Connected Healthcare Market Size, Share Global Analysis Report, 2024 – 2032

Industry Insights

[221+ Pages Report] According to Facts & Factors, the global connected healthcare market size was worth around USD 81.74 billion in 2023 and is predicted to grow to around USD 732.98 billion by 2032, with a compound annual growth rate (CAGR) of roughly 27.60% between 2024 and 2032.

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Market Overview

Connected healthcare incorporates data systems and digital technologies to enhance patient outcomes and healthcare delivery. It uses sensors, devices, and applications to monitor real-time health, ensure smooth data sharing, and facilitate remote consultations among healthcare providers.

The global connected healthcare market is predicted to experience remarkable growth over the estimated period owing to technological improvements, rising demand for remote healthcare services and telemedicine, and enhancing healthcare infrastructure. The speedy development of sensors, wearable devices, IoT, and AI substantially fuels industry growth. Technologies like AI-based diagnostics, health tracking in real-time, and data analytics improve care quality.

Moreover, the recent COVID-19 epidemic boosted the use of remote healthcare services and telemedicine. Healthcare providers and patients are now realizing the significance of virtual sessions, which may lower costs, lessen the need for in-person visits, and improve patient outcomes.

Furthermore, with the development of healthcare systems on a global scale, the opportunity to adopt connected healthcare technologies notably rises. Enhanced access to mobile networks, reliable internet, and cloud platforms improve the ability of patients to receive remote treatment.

However, the factors limiting the market growth comprise data security and privacy concerns and significant maintenance and implementation costs. The transmission, collection, and storage of sensitive and confidential patient data increases security and privacy issues. Data breaches, cyberattacks, and illegal access to healthcare data may weaken patients' trust and hamper the adoption of connected healthcare technologies.

Although connected healthcare solutions may lower long-term costs, the maintenance of these services, the initial setup, and installation may be high. Several healthcare institutions, particularly smaller businesses, may face challenges with significant upfront costs related to incorporating connected health services.

Nevertheless, the global market will progress remarkably over the coming years, owing to the rise of precision medicine and personalized healthcare and growing integration with AI.

The growth of personalized healthcare offers an opportunity to offer personalized treatments depending on lifestyle, genetic data, and real-time monitoring. This enhances therapeutic results and improves treatment plans for patients. Incorporating ML and AI also increases the efficiency of connected healthcare services by offering automated diagnosis, predictive analytics, and enhanced decision-making.

Key Insights:

• As per the analysis shared by our research analyst, the global connected healthcare market is estimated to grow annually at a CAGR of around 27.60% over the forecast period (2024-2032)
• In terms of revenue, the global connected healthcare market size was valued at around USD 81.74 billion in 2023 and is projected to reach USD 732.98 billion by 2032.
• The connected healthcare market is projected to grow significantly, owing to the increasing elderly population and growing chronic illnesses, rising demand for telemedicine, and enhanced healthcare connectivity and infrastructure.
• Based on type, the mHealth devices segment is expected to lead the market, while the mHealth services segment is expected to register considerable growth.
• Based on function, the telemedicine segment is the dominating segment among others, while the remote patient monitoring segment is projected to witness sizeable revenue over the forecast period.
• Based on application, the monitoring applications segment is expected to lead the market compared to the diagnosis & treatment segment.
• Based on region, North America is projected to dominate the global market during the estimated period, followed by Europe.

Growth Drivers

• Growth of remote care and telehealth boost the connected healthcare market growth

Telehealth services have witnessed a substantial rise, particularly during the recent pandemic. Telemedicine allows healthcare providers to correctly conduct online consultations, provide remote care, and monitor patients remotely. The demand for such services continues to grow, with more healthcare providers and patients recognizing the advantages of accessibility and convenience.

UnitedHealth extended its telehealth services in 2024, streamlining tasks for patients to consult physicians from the comfort of their homes. The growth comprises coverage for mental health consultations and virtual therapy.

Telemedicine platforms and applications like Teladoc and Amwell are actively enhancing their potential and witnessing speedy growth in patient usage. They offer services such as counseling, mental health, chronic illness management, and others.

• The emergence of 'Smart Hospitals' considerably fuels the market growth

A rising number of hospitals are using smart technologies to reduce operational costs, enhance patient care, and improve efficiency. Smart hospitals increasingly use connected devices, AI, and IoT sensors to automate different processes, ensure real-time monitoring of patients, and reduce human error. This also comprises systems that allow patients to interact with medical staff, control their environment via intelligent technologies, and track their medical history, fueling the connected healthcare industry.

Nearly 77% of medical executives in the United States report that they will soon implement smart technologies comprising AI-based diagnostics and patient monitoring.

Singapore's hospitals have commenced the adoption of AI-based technologies for smart robotics for procedures, patient monitoring, and predictive analytics to predict patient status before it worsens.

Restraints

• Compliance and regulatory challenges unfavorably impact the progress of the connected healthcare market

The healthcare industry is highly controlled, and the adoption of connected healthcare solutions is delayed chiefly due to intricate compliance needs. Different regions and nations have diverse laws regarding data protection, the use of telemedicine, and approval procedures for medical devices. Regulatory challenges may hinder the growth of connected healthcare solutions, thus negatively affecting the connected healthcare market growth.

The FDA in the United States lately declared fresh protocols for regulating digital health services, such as connected medical devices, to simplify the need to match with speedily transforming technologies.

The EU is working on reinforcing its Digital Health Act, which aims to offer more clear rules on using wearables, telemedicine, and health data sharing in different nations. However, this is still developing slowly, thus creating uncertainty for companies seeking to enter the European Union industry.

Opportunities

• Assimilation of blockchain for secure data management to compel the connected healthcare market growth

Blockchain technology is progressing as a feasible solution to address problems associated with interoperability, data security, and privacy in connected healthcare. Blockchain enables patient records to be safely stored and transferred among healthcare providers. This reduces the risk of illegal access and guarantees data integrity.

Solve.Care, a blockchain dedicated to healthcare, declared an association with a key health insurer to adopt blockchain solutions. This manages administration processes and patient records, offering a secure and more transparent framework.

Challenges

• ROI uncertainty and high initial costs restrict the growth of the connected healthcare market

The upfront costs of installing connected healthcare systems may be significantly high, mainly for the SME healthcare providers. These costs include buying new devices, integrating systems, upgrading infrastructure, and training staff.

Healthcare businesses may also find it challenging to determine the ROI, mainly when advantages like cost savings and enhanced patient outcomes may not be quickly measurable. This may significantly hamper the growth of the connected healthcare market.

Rural hospitals in the United States have been steadily adopting telemedicine and other healthcare solutions, owing to high initial installation prices. A report from the American Hospital Association showed that approximately 40% of countryside hospitals cited financial challenges as the key reason for not incorporating telemedicine infrastructure.

A study conducted by Deloitte discovered that while digital health technologies are projected to lower long-term operational costs, nearly 65% of healthcare administrators complained about the high upfront costs and long-term return on investment, like remote monitoring systems and AI.

Report Scope

Report Attribute	Details
Market Size in 2022	USD 81.74 Billion
Projected Market Size in 2030	USD 732.98 Billion
CAGR Growth Rate	27.60% CAGR
Base Year	2022
Forecast Years	2023-2030
Key Market Players	Philips Healthcare, Medtronic, Siemens Healthineers, GE Healthcare, Johnson & Johnson, Fitbit (now part of Google), Apple, IBM Watson Health, Samsung Health, Cerner Corporation, Honeywell Life Care Solutions, AliveCor, Teladoc Health, Babylon Health, Dexcom, and others.
Key Segment	By Type, By Function, By Application, and Region
Major Regions Covered	North America, Europe, Asia Pacific, Latin America, and the Middle East &, Africa
Purchase Options	Request customized purchase options to meet your research needs. Explore purchase options

Segmentation Analysis

The global connected healthcare market is segmented based on type, function, application, and region.

Based on type, the global connected healthcare industry is divided into mHealth Services, mHealth Devices, and e-prescriptions. The mHealth devices segment held a notable share of the market in 2023 and will continue to dominate over the forecast period. The segment comprises fitness trackers, smartwatches, and health monitoring gadgets that allow health tracking in real-time, data collection, and remote monitoring, which are essential for both healthcare providers and patients.

Conversely, the mHealth services segment will witness substantial growth, impacted by the rising demand for remote monitoring and telehealth, mainly during the COVID-19 pandemic.

Based on function, the global connected healthcare industry is segmented as remote patient monitoring, clinical monitoring, telemedicine, and others. The telemedicine segment is leading the global market compared to others. It uses telecommunications technology to offer services like diagnostics, consultations, and follow-up care, mainly through remote monitoring, video calls, and mobile applications. The COVID-19 epidemic majorly spurred telemedicine adoption, and this trend will further rise as individuals become familiar with online consultations. Most governments have also adopted policies to aid telehealth, streamlining its accessibility.

However, the RPM is gaining traction due to its potential to enhance chronic disease management, reduce healthcare costs, and lessen hospital readmissions.

Based on application, the global market is segmented as diagnosis & treatment, monitoring applications, wellness & prevention, healthcare management, and others. The monitoring applications segment has registered a significant market share in the past few years and is expected to lead in the future. The segment comprises technologies like wearable devices, RPM, and sensors that track real-time health data.

On the other hand, the diagnosis & treatment segment will hold a notable market share owing to the growth in AI and telemedicine in healthcare, allowing more precise diagnostics and remote consultations. The segment comprises using connected technologies for treating medical conditions and diagnosing remotely or in healthcare settings.

Regional Analysis

• North America to witness significant growth over the forecast period

North America is expected to lead with a momentous share in the global connected healthcare market by 2032. This dominance is expected to be fueled by the advanced healthcare infrastructure, high healthcare spending, and growing technological improvements. North America, mainly the United States, has a sophisticated healthcare system that easily integrates connected healthcare services.

The United States healthcare industry is a leader globally, with investment anticipated to touch USD 6.2 trillion by 2028. This will majorly fuel the adoption of modernized connected healthcare and the growth of novel digital health solutions. The region is also home to major technology companies like Fitbit, Apple, and Google, which propel the development of connected healthcare, comprising IoT, AI, and ML in health management solutions.

Europe is projected to progress as the second-leading region in the connected healthcare industry due to strong government backing and healthcare initiatives, rising adoption of mHealth solutions and telemedicine, and growing chronic disorders. European governments have been active in digitizing healthcare solutions to motivate the adoption of connected healthcare solutions.

The European Union Digital Health Action Plan aims to improve the region's digital health. This supports the rise of connected healthcare services. The telemedicine industry in the region is rising speedily, with teleconsultations propelling by more than 150% during the recent pandemic.

Europe experiences a rising pressure of chronic illnesses and the elderly population, which fuels the connected healthcare solutions demand like chronic disease and remote monitoring management.

Competitive Analysis

The global connected healthcare market is led by players like:

• Philips Healthcare
• Medtronic
• Siemens Healthineers
• GE Healthcare
• Johnson & Johnson
• Fitbit (now part of Google)
• Apple
• IBM Watson Health
• Samsung Health
• Cerner Corporation
• Honeywell Life Care Solutions
• AliveCor
• Teladoc Health
• Babylon Health
• Dexcom

Key Market Trends

• Health monitoring devices and wearables:

The demand for wearable health devices like fitness trackers and smartwatches is rising speedily, allowing patients to track their symptoms and health in real-time and effectively monitor chronic diseases. For instance, Apple's novel smartwatches have features with improved tracking capabilities like blood oxygen monitoring and ECG.

• Growth of remote patient monitoring:

Remote patient monitoring or RPM technologies are growing remarkably, aiding healthcare providers in tracking chronic conditions like heart illness and diabetes in real-time. This improves patient outcomes and reduces in-person visits.

The global connected healthcare market is segmented as follows:

By Type Segment Analysis

• mHealth Services
• mHealth Devices
• e-Prescription

By Function Segment Analysis

• Remote Patient Monitoring
• Clinical Monitoring
• Telemedicine
• Others

By Application Segment Analysis

• Diagnosis & Treatment
• Monitoring Applications
• Wellness & Prevention
• Healthcare Management
• Others

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America