Infonetics: healthcare providers slow to invest in M2M solutions, muting near-term growth of connected health market
Technology market research firm Infonetics Research, now part of IHS Inc. IHS, +0.28% has released excerpts from its new Connected Health M2M Connections and Services report.
The data and accompanying 19-page analysis report provide insight into the connected health vertical of the M2M (machine-to-machine) market, including growth expectations of revenue and connections by technology, and service providers’ healthcare-related M2M offerings.
“The connected health market is developing slowly, with regulatory constraints a frequent obstacle, especially in the US market,” said John Byrne, directing analyst for M2M and IoT at Infonetics Research.
“In our view, an even more substantial issue is that healthcare providers and other participants in this market are reluctant to make significant investments in M2M solutions until they can clearly see the benefit, and this takes time,” continued Byrne. “Operators lack the personnel to deepen relationships with healthcare customers; they need to find partners that have strong ties in the healthcare community to accelerate growth.”
Conncted health market highlights
- Looking ahead, Infonetics expects the connected health M2M segment to remain small despite strong growth, with revenue reaching $2.4 billion by 2018 (a 2013-2018 CAGR of 36 percent)
- The primary driving factor behind connected health M2M is operational efficiency, enabling health care facilities to reduce operating costs
- Europe, where operators such as Vodafone and Deutsche Telekom are already seeing modest success in the connected health market, is anticipated to be the leading region, with North America following close behind
- Worldwide M2M connected healthcare service revenue totaled $533 million in 2013, an increase of 15 percent from the prior year
- Connections grew 23 percent in 2013 from 2012, to 44 million