Connected Medical Device Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Connected Medical Device Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The market for Connected Medical Device is expected to expand at a CAGR of 18.92% over the forecast period from 2022 to 2027. The Internet of Things (IoT) and advancements in computing power, wireless technology, and data analytics techniques, such as Big Data, are currently being used in medical facilities and the medical research sector for the analysis of a large amount of complex heterogeneous medical data involving genomics, proteomics, and pharmacogenomics, have significantly transformed the healthcare industry over the last few years.

Key Highlights

• The market for connected medical devices is one of those new medical industries that has consistently grown over the last decade, given its dependency on IoT technologies. In the world of connected medical devices, opportunities for technological integration exist throughout the device's lifecycle, from manufacturing and maintenance to use. For over two decades, consumer-facing healthcare has steadfastly resisted the wave of innovations that have been disrupting industries. This signifies that the industry is ripe for disruption, and technologies like Artificial Intelligence (AI) and Machine Learning (ML) will be vital to unlocking greater connected healthcare possibilities.
• As per the Center for Medicare and Medicaid Services 2021, the National Healthcare Expenditure has grown 9.7% to USD 4.1 trillion in 2020, or USD 12,530 per person, and accounted for 19.7% of the Gross Domestic Product (GDP). The total National health expenditure is estimated to expand at an average annual rate of 5.4% for 2019-28 and will reach a landmark of USD 6.2 trillion by 2028. Such drastic expenditure on healthcare signifies that the overall requirement for connected devices may increase gradually.
• Also, per the report of the US Center for Disease and Prevention, the overall life expectancy at birth is steadily rising, with the aim of 74.4 years by the year 2022, up from 73.3 years in 2017. Most of the increase is because of the lower infant mortality. However, according to the same survey, life expectancy in the U. S. has dropped for the third year consecutively to 78.6 years. People mostly strive toward a healthy lifestyle to keep fit and monitor their eating habits. Such changes in people's behavior will significantly increase the demand for connected medical devices.
• The total cost of connectivity and interoperability solutions for various medical equipment is incredibly high. Internet access to medical equipment is difficult to adopt in smaller healthcare organizations. This is mainly because it is challenging to create various networks with secure configurations, there are few wireless connectivity alternatives, and numerous security layers must be added to prevent data breaches. This raises the overall cost of ownership for healthcare providers even more.
• The COVID-19 pandemic has highly increased the use of healthcare-connected devices for remote patient monitoring while keeping patients and medical personnel at a safe distance from one another. The healthcare personnel and systems highly relied on technology to deliver required care to patients at their homes through telecommunication and remote patient monitoring programs. Similarly, government health officials utilized technology to restrict the spread of the virus, using smartphone-based contact tracking and proactive wellness monitoring, or tele-consultancies. People's emphasis has shifted to self-care facilities in their homes due to the COVID-19 pandemic.

Key Market TrendsWearable Device is Expected to Hold a Major Share

• In healthcare, wearable devices offer practical ways to monitor various physiological parameters. Medical solutions don't just benefit customers; they also give doctors access to up-to-date information so they may examine patients from a distance. The healthcare industry has a wide range of uses for wearable medical devices, starting from the Apple Watch's EKG capabilities to its glucose monitoring systems.
• In addition to being practical, wearable technology has also been shown to be economical since the data it produces may allow doctors to make choices from a distance, reducing the number of hospital visits by patients for routine checkups. Moreover, health-related wearables go beyond fitness bands. The vast and expanding healthcare wearable market includes various products, including smartwatches, smart glasses, smart footwear, smart clothes, posture monitors, pain management devices, movement sensors, wrist devices, heart straps, headbands, wearable patches, and medicine delivery pods.
• Preventive Solutions Inc., a privately held company, signed a binding agreement to be acquired by Boston Scientific in January 2021. The company provides a broad range of mobile cardiac health solutions and services, including ambulatory cardiac monitors, short- and long-term Holter monitors, cardiac event monitors, and mobile cardiac telemetry. The agreement calls for an upfront cash payment of USD 925 million and a potential commercial milestone payment of USD 300 million. Such acquisitions will encourage businesses to broaden their product offerings and cater to a large market.
• Disease diagnostics and patient treatment monitoring are about to revolution due to mobile technology advancements. Wearables can be used as a clinical tool to identify the patterns of a particular disease, provide a better understanding of the disease, and continuously monitor users' health since they are personal gadgets that continuously monitor critical indicators. FitBits and smartwatches are now regarded as popular due to how wearable fitness technology has risen into society. Over the forecasted period, wearable technology will continue to expand.
• Per Cisco Systems, globally, the number of connected wearable devices has increased from 325 million in 2016 to 722 million in 2019, doubling in only three years. By 2022, there will likely be more than one billion gadgets worldwide.

North America Holds the Highest Market Share

• The presence of well-established medical device manufacturers, an advanced healthcare environment, expansions, and large healthcare spending characterize the US-connected medical device industry. For instance, RAYUS Radiology opened a new outpatient-based advanced diagnostic imaging center in Auburn in December 2021, expanding its operations of imaging clinics around Maine. High-field MRI, CT, and X-ray are just a few of the diagnostic imaging services that the center in Auburn provides.
• With the growing integration of intelligence into medical devices and their ability to provide real-time insights based on patient data, monitoring has become a primary focus in the US connected medical device market. For instance, AliveCor created a medical-grade electrocardiogram (ECG/EKG) strap that wristwatch users may use to track their heart rate and rhythm and diagnose cardiac arrhythmia problems that can cause strokes.
• Additionally, the FDA authorized the use of Epitel's initial device, a wireless and wearable EEG (brain wave monitor) sensor, in hospital emergency rooms and critical care units in 2021. Wearable, wireless sensors are included in Epitel's first FDA-approved product, which a nurse or hospital technician can easily and quickly apply. Neurologists can also evaluate and keep an eye out for seizures by connecting the EEG data right away to a cloud-based software platform that they can access from anywhere at any time. The Epitel System can even track the patient for up to 48 hours while they are in the hospital since it is wearable and wireless.
• Medical devices, like other computer systems, are susceptible to security flaws, which could jeopardize the device's effectiveness and safety. When there is a quite reasonable assurance that the benefits to patients and the individuals outweigh the dangers, the FDA permits the marketing of devices.
• The average count of connected medical devices per bed in U.S. hospitals is 10-15, according to Synopsys, a company that designs computer-integrated systems. For businesses looking to bring connected devices to the market, the certification procedure for wireless devices is crucial. All wireless devices must undergo this testing, which is separate from that conducted by the FDA in North America. Hence the rise in the total count of connected medical devices in the U.S. will bring immense growth opportunities to the market throughout the forecasted period.

Competitive Landscape

The Connected Medical Device Market primarily comprises of various multiple domestic and international players in quite a fragmented and highly competitive environment. Technological enhancements in the market are also bringing a wide range of sustainable competitive advantages to companies, and the market is also witnessing multiple partnerships and mergers.

• August 2021 - Royal Philips announced the launch of its new Philips HealthSuite solutions, the Philips Acute Care Telehealth, and the Philips Patient Flow Capacity Suite. These two new solutions are designed mainly to reduce barriers across patient care and into a cost-effective and scalable model. These solutions are secure, cloud-based, and allow health systems to integrate required informative applications, which can scale up or down according to the required need.
• May 2021 - GE Healthcare announced a new virtual precision healthcare solution called Xeleris V. This processing and review solution provides secure access to medical data from various locations, eliminating the need for standalone nuclear medicine workstations. Equipped with AI applications, the solution simplifies and enhances workflow by providing advanced data whenever and wherever for personalized care and treatment decisions.

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