The IoT chip market in healthcare was valued at US$1,831.808 million in 2020.
Rising healthcare costs are encouraging the use of digital technologies such as the Internet of Things (IoT), artificial intelligence (AI), virtual/augmented reality (VR/AR), and 3D printing. In the healthcare sector, digital technology is playing a role in helping develop sustainable healthcare systems and provide cheaper and more effective solutions for various diseases. As such, the IoT chip market in healthcare is flourishing worldwide. The Internet of Things (IoT) has opened up a wide range of opportunities in the healthcare industry. The growing adoption of connected devices across this sector has significantly boosted the demand for this technology.
The emerging popularity of remote healthcare solutions is another major driver of the IoT chip market in healthcare. The growing global ageing population, especially in developed countries, has increased the demand for home healthcare solutions. According to the World Bank data, the population aged 65 and above of the total population has increased from 7.49% in 2008 to 8.87% in 2018. Moreover, the rising prevalence of chronic diseases is also driving patients to shift to remote healthcare solutions and services to reduce spending on regular hospital visits. As the use of cellular technology is maturing, people are opting for innovative mobile health services, which is positively impacting the growth of the IoT chip market in healthcare. Increasing investments in R&D to develop innovative remote health solutions is further contributing to the market’s growth. In 2018, for example, researchers at Griffith University in Australia collaborated with Huawei and Tonwo Health Clinic Technology to develop wearable devices to aid patients in managing chronic conditions.
Companies are actively involved in growth strategies to expand their global market share, which is also fuelling the growth of the IoT chip market in healthcare. Recently, in April 2020, Sony entered into a collaborative partnership with Norwegian telecommunications firm Telenor, and Ericsson to build Internet of Things (IoT) devices for the healthcare market. Under this partnership, Sony will provide sensors using its Vision advanced tracking solution, Telenor will supply the SIM cards and networking tools which work globally, and Ericsson will provide its IoT Accelerator Platform, which enables businesses to connect and manage billions of devices. Mexican Biotix Labs has also partnered with Spanish health tech company Fixme to combine IoT technology and physiotherapy in Mexico. Physiotherapists will be using a device to measure the range of movement of the patient’s limbs to better understand the healing process.
A sudden surge in the demand for telemedicine is further driving the market’s growth. Companies, as well as academic institutions, are conducting various research to come up with effective use of IoT to combat this global pandemic. For example, the University of Hong Kong has been successful in using a commercial AI and IoT platform from Biofourmis for monitoring COVID-19-positive patients. Australia’s largest LoRaAN network operator, the National Narrowband Network Co (NNNCo), has recently partnered with Belgian Applications and Solutions Provider, WMW, to bring IoT solutions to the country, including those that can assist in the battle against coronavirus spread.
APAC to witness a significant CAGR during the forecast period
By geography, the IoT chip market in healthcare is segmented as North America, South America, Europe, Middle East, and Africa (MEA), and Asia Pacific (APAC). North America accounted for the major market share in 2019 and will remain in its position until the end of the forecast period. Early adoption of new technologies, along with the presence of well-established healthcare infrastructure in the U.S. is the major factor behind the growth of this regional market. In December 2019, Cerner partnered with Medigate on IoT and medical device security with continuous monitoring of network activity. This will lead to the creation of a detailed inventory of connected devices, offering hospitals more in-depth visibility. The booming ageing population in the U.S. and Canada coupled with increasing investments in telehealth solutions is also escalating the market growth across this region. According to the U.S. Population Reference Bureau Report 2016, the number of Americans aged 65 and above is projected to double from 46 million in 2016 to 98 million by 2060.
The APAC regional market will witness a noteworthy CAGR during the forecast period on account of increasing investments in IoT and the rapid adoption of digitalization across the healthcare sector in countries like China, India, and Australia. There have been continuous efforts to increase the adoption of IoT solutions to enable better and more efficient patient monitoring and improve connected systems. In April 2019, the National Association of Software and Services Companies (NASSCOM), through its Center of Excellence- Internet of Things (CoE-IoT), announced its strategic partnership with GE Healthcare to bring digital healthcare solutions to the Indian market.
Recent Developments and expansions
Texas Instruments Incorporated
Cypress Semiconductor Corporation
Silicon Laboratories Inc.
Analog Devices, Inc.
Renesas Electronics Corporation
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