Digital Care Connectivity Market Research Report - Segmented By Component (Hardware, Software, Services); Deployment Model (Cloud-based Model, On-premise model); Functionality (Communication, Health Tracking & Insights, Billing & Payments, Administration, Patient Education, Others); End-User (Healthcare facilities, Homecare setting, Nursing Homes, Others); and Region - Size, Share, Growth Analysis | Forecast (2024 2030)

DIGITAL CARE CONNECTIVITY MARKET SIZE (2024 – 2030)

The Digital Care Connectivity Market reached a valuation of USD 188.82 billion and is anticipated to attain a market size of USD 549.96 billion by the conclusion of 2030. Projected to exhibit a Compound Annual Growth Rate (CAGR) of 16.5% over the forecast period spanning from 2024 to 2030.

INDUSTRY OVERVIEW

Recent years have witnessed significant technological advancements and societal shifts, leading to transformations in conventional care models and the patient-doctor relationship. The rise in physical distance between patients and physicians, accompanied by changes in access modes to relevant care information across all demographic groups, is indicative of this evolution. The imminent global healthcare revolution is poised to coincide with a surge in global connectivity and interconnectivity. Healthcare is experiencing rapid decentralization, marked by an escalating number of interconnected smart devices contributing to a more patient-centric care framework.

As patient expectations evolve, the role of technological innovation becomes increasingly vital in healthcare. Healthcare providers are actively seeking optimal solutions to support projects and deliver top-tier treatment. The widespread availability of IoT and 5G technologies is expected to spawn new use cases that hinge on robust connectivity for success.

Digital connectivity technology is assuming a pivotal role in healthcare worldwide, with a proliferation of health-related mobile applications at an unprecedented rate. Mobile technology has the potential to revolutionize healthcare in low- and middle-income countries by facilitating connectivity between patients, healthcare suppliers, and payors. This connectivity can enhance accessibility, particularly for underserved populations, improve efficiency, and reduce costs. The transition to rapid point-of-care diagnostics is poised to play a significant role in this transformative process. Given the diversity of legacy systems and services, a flexible network is essential for connecting devices between healthcare providers and patients, with full interoperability being imperative. In the realm of video and streaming, reliability and minimal latency are prerequisites. Considering the sensitive nature of patient data, security is non-negotiable, as cyber threats could have severe consequences for both patients and healthcare organizations. Hence, technology vendors must prioritize the development of secure and safe systems.

COVID-19 IMPACT ON THE DIGITAL CARE CONNECTIVITY MARKET

The COVID-19 pandemic has underscored the critical role of robust connectivity networks such as 5G and IoT in healthcare applications, ranging from using robots for isolated patient care to remote monitoring and diagnostics. As the industry strives to uphold a high standard of patient care through innovative technology, these applications are expected to become more pervasive. Private networks, offering both security and flexibility, are crucial in accommodating new applications, enabling the healthcare industry to innovate and provide superior care. The pandemic has underscored the need for a tailored approach in healthcare, especially during crises requiring rapid scalability. Each hospital must collaborate with a technology partner to determine the services the connection must support and swiftly implement a network suitable for the facility. The design of the solution should prioritize simplicity for long-term maintenance and administration by the hospital's IT department, demonstrating that urgency can serve as a catalyst for creativity.

MARKET DRIVERS:

Facilitating health tele solutions in remote areas with reliable connectivity is poised to enhance communication and stimulate market growth.

Telehealth solutions offer medical professionals the opportunity to communicate regularly with patients in rural locations or with limited mobility. Video conferencing technology can be employed for consultations, medication dispensing, and guiding patients through physiotherapy exercises, fostering stronger connections with patients. This approach enables healthcare workers to provide care that aligns with diverse lifestyles, resulting in more robust patient relationships.

The ease of accessing early and appropriate medication, facilitated by reliable connectivity, is anticipated to drive market growth.

Connectivity allows patient treatment to commence even before they reach a clinic. Ambulances equipped with IoT devices can remotely connect doctors and first responders, enabling early diagnosis and implementation of treatment plans during transit. Such proactive measures can contribute to better outcomes for patients in emergency situations. IoT devices, programmed to send notifications in case of abnormal readings, play a crucial role in monitoring each patient's status. This becomes especially vital in large hospitals where staff must monitor an increasing number of patients, necessitating remote monitoring to prevent disease transmission.

MARKET RESTRAINTS:

Concerns over data privacy and cybersecurity represent significant obstacles impeding market growth.

Achieving optimal results with healthcare IoT requires a secure and reliable network due to the sensitive nature of patient data. Private networks offer a protective barrier against cyberattacks, lowering the risk of successful breaches. Some individuals hesitate to share personal information on digital platforms, citing concerns about privacy. The heightened use of digital platforms raises apprehensions about security and privacy. The potential for hackers to gain unauthorized access to system data and exploit it for malicious purposes poses a significant risk. Breaches of sensitive data, including patient addresses and critical health indicators, can lead to harm, eroding trust. Consequently, regulations are continually evolving to address changing demands. Escalating data breaches and cyberattacks, coupled with growing concerns about data security, are hindering market growth.

Lack of awareness and motivation among patients to embrace digital care poses a hindrance to market growth.

While economic and technological barriers to connectivity are rapidly diminishing, an individual's motivation to adopt advanced health treatment facilities remains a formidable barrier. Those who resist using computers or smartphones miss out on information and treatment plans available through digital platforms. Overcoming this obstacle requires a combination of suitable hardware and software, reimbursement mechanisms, and, most importantly, the right incentives and motivation. Consequently, this factor acts as a deterrent to market growth.

THE DIGITAL CARE CONNECTIVITY MARKET - BY COMPONENT Hardware

• Software
• Services

The digital care connectivity market is categorized into Hardware, Software, and services based on its components. Among these, the software segment played a pivotal role in driving market growth and is expected to maintain its dominance in the forecast period. Projections indicate a Compound Annual Growth Rate (CAGR) of 15% for the software segment. The ease of software installation on patients' mobile devices, providing a convenient method for closely monitoring health and disease status, contributes significantly to the segment's growth. Moreover, numerous companies have emerged offering advanced software tailored for various diseases, analyzing disease physiology at its core. These factors are anticipated to fuel market growth in the upcoming years. The industry is propelled forward by the increasing use of smartphones and a growing awareness of self-monitoring strategies in health and illness management. The services segment is also poised to make a substantial contribution to market growth, driven by a surge in virtual consultations, increased startup funding, and new teleconsultation payment guidelines.

THE DIGITAL CARE CONNECTIVITY MARKET – BY DEPLOYMENT MODEL

• Cloud-based Model
• On-premise model

The digital care connectivity market, based on deployment models, is segmented into On-Cloud and On-Premise models. In the healthcare industry, the control and security of data are of utmost importance. On-premise models are perceived as more secure, providing better control over data compared to their cloud-based counterparts. This model is expected to gain market share in the future, as it enables healthcare sectors to maintain control over data ownership, alleviating privacy concerns among customers. Cloud-based models offer flexibility with multiple pricing options based on usage and company requirements. However, they come with recurring costs, while the On-premise model involves a one-time investment along with support service costs.

THE DIGITAL CARE CONNECTIVITY MARKET – BY FUNCTIONALITY

• Communication
• Health Tracking & Insights
• Billing & Payments
• Administration
• Patient Education
• Others

Functionality-wise, the digital care connectivity market is segmented into Communication, Health Tracking & Insights, Billing & Payments, Administration, and Patient Education, among others. In 2021, the Communication category led in revenue share. The demand for telehealth, virtual communication alternatives (voice, video, text), and the accelerated adoption of virtual communication technologies during the COVID-19 pandemic are key drivers for this segment's revenue growth. The Health Tracking & Insights category is expected to experience the fastest revenue CAGR throughout the forecast period, driven by increased use of business intelligence, artificial intelligence, and machine learning to provide valuable insights to patients and their families.

THE DIGITAL CARE CONNECTIVITY MARKET - BY END-USER Healthcare facilities

• Homecare setting
• Nursing Homes
• Others

The digital care connectivity market, categorized by end-users, includes healthcare facilities, Homecare Settings, Nursing Homes, and others. In 2021, healthcare facilities dominated the market, driven by increased telemedicine deployment to alleviate healthcare professionals' workloads and government-funded programs. The home care segment is poised for growth due to the rising prevalence of chronic diseases and a shift towards in-home care services. The utilization of video or audio-conferencing platforms for knowledge exchange on recent medical advancements is expected to boost other categories.

THE DIGITAL CARE CONNECTIVITY MARKET - BY REGION North America

• Europe
• The Asia Pacific
• Latin America
• The Middle East
• Africa

Regionally, the digital care connectivity market is segmented into North America, Europe, Asia Pacific, Latin America, The Middle East, and Africa. North America held the largest revenue share of approximately 36.34% in 2021, driven by an aging population and increased incidence of chronic illnesses. Europe contributed roughly 26.33% of global sales in 2021. The Asia Pacific region is anticipated to grow the fastest, supported by increased investment in healthcare infrastructure and software, raising public awareness. By 2030, the Asia Pacific digital health industry is estimated to generate USD 161.3 billion in sales, fueled by rising smartphone penetration, government investment, and increased awareness of digital health.

THE DIGITAL CARE CONNECTIVITY MARKET - BY COMPANIES

Key players in the digital care connectivity market include:

1. BioTelemetry Inc
2. eClinicalWorks
3. Allscripts Healthcare Solutions Inc
4. iHealth Lab Inc
5. AT & T
6. Honeywell International Inc
7. Athenahealth Inc.
8. Cisco Systems

NOTABLE HAPPENING IN THE DIGITAL CARE CONNECTIVITY MARKET

ACQUISITION: In February 2021, Philips announced the acquisition of BioTelemetry, Inc., a leading provider of remote cardiac diagnosis and monitoring in the United States. This strategic move is expected to expand Philips' business portfolio and client base significantly.

COLLABORATION: In March 2020, AT&T, LifeMedID, and Elo Self-Service Solutions collaborated to simplify patient registration and check-in. This strategic agreement strengthens AT&T's market presence by extending its digital healthcare solutions to enhance patient outcomes.