IOT AND VIRTUAL HOSPITAL MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2025-2032)

IoT and Virtual Hospital Market Analysis & Forecast

IoT and Virtual Hospital Market is estimated to be valued at USD 20.34 Bn in 2025 and is expected to reach USD 66.35 Bn in 2032, exhibiting a compound annual growth rate (CAGR) of 18.4% from 2025 to 2032.

Key Takeaways

• According to component, the connectivity devices category is anticipated to account for the largest share of 40.00% in the IoT and Virtual Hospital market in 2025.
• According to region, North America holds the largest market share of 35.7% for IoT and Virtual Hospital market growth by 2025.
• Asia Pacific is considered to be the second largest region with 25.2% of market share by 2025 for IoT and Virtual Hospital market.

Market Overview

The global IoT and Virtual Hospital Market Size is expanding quickly due to the need for remote patient care solutions, rising healthcare digitization, and connectivity improvements. The ecosystem where Internet of Things (IoT) technologies and virtual health service meet to revolutionize healthcare delivery is known as the "IoT and Virtual Hospital Market."  This market includes the incorporation of wearable sensors, software programs, telemedicine platforms, and linked medical equipment that provide remote patient monitoring, diagnostics, and virtual consultations between patients and medical professionals.

For instance, in October 2024, Partnering with Kantonsspital Baden (KSB) in Switzerland, Siemens Smart Infrastructure will deploy technologies and digital services from the Siemens Xcelerator portfolio to create one of the country’s smartest hospitals.

Current Events and Its Impact on the IoT and Virtual Hospital Market

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Pipeline Analysis

The Internet of Things (IoT) market is experiencing robust growth, driven by advancements in connectivity, edge computing, and the proliferation of smart devices across industries. This surge is fueled by widespread adoption in sectors such as manufacturing, healthcare, transportation, and energy, with North America, Europe, and Asia Pacific leading in infrastructure development and policy support.   

Patent Landscape

• The IoT sector has seen a dramatic increase in patent filings worldwide, with over 82,000 patents held in this market and more than 5,790 grants issued. The majority of patenting activity is concentrated in areas like resource management in wireless networks, control systems, circuits, and sensors.
• While specific data on "virtual hospital" patent filings is less prominent in the current search results, IoT patents in healthcare are a major focus, with 735 patents filed in healthcare-related IoT applications alone.

Reimbursement Scenario

IoT medical devices, such as wearables and remote monitoring tools, are transforming healthcare delivery by enabling continuous patient monitoring, early detection, and personalized care, especially for chronic disease management and remote populations. The virtual hospital model, encompassing telehealth, remote consultations, and digital therapeutics, has seen expanded reimbursement support. New CPT and HCPCS codes now cover a broader range of virtual care services and the necessary equipment, making it easier for providers to bill for and receive payment for remote care.

Market Segmentation

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IoT and Virtual Hospital Market Insights, by Component

In terms of component, the Connectivity Devices segment is expected to contribute largest share of the IoT and Virtual Hospital market trends in 2025. The market for IoT and virtual hospitals is largely driven by the connectivity devices sector, which makes it possible for patients, healthcare devices, and medical professionals to communicate and exchange data in real time. 

Wireless sensors, wearable technology, implantable sensors, and network infrastructure particularly cellular networks like 4G LTE and 5G are among the technologies included in this segment. These networks are preferred for their dependability, wide coverage, and secure, continuous connectivity, which are crucial for telemedicine and remote patient monitoring.   

For instance, in January 2025, A contract to launch a Health Cyber Sharing Network in Australia has been awarded to a non-profit cyber threat intelligence sharing service. In a statement, CI-ISAC Australia said it will use the federal government's A$6.4 million ($4.2 million) funding to enable the exchange of valuable cyber security threat information "more quickly, within a secure and confidential environment”.   

IoT and Virtual Hospital Market Insights, by Application

In terms of application, the Remote Patient Monitoring segment is expected to contribute largest share of the IoT and Virtual Hospital market trends in 2025. The IoT and virtual hospital market's Remote Patient Monitoring (RPM) segment is growing quickly and is utilizing smart technologies and digital connections to revolutionize healthcare delivery. 

Heart rate, blood pressure, oxygen saturation, and activity levels are just a few of the health metrics that RPM continuously tracks using wearable sensors and medical equipment enabled by the Internet of Things. This data is sent to clinicians in real time, even when the patient is not physically present in a healthcare facility.

IoT and Virtual Hospital Market – Regional Analysis

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North America IoT and Virtual Hospital Market

North America is expected to be the largest market for IoT and Virtual Hospital during the forecast period, accounting for over 35.70% of the market share in 2025. In the North America region, the application segment of remote patient monitoring currently leads the growing Internet of Things (IoT) and virtual hospital market. Advancements in connected healthcare technologies over the past few years have enabled more robust remote monitoring of patients, especially among those with chronic conditions.

 In the North American region, the application segment of mHealth also holds significant promise for future growth within IoT and virtual care delivery. The penetration of smartphones and wearable devices has created new possibilities for disease self-management and decentralized care.

For instance, a non-profit initiative in several major U.S. cities equipped uninsured individuals with monitoring kits connected to smartphone apps. Users were empowered to track their blood sugar, blood pressure, and other biometrics independently and share results seamlessly with local clinics for oversight. Initial outcomes suggest this 'virtual clinic' model could expand access to basic services for underserved groups at lower costs than traditional methods.

As enabling technologies become more integrated into daily life and affordable care becomes a pressing social issue, similar innovations are likely to drive further the adoption of mHealth applications regionally.

Asia Pacific IoT and Virtual Hospital Market

Asia Pacific is expected to be the second-largest market for IoT and virtual hospitals, accounting for over 25.2% of the market share in 2025. Within the Asia Pacific region for the global IoT and virtual hospital market, the component segment consists of the hardware, software and services, and connectivity devices sub-segments. Software and services accounts for the largest share among these sub-segments due to the rapidly growing adoption of cloud computing and software-as-a-service (SaaS) models across APAC nations.

According to data from the Non-Profit Organization Alliance for Affordable Internet, cloud adoption increased substantially in Southeast Asia from 2018 to 2021, with Indonesia, Malaysia, Philippines, and Vietnam experiencing over 50% annual growth rates. This rapid shift to cloud-based systems among businesses and governments has driven significant demand for various IoT and healthcare software, from medical record management solutions to remote patient monitoring platforms.

Major industry players like Philips, GE Healthcare, and Siemens Healthineers have expanded their software portfolios targeting the Asia Pacific IoT and virtual hospitals market.  

IoT and Virtual Hospital Market In Europe

Europe is expected to be the fastest-growing market for IoT and virtual hospital, with a share of 19% during the forecast period. The growth of the market in Europe is driven by a growing aging population and need for quality care. The National Health Service in the U.K. reported that over 25% of hospital beds in 2019 were occupied by patients that could be monitored remotely. This has prompted several hospitals to invest in remote patient monitoring devices and platforms to help curb healthcare expenditure.

Remote monitoring allows chronically ill patients in rural areas to be supervised daily without travelling long distances to clinics. It also eases pressure on hospitals by reducing readmission rates for issues that can be addressed in home care settings. The mHealth sub-segment has emerged as the fastest growing segment within the European IoT and virtual hospital market for virtual hospitals and IoT.

Smartphones have near ubiquitous penetration in the region, with over 80% of the population owning smartphones according to Eurostat. This widespread access to computing power and mobile internet has fueled the rapid adoption of mHealth apps focused on medication reminders, chronic disease management, and teleconsultations. As per reports by the European Union eHealth Network, over 25,000 mHealth related apps are available on app stores, a10 times increase over 2016 figures.   

IoT and Virtual Hospital Market Dominating Countries

U.S IoT and Virtual Hospital Market

The United States leads the IoT and virtual hospital market, underpinned by its advanced healthcare infrastructure, early adoption of digital health technologies, and substantial investments in research and development.   

India IoT and Virtual Hospital Market

India is emerging as a significant force in the IoT and virtual hospital market, driven by aggressive digital health initiatives and a rapidly expanding healthcare infrastructure. The country is investing heavily in digital health platforms and IoT-enabled solutions to address the healthcare needs of its large and diverse population.    

IoT and Virtual Hospital Market In China

China stands as a dominant player in the IoT and virtual hospital market, propelled by strong government support, rapid technological advancement, and large-scale investments in healthcare digitization. The country is at the forefront of integrating IoT devices into hospitals, clinics, and home care settings, promoting real-time health monitoring and data-driven medical decision-making.    

Market Report Scope

IoT and Virtual Hospital Market: Growth Drivers

• Growing adoption of connected devices and connectivity:

The adoption of connected devices and connectivity across various sectors is fueling the growth of the global Internet of Things (IoT) and virtual hospital market significantly. With more things getting connected to the internet every day, the potential for data generation and analysis has increased multifold. Various health sectors have started leveraging IoT solutions to enhance patient care and operational efficiency. 

Remote patient monitoring devices that can transmit vital health statistics in real-time are enabling virtual ICUs and surgical assistance. This is helping hospitals to optimize costs while expanding reach to remote areas. Wearable health trackers are empowering individuals to monitor chronic conditions from home and seek medical advice online.

• The growth in virtual consultations driven by telehealth and telemedicine solutions is especially high during the ongoing COVID-19 pandemic. With movement and travel restrictions in place, telehealth emerged as a lifeline to ensure continuity of care.

According to the World Health Organization (WHO), between 2019 and 2022, there was a staggering 63% increase in the number of virtual medical consultations across the world. This established the efficacy of virtual hospitals in addressing both chronic and emergency health issues without risking exposure or transmission. The cost benefits of remote monitoring to payers and providers also boosted the appeal of virtual offerings manifolds.

• Increasing demand for remote patient monitoring:

The demand for remote patient monitoring is growing exponentially due to the various infections as it allows patients to communicate their health issues with clinicians from home without the need for in-person visits or frequent hospitalizations. This has led to an increased adoption of internet of things (IoT) devices and virtual care services across the healthcare industry which are facilitating the rapid growth of the global IoT and virtual hospital market. The ongoing digital transformation in the healthcare sector coupled with rising investments in telehealth infrastructure and advancements in 5G and edge computing are fueling the demand for IoT based applications and virtual services.

Remote patient monitoring utilizing technologies like IoT sensors and AI powered care assistive robots will play a critical role in managing the long-term health of the growing geriatric population and preventing overcrowding of medical facilities. While the market witnessed a spike during the pandemic, industry experts predict this trend to sustain in the coming years with more innovative IoT devices and virtual care models gaining acceptance. Countries are also introducing supportive regulations to expand telehealth access and coverage which will pave way for new growth opportunities.

• Growing need for real-time healthcare delivery:

The need for real-time and efficient healthcare delivery is rising globally owing to increasing prevalence of chronic diseases and aged population. The transition to digital healthcare through IoT and virtual platforms is helping address this need by enabling round-the-clock remote patient monitoring and management. IoT devices that can monitor vital signs like temperature, blood pressure, and ECG readings in real-time are allowing early detection of health issues and ensuring timely clinical intervention.

Virtual hospitals powered by telehealth and telemedicine are further facilitating real-time care from the comfort of one's home. Advanced technologies like AR/VR are enabling virtual consultations and remote surgeries. This has become vital during the pandemic as physical visits to hospitals carried the risk of virus transmission. According to World Health Organization, telehealth interventions helped maintain access to essential healthcare and support systems for chronic disease management globally during 2020-2021. The shift to remote and digital care models is likely to continue post pandemic as well, given the convenience and positive health outcomes.

IoT and Virtual Hospital Market: Trends

• Wearable medical devices:

The rising popularity of wearable medical devices is having a significant impact on the growth of IoT and virtual hospital services globally. Wearable devices that monitor critical health vitals such as heartbeat, blood pressure, ECG, blood oxygen levels, and others are enabling the expansion of remote patient monitoring and telehealth services. This allows patients to receive medical care and supervision from their doctors without the need to physically visit hospitals.

The data collected from wearables is transmitted through wireless networks to experts in IoT-enabled virtual hospitals, who can track patients in real-time and detect any irregularities or emergencies. This trend is reducing strain on conventional healthcare facilities and allowing many patients to conveniently receive treatment and rehabilitation while staying at home.

IoT and Virtual Hospital Market: Opportunities

• Integration of advanced technologies like AI and Blockchain:

The convergence of emerging technologies such as artificial intelligence, Blockchain, and the internet of things holds tremendous potential for revolutionizing the global healthcare sector, especially in virtual and remote patient care delivery models. These innovations are opening new doors for improved access, personalized and preventive care. Advanced technologies can help integrate dispersed healthcare systems and facilitate seamless, secure data sharing between doctors and remote monitoring devices. This allows continuous tracking of vital patient statistics by medical professionals without physical proximity.

Artificial Intelligence (AI) assisted diagnostics and risk prediction tools empower physicians to more accurately identify diseases, monitor high-risk patients and customize treatment plans according to individual needs and responses in real-time. For instance, AI algorithms are being trained on large, anonymized medical datasets to detect anomalies and develop risk stratification models for chronic conditions like heart diseases. This helps provide care for those in rural locations.

Blockchain brings trust and transparency to healthcare by creating secured decentralized records of financial transactions, medical images, prescriptions and patient histories. This helps reduce costs incurred on paper records, data entry and storage while ensuring privacy and authentication of transactions between insurers, doctors and patients. According to the World Health Organization (2020), Blockchain technology can help develop electronic health record systems for refugees and those affected by conflicts, hurricanes, or pandemics to ensure continuity of care.

• Growth in emerging economies:

Growth in emerging economies presents a massive opportunity for Global IoT and Virtual Hospital market to expand in the coming years. Countries like India, China, Brazil, Mexico, etc. are experiencing very high internet penetration growth and adoption of new technologies. More people in these nations now have smartphones and access to internet.

At the same time, healthcare infrastructure and resources are limited in many smaller cities and rural areas of these countries. This is where IoT and virtual hospital solutions can play a transformational role by connecting people to doctors and healthcare workers remotely. For example, India is estimated to have a shortage of 600,000 doctors as per the World Health Organization. IoT enabled wearable devices and mobile apps that can monitor vital health statistics coupled with telemedicine facilities of virtual hospitals can help bridge this healthcare access gap.

• IoT solutions provider and virtual hospital companies are hence looking at these emerging markets with great interest. They are partnering with local players and governments to roll out innovative pilot projects. For instance, a recent pilot project in Indonesia installed various IoT sensors in homes of elderly citizens to remotely monitor their health and activities. This helped in early detection of health issues and improved treatment. Such initiatives are gaining popularity.

The governments of these nations are also supportive and coming out with policies to encourage digitization of healthcare. Recently, the Brazil government announced funds for projects adopting telemedicine and virtual care techniques in smaller cities.

IoT and Virtual Hospital Market: Key Developments

• February 2025, In the heart of Saudi Arabia's digital revolution, a game-changing healthcare initiative is redefining what it means to receive medical care. Seha Virtual Hospital (SVH) isn't just another telehealth platform—it's the world's largest virtual hospital - with a Guinness World Record to show for it, which leverages artificial intelligence (AI), Augmented Reality (AR), digital twins, and remote diagnostics to deliver cutting-edge medical services to millions of its residents. And it's not just about convenience—it's about revolutionizing an entire nation's healthcare system.
• May 2025, TMA Systems, a global leader in enterprise asset and computerized maintenance management software (CMMS/EAM), today announced it has completed the acquisition of Virtual Facility, an AI-driven alarm intelligence company headquartered in New York City. The transaction marks TMA’s sixth acquisition since 2021.

Analyst Opinion

• The global IOT and virtual hospital market is poised to witness strong growth over the next decade. The growing need for connected healthcare infrastructure and increasing implementation of digital technologies by healthcare providers are the prime drivers of this market.
• IOT devices are helping hospitals to become more efficient by enabling remote patient monitoring and connecting medical equipment. This is reducing workload and improving outcomes. North America currently dominates this space and is expected to continue its leadership supported by advanced IT adoption and increased healthcare spending in the region.
• However, Asia Pacific is likely to emerge as the fastest growing market led by China, India, and other developing countries. Governments in Asia Pacific are aggressively pushing digital health agendas and making large investments which is opening big opportunities.
• Overall, the growth picture of this market remains positive underpinned by global megatrends of rapid digitalization, focus on patient-centric care, and emergence of smart hospitals.
• IOT and virtual solutions are allowing remote delivery of healthcare and improving access. Major players are actively offering innovative products and services to tap into this promising space. The future outlook continues to be bright given the sizeable need as well as efforts by stakeholders to address challenges around adoption.   

Market Segmentation

• Global IOT and Virtual Hospital Market, By Component
  • Hardware
  • Software and Services
  • Connectivity Devices
• Global IOT and Virtual Hospital Market, By Application
  • Remote Patient Monitoring
  • Telemedicine
  • Store And Forward Telemedicine
  • Mhealth
  • Others
•    Global IOT and Virtual Hospital Market, By End User
  • Hospitals And Surgical Centers
  • Clinical Research Organizations
  • Government And Defense Organizations
  • Research And Diagnostics Laboratories
• Global IOT and Virtual Hospital Market, By Region
  • North America
  • Latin America
  • Europe
  • Asia Pacific
  • Middle East & Africa
• Top Companies in the Global IOT and Virtual Hospital Market:
  • Microsoft
  • IBM
  • Oracle
  • GE Healthcare
  • Siemens
  • Cerner
  • Allscripts
  • McKesson
  • Koninklijke Philips
  • Medtronic

Sources

Primary Research interviews:

• CIOs and CTOs of major hospital networks (e.g., Apollo Hospitals, Mayo Clinic, Cleveland Clinic)
• Health IT decision-makers in public health systems (e.g., NHS Digital, Ayushman Bharat Digital Mission)
• Product managers from IoT healthcare firms (e.g., Philips Healthcare, GE Healthcare)
• Telehealth platform executives (e.g., Teladoc Health, Practo, Amwell)

Databases:

• WHO Global Observatory for eHealth
• World Bank Health Data
• OECD Health Statistics
• Indian Ministry of Health & Family Welfare – https://mohfw.gov.in
• NHS Digital (UK)

Magazines:

• Healthcare IT News
• MedCity News
• MobiHealthNews
• HealthTech Magazine
• FierceHealthcare
• HIT Consultant
• Digital Health News

Journals:

• Journal of Medical Internet Research (JMIR)
• The Lancet Digital Health
• IEEE Journal of Biomedical and Health Informatics
• Journal of Telemedicine and Telecare
• npj Digital Medicine
• International Journal of Medical Informatics
• Health Affairs

Newspapers:

• The Wall Street Journal (Healthcare Tech Section)
• The Economic Times – Health Tech
• Financial Times – Digital Health
• The Hindu BusinessLine – Health & Technology
• The Guardian – eHealth and NHS IT coverage
• Mint (India) – Health Policy and Digital Health Trends
• Nikkei Asia – Medical IoT in East Asia

Associations:

• HIMSS (Healthcare Information and Management Systems Society)
• ATA (American Telemedicine Association)
• CHIME (College of Healthcare Information Management Executives)
• IHE (Integrating the Healthcare Enterprise)
• ISO/TC 215 – Health Informatics
• India Digital Health Network
• EU eHealth Network

Proprietary Elements:

CMI Data Analytics Tool, Proprietary CMI Existing Repository of information for last 8 years

*Definition: The Internet of Things (IoT) is revolutionizing the healthcare industry by improving the way we diagnose, treat, and monitor patients. IoT has the potential to make healthcare more accessible, efficient, and cost-effective, which is why the demand for IoT app development services is on the rise. A smart hospital is a relatively well-known concept and has become a reality.