The global Internet of Things (IoT) in healthcare market is projected to grow from USD 53.64 billion in 2024 to an estimated USD 368.06 billion by 2034, expanding at a CAGR of 21.24% over the forecast period (2024-2034). North America, holding the largest market share, is expected to continue leading, with a CAGR of 21.40% during the forecast period.
The IoT in healthcare encompasses a range of technologies, including sensors, software systems, and information processing tools. Its adoption has surged due to the growing demand for advanced medical devices in healthcare facilities, coupled with an increasing number of patients, especially those with chronic conditions. The market is also supported by government initiatives aimed at improving healthcare infrastructure and digitization across regions.
IoT enables the seamless sharing of data between medical devices, smartphones, and wearable technologies, powered by wireless connectivity and embedded systems. These devices, such as biometric scanners, remote monitoring tools, and connected wearables, have significantly contributed to the market’s growth.
Market Dynamics
Key Drivers
- Technological Advancements: The development of advanced medical devices integrated with IoT technologies, including drug affectivity trackers, respiratory monitors, connected surgical tools, and wearables, has boosted market growth.
- Rising Chronic Diseases: The growing prevalence of chronic disorders like respiratory diseases, COPD, and genetic disorders has led to an increase in hospitalizations and demand for medical devices.
- Government Support: Various governments have encouraged the use of IoT in healthcare through regulations, funding, and initiatives aimed at improving medical device accessibility and healthcare delivery.
- COVID-19 Impact: The COVID-19 pandemic accelerated the adoption of IoT in healthcare, with a surge in hospitalizations and the use of remote monitoring tools.
Key Challenges
- Data Security: As more healthcare data is shared across networks, the risk of data breaches and privacy issues becomes a significant concern.
- High Costs: The cost of advanced medical devices remains a barrier for many patients, especially in lower-income regions.
- Integration of New Technologies: The continuous need to update software and maintain connectivity standards for smooth operations is a challenge in healthcare facilities.
Market Opportunities
- Self-Monitoring Devices: Increasing availability and adoption of self-monitoring devices such as glucose monitors, blood pressure monitors, and sleep trackers have contributed to the expansion of IoT in healthcare.
- Geriatric Population: The aging population, with its growing healthcare needs, presents a significant opportunity for IoT-enabled devices for better health management.
- Research & Development: Ongoing innovations in medical devices and healthcare technology offer opportunities for market expansion.
Market Segmentation
By Product
- Medical Devices: The IoT healthcare market includes a wide range of medical devices, such as vital signs monitoring devices, blood glucose monitors, heart rate monitors, infusion pumps, and implantable cardiac devices.
- Software & Systems: This segment includes network security, data analytics, remote device management, and application security that support IoT in healthcare.
- Services: This includes system integration, consulting, and support and maintenance services for IoT solutions in healthcare.
By Connectivity
- Wi-Fi
- Bluetooth
- Zigbee
- Embedded Systems
- NFC (Near Field Communication)
By End User
- Hospitals
- Clinics
- Laboratory Research
- Others
Regional Insights
- North America: The U.S. market is the largest and is projected to grow from USD 13.14 billion in 2024 to USD 92.12 billion by 2034, with a CAGR of 21.47%. The region holds the largest revenue share due to technological advancements, high adoption of IoT-enabled healthcare devices, and robust healthcare infrastructure.
- Asia-Pacific: Expected to grow at a CAGR of 18.50%, driven by improvements in healthcare infrastructure, increased government investments, and growing demand for healthcare devices.
- Europe: Significant adoption in countries like Germany, the UK, and France, with a growing focus on digital health solutions.
- Latin America: The market is expanding due to increasing healthcare access and digitalization.
- Middle East & Africa: The market in this region is driven by government efforts to improve healthcare facilities and technological infrastructure.
Key players in the IoT healthcare market include:
- Medtronic (US)
- Hillrom- Welch Allyn (US)
- Abbott Laboratories (US)
- GE Healthcare (US)
- Omron Healthcare (Japan)
- Philips Healthcare (Netherlands)
- Honeywell Life Care Solutions (US)
- Siemens Healthineers (Germany)
Recent developments include:
- In 2020, Abbott and Insulet collaborated to launch a glucose monitoring and auto insulin delivery system.
- In 2021, Hillrom introduced a suite of connected solutions for improved patient outcomes.
- Medtronic and Surgical Theatre launched an augmented reality (AR) technology for surgical navigation.
The IoT in healthcare market is set to experience robust growth, driven by technological advancements, an aging population, rising chronic disease prevalence, and government support. However, issues related to data security, high costs, and the integration of new technologies pose challenges. The future of the market looks promising with continued innovation in connected medical devices, wearables, and telemedicine solutions.
