Regional Analysis
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
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