SMART HEALTHCARE PRODUCTS MARKET ANALYSIS

The Global Smart Healthcare Products Market is expected to reach US$ 397.10 Bn by 2030, from US$ 163.33 Bn in 2023, at a CAGR of 13.5% during the forecast period.

Smart healthcare products are revolutionizing the healthcare industry globally. These products leverage the latest technologies, like IoT, AI, and mobile computing, to improve patient care and help clinicians. Broadly, there are two main types of smart healthcare products: wearable devices and medical devices. Wearable devices include smart watches, fitness trackers, and patches that can monitor vitals like heart rate, blood pressure, calories burned, etc. continuously. These give real-time health insights to users and alert them of any abnormalities. Medical devices deployed by hospitals include smart beds, robotic surgical devices and digital assistants, these offer higher accuracy for diagnosis and treatment. However, their large scale and fixed infrastructure limit their portability.

The global smart healthcare market is segmented by product type, application, end user, and region. By product type, the Electronic Health Record segment accounted for the largest market share in 2022. The high share of this segment can be attributed to the continuous launch of new products.

Global Smart Healthcare Products Market- Regional Insights

• North America is expected to be the largest market for smart healthcare products during the forecast period, accounting for over 40.5% of the market share in 2023. The growth of the market in North America is attributed to increasing collaborations by market players in the region. For instance, in August 2022, Baxter a healthcare company received U.S. Food and Drug Administration (FDA) 510(k) clearance of its new Novum IQ syringe infusion pump (SYR) with Dose IQ Safety Software, representing Baxter’s latest developments for infusion therapy. The Novum IQ SYR has the capability to fully integrate with hospital electronic medical records (EMRs) through Baxter’s IQ Enterprise Connectivity Suite.
• Europe is expected to be the second-largest market for smart healthcare products, accounting for over 32.2% of the market share in 2023. The growth of the market is attributed to rising healthcare expenditure, stringent regulations, and an increasing focus on patient safety and care quality in the region.
• Asia Pacific is expected to be the fastest-growing market for smart healthcare products, with a CAGR of over 11.2% during the forecast period. The growth of the market in Asia Pacific is attributed to improving healthcare IT infrastructure, growing medical tourism, and an increasing focus on value-based care in the region.

Figure 1. Global Smart Healthcare Products Market Share (%), By Region, 2023

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Analyst’s View:

The global smart healthcare products market is poised to grow significantly in the coming years. Major drivers of growth include the rising geriatric population globally and the subsequent increase in chronic diseases. The growing need for remote patient monitoring and the demand for improved healthcare access will also support market expansion. Furthermore, the increasing adoption of digital health solutions and the integration of the Internet of Things (IoT) and artificial intelligence (AI) in the healthcare industry are expected to increase demand for smart healthcare products.

However, data privacy and security concerns could hinder market growth. The secure handling and storage of sensitive patient data is challenging but critical. Additional restraints include the high costs associated with many smart healthcare devices and solutions, as well as the lack of reimbursement for some products in certain regions.

 Global Smart Healthcare Products Market- Drivers

• Growth of telehealth and remote patient monitoring: The COVID-19 pandemic crisis has accelerated the demand for telehealth and remote patient monitoring globally. Social distancing during the peak months forced healthcare providers to shift towards virtual care models. Telehealth offers contactless and flexible healthcare services to patients from the comfort of their homes. This helped in controlling the spread of the virus while also allowing continuity of care. As per the World Health Organization, around 90% of nations have incorporated some form of telemedicine service as part of their pandemic response strategies.
• AI Platform for Medical Devices: AI is increasingly being integrated into medical devices and healthcare products, fueling innovations and the growth of the global smart healthcare market. By leveraging advanced machine learning and analytics capabilities, AI enables the development of smarter medical technologies that can improve patient outcomes and the overall healthcare experience. For instance, on March 21, 2023, Medtronic a medical device company collaborated with NVIDIA Corporation a computer hardware company to build AI platform for medical devices. This collaboration accelerate the development of AI in the healthcare system and bring new AI-based solutions into patient care.
•  Adoption of connected devices and integration of IoT in healthcare: The adoption of connected devices and integration of Internet of Things (IoT) technologies in the healthcare industry is powering the growth of the global smart healthcare products market significantly. IoT enabled devices are allowing remote patient monitoring, which is helping manage chronic diseases and aging population more effectively. Devices like smart wearables, continuous glucose monitors, and cardiovascular monitors connected to healthcare apps help high-risk patients stay under doctors' watch from home. This has proved highly beneficial during the COVID-19 pandemic for maintaining social distancing while continuing care.

Global Smart Healthcare Products Market- Opportunities

• Emergence of artificial intelligence in medicine: The emergence of artificial intelligence in the medical field promises to revolutionize healthcare and unlock new opportunities for innovation. AI has the potential to help doctors make more accurate diagnoses, develop smarter treatment plans, and precision medicine. With AI analyzing huge amounts of medical data, patterns can be identified that may help treat diseases. Radiologists can use AI to rapidly analyze medical images, like CT scans, and detect anomalies. This reduces human error and helps identify diseases early. AI is also helping develop new drugs at faster rates through in silico clinical trials before human trials. This cuts costs and time for drug discovery significantly.
• Integration of blockchain with healthcare IT: The integration of blockchain technology with healthcare IT solutions provides a tremendous opportunity to revolutionize the global smart healthcare products industry. Blockchain allows for secure and decentralized storage and sharing of patient health records and clinical trial data across different organizations. This removes obstacles around the interoperability of data from various sources and gives healthcare practitioners a comprehensive view of a patient's medical history. Traceability of data is also improved through blockchain's inherent transparency. Many countries have initiated pilots to apply blockchain to areas like electronic health records, clinical data exchange, medical device security, supply chain management and more.
• Growth of telehealth and remote patient care: The growth of telehealth and remote patient care has huge potential to transform the global smart healthcare products market in the coming years. With the COVID-19 pandemic highlighting the importance of virtual care, more patients and providers are embracing telemedicine solutions that allow remote monitoring of vital signs as well as online consultation with doctors. This shift to digital care delivery enables better management of chronic illnesses and reduces strain on existing healthcare infrastructure. Many patients now prefer the convenience of virtual care services as it saves them time and money spent on physical visits. The elderly and those in rural areas gain maximum benefit from telehealth as it ensures their health issues are addressed without having to travel long distances. For instance, on January 18, 2023, Koninklijke Philips N.V. a conglomerate corporation entered into strategic partnership with Masimo a medical device company to expand patient monitoring capabilities in home telehealth applications with the Masimo W1 advanced health tracking watch.

Global Smart Healthcare Products Market- Trends

• Growing prevalence of digital health records and workflows: The growing digitalization of health records and workflows is having a profound impact on the global smart healthcare products market. With more healthcare providers embracing digital tools, there is a surging demand for smart medical devices, telehealth solutions, electronic health record systems, and other digital healthcare technologies. The use of digital health records allows for easier data sharing between providers, more seamless care coordination, improved remote patient monitoring capabilities, and more integrated care experiences for patients. Vital information like medical histories, diagnoses, prescriptions, lab results, and more can now be securely accessed from any location by authorized providers. This level of connectivity is driving greater interest in technologies that can leverage digitized data to enhance various areas of healthcare.
• Increasing focus on personalized medicine: The increasing focus on personalized medicine is having a strong influence on the global smart healthcare products market. Personalized medicine takes into account the individual variability in genes, environment, and lifestyle of each person for developing targeted treatment and prevention strategies for patients. Healthcare providers are realizing that a one-size-fits-all approach may not be effective for all patients as genetic variations can affect disease predisposition and drug efficacy.
• Shift towards value-based healthcare models: The global healthcare industry is progressively moving towards value-based models of care from traditional fee-for-service models. This shift is influencing the smart healthcare products market in significant ways. Under value-based models, there is increasing emphasis on delivering high-quality and effective care while optimizing costs. This favors integrated care approaches that leverage digital technologies and tools to achieve these twin goals of improved outcomes and efficiency.

Global Smart Healthcare Products Market- Restraints

• Data privacy and security concerns: Data privacy and security concerns have become a major restraining factor for the growth of the global smart healthcare products market. With more medical devices and healthcare products becoming connected and collecting sensitive personal data, there are growing fears among consumers about potential data breaches and privacy violations. Patients are hesitant to adopt smart medical wearables and devices that can continuously monitor their vital signs and health data out of the fear that their personal medical information may not be properly safeguarded or could be misused. This lack of trust in how healthcare organizations and technology companies would manage their data is holding many customers back from embracing smart healthcare solutions.
• Lack of infrastructure in developing regions: Lack of strong infrastructure continues to pose a major challenge for the widespread adoption of smart healthcare products in developing regions. The absence of robust and reliable healthcare infrastructure makes it extremely difficult for patients in remote and rural areas to access advanced smart healthcare technologies. With little to no connectivity in vast swathes of the countryside, devices that require an internet connection to function properly cannot be effectively utilized. Even basic necessities like reliable electricity supply are not always guaranteed in underdeveloped areas. This severely restricts the potential of smart healthcare devices that are powered by rechargeable batteries and need regular power to stay operational.
• High costs associated with digital healthcare systems: The high costs associated with digital healthcare systems are significantly restraining the growth of the global smart healthcare products market. Developing advanced digital healthcare infrastructure and systems requires massive investments which most healthcare providers, especially in developing nations, find difficult to afford. Setting up smart hospitals with cutting-edge medical technologies, automated processes, electronic health records, and connected devices requires substantial capital expenditure. Additionally, frequently upgrading existing systems and integrating new solutions to keep pace with rapid technological advancements further adds to the financial burden.

Global Smart Healthcare Products Market- Recent Developments

New Product Launches:

• In March 2022, Intuitive MB, a data analytics company, released its medical building operating system, which employs the Internet of Things (IoT), artificial intelligence (AI), and machine learning technologies to create “smart” hospitals and medical office buildings.
• In March 2022, Commonwealth Bank, a financial service company, launched a new smart terminal, Smart Health, which helped all major Australian private health insurers to improve payments and claim experience.
• In 2020, Allscripts, a software company, increased its engagement with its largest client, Northwell Health, which is the largest health system in New York.

Acquisition and Collaborations:

• On November 2, 2023, DuPont, a chemicals company, collaborated with STMicroelectronics, a semiconductor manufacturing corporation, to develop a new smart wearable device concept for remote biosignal monitoring.
• In December 2020, Koninklijke Philips N.V. a conglomerate corporation acquired BioTelemetry, Inc., a U.S.-based provider of remote cardiac diagnostics. This acquisition of BioTelemetry is a strong fit for Philips’ cardiac care portfolio.  

Figure 2. Global Smart Healthcare Products Market Share (%), By Product Type, 2023

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Top companies in Global Smart Healthcare Products Market:

• Allscripts Healthcare Solutions Inc.
• Medtronic, Inc.
• Becton Dickinson & Company
• Honeywell Life Care Solutions
• AirStrip Technologies
• Cerner Corporation
• Stanley Healthcare
• Terumo Corporation
• Olympus Corporation
• Epic Systems
• Terumo Corporation
• Siemens Medical Solutions

Definition: Smart healthcare products are a cluster of multiplatform technologies that involve the use of new-age information and communication technologies that utilizes digital, mobile, and cloud-based platforms in order to provide quality healthcare to patients. Smart healthcare product platforms, such as electronic health records, help in efficient patient management and better clinical outcomes. Smart healthcare product platforms bring stakeholders in the healthcare system, such as patients, health care practitioners, researchers, and medical device industry firms, thereby making the whole healthcare system efficient.