Medical Device Connectivity Market

The global medical device connectivity market, valued at $2.6 billion in 2023, is projected to grow at a CAGR of 21.5%, reaching $7.4 billion by 2028. This growth is driven by factors such as healthcare provider consolidations, telehealth expansion, and increasing home healthcare preferences. The adoption of electronic medical records and healthcare IT initiatives is also fueling demand. Despite challenges like high costs and integration issues, the market is supported by favorable government policies. Key players include Baxter International, Philips, GE Healthcare, and Cisco Systems, among others. North America leads the market, followed by Europe and the Asia Pacific.

Medical Device Connectivity Market Size, Dynamics & Ecosystem

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Medical Device Connectivity Market Dynamics

Driver: Favorable government support and initiatives

The benefits of HCIT solutions and the need for their implementation have driven governments across different countries to focus on promoting their use to optimize healthcare productivity and reduce costs. Listed below are some examples of government initiatives in this area:

• In the US, the Medicare Access and CHIP Reauthorization Act of 2015 (MACRA) modernized the Medicare physician payment system to the Merit-based Incentive Payment System (MIPS), applicable to all eligible clinicians whom Medicare pays under the Physician Fee Schedule (PFS). It would also provide incentives to clinicians who participate in Advanced Alternative Payment Models (APMs). This law would penalize those who do not meet the specified quality and efficiency standards.
• In March 2019, the WHO endorsed a Global Strategy on Digital Health 2020–25 to strengthen health systems by applying digital health technologies for consumers, health professionals, healthcare providers, and industry. In Germany, under the Digital Healthcare Act, doctors can prescribe all such health apps from 2020 onwards to help patients manage a diagnosed medical condition, with the costs borne by statutory health insurance. Under the same Act, the German government will invest and support startups by providing VC funds.

Restraint: High cost of deployment for small healthcare organizations

The expenses linked with interoperability and connectivity solutions for diverse medical devices are notably high. Small healthcare organizations face challenges in establishing internet connectivity for these devices due to difficulties in setting up multiple networks within health facilities, limited wireless connectivity options, and the necessity for extensive security measures to prevent data breaches. Additionally, ongoing support and maintenance services, such as software modifications and upgrades to meet changing user needs, contribute significantly to the overall cost of ownership. Moreover, custom interface development after sales for device integration requires extra verification and validation, adding to the total cost of ownership for healthcare providers. These additional expenses pose financial challenges for smaller hospitals and healthcare organizations.

Opportunity: Increasing consolidation in the healthcare industry

Presently, the healthcare sector in the US is witnessing a surge in consolidation, where larger regional and national healthcare systems are expanding significantly. The introduction of the PPACA in 2010 mandated the use of advanced healthcare IT tools, thereby elevating the financial burden on healthcare organizations. These reforms impact the profitability of hospitals, physicians, and insurers. To manage healthcare delivery costs, US healthcare organizations are expanding their patient reach and maximizing resource utilization.

In this context, consolidation stands out as a favored strategy among healthcare providers to expand their patient network and efficiently use available resources.

Challenge: Integration between various hospital information systems and medical devices

The healthcare sector relies heavily on information, with patient data coming from various departments across healthcare organizations. However, ensuring reliable information by consolidating vast amounts of data is crucial for creating thorough and precise patient records. With numerous medical devices and diagnostic tools used in healthcare systems, integrating these systems becomes essential for timely responses from healthcare professionals at different care points.

Many healthcare organizations have invested in diverse medical device management systems from various vendors, each with unique specifications. As organizations increasingly adopt interoperability and connectivity solutions, the need to unify different IT systems and devices into a single interface using suitable connectivity networks becomes paramount for optimal utilization. Effectively merging healthcare IT systems with medical devices is a central focus of IT infrastructure projects within healthcare organizations.

Medical Device Connectivity Market Segmentation & Geographical Spread

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The medical device connectivity solutions segment is expected to account for the largest share of the medical device connectivity industry in 2022.

Categorized by product and services, the medical device connectivity market encompasses medical device connectivity solutions, peripheral technologies/medical devices, and medical devices connectivity services. Within this market, the largest portion is occupied by medical device connectivity solutions. The substantial dominance of this segment can be attributed to the growing acceptance of interoperability solutions within healthcare institutions, the transition of point-of-care diagnostics from hospitals to home care setups, and the rising need for integrated healthcare systems to improve healthcare standards and outcomes.

The wireless technologies segment accounted for the largest share of the medical device connectivity industry in 2022.

Segmented by technology, the medical device connectivity market comprises wired, wireless, and hybrid technologies. In the year 2022, the largest portion of the market share within medical device connectivity was held by the wireless technologies segment. In healthcare provide improved care by ensuring doctors receive instant patient updates, facilitating quicker treatments. These tools also allow shorter hospital stays and cost savings through remote patient monitoring, all without compromising treatment effectiveness. These advantages contribute to the expansion of the wireless technologies sector in the industry.

The vital signs & patient monitors segment accounted for the largest share of the medical device connectivity industry in 2022.

Based on applications, the medical device connectivity market has been segmented into vital signs and patient monitors, ventilators, anesthesia machines, infusion pumps, imaging systems, respiratory devices, and others. The largest portion of the medical device connectivity market in 2022 was held by the vital signs & patient monitors segment. This dominance is linked to the extensive utilization of these monitors for ongoing patient surveillance, primarily driven by the increased occurrence of chronic conditions among aging populations. Additionally, their significance in emergency situations and operating rooms further contributes to their prevalence in this market segment.

The hospitals and surgical centers segment accounted for the largest share of the medical device connectivity industry in 2022.

Based on end users, the medical device connectivity market is segmented into hospitals and surgical centers, maternity and fertility care, trauma and emergency care, tertiary care centres, home care settings, ambulatory and OPD, imaging and diagnostic centres, and others. In 2022, the hospitals and surgical centres segment accounted for the largest share of the medical device connectivity market. This segment holds a significant share due to several reasons. Firstly, there's a high patient volume, and hospitals have substantial financial capability to invest in advanced medical device connectivity solutions. Additionally, declining profits in hospitals drive a stronger emphasis on delivering top-quality patient care and safety.

North America accounted for the largest share of the medical device connectivity industry in 2022.

In 2022, North America accounted for the largest share of the medical device connectivity market, followed by Europe, the Asia Pacific, Latin America, and the Middle East & Africa. The dominant market share in this region is a result of several factors. These include increased collaboration among healthcare providers, widespread use of clinical device connections and interoperability solutions to manage rising healthcare expenses, and strict regulations set by various government and non-government bodies like HIPPA, FCC, and CMS.

The prominent players in the medical device connectivity market include Baxter International Inc. (US), Iatric Systems Inc. (US), Silex Technology (Japan), Digi International Inc. (US), True Process (US), Koninklijke Philips N.V. (Netherlands), GE Healthcare (US), Stryker Corporation (US), iHealth Labs Inc. (US), Cisco Systems (US), Lantronix Inc. (US), TE Connectivity (Switzerland), Bridge-Tech Medical (US), Medicollector LLC (US), Oracle Corporation (US), Medtronic plc (Ireland), Masimo (US), Infosys (India), S3 Connected Health (Ireland), Spectrum Medical Ltd. (UK), Dragerwerk AG & CO. KGAA (Germany), Honeywell International (US), Ascom Holdings AG (Switzerland), Wipro Ltd. (India), and OSI systems (US).

Scope of the Medical Device Connectivity Industry

The study categorizes the medical device connectivity market to forecast revenue and analyze trends in each of the following submarkets:

By Product & Services

• Medical Device Connectivity Solutions
  • Medical device integration solutions
  • Interface devices
  • Telemetry systems
  • Connectivity Hubs
• Peripheral Technologies/ Medical Devices
  • Patient Monitoring Devices
  • Critical Care
  • Imaging Systems
  • Other Medical Devices
• Medical Device Connectivity Services
  • Implementation and Integration services
  • Support & maintenance services
  • Training services
  • Consulting services

By Technology

• Wired technologies
  • LAN
  • WAN
• Wireless technologies
  • Cloud-based
  • Bluetooth
  • Other Wireless
• Hybrid technologies

By Application

• Vital signs & patient monitors
  • Blood glucose monitors
  • ECG/Heart Rate Monitors
  • Blood pressure monitors
  • Multiparameter Monitors
  • Oximeters
  • Other Patient Monitors (Capnographs, EEG, EKG, etc.)
• Ventilators
• Anesthesia Machines
• Infusion Pump
• Imaging Systems
  • MRI & CT
  • Ultrasound
  • X-ray
• Others (Mammography & nuclear medicine)
• Respiratory Devices ((Sleep apnea, spirometers)
• Others (Implantable Cardiac Devices, Hearing Devices, etc.)
  • Implants
  • Pacemakers
  • Others

By End User

• Hospitals & Surgical Centers
• Maternity & Fertility Care
• Trauma & emergency care
• Tertiary Care Centers (Old Age Homes, Assisted Living Facilities, long-term care centers, rehabs, etc.)
• Home care settings
• Ambulatory & OPD
• Imaging & Diagnostic Centers
• Others

By Region

• North America
  • US
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• Middle East & Africa
  • GCC Countries
  • Rest of Middle East & Africa

Recent Developments of Medical Device Connectivity Industry

• In October 2023, Philips announced new interoperability capabilities that offer a comprehensive view of patient health for improved monitoring and care coordination. The interoperability of Philips Capsule Medical Device Information Platform (MDIP) with Philips Patient Information Center iX (PIC iX), provide hospitals with a first-of-its-kind, comprehensive patient overview. Philips is creating an open patient monitoring ecosystem to bring together disparate medical devices and systems on a single interface. Interoperability between MDIP and PIC iX gives clinicians a new clinical perspective that enables the capture of streaming data flowing freely from a variety of medical device manufacturers on an open, scalable, secure platform.
• In February 2023, the province of Nova Scotia, in collaboration with Nova Scotia Health Authority (NSHA) and IWK Health (IWK), entered into a 10-year agreement with Oracle Cernerto implement an integrated electronic care record across the province. Thistechnologycan help improve access to patient information for healthcare professionals.
• During 2021, Koninklijke Philips N V entered into an agreement to purchase Capsule Technologies Inc. This move aimed to enhance Philips’ position in delivering connectivity solutions for patient care management within hospital settings. Capsule Technologies, being a prominent provider of medical device integration and data technologies to healthcare organizations, contributed to this strategy of expanding Philips' leadership in the field.
• During 2021, Masimo Corporation introduced iSirona, a connectivity solution designed for integrating with EMRs, surveillance monitoring, managing alarms, providing mobile notifications, incorporating smart displays, and enabling analytics.

Frequently Asked Questions (FAQ):

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