IoT Medical Devices Market

IoT Medical Devices Market Size, Share & Trends

The global IoT medical devices market is expected to grow from $41.5 billion in 2023 to $166.5 billion by 2028, at a CAGR of 32.1%. This growth is driven by advancements in high-speed networking technologies, the proliferation of mobile platforms in healthcare, government initiatives promoting digital health, and the need for cost-effective healthcare delivery. IoT medical devices encompass a range of products, including wearable devices, smart implants, remote monitoring systems, and health tracking applications, used in various healthcare settings. Key market players include Medtronic, GE Healthcare, Philips, Abbott, and Boston Scientific. North America holds the largest market share, followed by Europe and the Asia Pacific. Challenges include high deployment costs and a lack of IoT expertise in healthcare organizations. However, opportunities arise from the increased reliance on self-operated eHealth platforms due to low doctor-to-patient ratios in many countries.

IoT Medical Devices Market Trends

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IoT Medical Devices Market Dynamics

Driver: The advancement of high-speed networking technologies and the growing prevalence of mobile platforms in the healthcare industry

The healthcare industry has witnessed a multitude of new care options due to the availability of high-speed network connectivity. These options include remote consultation and monitoring, virtual health kiosks and portals, video conferencing for consultations, and electronic personal health records. With the help of small and powerful wireless solutions connected through IoT, it is now feasible to remotely monitor and provide advice to patients. Additionally, these solutions can securely capture patient health data from various sensors, apply complex algorithms for analysis, and transmit the information wirelessly to medical professionals. Wireless networking eliminates the limitations of traditional wired solutions and enables devices to connect via popular wireless standards such as BLE for personal area networks (PAN) and Wi-Fi & BLE for local area networks (LAN) in clinics or hospitals. IoT medical devices can be controlled and accessed through cellular networks (3G/4G/5G), Bluetooth, ZigBee, and other protocols.

The adoption of 3G, 4G, and 5G networks has significantly facilitated uninterrupted healthcare services. China leads in terms of 5G penetration, while South Korea and Japan have the highest penetration of 4G, according to Statista. Global 5G mobile subscriptions are projected to exceed 2.7 billion by 2025, with Northeast Asia, North America, and Western Europe having the largest subscriber base. Furthermore, 4G network traffic witnessed a growth of 39% in 2021, as reported by CLSA. India's 4G subscriber base also grew from 645 million in 2020 to 710-720 million in 2021 and is anticipated to surpass 800 million by March 2022, according to Crisil. The widespread and expanding presence of high-speed telecommunication networks in both developed and developing countries has played a pivotal role in driving the adoption of connected medical devices.

According to the Global System for Mobile Communications (GSMA), global smartphone adoption, as a percentage of mobile connections, reached 67% by the end of 2020 and is projected to reach 70% by 2025. By the end of 2022, global mobile service subscriptions surpassed 5.4 billion, with 4.4 billion individuals using mobile internet. The gap in mobile internet usage has significantly narrowed, decreasing from 50% in 2017 to an average of 41% in 2022. Additionally, smartphones, tablet PCs, and PDAs serve as the primary means of internet connectivity in developed and developing regions. These trends indicate favorable conditions for market growth, as the utilization of mobile platforms and high-speed mobile network technologies continues to rise.

Restraint: Lack of adequate IoT technology expertise within healthcare organizations

Managing connected medical devices requires a distinct skill set compared to managing on-premise infrastructure. It necessitates a comprehensive understanding of data collection, interoperability, integration, and analysis. As the number of IoT devices integrated into networks continues to rise, network management is expected to become increasingly complex and challenging for IT teams.

The effective utilization of IoT-enabled medical devices relies on robust IT infrastructure and support within healthcare organizations and from solution providers. Healthcare organizations require continuous technical assistance to maintain servers, networks, ensure smooth workflows, and achieve optimal interfacing speed. However, there is currently a significant shortage of healthcare IT (HCIT) professionals in both developing and major markets. The American Association of Medical Colleges (AAMC) projects a shortage of up to 122,000 physicians by 2032. Similarly, Canada is experiencing a shortage of IT specialists in healthcare systems, with 79% of current clinical IT workers requiring additional training. This shortage of trained and skilled workforce acts as a barrier to the widespread adoption and implementation of IoT-enabled medical devices in numerous healthcare facilities.

Opportunity: Increased reliance on self-operated eHealth platforms due to low doctor-to-patient ratio

Many countries worldwide suffer from a low doctor-to-patient ratio. The World Health Statistics report of 2020 reveals that approximately 40% of countries have less than one physician per 1,000 people, along with less than 18 hospital beds per 10,000 people. Additionally, there is a significant disparity between healthcare access in developed and developing markets. For example, developing countries in the APAC and Africa regions exhibit considerably lower densities of hospital beds, physicians, nurses, and midwives per 10,000 people compared to developed countries in North America and Europe (Source: WHO).

The World Health Organization (WHO) sets the global standard doctor-to-patient ratio at 1:1,000. However, numerous countries fall below this standard, resulting in patients experiencing difficulties in accessing adequate medical care due to a shortage of skilled doctors.

Nevertheless, mobile and telehealth technologies have emerged as effective solutions in recent years to address these challenges. By providing patients and healthcare providers with access to comprehensive and accurate Electronic Health Records (EHRs) that contain detailed patient illness histories, improved clinical outcomes and proper care can be ensured. These records have the potential to enhance diagnosis, prevent errors, save time, and reduce waiting times for patients. Consequently, the low doctor-to-patient ratio, particularly in developing countries, is expected to drive the adoption of connected mobile health devices.

Challenge: Concerns regarding data management and interoperability

The healthcare industry operates in an information-intensive environment where a substantial amount of data is generated continuously from numerous connected medical devices used in various healthcare facilities and remote patient monitoring. However, the key lies in generating reliable information by effectively integrating this vast volume of data to create comprehensive and accurate patient records. Given the use of diverse medical devices and diagnostic tools within healthcare systems, there is a growing need to integrate these systems to ensure healthcare professionals can respond promptly at different points of care delivery.

Many healthcare organizations have made investments in information management applications capable of analyzing and managing data generated by imaging systems, remote patient monitoring systems, and wearable medical devices. As healthcare organizations increasingly adopt various healthcare IT (HCIT) solutions, there is a heightened demand for integrating different information technology systems into the organization's IT architecture to maximize their utilization.

Nevertheless, connecting or integrating new interoperable solutions with existing legacy systems poses challenges for market players. Due to disparities in data communication standards, many medical devices are unable to exchange data with various information systems that employ vendor-specific interface formats. While some companies have started launching compatible systems to address software-interface issues, the situation is further complicated by the requirements and efforts necessary to enable cloud and mobile networks. Consequently, the lack of standard interfaces and interoperability presents a challenge for IoT medical device vendors as it hampers the effective management and functionality of these devices.

IoT Medical Devices Market Ecosystem

Key stakeholders in the supply chain include prominent companies providing IoT medical devices, small & medium-sized enterprises, manufacturers of IoT medical devices, dealers & distributors (involved in product supply), and end customers (hospitals & clinics, nursing homes, assisted living settings, long-term care centers, and home care settings).

Vital signs monitoring devices segment was the fastest growing segment in the product type of IoT medical devices industry in 2022.

Based on product, the IoT medical devices market has been segmented into imaging systems, vital signs monitoring devices, implantable cardiac devices, patient monitors, respiratory devices, infusion pumps, neurological devices, hearing devices, anesthesia machines, fetal monitoring devices, ventilators, and other IoT medical devices (such as medication management devices, activity trackers, fall management devices, weighing scales, body composition, tags, probes, and thermometers). The vital signs monitoring devices segment is expected to grow at the highest CAGR during the forecast period. The high growth of the vital signs monitoring devices segment can be attributed to the increasing prevalence of hypertension, the growing obese population, and the increasing preference for self-health management.

Stationary medical devices segment accounted for the largest share in the IoT medical devices industry in 2022.

Based on the type, the IoT medical devices market has been segmented into wearable medical devices, implantable medical devices, stationary medical devices, and other IoT medical devices (medication management devices, thermometers, infusion pumps, coagulation monitors, digital skin sensors, pedometers, and body composition monitors). The stationary medical devices segment held the largest share of the IoT medical devices market in 2022. This can be attributed to government regulations mandating the use of EHR, the high cost of these devices, and the advantages they offer in data accessibility.

North America accounted for largest share of the IoT medical devices industry during the forecast period.

The global IoT medical devices market is divided into regions, including North America, Europe, the Asia Pacific, the Middle East & Africa, and Latin America. In 2022, the North American segment held the largest share of the IoT medical devices market, followed by Europe, the Asia Pacific, Latin America, and the Middle East & Africa. The dominant position of North America can be attributed to several factors, such as the widespread use of smartphones, tablets, and other mobile platforms; the increasing adoption of connected devices for managing chronic diseases; the growing development and implementation of Electronic Health Records (EHRs) in healthcare institutions; the rise in government initiatives for digitalizing healthcare services, and the presence of major companies in the region.

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The IoT medical devices market key established players include Medtronic (Ireland), GE Healthcare (US), Koninklijke Philips N.V. (Netherlands), Abbott (US), Boston Scientific Corporation (US), OMRON Corporation (Japan), Baxter International Inc. (US), BIOTRONIK (Germany), Johnson & Johnson Private Limited (US), NIHON KOHDEN CORPORATION (Japan) among others.

Scope of the IoT Medical Devices Industry

The study categorizes IoT medical devices market to forecast revenue and analyze trends in each of the following submarkets:

By Segment

• IoT medical devices Market, By Product
  • Introduction
  • Vital signs monitoring system
  • Imaging systems
  • Implantable cardiac devices
  • Patient monitors
  • Respiratory devices
  • Infusion pumps
  • Fetal monitoring devices
  • Neurological devices
  • Ventilators
  • Anesthesia machines
  • Hearing devices
  • Other IoT medical devices
• IoT medical devices Market, By Type
  • Introduction
  • Stationary medical devices
  • Implantable medical devices
  • Wearable medical devices
  • Other IoT medical devices
• IoT medical devices Market, By Connectivity Technology
  • Introduction
  • Wi-fi
  • Bluetooth
  • Zigbee
  • Other connectivity technology
• IoT medical devices Market, By End User
  • Introduction
  • Hospitals & clinics
  • Nursing homes, assisted living facilities, long-term care centers and home care settings
  • Other end users

By Region

• North America
  • US
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest Of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest Of Latin America
• Middle East & Africa

Recent Developments of IoT Medical Devices Industry

• In May 2023, Medtronic (Ireland) acquired EOFlow Co. Ltd. (South Korea) to expand the company’s ability to treat patients with diabetes.
• In April 2023, Koninklijke Philips N.V. (Netherlands) and Northwell Health (US) partnered to assist the health system in standardizing patient monitoring, improving patient care, and improving patient outcomes while promoting interoperability and data innovation.
• In April 2023, Abbott (US) acquired Cardiovascular Systems, Inc. (CSI) (US) to gains a complementary treatment option for vascular illness. The most advanced atherectomy technology from CSI prepares vessels for angioplasty or stenting to restore blood flow.
• In March 2023, Advantus Health Partners (US) and GE HealthCare (US) partnered to sign multi-year contract to expand access to Healthcare Technology Management Services.
• In February 2022, Boston Scientific Corporation (US) acquired Baylis Medical Company Inc. (Canada), a provider of innovative transseptal access solutions as well as guidewires, sheaths, and dilators used in catheter-based left-heart surgeries.

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