The growing geriatric population, rising healthcare costs, increasing demand for mHealth technologies, surging prevalence of chronic diseases, increasing need for personalized healthcare, and growing adoption of internet of things (IoT)-connected devices are the major factors contributing toward the positive global smart home healthcare market growth. Owing to these factors, the market is projected to reach $96.2 billion by 2030, registering a CAGR of 26.2% during the forecast period (2020–2030).
COVID-19 Impact Analysis
The COVID-19 outbreak has severely affected the smart home healthcare market globally. This pandemic has resulted in interruptions in the development, manufacturing, and shipment of products, which has further impacted the revenue of companies. In addition, the COVID-19 outbreak and mitigation measures have had an adverse impact on the global economic conditions and consumer spending on smartwatches and other wearables, as individuals are more focused on the purchase of essential goods.
Solutions Category Accounted for Larger Market Size
Based on offering, the smart home healthcare market is categorized into solutions and services. Of the two, the solutions category accounted for the larger share in 2019 in the market. This was primarily due to the vast adoption of smartwatches and fitness trackers by individuals, implementation of healthcare platforms by professionals, rise in the awareness on health and fitness among people, and surge in the need to proactively map the progress of chronic diseases, including cardiovascular diseases, by patients.
Further, on the basis of technology, the smart home healthcare market is bifurcated into wired and wireless. The wireless category accounted for the larger share in the past, and it is also projected to witness the faster growth during the forecast period. This is primarily due to the vast adoption of wireless technologies, increasing demand for IoT-connected devices, and surging smartphone and internet penetration. Moreover, the wireless technology offers benefits such as reduced equipment cost, increased efficiency, and freedom to access more than one connection, which are resulting in the market growth in this category.
Geographically, Asia-Pacific (APAC) is expected to witness the fastest growth in the smart home healthcare industry during the forecast period. This would mainly be due to the increasing number of smartphone users, surging research and development (R&D) activities related to wearable devices, growing focus on maintaining a healthy lifestyle, rising disposable income, and improving standard of living of the populace. As a result, to capture the increasing demand for wearable devices, the players in the region are focusing on introducing new ranges of smartwatches, fitness trackers, and earbuds.
Acquisitions Are Strongest Strategic Move Adopted by Market Players
Players in the smart home healthcare market are focusing on acquisitions, in order to strengthen their foothold in the market. For instance, in August 2020, Ireland-based medical device company Medtronic plc agreed to acquire U.S.-based medical equipment manufacturer Companion Medical Inc. Through this acquisition, Medtronic plc aims to simplify diabetes management, optimize dosing decisions using multiple daily injections (MDI), and equip Companion Medical’s InPen with intelligent algorithms. This would further result in the expansion of the former company’s ability to provide personalized dosing advice to individuals. The acquisition is projected to be completed within one or two months.
Similarly, in July 2019, Koninklijke Philips N.V. announced the acquisition of U.S.-based startup company Mudemo, a provider of patient navigation platform, for an undisclosed amount. With this acquisition and by combining Medumo’s direct patient interaction services with Philips’ diagnostic imaging systems, the company has strengthened its offerings of operational performance management solutions and enterprise diagnostic informatics, in order to deliver a patient-centric solution and expand its digital healthcare technology portfolio.
The key players operating in the smart home healthcare market include Apple Inc., Koninklijke Philips N.V., Siemens AG, General Electric Company, Schneider Electric SE, AT&T Inc., Samsung Electronics Co. Ltd., Medical Guardian LLC, Fitbit Inc., and Solution Works LLC.