According to a new report by MarketsandMarkets, the medical device connectivity market is slated to grow from its current $939.4 million valuation to $2.67 billion by 2023, surging at a compound annual growth rate of 23.2%.
The growth in this market is attributed to the increasing penetration of electronic health records (EHRs) and health information exchange systems in healthcare organizations, a growing focus on care quality and patient safety, healthcare IT initiatives driving the integration of medical devices with hospital information systems, and the increasing need to curtail healthcare costs through a connected healthcare environment.
On the basis of products and services, the market is segmented into medical device connectivity services and medical device connectivity solutions—with the latter segment accounting for the largest market share in 2017.
Further, the increased adoption of EHRs and other interoperability solutions in healthcare organizations, growing regulatory requirements and healthcare reforms, a shift of point-of-care diagnostics from hospitals to home care settings, and the growing need for integrated healthcare systems to improve the quality and outcome of healthcare are the key factors driving the growth of this segment.
By technology, the market is segmented into wired, wireless, and hybrid technologies—with the first segment accounting for the largest share of the medical device connectivity market in 2017. This dominant share is mainly attributed to the various advantages offered by wired solutions such as better physical control, enhanced data security and reliability, and high-speed networked connectivity.
Moreover, based on end user, the global medical device connectivity market is segmented into hospitals, home healthcare, ambulatory care settings, and imaging and diagnostic centers; of these segments, home healthcare is expected to register the highest CAGR during the forecast period. The high growth in this segment is primarily attributed to the increasing reliance of patients on telehealth solutions, such as remote monitoring via phones and the internet to manage their health conditions.
Also, governments in numerous countries are implementing various initiatives to promote home healthcare, which is expected to further drive the growth of this end-user segment in the future.
In 2017, North America dominated the global medical device connectivity market. The large share of this regional segment can be attributed to the region’s favorable regulatory scenario, the high adoption of medical device connectivity solutions for establishing interoperability to curb soaring healthcare costs, regulatory requirements regarding patient safety, and the presence of many healthcare IT companies.