Market Challenges And Opportunities
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 - 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.
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