Healthcare is shaping up to be an important area for the Internet of Things, according to a new healthcare IoT revenue forecast from Allied Market Research. The AMR forecast calls for the IoT healthcare sector to grow at a 12.5% CAGR from 2015-2021 and to reach $136.8 billion in revenue by 2021.
Services, systems and software will fuel healthcare IoT revenue growth, AMR highlights in a press release. Drilling deeper into this technology segment, patient monitoring applications are expected to generate the most sales, increasing to $72.7 billion by 2021, according to AMR’s ¨World Internet of Things (IoT) Healthcare Market – Opportunities and Forecasts, 2014-2021.¨
Behind the Healthcare IoT Revenue Forecast
North America is the leading regional market for medical and healthcare IoT, according to AMR. A high level of awareness, increasing government support, investment from major IoT players and existing heathcare infrastructure provide the basis for strong growth over the course of the forecast period, researchers said.
More broadly, ongoing development and growing use of connected wearable healthcare devices, new regulations and falling wireless sensor costs will help fuel growth worldwide. Similarly, rising incidence of chronic diseases and growing demand for cost-effective treatment and disease management will support market growth.
Increased government support, high R&D investments by companies building out IoT infrastructure and expanding access to broadband Internet services will serve as more direct drivers of growth. AMR points to the introduction of smart shirts, lenses, wrist bands and other types of connected wearables as evidence of the rapid pace of technological innovation in the market as a primary means of meeting healthcare challenges in developing and developed countries.
The market research report authors also point out some major challenges that constrain growth in use of IoT technology in the medical and healthcare sector. AMR cites the high costs of IoT infrastructure, concerns relating to data privacy and security, and limited technical expertise.
As Finley has discussed previously, we see the healthcare industry as a potential growth market for our clients. This report demonstrates the broad opportunity and the challenges faced by the healthcare industry. Many of those challenges revolve around technology, and Finley clients are well positioned to help healthcare industry customers solve those challenges, creating business opportunity as a result. Contact us to discuss how we can help.