How Big Will Healthcare M2M Be in 2020?

Internet of Things and machine-to-machine applications in the healthcare market are
“developing slowly, with regulatory constraints a frequent obstacle, especially in the US market,” said John Byrne, directing analyst for M2M and IoT at Infonetics Research.

Global M2M connected healthcare service revenue was $533 million in 2013, and is projected to reach $2.4 billion by 2018. Revenue grew 15 percent from 2012 to 2013.

Connections grew 23 percent in 2013 from 2012, to 44 million.

Infonetics predicts the connected health M2M segment will represent revenue of $2.4 billion by 2018, a 2013 to 2018 compound annual growth rate of 36 percent, but from a small base.

Some forecasts of mobile healthcare forecasts that might include M2M among other sensors, wearables and mobile health services might represent $59 billion in revenue by 2020.

A few think the market could reach $91 billion by about 2023. The point is that the numbers, depending on how one defines the market, can be almost arbitrarily large. In the early going the conservative forecasts are more likely to be correct.

Operational efficiency and lower operating costs are the primary adoption drivers for connected health M2M, Byrne says.

“In our view, an even more substantial issue is that healthcare providers and other participants in this market are reluctant to make significant investments in M2M solutions until they can clearly see the benefit, and this takes time,” said Byrne.

“Operators lack the personnel to deepen relationships with healthcare customers; they need to find partners that have strong ties in the healthcare community to accelerate growth,” Byrne said.

Though many would hope for faster progress, it is refreshing to see a realistic appraisal of market prospects, even if many are hopeful of faster development in the near term.
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