Global mHealth market to touch $10.2 billion by 2018: A new Transparency Market Research report

Driven primarily by factors like increasing occurrence of chronic diseases and adoption of smartphones, the global mHealth market, which is $1.3 billion in 2012, is estimated to reach $10.2 billion by 2018, at a 41.5% CAGR, according to a new Transparency Market Research report.

The report evaluates the global mHealth market by making a cross sectional analysis of the numerous services, including healthcare system strengthening, monitoring, diagnostic, and players involved in it, such as providers, mobile operators, content developers, and device suppliers.

Utilization of smartphone applications is anticipated to transform the mHealth market by enhancing care delivery and diffusion of medical knowledge as they provide a novel and interactive means of communication between healthcare providers and patients. Factors such as escalating healthcare cost, quick service and user friendly functions have also facilitated the rapid adoption of these applications.

The market is also profoundly impacted by the rise in remote patient monitoring as it lowers the overall healthcare cost by reducing the patient’s time at the hospital and frequency of follow-up consultations. There has also been increasing demand for geriatric care solutions and post acute care services.

Among the different mHealth services, monitoring services is reported to hold a strong position in the market with 60% of the revenue in 2012 coming from it. The revenue furnished by the segment to the overall mHealth market is also noted to be high in the nations with higher income. As monitoring services can be utilized in acute conditions like hypertension, coronary artery disease, and congestive heart failure it is expected to have the fastest growth within the estimated time period.

Monitoring services is a major revenue generator for mobile operators, a top industry player holding 50% of the mHealth market shares. Treatment and diagnosis solutions are also seen as potential business opportunities for operators in the future. The other important market players include device suppliers, content developers, and healthcare providers.

North America is the chief revenue contributor to the mHealth market, followed by Europe and Asia Pacific. This trend is reported to continue as per capita mHealth expenditure is highest in developed nations because of high disposable incomes and growing chronic diseases. In the Asia Pacific region mHealth deployments revolve around improving healthcare systems and workforce efficiency. However, India is launching different types of solutions and is reported as one of the emerging mHealth hotspots.

Sharing a similar positive view on the mHealth market is a February 2012 PricewaterhouseCoopers Private Limited and GSMA report which estimates the global mHealth revenue across all market players to reach approximately $23 billion by 2017. Driven by independent ageing and chronic disease management supporting solutions, monitoring services are predicted to hold a majority of market share of about 65%, which amounts to $15 billion in 2017. Diagnostic and healthcare system strengthening services are expected to hold 15% and 6% of the total market, respectively, by 2017. Controlling 50% of the market value and accumulating most of the revenue from monitoring services, mobile operators are likely to benefit most from the mobile health market growth. Healthcare providers, content/application players, and device vendors are also expected to gain significantly with projected revenues of $2.4, $2.6, and $6.6 billion, respectively in 2017. However, contrary to the current report, AsiaPacific and Europe regions are identified as largest market for mHealth services, followed by Canada and US, Latin America, and Africa.

Although mHealth is poised to revolutionize healthcare delivery, barriers still remain. mHealth’s full potential can be unleashed by developing standards, establishing interoperability between different systems, overcoming the conservative mindset that is prevalent among the consumers, and government supporting the initiative financially.

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mhealth + Telehealth World 2013

mhealth + Telehealth World 2013

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