According to a new report published by Allied Market Research, titled, Smart Hospitals Market by Component, Product, Connectivity, Application, and Artificial Intelligence: Global Opportunity Analysis and Industry Forecast, 2018-2025," the global smart hospitals market was valued at $16,925 million in 2017, and is projected to reach $58,777 million by 2025, growing at a CAGR of 17.3% from 2018 to 2025. The service segment accounted for about four-sevenths share of the global market in 2017.
The hospitals, which are completely depended on Internet of Things and artificial intelligence to improve the existing patient care and introduce new capabilities are known as smart hospitals. In addition, smart hospitals help reduce healthcare cost, increase efficiency, reduce error, and improve patient satisfaction.
The increase in penetration of connected devices and instruments in hospitals coupled with the advancements in healthcare infrastructure are the major factors that augment the market growth. However, lack of competence in deploying internet of things (IoT) solutions in hospitals and lack of governance standards might hamper the growth of this market. Moreover, the rise in disposable income in developing economies is expected to create lucrative opportunities in the market.
Among the product segment, telemedicine accounted for about half share of the global market in 2017. This is owing to the increase in awareness regarding the potential benefits of telemedicine such as low cost diagnosis and consultation, improved access to patients, and improved quality of treatments.
Among the connectivity segment, the wireless segment accounted for about three-sevenths share of the global market in 2017. Wireless segment includes devices such as Wi-Fi, radio-frequency identification (RFID), Bluetooth, and others. These devices are utilized in hospitals for easing the clinical workflow and reducing the cost associated with the treatment and diagnosis purposes.
Key Findings of the Smart Hospitals Market :
- The hardware segment accounted for one-fourth share of the global market in 2017 and is expected to register a high CAGR of 13.0% from 2018 to 2025.
- The electronic health records segment accounted for about one-third share of the total market in 2017 and is expected to grow at a CAGR of 4.1% during the forecast period.
- Among the connectivity segment, radio-frequency identification (RFID) accounted for about one-third share of the global market in 2017 and is expected to grow at a CAGR of 11.5% during the forecast period.
- U.S. dominated the North America smart hospitals market and is projected to retain its trend throughout the forecast period.
- Singapore dominated the Asia-Pacific smart hospitals market and is projected to retain its trend during the forecast period.
In 2017, North America was the dominant revenue contributor, owing to high prevalence rate of chronic diseases and the already increased awareness regarding Internet of Things (IoT) and artificial intelligence. Also, the increase in geriatric population, who are prone to certain diseases boosts the market growth in North America. However, Asia-Pacific is expected to witness the highest CAGR during the forecast period, owing to the presence of high populace countries such as India and China.
The key players operating in the global smart hospitals market are Alphabet Inc. (Google Inc.), Enlitic Inc., General Vision, Intel Corporation, IBM Corporation, Microsoft Corporation, Nvidia Corporation, Next IT Corp., Welltok Inc. and GE healthcare. Other players operating in the value chain are Adheretech, Allscripts, Cerner Corporation, Diabetizer, Medtronic, Proteus Digital Health, and Qualcomm Life.