Growing adoption of wearable technology, rising investments to implement digital technologies in healthcare settings, and the emergence of connected care are key factors boosting the adoption of the Internet of Things in the healthcare industry. Technological advancements, growing geriatric population, and rising prevalence of chronic conditions are also positively impacting the market.
According to a research conducted by network provider company Aruba in 2017, nearly 87.0% of healthcare organizations globally will have adopted Internet of Things by 2019 as compared to 60.0% in 2017. Researchers surveyed approximately 3,100 IT enterprises, including healthcare and business decision-makers, across 20 countries. This study concluded that healthcare companies have introduced IoT to improve patient monitoring, foster innovations, and reduce costs.
Emergence of connected technology has significantly benefited the healthcare sector. These devices are used for patient monitoring, taking readings, observing patterns, and notifying patients in case of any abnormalities. The technology is also used in monitoring at-risk patients and making informed decisions.
Reduction in emergency room wait time is also one of the notable benefits of IoT, which has greatly accelerated its adoption in medical management. For instance, to address one such issue of emergency room wait times, GE Healthcare developed a software program, AutoBed, which was piloted at Mt. Sinai Medical Center in New York. This software helped in reducing wait time for 50% of individuals in need of an inpatient bed.
The growing use of connected technology in healthcare settings for management of operational workflows as well as clinical tasks is also one of the key factors driving the market. Philips, in collaboration with OpenMarket, developed a remote sensor technology with mobile messaging called e-Alert, which notifies any potential issue of MRI systems before its downtime. This technology won the Most Innovative IoT Solution award in 2017.
As of 2017, the services segment held the largest share of 45.1% in the overall market. Medical devices are another major segment in terms of revenue share. With the emergence of Internet of Things, dependency on connected wearable, implantable, and stationary medical devices has increased for health monitoring. Growing need for connected health services among critically ill patients, geriatrics and pediatric population, reduced cost of care, better treatment outcomes, and real-time disease management are some of the factors boosting segment growth. The system and software segment is expected to exhibit the highest CAGR of 21.6%.
Hospitals and clinics accounted for the dominant revenue share in the global IoT in healthcare market in 2017, fueled by improved functional and operational efficiency gained by hospitals due to the incorporation of Internet of Things. These solutions enable improved disease management, enhanced patient experience, and better treatment outcomes, resulting in enhanced care delivery. Apart from patient management, these solutions allow hospitals in management of inventory, billing and medical records, real-time communication, medication compliance, and hospital workflows, which improves operational efficiency.
Inpatient monitoring held the leading revenue share in 2017. Increasing demand for patient monitoring and emergence of connected devices are key factors driving this segment. Rising demand for enhanced patient care and safety through real-time and remote monitoring of vital signs is further driving demand for IoT solutions for inpatient monitoring. Increasing adoption of smart wearable devices is another key driver boosting segment growth.