What’s Driving The Growth Of Connected Health Devices?
Health and wellness apps are used by more than 40 percent of consumers in the U.S., and that number is steadily rising, says Parks Associates' Harry Wang.
More than 40 percent of U.S. broadband households now own a Connected Health product, up from 37 percent in 2016 and 33 percent in 2015, notes tech research consultancy Parks Associates.
That report buttresses other industry forecasts looking ahead to tech developments in the intersection of connected devices and artificial intelligence. For example, eMarketer has forecast the value of the “Internet of Health Things” will hit $163 billion by 2020, with a Compound Annual Growth Rate (CAGR) of 38.1 percent between 2015 and 2020.
And within the the next five years the healthcare sector is projected to be “number one” in the top 10 industries for Internet of Things app development. As a separate Accenture report notes, the insurance industry is primed for AI.
The mainstreaming of on-demand technologies that have changed the way people find restaurants and share information with friends online is altering the methods that doctors are “discovered” and engaged by existing and potential patients already. The use of reviews by patients through platforms like ZocDoc is one case in point.
Is there anything on the horizon that will serve as an alternative means of finding a doctor. Will Siri or Alexa or Cortana likely recommend nearby doctors in the future? It’s a matter of time, Parks Associates’ analysis suggests.
“The steady increase in consumer adoption of connected health products bodes well for the ongoing healthcare practice transformation,” said Harry Wang, Senior Director of Research, Parks Associates.
GeoMarketing: In terms of the Connected Home, as well as devices like Amazon Echo and smart watches, can you put the state of Connected Health in context? How big is this area versus other areas, such as wearables or the Connected Car in terms of consumer adoption?
Harry Wang: Connected Health is intertwined with connected home technology and wearable device industry therefore adoption of these technologies will help connected health industry grow.
We include wearables that directly benefit consumers’ health and wellbeing, such as fitness trackers, smart watch with health & fitness tracking capability as connected health devices (which include connected medical devices, e.g., a BPM, or connected wellness devices, e.g. a Fitbit) from a device adoption perspective, adoption of connected health products as a whole category is perhaps on par with smart home device as a whole category (thermostats, door locks), but ahead of connected cars (depending on its definition). Individually speaking, fitness tracker and smart watch with fitness/wellness features leads with 12 percent adoption each.
Are there any particular use cases that are driving Connected Health? For example, are we mainly seeing growth in Connected Health from wearables like fitness trackers?
Connected health is more than devices. Software and services are actually more exciting. Health and wellness apps are used by more than 40 percent of consumers in the U.S., and access to remote care services (those pioneered by Teledoc and MDlive) is on the rise.
Besides these general categories, the connected health market has many unique, high growth, and niche use cases that are gaining distribution channels and consumer’s mindshare.
These innovations that target specific use cases may be driven more by healthcare providers than consumer marketing efforts.
For instance, Health insurers start to fund/subsidize diabetes prevention programs, hospitals begin to contract digital rehab software makers to offer in-home technology-assisted rehab services.
Each use case has significant room to grow but as their target market is not the entire consumer population, they would never reach the traditional mainstream status.
But for healthcare providers and insurers, if these technologies can help them address the issue of the 80 percent of the healthcare spending by 20 percent population, mainstream adoption is irrelevant.
Is there anything in the Connected Health space that will help doctors, hospitals, and medical clinics, achieve greater discovery through the use of these IoT devices?
We do believe that many IoT devices/software that touch upon people’s life therefore contributing to doctor’s understanding of patient condition and helping patients self-manage their conditions will gain more adoption. Siri may one day evolve to answer health related questions from patients or Echo will collect patient self-reported data to doctors.
Applications targeting health and wellness needs of consumers will find their way to a connected home, a connected car, or a connected speaker platform.
Many remote care applications are mobile driven so consumers can talk to a doctor via video on smartphones, and healthcare system will rely more on these everyday consumer devices to engage patients particularly in preventive care areas.
Barriers still exist; it takes time for consumer and doctor’s habits to replace old ones. But we are getting there.