U.S. Connected Care Market - Industry Outlook and Forecast 2020-2025

INDUSTRY INSIGHTS

The U.S. connected care market size to cross USD 13 billion by 2020, growing at a CAGR of 16% during the forecast period. Connected care is bringing patient and clinical management together in the realm of care continuum by linking caregivers, payers, physicians to patients from across clinics, hospitals, and homes. It is driving the development of care through proven clinical care pathways and better workflows. The growing enthusiasm for telehealth has seen a lot of interest and investments from major health companies. From tele-neonatology programs to virtual hospitals, all systems have prompted the transition to digital health.

Further, the COVID-19 pandemic has driven new realities in the healthcare industry of interoperability and agility. The need for remote collaborations in healthcare facilities and patients has given connected care a faster momentum. The market growth is rooted in telehealth and is largely known to constitute RPM and telehealth. However, the trend of virtual medicine increasingly streaming video, patient data and test results straight to clinicians has opened up new frontiers.

SNIPPETS 

• The home care setting segment is expected to witness an incremental growth of over $9 billion by 2025, as medication management is likely to be among the fastest-growing segments in the market.
• The software and services segment is likely to reach a revenue share of over $20 billion by 2025. This is on account of the development of advanced cloud-sharing platforms, allowing monitoring programs for patients.
• The RPM segment is projected to observe a revenue growth of over $23 billion by 2025. The growth is due to the increased application and popularity of connected health wearables, devices, and mPers.
• The onsite segment is expected to grow at a CAGR of over 17% during 2019­–2025. This is due to the high adoption of onsite care in pre/post-operative and post-discharge settings.

U.S. CONNECTED CARE MARKET SEGMENTATION

This research report includes a detailed segmentation by

• Type
• Component
• End-user
• Geography

INSIGHTS BY TYPE 

The RPM segment is witnessing growth on account of better clinical and patient experience, lower costs, and improved outcomes. In 2019, several clients carried out pilot RPM programs, which they expanded swiftly in 2020, are driving the demand for specialized monitoring systems. Simplifying Bluetooth technology is expected to be crucial for mainstreaming the adoption of RPM technology. Further, tablets and smartphones are coming to the front as they can be linked to healthcare wearables and telehealth video conferencing and allow for the implementation of electronic health record-based patient portals.

The medical alert systems market has significantly grown and changed recently. The shortage of healthcare workforce and the limitations in nursing care and long-term services and supports (LTSS) formal care systems are leading to increased demand for PERS systems. A majority of clinicians, home and healthcare professionals, and case managers are advocating the use of these devices among the elderly, driving volume growth. The market has made a shift from landline to mobile PERS over the last half of the decade as consumers are increasingly getting rid of landline phones.

The connected medication management segment is tackling medication non-adherence through hardware, software, and combined solutions. It is still in its infancy, however, ripe for astonishing growth owing to the presence of a substantial efficacy-to-effectiveness gap. It is being propelled forward by its significance in the trend toward home-based care, which has been put in motion by patients and healthcare providers.

INSIGHTS BY COMPONENT

The software and services segment has been witnessing significant progress in the recent past owing to heightened acceptance for connected care and increased demand for better data collection. Connected devices collect data, analyze, and display them and analyze self-reported data from patients. The software and services segment is expected to reach over $20 billion by 2025. The regulatory environment is showing signs of favorability, making it easy for players to navigate the market and roll out new solutions. However, the low ability of transference of technology across several therapy areas is a major challenge, which is reducing implementation.

The US hardware connected healthcare market is expected to grow at a CAGR of over 18% during the forecast period. Reducing the size of monitors and improving ease of use in a variety of clinical settings are key focus areas for hardware manufacturers. Design is increasingly coming to the fore, and players are taking new approaches to deliver their connected care services. Manufacturers have focused on developing devices that appear non-medical and track pills via sensor-embedded labels. Players are upping the quality of the hardware for consumer-oriented m-health devices to a level similar to hospital-grade devices. The number of product approvals has gone up over the last couple of months, fueling segment growth.

INSIGHTS BY END-USER

The acceptance of homecare settings is growing. A growing number of organizations, which are debuting and scaling models to move acute, primary, and palliative care to the home, are driving the segment growth. As healthcare is increasingly shifting into homes owing to population health efforts and demand for personalized healthcare, medical devices are being designed to be used within the setting. Players in the market are working on making devices automatic and invisible in terms of design that they can integrate seamlessly into consumers’ lives, thereby increasing the demand.

The demand for connected care is high in the hospital segment. Hospitals allow users to perform diagnostic and therapeutic procedures safely and effectively, often in a less invasive manner. Health systems are continually reinstituting and redirecting care programs and treatments for their patients, triggered by the COVID-19 pandemic. The outbreak of the pandemic results in lung and cardiac complications, thereby stimulating a strong uptick in new, less common RPM solutions among hospitals and clinics, hence driving heightening manufacturing and investments in the U.S. connected care market share.

INSIGHTS BY DELIVERY

The growth of virtual hospitals on account of the development of IoT is driving the demand for onsite connected care solutions. The rise of dedicated patient portals, which are putting power in the hand of patients to take more control by both gaining access to and feeding in their health information and images. The U.S. connected care market shares is expected to observe growth opportunities by going beyond traditional patient care and expanding into therapy, combining with RPM platforms to monitor the patient’s progress.

The blending of health and fitness trackers and smartwatches and medical alert devices is the main trend in the mobile space. Manufacturers are introducing smartwatches that combine medication alerts, location tracking and messaging, along with an emergency help button. All these factors have made mobile solutions less clunky and attractive. However, just like fitness wearables, where error margins can show up to 25%, there is a lot of doubt about the reliability of mobile alert systems and the data from RPM solutions. Further, mobile networks are not always foolproof owing to their spotted availability.

INSIGHTS BY VENDORS

The U.S. connected care market is moderately fragmented. New entrants are offering new solutions with new technologies such as IoT, AI, and predictive analytics. Players are expected to witness a more competitive and challenging atmosphere due to the increased new regulatory pressure, legal scrutiny, and due to the forces of new, innovative players in the healthcare space. The market competition is expected to play out in one or more ways. Technology and MedTech players could differentiate their offerings and occupy exclusive areas in the market; provide fragmented service and product offerings; bring everything within the company by creating an in-house data platform that can connect to several devices; offer advanced predictive diagnosis and user-friendly devices but keep the health-based data within the MedTech ecosystem. 

The U.S. connected care market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:

Segmentation by Type

• RPM
• Connected Medicated Management
• PERS

By Component   

• Software and Services
• Hardware

By End-user    

• Homecare Settings
• Hospitals/ Clinics
• Others

By Delivery

• Onsite
• Mobile