Medical device connectivity (MDC) eliminates the need for manual data entry and includes more frequent and faster data updates, improves workflow efficiency, and minimizes human data entry errors. Medical devices can be connected on wired or wireless networks. Wired networks are easily configured, fast and stable. Wireless network technologies including Bluetooth, Wi-Fi, and wireless medical telemetry service, provide ubiquitous connectivity and coverage and allow uninterrupted patient monitoring.
The global medical device connectivity market is estimated to account for US$ 39,380.4 Mn in terms of value in 2020 and is expected to reach US$ 122,271.5 Mn by the end of 2027.
Global Medical Device Connectivity Market: Drivers
Launch of new products is expected propel growth of the global medical device connectivity market over the forecast period. For instance, in June 2020, MedShift, a medical technology company, launched the new version of IoT connected device platform, 3.0, which provides an end-to-end solution for device manufacturers, integrating their purpose-built credit card-sized computer boards, with encrypted private cellular SIM capabilities, into any medical device line up.
Global Medical Device Connectivity Market: Opportunities
Launch of 5G connectivity is expected to offer lucrative growth opportunities for players in the global medical device connectivity market. For instance, over 45 operators launched 5G services and more than 40 OEMs are introducing devices in the beginning of 2020.
Global Medical Device Connectivity Market: Restraints
Initial cost of deploying connectivity is one of the important factors restraining the growth of the market. Small hospitals and healthcare units are not able to handle various costs such as the installation cost, verification and validation cost, and training cost associated with deployment of MDC. The cost of medical device integration ranges from US$ 6,500 to US$ 10,000 per bed in one-time costs, plus up to 15% of that in annual maintenance costs.
The global medical device connectivity market was valued at US$ 33,500.0 Mn in 2019 and is forecast to reach a value of US$ 122,271.5 Mn by 2027 at a CAGR of 17.6% between 2020 and 2027. Major factor driving the growth of global medical device connectivity market during the forecast period include collaborations to develop digital therapeutic solutions, and favorable regulations.
Wired hardware held dominant position in the global medical device connectivity market in 2019, accounting for 42.5% share in terms of value, followed by software and Wireless hardware, respectively. Wired hardware provides security from cyber threats as the data is stored in physical servers instead of cloud.
Major players in the market are focused on launching new products to expand their product portfolio. For instance, in May 2019, MedShift launched Version 2 of its connected device software, a new secure cloud computing platform designed to enhance manufacturer visibility, and device ROI.
Major players in the market are also focused on adopting M&A strategies to expand their product portfolio. For instance, in April 2019, Capsule Technologies, Inc. acquired Bernoulli Health, which includes Bernoulli One, a real-time clinical surveillance solution.
Global Medical Device Connectivity Market: Competitive Landscape
Major players operating in the global medical device connectivity market include, Capsule Tech Inc., Cerner Corporation, Philips Healthcare, Digi International Inc., Cisco Systems Inc., Siemens Healthcare, Honeywell HomeMed LLC, MedShift, Capsule Technologies, Inc., and Dräger Medical GmbH.
Global Medical Device Connectivity Market: Key Developments
May 2020: Cisco Systems Inc. announced intent to acquire ThousandEyes, Inc., a network intelligence company headquartered in the U.S.