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Driven by adoption of vital signs monitoring and in vitro diagnostic (IVD) devices, the mobile health (mHealth) market will grow eight-fold from $5.1 billion in 2013 to $41.8 billion in 2023, according to Lux Research.
Clinical mHealth devices will soar past consumer-focused counterparts after a slow start due to regulatory approval barriers and slower integration into physicians’ workflows. For instance, clinical vital signs monitoring devices will grow from $372 million in 2013 to $16 billion in 2023, a compound annual growth rate (CAGR) of 46%, while consumer applications will grow from $2.5 billion to $7 billion, an 11% CAGR.
“Consumer devices have seen a lot of hype but clinical devices will surpass their consumer counterparts in revenues by 2020, helped by value-added software services and generally larger revenue streams,” said Nick Kurkjy, Lux Research Associate and lead author of the report titled, ‘mHealth showdown: Consumer and clinical devices’ battle for market dominance’.
“Clinical markets will be able to pay much more for comparable services, especially if a device is able to reduce patient recovery times or readmission rates, which can lead to outsized cost savings for the health care provider,” he added.
Venture funding for mobile health devices has risen sharply since 2007, reaching $480 million in 2013, driven by the launch of the iPhone and growing popularity of the smartphone.
Lux Research study reveals that the considerable growth of the mobile health device market will be largely driven by the vital signs and IVD sectors. These two will combine to make a $32.9 billion market by 2023.
In addition, according to the study, large players from both electronics and medical device industries are starting to make acquisitions. Covidien’s purchase of Zephyr Technologies and Intel’s acquisition of Basis are among the most recent moves, as major companies look to stake their claims.