eases pressure on hospitals by reducing readmission rates for issues that can be addressed in home care settings. The mHealth sub-segment has emerged as the fastest growing segment within the European IoT and virtual hospital market for virtual hospitals and IoT. Smartphones have near ubiquitous penetration in the region, with over 80% of the population owning smartphones according to Eurostat. This widespread access to computing power and mobile internet has fueled the rapid adoption of mHealth apps focused on medication reminders, chronic disease management, and teleconsultations. As per reports by the European Union eHealth Network, over 25,000 mHealth related apps are available on app stores, a10 times increase over 2016 figures.

Figure 1. Global IoT and Virtual Hospital Market Share (%), By Region, 2023

To learn more about this report, request sample copy

Analyst’s Views: The global IOT and virtual hospital market is poised to witness strong growth over the next decade. The growing need for connected healthcare infrastructure and increasing implementation of digital technologies by healthcare providers are the prime drivers of this market. IOT devices are helping hospitals to become more efficient by enabling remote patient monitoring and connecting medical equipment. This is reducing workload and improving outcomes. North America currently dominates this space and is expected to continue its leadership supported by advanced IT adoption and increased healthcare spending in the region. However, Asia Pacific is likely to emerge as the fastest growing market led by China, India, and other developing countries. Governments in Asia Pacific are aggressively pushing digital health agendas and making large investments which is opening big opportunities.

Overall, the growth picture of this market remains positive underpinned by global megatrends of rapid digitalization, focus on patient-centric care, and emergence of smart hospitals. IOT and virtual solutions are allowing remote delivery of healthcare and improving access. Major players are actively offering innovative products and services to tap into this promising space. The future outlook continues to be bright given the sizeable need as well as efforts by stakeholders to address challenges around adoption.

Global IOT and Virtual Hospital Market- Drivers

• Growing adoption of connected devices and connectivity: The adoption of connected devices and connectivity across various sectors is fueling the growth of the global Internet of Things (IoT) and virtual hospital market significantly. With more things getting connected to the internet every day, the potential for data generation and analysis has increased multifold. Various health sectors have started leveraging IoT solutions to enhance patient care and operational efficiency. Remote patient monitoring devices that can transmit vital health statistics in real-time are enabling virtual ICUs and surgical assistance. This is helping hospitals to optimize costs while expanding reach to remote areas. Wearable health trackers are empowering individuals to monitor chronic conditions from home and seek medical advice online.
• The growth in virtual consultations driven by telehealth and telemedicine solutions is especially high during the ongoing COVID-19 pandemic. With movement and travel restrictions in place, telehealth emerged as a lifeline to ensure continuity of care. According to the World Health Organization (WHO), between 2019 and 2022, there was a staggering 63% increase in the number of virtual medical consultations across the world. This established the efficacy of virtual hospitals in addressing both chronic and emergency health issues without risking exposure or transmission. The cost benefits of remote monitoring to payers and providers also boosted the appeal of virtual offerings manifolds.

• Increasing demand for remote patient monitoring: The demand for remote patient monitoring is growing exponentially due to the COVID-19 pandemic as it allows patients to communicate their health issues with clinicians from home without the need for in-person visits or frequent hospitalizations. This has led to an increased adoption of internet of things (IoT) devices and virtual care services across the healthcare industry which are facilitating the rapid growth of the global IoT and virtual hospital market. The ongoing digital transformation in the healthcare sector coupled with rising investments in telehealth infrastructure and advancements in 5G and edge computing are fueling the demand for IoT based applications and virtual services. Remote patient monitoring utilizing technologies like IoT sensors and AI powered care assistive robots will play a critical role in managing the long term health of the growing geriatric population and preventing overcrowding of medical facilities. While the market witnessed a spike during the pandemic, industry experts predict this trend to sustain in the coming years with more innovative IoT devices and virtual care models gaining acceptance. Countries are also introducing supportive regulations to expand telehealth access and coverage which will pave way for new growth opportunities.
• Growing need for real-time healthcare delivery: The need for real-time and efficient healthcare delivery is rising globally owing to increasing prevalence of chronic diseases and aged population. The transition to digital healthcare through IoT and virtual platforms is helping address this need by enabling round-the-clock remote patient monitoring and management. IoT devices that can monitor vital signs like temperature, blood pressure, and ECG readings in real-time are allowing early detection of health issues and ensuring timely clinical intervention. This is proving critical in the current times as virtual platforms are helping bridge the gap between patients and doctors amid social distancing norms due to COVID-19. Virtual hospitals powered by telehealth and telemedicine are further facilitating real-time care from the comfort of one's home. Advanced technologies like AR/VR are enabling virtual consultations and remote surgeries. This has become vital during the pandemic as physical visits to hospitals carried the risk of virus transmission. According to World Health Organization, telehealth interventions helped maintain access to essential healthcare and support systems for chronic disease management globally during 2020-2021. The shift to remote and digital care models is likely to continue post pandemic as well, given the convenience and positive health outcomes.

Global IOT and Virtual Hospital Market- Opportunities

• Integration of advanced technologies like AI and Blockchain: The convergence of emerging technologies such as artificial intelligence, Blockchain, and the internet of things holds tremendous potential for revolutionizing the global healthcare sector, especially in virtual and remote patient care delivery models. These innovations are opening new doors for improved access, personalized and preventive care. Advanced technologies can help integrate dispersed healthcare systems and facilitate seamless, secure data sharing between doctors and remote monitoring devices. This allows continuous tracking of vital patient statistics by medical professionals without physical proximity. Artificial Intelligence (AI) assisted diagnostics and risk prediction tools empower physicians to more accurately identify diseases, monitor high-risk patients and customize treatment plans according to individual needs and responses in real-time. For instance, AI algorithms are being trained on large, anonymized medical datasets to detect anomalies and develop risk stratification models for chronic conditions like heart diseases. This helps provide care for those in rural locations. Blockchain brings trust and transparency to healthcare by creating secured decentralized records of financial transactions, medical images, prescriptions and patient histories. This helps reduce costs incurred on paper records, data entry and storage while ensuring privacy and authentication of transactions between insurers, doctors and patients. According to the World Health Organization (2020), Blockchain technology can help develop electronic health record systems for refugees and those affected by conflicts, hurricanes, or pandemics to ensure continuity of care.
• Growth in emerging economies: Growth in emerging economies presents a massive opportunity for Global IoT and Virtual Hospital market to expand in the coming years. Countries like India, China, Brazil, Mexico, etc. are experiencing very high internet penetration growth and adoption of new technologies. More people in these nations now have smartphones and access to internet. At the same time, healthcare infrastructure and resources are limited in many smaller cities and rural areas of these countries. This is where IoT and virtual hospital solutions can play a transformational role by connecting people to doctors and healthcare workers remotely. For example, India is estimated to have a shortage of 600,000 doctors as per the World Health Organization. IoT enabled wearable devices and mobile apps that can monitor vital health statistics coupled with telemedicine facilities of virtual hospitals can help bridge this healthcare access gap.
• IoT solutions provider and virtual hospital companies are hence looking at these emerging markets with great interest. They are partnering with local players and governments to roll out innovative pilot projects. For instance, a recent pilot project in Indonesia installed various IoT sensors in homes of elderly citizens to remotely monitor their health and activities. This helped in early detection of health issues and improved treatment. Such initiatives are gaining popularity. The governments of these nations are also supportive and coming out with policies to encourage digitization of healthcare. Recently, the Brazil government announced funds for projects adopting telemedicine and virtual care techniques in smaller cities.

Global IOT and Virtual Hospital Market- Trends

• Wearable medical devices: The rising popularity of wearable medical devices is having a significant impact on the growth of IoT and virtual hospital services globally. Wearable devices that monitor critical health vitals such as heartbeat, blood pressure, ECG, blood oxygen levels, and others are enabling the expansion of remote patient monitoring and telehealth services. This allows patients to receive medical care and supervision from their doctors without the need to physically visit hospitals. The data collected from wearables is transmitted through wireless networks to experts in IoT-enabled virtual hospitals, who can track patients in real-time and detect any irregularities or emergencies. This trend is reducing strain on conventional healthcare facilities and allowing many patients to conveniently receive treatment and rehabilitation while staying at home.

Particularly during the COVID-19 pandemic between 2020 and 2022, the use of wearable medical devices surged as they played a vital role in remotely monitoring infected patients in home isolation. According to data from the World Health Organization, over 10 million COVID-19 patients received treatment through virtual facilities enabled by wearable sensors and IoT networks globally during this period. This significantly contributed to alleviating the pressure on overwhelmed physical hospitals. It also allowed non-COVID-19 patients to safely continue receiving care without the threat of virus exposure.  

• Cloud-based solutions: The rise of cloud-based IoT solutions is revolutionizing the global healthcare sector by allowing the delivery of virtual hospital services. Cloud platforms are enabling the integration of various medical devices, clinical information systems and patient health records on a common IT infrastructure. This facilitates remote monitoring of vital signs, virtual consultations, emergency response and digital management of chronic conditions.

For example, major hospitals in Singapore have implemented cloud-based IoT platforms to deploy remote ICU services using wearable sensors and video conferencing tools. This helped the hospitals to increase ICU capacity by 150% during the peak of COVID-19, without having to expand physical infrastructure or hire more staff. Similarly, the National Health Service (NHS) in England rolled out a nationwide ‘COVID-19 Virtual Ward’ program leveraging AWS IoT Core to enable vital monitoring of recoverings patients from home. This program supported over 200,000 patients annually and reduced readmission rates by over 30%.

Global IOT and Virtual Hospital Market - Restraints

• Data privacy and security concerns: Data privacy and security concerns are significantly restraining the growth of the global IoT and virtual hospital markets. With more personal and sensitive health data being collected and stored online through various connected medical devices, telehealth solutions and electronic health records, patients have legitimate worries about potential data breaches and leakages. Hospital networks and virtual platforms handling such data have increasingly become targets of sophisticated cyberattacks aimed at stealing and misusing private patient information for financial or other illegal motives. High-profile incidents of health data thefts in recent years have eroded public trust in the ability of organizations to safeguard their data. This fear of health data falling into the wrong hands if adequate security is not implemented is holding many patients and doctors back from fully embracing various digital healthcare technologies.
• Furthermore, the growing regulatory emphasis on data privacy around the world is also posing challenges for businesses in this sector. Strict new laws such as General Data Protection Regulation (GDPR) in Europe require healthcare providers and IoT vendors to obtain clear consent before processing any personal patient information and give individuals greater control over their data. Ensuring compliance with diverse and evolving privacy norms across different jurisdictions makes it difficult to have uniform data governance practices, driving up operating costs. For instance, a report from the European Data Protection Supervisor in 2021 found that two-thirds of the healthcare organizations audited in the EU had incurred higher costs or faced delays in projects due to GDPR requirements. This regulatory complexity, if unaddressed, can add overheads that disadvantage smaller players in the market.

• High investment requirement: The high upfront investment requirement is one of the major factors restraining the growth of the global IoT and virtual hospital market. Establishing an advanced IoT and virtual hospital infrastructure involves significant capital expenditure for procuring various equipment, devices, systems, and software. Such infrastructure requires setting up IoT sensors and devices to remotely monitor patients, vital medical equipment, networks etc. It also needs investing in advanced telemedicine systems, virtual consultation platforms, high-speed networks, cloud computing solutions, artificial intelligence and analytics tools. Setting up all these advanced technologies and their integration requires massive initial funding. Particularly for developing countries and under-served rural locations, gathering such a large amount is extremely challenging. According to the UN Department of Economic and Social Affairs report published in December 2021, lack of access to financing remains a major barrier for adopting advanced healthcare technologies especially in low and lower-middle income countries. This is because healthcare being a critical sector, most governments and municipal hospitals have budget constraints. Raising capital from private sources also becomes difficult since IoT and virtual hospital projects may not guarantee high commercial returns initially.

Figure 2. Global IOT and Virtual Hospital Market Share (%), By Component, 2023

To learn more about this report, request sample copy

Global IOT and Virtual Hospital Market- Recent Developments

Product and Technology Launch

• On April 18, 2023, Saint Joseph Hospital, healthcare provider celebrated the launch of a new model of nursing care that will address staffing challenges while enhancing patient care. On April 18, hospital leaders shared an update about the virtually integrated care technology developed by CommonSpirit Health, which selected CHI Saint Joseph Health as a pilot site to pioneer this model of care.
• In September 2021, MFine, a Healthtech startup, announced that it has raised US$ 48 million in a Series C funding round led by Moore Strategic Ventures and BEENEXT with participation from existing investors, Stellaris Venture Partners, SBI Group Japan, SBI Ven Capital Singapore, Heritas Capital, Prime Venture Partners, Y’S Investment Pte Ltd., and Alteria Capital.

Business Development Activities by the Market Players

• On October 2023, Cedars-Sinai launched a new artificial intelligence-driven mHealth application for patients in California, U.S. that provides virtual care options for various clinical conditions. The Cedars-Sinai Connect app provides 24/7 virtual access to healthcare professionals for urgent care and same-day appointments for primary care. Patients can use the app to access care for numerous conditions including colds, headaches, anxiety, type 2 diabetes, wellness visits, and specialist referrals.
• In June 2020, Royal Philips, a global leader in health technology, announced it has once again joined forces with the American Telemedicine Association (ATA) to help further the adoption of telehealth across the industry, demonstrating its commitment to connecting care across acute, post-acute, and home care settings. The continued collaboration spotlights the growing adoption and momentum in telehealth amidst COVID-19, and the need to convey the exponential shift to telehealth capabilities.

Top Companies in the Global IOT and Virtual Hospital Market

• Microsoft
• IBM
• Oracle
• GE Healthcare
• Siemens
• Cerner
• Allscripts
• McKesson
• Koninklijke Philips
• Medtronic

Definition: The Internet of Things (IoT) is revolutionizing the healthcare industry by improving the way we diagnose, treat, and monitor patients. IoT has the potential to make healthcare more accessible, efficient, and cost-effective, which is why the demand for IoT app development services is on the rise. A smart hospital is a relatively well-known concept and has become a reality.