Smart Healthcare Market

The global Smart Healthcare Market is valued at USD 168.2 Billion in 2023 and is projected to reach a value of USD 486 Billion by 2032 at a CAGR (Compound Annual Growth Rate) of 12.5% between 2024 and 2032.

Smart Healthcare is the usage of technologies like IoT, big data, AI & ML, to improve the quality and efficiency of healthcare delivery. It includes the incorporation of several digital technologies and devices to enable the collection, analysis, and sharing of healthcare data. IoT healthcare devices monitor heart rate, blood pressure, and other biometric data, providing insights into a patient's current mood and mental health. Advanced IoT devices can even track eye movements, offering deeper analysis of patient well-being. Smart hospitals leverage AI, IoT, 5G networks, and other technological advancements to coordinate operations, resulting in accelerated and enhanced patient care.

According to a report from International Health, the use of AI-enabled tools could potentially increase healthcare worker productivity by an average of 40%. Additionally, approximately one-fifth of healthcare providers have integrated AI models into their workflows, as indicated by one source.

Smart Healthcare Industry Highlights

• In 2023, North America accounted for 36.5% of the market share in the overall market. The US market is seeing significant advancements in digital health, with many FDA-approved, authorized, or cleared medical devices being updated to include digital features
• Asia Pacific is anticipated to register the fastest CAGR of 18.5% between 2024 and 2032 due to developments in telemedicine, preventive healthcare, healthcare-IT partnerships, COVID-19-induced telemedicine investments, and government digitalization programs
• The mHealth segment contributed to the market’s growth, constituting 35.4% of the overall revenue share in 2023 driven by mobile technologies that enhance care quality, expand health services, and promote positive health behaviors
• In Smart Healthcare, the Hospitals category accounted 38.3% of revenue in 2023, based on its extensive use and adoption within healthcare facilities
• A report from a Research University suggests that AI implementation could save up to $360 billion annually, representing 10% of total healthcare industry expenditure

Smart Healthcare Market Regional Overview

North America’s 36.5% share is majorly supported by advancements in AI and digital health across US and Canada.

US Smart Healthcare Market Overview

The market in the United States, with a valuation of USD 53.3 Billion in 2023, is projected to reach around USD 136.5 Billion by 2032 with CAGR of 11.03% from 2024 to 2032 over the forecast period. The US market is seeing significant advancements in digital health, with many FDA-approved, authorized, or cleared medical devices being updated to include digital features. The FDA's Center for Devices & Radiological Health (CDRH) is particularly focused on the convergence of medical devices with connectivity and consumer technology. This includes exploring new types of devices with built-in digital capabilities. Various stakeholders, such as patients, healthcare practitioners, researchers, traditional medical device firms, and new entrants like mobile app developers, are actively participating in digital health initiatives.

Canada Smart Healthcare Market Overview

In Canada, health system players are building, acquiring, or partnering to develop innovative capabilities in advanced analytics and AI, data interoperability, and wearables. Developing digital and data tools is crucial for biopharma and medtech organizations to capitalize on and drive the shift toward wellness and prevention. For instance, in 2023, Medtronic Canada partnered with AI startup FluidAI Medical to create a post-surgical discharge solution that integrates predictive analytics, AI, and home-monitoring technology for seamless care from hospital to home. Similarly, in 2022, General Electric Healthcare developed the Edison Digital Health Platform, providing clinicians and delivery organizations with access to over 50 third-party applications for analytics, AI, and data integration solutions.

Asia Pacific Smart Healthcare Market Overview

Asia Pacific is expected to see the highest CAGR of 18.5% from 2024 to 2032, owing to the alliances & partnerships and government digitalization programs.

Asia Pacific’s growth is driven by the increasing adoption of connected medical devices and telemedicine in healthcare settings. The rising emphasis on preventative healthcare and escalating healthcare costs are expected to boost demand for the healthcare services. The expanding number of alliances & partnerships between healthcare providers and IT firms is also anticipated to contribute to the region's market revenue growth. For instance, in June 2023, Google Cloud announced a partnership with Mayo Clinic to integrate generative AI into healthcare. They introduced Enterprise Search in Gen App Builder to enhance clinical workflow efficiency and facilitate easier access to information for clinicians and researchers, aiming to improve patient outcomes.

Other factors include developed healthcare IT infrastructure and increasing investments in countries like Japan, and India. In addition, government digitalization programs in emerging economies such as China and India are boosting the adoption of digital healthcare solutions. The rise in COVID-19 cases has accelerated investments in telemedicine services. For instance, in April 2020, Chinese tech giant Huawei delivered technological services in AI, video conferencing, wireless network coverage, and smartphones to countries throughout the Asia Pacific. Huawei has partnered with nations such as Indonesia, Malaysia, Thailand, and Bangladesh to tackle communication challenges during the COVID-19 pandemic.

Smart Healthcare Product Overview

The mHealth segment captures 35.4% revenue share in 2023 due to growing adoption of mobile technologies and wearable devices in healthcare.

The market segmentation based on product includes Telemedicine (Hardware, Software, Others), Electronic Health Records (EHR) (Web-based EHR, Client-server Based EHR), mHealth (Monitoring Services, Diagnosis Services, Healthcare Systems Strengthening, Others), Smart Pills, Smart Syringes, RFID Kanban Systems, and RFID Smart Cabinets.

Digital health, particularly mHealth, has proven to enhance care quality and accessibility, expand health information and service availability, and encourage positive health behaviors to prevent both acute & chronic diseases. The mHealth segment in the global market is rapidly increasing, driven by the growing usage of mobile technologies to monitor and manage health. This segment includes mobile apps, wearable devices, and remote monitoring tools that enhance patient care and engagement. A notable example is the collaboration between Apple and Johnson & Johnson on the Heartline Study, which leverages the Apple Watch & iPhone to detect atrial fibrillation early and reduce the risk of stroke. This initiative highlights the growing importance of mHealth in providing real-time health data and improving preventative care globally.

Furthermore, the mHealth market segment is being positively influenced by the introduction of wearable devices from Apple, Fitbit, and MI. For instance, in April 2020, Proxxi introduced Halo, a wearable wristband aimed at promoting social distancing in the workplace during the Covid-19 pandemic. Proxxi specializes in safety technology for industrial workforces. Halo alerts wearers when another band is within 6 feet (2 meters), prompting adherence to social distancing protocols.

The RFID kanban system segment is the fastest-growing segment from 2024 to 2032. Traditionally, hospital logistics focused on ensuring healthcare staff had necessary supplies, often consuming up to 45% of budgets. However, with a shift towards viewing patients as clients, healthcare centers are embracing sustainable management models to boost efficiency, speed, & reduce waste. Innovations like RFID kanban systems are essential in achieving precise stock management, timely replenishment, and traceable item flow, ultimately enhancing patient safety. RFID technology automates logistics, providing real-time inventory visibility and accurate item tracking, particularly beneficial in critical areas such as operating rooms. Despite limited studies on their efficiency in perioperative settings, examples like University Hospital Cruces in Spain demonstrate successful RFID integration, managing extensive stock with enhanced traceability & efficiency, highlighting their transformative impact on healthcare logistics.

The implementation of Electronic Health Records (EHR) in various healthcare centers with advanced tools drive the market growth globally. For example, in April 2023, Epic, a leading provider of electronic health records, employed Azure OpenAI Service to incorporate advanced language model tools and AI into its software. Epic holds the predominant share of acute care hospitals in the US and serves over 2,130 hospitals worldwide, managing electronic records for more than 305 million patients.

Smart Healthcare Market Trends

1. The adoption of telemedicine and remote patient monitoring has surged, driven by the need for efficient, cost-effective, and accessible healthcare services, especially during and after the COVID-19 pandemic. For e.g., Teladoc Health, a leading provider of virtual healthcare services, Teladoc Health offers a wide range of telemedicine services, including virtual consultations with doctors and specialists.
2. Wearable technology has become increasingly popular for continuous health monitoring, fitness tracking, & chronic disease management. For example, Fitbit devices track various health metrics such as heart rate, sleep patterns, and physical activity, providing users and healthcare professionals with valuable health data.
3. AI & machine learning are being utilized to improve diagnostics, personalize treatment plans, and enhance patient outcomes. For e.g., IBM Watson Health uses AI to analyze large datasets and assist in clinical decision-making, offering insights into patient care and treatment options.
4. Blockchain technology is being adopted to enhance the security, privacy, & interoperability of health data. For instance, Medicalchain uses blockchain technology to create a secure and transparent platform for storing and sharing electronic health records (EHRs).
5. IoMT refers to the interconnected network of medical devices and applications that collect and share data to improve healthcare services. For e.g., Medtronic's connected insulin pumps and continuous glucose monitors are examples of IoMT devices that help manage diabetes by collecting and sharing real-time data with patients and healthcare providers.

Government Initiatives in Healthcare Technology Worldwide

• FDA's Coordinated Approach to AI in Medical Products (March 15, 2024): The FDA's publication on "Artificial Intelligence and Medical Products" outlines collaborative efforts between CBER, CDER, CDRH, and OCP to enhance AI regulation. This supports the FDA's AI/ML SaMD Action Plan, aiming for comprehensive oversight and innovation facilitation in medical AI.
• European Health Data Space (EHDS) Regulation (Spring 2024): EHDS aims to create a unified health data ecosystem across EU Member States. It seeks to unlock opportunities for research and policy making, expecting to facilitate a genuine single market for health data systems and high-risk AI. This initiative is crucial as it is projected to potentially increase in complexity for research and economic actors.
• China's Smart Chinese Medicine Initiative: China's investment in smart medicine reached nearly 60 billion yuan ($9 billion) by 2023, targeting 7% annual growth in R&D expenditure. Initiatives like the CR-BU Joint Innovation Centre on Smart Chinese Medicine are pivotal, focusing on chronic disease management and AI-driven research in Chinese medicine.
• China's Five-Year Plan (2021-2025) on Smart Medicine: China's plan allocates resources to enhance digital health capabilities across grassroots-level healthcare, including AI integration in drug R&D and clinical decision support. This plan also supports the construction of the Chinese Medicine Hospital Health Information Platform to unify health information systems.
• Japan's Adoption of SMART® Health Cards (December 2021): Japan's SMART® Health Cards initiative aims to standardize digital health records and vaccine certificates. The adoption rate of digital health technology in Japan remains at 37%, suggesting a significant growth potential in the adoption of digital health technologies.
• eSanjeevani - National Telemedicine Service of India: Since its launch in August 2021, eSanjeevani, India's National Telemedicine Service, has revolutionized healthcare accessibility nationwide. It has become the country's most popular and largest telemedicine platform, widely embraced by patients, doctors, and specialists. In a remarkably short time, this service has facilitated over 10 million tele-consultations across India.

Smart Healthcare Market COVID-19 Impact

With the arrival of COVID-19, there has been a notable surge in demand for Smart Healthcare products. Adoption of these technologies increased during the pandemic and is projected to continue growing in the future. Therefore, businesses are expanding their offerings; for example, in November 2020, Vera Smart Health invested approximately USD 20 million to expand into home-based tests, remote health services, medication delivery, virtual care, and nutrition consultation. This surge in demand is primarily driven by the COVID-19 crisis. Moreover, increased participation from industry players is likely to further propel the global market. For instance, in April 2020, Philips introduced a new application for care managers to use acuity-based scoring tools to monitor patient conditions and identify any deterioration or adverse trends related to COVID-19.

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Smart Healthcare Market Dynamics

Advancing Healthcare Through Smart Pills Drives the Market

Smart pills, one of the groundbreaking advancements in healthcare is expected to drive industry growth. Such miniature electronic devices, shaped like pharmaceutical capsules, go beyond traditional pills by integrating sensors for sensing, imaging, and drug delivery. Differentiating themselves from wearable or implantable sensors, smart pills use ingestible sensors, including biosensors and pH or chemical sensors. For instance, dissolvable microchips made from body-absorbable minerals like copper and magnesium are activated by body electrolytes upon ingestion. They transmit signals to external devices like smartphones or servers, enabling real-time tracking of medication adherence & vital signs. This technology promises to revolutionize healthcare by enhancing treatment monitoring and management of gastrointestinal disorders, potentially saving billions annually and improving patient outcomes across various conditions like heart disease and Alzheimer's.

Telemedicine and its Impact on Global Healthcare

Telemedicine segment is driving the global market growth by offering a cost-effective and convenient way for patients to access medical care. It requires minimal equipment—a webcam and a secure patient portal linked to electronic medical records—to ensure privacy and efficient consultations. It highlights benefits like reduced waiting times, expanded access to high-quality medical advice, lower costs, and improved prescription accuracy through online records. Telemedicine also facilitates faster second opinions, enhancing overall patient and physician satisfaction while aiming for better health outcomes as a primary goal of healthcare services. Numerous studies comparing telemedicine with traditional patient management approaches have consistently demonstrated key benefits, mainly in teleradiology, telemental health, telecardiology (especially echocardiography), home telecare, and teledermatology.

Smart Healthcare Competitive Outlook

Market participants pursued diverse strategic initiatives such as mergers and acquisitions, product introductions, and partnerships or collaborations to enhance their market penetration. For instance, in February 2023, Nova Scotia signed a 10-year agreement with Oracle Cerner to implement an integrated electronic care record system across the province. This initiative, involving over one million Nova Scotians, aims to improve healthcare delivery by enhancing how health professionals use & share patient information.

In addition, the startups & emerging firms are playing a crucial role by introducing groundbreaking technologies like wearable health devices, AI-driven diagnostics, and telemedicine platforms. Such innovations are not only improving patient care but also revolutionizing operational efficiencies in healthcare settings.

Smart Healthcare Market Developments

GE HealthCare's Caption AI on Vscan Air SL

• In April 2024, GE HealthCare introduced Caption AI software on Vscan Air SL, enhancing cardiac assessments with real-time guidance and automated ejection fraction estimation, empowering clinicians to make informed decisions at the point of care.

GE HealthCare's A1-Sure Ultrasound Facility in Bangladesh

• In April 2024, GE HealthCare launched its A1-Sure refurbishing ultrasound systems facility in Bangladesh. The initiative aims to bring advanced diagnostic technologies to underserved rural areas, utilizing refurbished equipment to improve access to quality care & support environmental sustainability goals.

GE HealthCare and Biofourmis Collaboration

• In February 2024, GE HealthCare and Biofourmis announced a strategic collaboration to enhance continuity of care beyond hospitals. The partnership aims to scale innovative care-at-home solutions, leveraging both companies' expertise to ensure safe, effective, and accessible patient care.

Samsung's Privileged Health SDK Expansion

• In January 2024, Samsung expanded its Privileged Health SDK program to enhance remote patient monitoring, XR-based therapy, stress management, and sleep technology. Through partnerships, Samsung integrates advanced sensor technology from the Galaxy Watch, enabling real-time health monitoring and proactive health management.

GE HealthCare and AirStrip Joint Commercialization Agreement

• In December 2023, GE HealthCare and AirStrip announced a joint commercialization agreement. GE HealthCare will exclusively distribute AirStrip Cardiology and Patient Monitoring solutions in the US, offering advanced data visualization technology to healthcare systems for improved patient care.

Olympus Corporation's Digital Excellence Centers

• In June 2023, Olympus Corporation unveiled plans to establish Digital Excellence Centers (DECs) following its acquisition of Odin Vision. The centers will focus on AI-powered endoscopy solutions, advancing real-time diagnosis and minimally invasive treatments across medical specialties to enhance patient outcomes.

The global Smart Healthcare market can be categorized as Product, End-use, and Region.

Frequently Asked Questions (FAQ’s)?

1. What is Smart Healthcare?

Smart Healthcare is the usage of technologies such as IoT, big data, AI & ML, to improve the quality and efficiency of healthcare delivery. It involves integrating various digital technologies and devices to gather, analyze, and exchange healthcare data effectively.

2. How big is the Smart Healthcare market?

The market was valued at USD 168.2 billion in 2023 and is projected to grow to approximately USD 486 billion by 2032, with a compound annual growth rate (CAGR) of 12.5% from 2024 to 2032.

3. What is IoT in Smart Healthcare?

IoT-connected devices such as wearables, skin sensors, home monitoring tools, and others provide deeper medical insights into symptoms and health trends, enhance remote care capabilities, and empower patients with greater control over their treatment and care.

4. What is the advantage of using a smart card?

SMART Health Cards provide verified clinical information, such as vaccination history or test results. Smart cards with embedded microcontrollers encrypt and securely store personal health information, controlling access to this sensitive data.

5. What is the goal of a SMART hospital?

Digital hospitals aim to convert all medical information into computer data, utilizing information systems for storage and retrieval. Smart hospitals take this further by using collected data to improve processes, decision-making, and automation. In smart ICUs, data integration enhances patient comfort, safety, monitoring, and overall outcomes.

6. What is smart health consulting system?

The application allows users to share symptoms and issues, processing the information with intelligent data mining techniques to diagnose potential illnesses accurately.

7. What is eHealth in IoT?

According to the WHO, “ehealth is the cost‐effective and secure usage of information & communication technologies (ICT) in support of health and health‐related fields”. This consist of telehealth, mobile health (mhealth), telemedicine, and electronic medical or health records (eMR/eHr).

8. What is the largest healthcare market globally?

Although the United States holds the position of the world's largest healthcare market, its growth has become notably constrained. The US healthcare industry has consolidated, with increasing dependence on government payers. Meanwhile, the other global markets will grow faster than the US market in the coming years.