Edge Computing in Healthcare Market

Edge Computing in Healthcare Market Size, Share & Trends

The size of global edge computing in healthcare market in terms of revenue was estimated to be worth $4.1 billion in 2022 and is poised to reach $12.9 billion by 2028, growing at a CAGR of 26.1% from 2022 to 2028. The comprehensive research encompasses an exhaustive examination of industry trends, meticulous pricing analysis, patent scrutiny, insights derived from conferences and webinars, identification of key stakeholders, and a nuanced understanding of market purchasing dynamics.

With the rise of the number of devices and the increased use of internet services, edge computing has become increasingly popular across industries. It offers several benefits, including low latency, traffic distribution, improved reliability, and reduced costs, which have led to its rapid acceptance by healthcare organizations worldwide. In addition, edge computing provides greater security and privacy for sensitive data, making it an attractive option for organizations dealing with confidential information.

Edge Computing in Healthcare Market Trends

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Edge Computing in Healthcare Market Dynamics

Driver: Growing adoption of IoT medical devices

The proliferation of IoT devices has led to a significant increase in data, due to which healthcare organizations are increasingly relying on centralized cloud computing and storage solutions. The global IoT medical devices market is expected to grow at a CAGR of 28.9% during the period from 2021 to 2026. According to a research study, the number of active IoT devices is expected to grow to ~31 billion by 2025. Accenture predicts that IoT could add USD 14.2 trillion to the global economy by 2030. Migrating the entire IT infrastructure to the cloud poses latency and economic feasibility issues. Hence, organizations using IoT sensors, actuators, and other IoT devices are increasingly looking for edge computing solutions, such as edge nodes, devices, and hyper-localized data centers. Edge computing supplements the existing cloud paradigm by facilitating data processing closer to the data source, thereby enabling organizations to speed up decision-making.

IoT devices, such as wearables, smart sensors, and medical devices, can generate vast amounts of data that can be used to monitor patients in real time, track their health status, and facilitate early detection of potential health issues.

One example of IoT devices in healthcare is remote patient monitoring (RPM) systems. These systems use wearable devices, smart sensors, and other IoT devices to monitor patients’ vital signs, activity levels, and other health-related data in real time. This data is then transmitted to healthcare providers, who can use it to monitor patients remotely and make informed decisions about their care. RPM systems are particularly useful for patients with chronic conditions, such as diabetes, heart disease, and chronic obstructive pulmonary disease (COPD), who require ongoing monitoring and supports.

Restraint: High CAPEX and OPEX associated with edge computing systems

One of the key restraints for the adoption of edge computing solutions in healthcare settings is the initial capital expenditure (CAPEX) required for infrastructure. Edge computing systems require significant investment in hardware, software, and networking infrastructure, which limits adoption among healthcare organizations with limited budgets. For instance, the deployment of edge computing systems for medical imaging requires significant investment in high-performance computing infrastructure, including servers, storage systems, and networking equipment. Companies such as NVIDIA and Intel offer high-performance edge computing solutions for medical imaging, but the initial CAPEX for these systems can be substantial.

Another example is the deployment of edge computing systems for remote patient monitoring. Companies such as Philips and Qualcomm offer edge computing solutions for remote patient monitoring, which require investment in both hardware and software infrastructure. The initial CAPEX for these systems can be significant, which may limit the adoption of edge computing solutions for remote patient monitoring in healthcare settings.

In addition to the CAPEX required for infrastructure, healthcare organizations may also have to bear high operating expenditure (OPEX)  associated with edge computing systems, including maintenance, upgrades, and staff training. These ongoing expenses can further limit the adoption of edge computing solutions in healthcare settings.

To overcome this restraint, healthcare organizations can consider alternative deployment models for edge computing, such as cloud-based edge computing solutions or managed services. Companies such as Microsoft and Amazon offer cloud-based edge computing solutions, which can help to reduce the initial CAPEX for infrastructure. Additionally, healthcare organizations can partner with managed service providers that specialize in edge computing, which can help to reduce the ongoing operating expenses associated with edge computing systems.

Opportunity: Advent of 5G network

5G is expected to enable life-altering advancements in the near future. According to Ericsson Mobility Report 2020, global 5G subscriptions are expected to reach 2.8 billion by the end of 2025, accounting for 30% of total subscriptions. 5G will provide greater benefits for the deployment of edge computing solutions. 5G does not improve the user experience when businesses centralize their APIs. Approximately 99% of APIs are centralized in one or two data centers. Healthcare organizations must find ways to bring data streaming edge messaging solutions or design a network for edge that provides distributed access. 5G, with an edge messaging system, enhances application connectivity speed with 5G and delivers instant communication experiences. Cisco predicted that 5G’s impact would be tangible and significant by 2022. 5G brings cloud, core, and edge together. It will bring network architectures that are faster and more robust, bringing the core near the end and reducing the dependence on edge technology for various applications. Thus, 5G will be an accelerator for edge deployments and new edge use cases.

Challenge: Susceptibility to cyberattacks and limited authentication capabilities of edge computing architecture

Despite the benefits, the edge computing architecture is susceptible to cyberattacks due to the addition of vulnerable edge nodes and IoT devices. Various IoT devices, such as security cameras, smart doorbells, and baby monitors, have limited capabilities of authentication and encryption. Hence, they are prone to tampering, eavesdropping, malicious congestion, and identity forging. With the increasing number of IoT startups and rising competition, many small companies rely on security through obscurity while neglecting the risk of cyberattacks. As these devices lack robust IT hardware protocols, users having less or no knowledge about IT security might lose critical data, paving the way for malware that could shun the entire edge network. This could also lead to large security breaches and can cause huge economic losses to the entire ecosystem. Eliminating authentication and enumeration vulnerabilities is the biggest challenge for IoT device manufacturers until the companies introduce some tough protocols and authentication systems within the devices.

Edge Computing in healthcare Market Ecosystem

Well-known, financially secure producers of Edge computing in healthcare systems and platforms are prominent players in this market. These companies have been in operation for a while and have a broad range of products, cutting-edge technologies, and robust international sales and marketing networks. Key companies in this market include CISCO Systems, Inc. (US), HUAWEI Technologies Co. Ltd (China), Dell Technologies, Inc. (US), Amazon Web Services (US), Google, Inc. (US), Microsoft Corporation (US), Intel Corporation (US), General Electric Digital (US), Hewlett Packard Enterprise Company (US), VMware, Inc. (US).

Hardware acquires largest size of edge computing in healthcare industry, by component

Based on component, the edge computing in healthcare market is segmented into hardware, software, and services. The hardware segment dominated this market in 2022, this is due to the high-scale deployment of edge hardware by healthcare organizations to achieve high performance, scale, and flexibility.

Based on application, telehealth & remote patient monitoring segment is anticipated to dominate the edge computing in healthcare industry

Based on application, the edge computing in healthcare market is segmented into diagnostics, Among these applications, telehealth and remote patient monitoring are expected to dominate the market during the forecast period. By implementing edge computing, telehealth providers can provide patients with a more streamlined and integrated experience, leading to higher engagement and satisfaction. Patients can receive remote consultations with healthcare professionals, access their medical records, and monitor their health and wellness using wearable devices, all from the convenience of their homes. This approach also ensures greater convenience, privacy, and accessibility for patients, enabling them to receive care anytime, anywhere.

Based on the end user, hospitals & clinics accounted for the largest share of the edge computing in healthcare industry

Based on end-users, hospitals & clinics garner high revenue owing to their huge generation of data, attributed to the widespread geographical presence and customer base. Edge computing is transforming the way hospitals and clinics manage data, enabling faster, more efficient decision-making and reducing the burden on IT infrastructure. This technology is helping to improve patient outcomes, enhance the patient experience, and increase the overall efficiency of healthcare systems.

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North America is expected to account for the largest share in edge computing in healthcare industry in 2022

Based on region, the global edge computing in healthcare market has been segmented into North America, Europe, Asia Pacific, and the Rest of the World. In 2022, North America accounted for the largest market share followed by Europe. The increasing number of alliances and partnerships among edge computing and other technology providers for continuous technological innovations and advancements in edge computing have further added to the growth of the global edge computing market in North America.

The edge computing in healthcare market is dominated by a few globally established players such as CISCO Systems, Inc. (US), Dell Technologies, Inc. (US), Amazon Web Services (US), Google, Inc. (US), Microsoft Corporation (US), Intel Corporation (US), among others.

Scope of the Edge Computing in Healthcare Industry

The study categorizes the Edge computing in healthcare market to forecast revenue and analyze trends in each of the following submarkets:

By component

• Hardware
• Software
• Services

By Application

• Diagnostics
• Telehealth & Remote Patient Monitoring
• Robotic Surgery
• Ambulances
• Other Applications

By End User

• Hospitals & Clinics
• Long-term Care Centers and Home Care Settings
• Ambulatory Care Centers
• Other End Users

By Region

• North America
  • US
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Rest of Europe
• Asia Pacific
  • Japan
  • South Korea
  • Other Asia Pacific Countries
• Rest of the World

Recent Developments of Edge Computing in Healthcare Industry

• In December 2022, Intel Labs and the Perelman School of Medicine at the University of Pennsylvania (Penn Medicine) completed of a joint research study using distributed machine learning (ML) and artificial intelligence (AI) approaches to help international healthcare and research institutions identify malignant brain tumors.
• In February 2023, Cisco Systems, Inc. (US) partnered with the NTT DATA (Tokyo) to boost private 5G adoption and edge computing solutions across the Automotive, Logistics, Healthcare, Retail, and public sectors. Cisco Systems, Inc. also collaborated with Bharti Airtel and Apollo Hospitals, Inc. to develop 5G-connected ambulances
• In February 2022, Kyndryl partnered with Amazon Web Services to establish a Cloud Centre of Excellence to provide joint solutions, such as mainframe, network, edge computing, and ERP services for mission-critical infrastructure.
• In October 2021, Dell Technologies enhanced its edge innovations across its infrastructure and PC portfolios to assist organizations in simplifying deployments and capturing more value from data generated and processed outside of the traditional data center and public cloud—from rugged and remote locations to retail stores and factory floors. For instance, VxRail satellite node single-node deployments automate day-to-day operations, health monitoring, eliminating the need for local technical and specialized staff.

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