The Internet of Things (IoT)-enabled medical devices manufacturing market reached a value of nearly $18.8 billion in 2018, having grown at a compound annual growth rate (CAGR) of 8.6% from 2014, and is expected to grow at a CAGR of 29.9% to nearly $69.7 billion by 2023, according to a Reportlinker study.
Growth is mainly due to increasing access to these devices through online platforms and a rapid decline in prices as manufacturers see a significant drop in the prices of components. Moreover, increasing awareness of the benefits of these devices will also contribute to explosive growth. On the opposite end of the spectrum, skills shortages, high costs associated with the development of IoT healthcare devices, and regulatory hurdles are potential threats to the market.
The diagnostic equipment segment of the IoT healthcare market accounted for the largest share of the IoT-enabled healthcare equipment market in 2018 at $7.1 billion. But the highest growth is projected to come from the wearable devices segment, which is forecast to grow at a CAGR of 35.9%.
North America was the largest region in the IoT-enabled healthcare equipment market in 2018— accounting for 35.2% of the global market—trailed by the Asia-Pacific and Western Europe. Going forward, the fastest growth in the IoT-enabled healthcare equipment market will take place in Asia Pacific, with a forecasted growth of CAGR of 32.5%, followed by South America at an expected CAGR of 31%. Although the United States is the largest country in terms of value in the IoT-enabled healthcare equipment market, India and China are forecast to have the fastest growth—growing at CAGRs of 36.9% and 36.5%, respectively.
Still, major opportunities in the IoT-enabled healthcare equipment market will arise in the wearable devices segment, which will add $19.6 billion of annual sales globally between 2018 and 2023, Reportlinker officials say. Moreover, the strongest IoT healthcare market opportunities will arise in the United States, where $15.78 billion of new yearly sales will be added by 2023.