Global IoT and Virtual Hospital Market Size and Trends

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- 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.

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

Global IOT and Virtual Hospital Market- Trend

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%.