The Internet of Things (IoT) is going to incorporate virtually every industry in the world, connecting tens of billions of devices. And the healthcare industry is going to be one of the major contributors in the number of devices it will be deploying as part of the IoT. According to a new report by Berg Insight, it is also going to be one of the most lucrative segments when it comes to monetizing the monitoring of these connected devices. Revenues for remote patient monitoring (RPM) is going to increase at a compound annual growth rate (CAGR) of 33.8 percent between 2016 and 2021.
The 33.8 percent CAGR Berg Insight projected will reach $34.41B by the end of the forecast period, which is a dramatic increase from the $7.97B revenue generated in 2016. The growth is going to be driven by medical monitoring devices, mHealth connectivity solutions, care delivery platforms and mHealth care programs.
The connectivity of medical devices and health gadgets is blurring the distinction between both segments because of the amount of mHealth data they are generating. This information is being crunched or analyzed by startups that are monetizing the data to provide value-added services for consumers who are increasingly using technology to live healthier lives and greater control of their medical information.
“All health related devices that can be connected will be connected and patient data management therefore becomes increasingly important. Payers and healthcare providers will have opportunities to take advantage of this trend, as consumers that already have started to use connected medical devices more easily can be onboarded onto new mHealth care programs,” said Anders Frick, Senior Analyst at Berg Insight.
Some of the leading companies in tech , including Google, Apple and Microsoft, are entering the segment, along with independent app producers, national PHR systems, medical device manufacturers and others who are looking to take advantage of the opportunities this multibillion-dollar industry will continue to provide.
The fastest growing market segments in the next five years will be glucose monitoring, air flow monitoring and connected pharmaceuticals, with companies such as AstraZeneca, Dexcom, Merck Group, Novartis, Propeller Health, Proteus Digital Health, Roche, Sanofi, Voluntis and WellDoc playing leading roles.
As to the number of remotely monitored patients, there were 7.1 million in 2016, which, according to the report, was a 44 percent growth. But Berg Insight estimates this number will rise at a CAGR of 47.9 percent to reach 50.2 million by 2021.
Edited by Alicia Young