Healthcare sector is projected to be between $5 trillion to $6 trillion in 2017 according to World Economic Forum. On an average, healthcare accounts for 10% of countries GDP in 2016, and is expected to reach 15% by 2025, according to World Bank estimates. Healthcare industry is constantly changing with new innovations and advanced treatment methods & services. IoT enables medical devices and other allied applications to connect & co-ordinate with each other via internet. OBRC research shows that in 2016, venture capital raised more than $74 billion for technology start-up of which roughly 4.8% went to medical device companies and increase from 3.72% in 2012. Global IoT healthcare market is projected to rise at CAGR of 30% during forecast period 2016-2023. Increasing demand for connected devices within healthcare sector, high adoption rate of cloud computing in healthcare, falling prices of electronic components, increasing healthcare expenditure, and demand for better quality of healthcare are some of the factors driving healthcare IoT market. Government regulation with respect to implementation of IoT device, data privacy & security and lack of device standardization, restraints global IoT healthcare market growth for the forecast period.
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Increasing demand for connected devices: Growth driver
OBRC research anticipates that the number of IoT connected devices across the globe is anticipated to reach more than 29 billion by 2021, increasing from 15billion in 2015. Demand for connected devices in healthcare is attributed to low price of sensors & chips, increasing internet penetration & subscribers, and increasing of aging population. According to National Institute of Health (NIH) funded Census Bureau report of 2016, more than 9% of the world’s population were aged 65 years & above (approx. 617 million). The percentage of geriatric population is expected to reach 17% by 2050 (1.6 billion). With aging population, probability of chronic diseases like cancer, diabetes, cardiovascular disease, asthma, and mental health disorders are likely to increase. Thus, demand for 24*7 monitoring and diagnostic technology devices is likely to increase in forecast period, aiding IoT healthcare market growth. IoT devices (like remote glucometers) can replace paper based healthcare procedures to that of remote patient monitoring & real time patient data.
Data privacy and security limitations: Restraints market growth
Increasing connectivity amongst IoT devices for data collection and sharing would make it vulnerable to potential attacks from malwares and other data thieves. For example, researchers at University of Michigan & Microsoft found loopholes in security of Samsung’s SmartThings smart home platform. Some of the IoT devices (for example glucometer) tend to have limited computing capabilities and storage capacity, making security and privacy protection difficult to deploy. OBRC research shows more than, 84% of the 5000 top technology companies across the globe are likely in process to deploy IoT devices by 2019. From these, only 10% feel confident about IoT device security against potential hackers. Suffice to say data privacy and security limitations are likely to drag pace of healthcare IoT market for the forecast period.
Asia-Pacific: Fastest growing market
OBRC studies showcase Asia Pacific being the fastest growing healthcare IoT market during the forecast period. Healthcare IoT market in Asia Pacific is driven by large pool of population, increasing cases of chronic diseases, aging population, increasing healthcare expenditure, high internet penetration rates, government investment policies, demand for quality treatment, and rising adoption of cloud computing. As of 2016, countries like South Korea, Japan, Australia, Singapore, Taiwan and Australia, boast highest IoT device penetration rates according to OBRC research. India, China, Vietnam, Malaysia, and Indonesia are key healthcare IoT market according to OBRC analysis. Both India and China accounts for an average 35% of Asia Pacific population in 2016 (according to UN estimates) making it a lucrative investment destination for healthcare IoT market. Also, healthcare expenditure in India and China is likely to rise by an average of 9% per annum till 2022, according to World Bank estimates. Chinese government has put forth Internet Plus policy plan to create economic model for driving social & economic innovation in technology sector by the end of 2020. Through this policy, Chinese government is likely to push for investments in IoT sector by or before 2022. Similarly, Indian government via ‘Make in India‘ initiative is likely to fund IoT device manufacturing in the country.
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