IoT Chip Market in Healthcare - Forecasts from 2023 to 2028

The IoT chip market in healthcare was valued at US$2.077 billion in 2021 and is expected to grow at a CAGR of 11.98% over the forecast period to reach a market size of US$4.587 billion by 2028.

Firstly, the advancements in sensor technology have been instrumental in fuelling the growth of IoT chips in healthcare. Sensors with enhanced accuracy, miniaturization, and power efficiency have enabled the seamless integration of IoT devices in medical applications. These sensors facilitate real-time monitoring of patient vital signs, environmental conditions, and medication adherence, thereby enhancing healthcare outcomes and patient safety.

Growth drivers of the market

The growing focus on data security and privacy has boosted the demand for robust IoT chip solutions in healthcare. Interconnected medical devices and the exchange of sensitive patient information necessitate data integrity and protection against cyber threats. IoT chips, such as Circular Ring, launched in 2022, offer embedded encryption, secure communication protocols, and access control features. This ensures secure healthcare IoT ecosystems, enabling users to track sleep and activity and monitor overall health and well-being through the accompanying app.

Convergence of AI and IoT in healthcare

The convergence of AI and IoT in healthcare has driven the growth of the IoT chip market. Integrated AI algorithms in IoT chips enable intelligent data analysis, predictive modeling, and personalized healthcare interventions. This collaboration empowers healthcare providers with actionable insights, efficient resource allocation, and improved decision-making capabilities, enhancing patient care and operational efficiencies. For instance, in April 2023, SAS and Duke Health signed an intent to collaborate on cloud-based and AI-powered technologies for healthcare, aiming to improve care delivery outcomes and health services research.

The projected growth in AI utilization in healthcare, with an expected increase from 26% in 2023 to 40% in 2026, has significant implications for the growth of the IoT chip market in healthcare. As AI plays a pivotal role in clinical decision-making and predicting clinical outcomes, the demand for AI-powered solutions will drive the need for robust and efficient hardware, such as IoT chips, to support the computational requirements of AI algorithms. IoT chips integrated into healthcare devices and infrastructure enables the seamless integration of AI capabilities, facilitating real-time data analysis, machine learning, and predictive modeling. This projected growth in AI utilization highlights the increasing reliance on IoT chips as key enablers of AI-driven healthcare applications, further driving the expansion and adoption of IoT chips in the healthcare sector.

Increasing investments and technological advancements in healthcare

The escalating prevalence of chronic diseases, including cancer, cardiovascular diseases, and neurological disorders, has emerged as a significant growth factor for the IoT chip market in healthcare. Globally, chronic diseases are responsible for 74% of all deaths annually, resulting in the loss of approximately 41 million lives, as reported by the World Health Organization (WHO). With the rising burden of chronic conditions, there is a growing demand for innovative healthcare solutions that enable early detection, continuous monitoring, and personalized treatment. IoT chips play a vital role in facilitating remote patient monitoring, real-time data collection, and analysis, empowering healthcare providers to deliver proactive and targeted care. The investment in healthcare driven by the increasing prevalence of chronic diseases fosters the adoption of IoT chips, driving market growth and revolutionizing the management of chronic conditions through connected healthcare ecosystems.

By data from the National Health Services (NHS), approximately six million individuals in the population are affected by cardiovascular disease (CVD). The estimated annual healthcare costs associated with CVD are valued at £7.4 billion. This highlights a pressing need for innovative technologies like IoT chips to enable remote monitoring, early detection, and personalized interventions, ultimately improving patient outcomes and reducing healthcare costs.

China is the dominant market in the APAC region.

The market growth rate has been boosted by the highly developed medical device technologies, the Internet of Things, and the widespread use of medical devices in healthcare facilities due to an increase in the number of active patients with chronic diseases like respiratory disease, COPD, genetic disorders, and many more.

To support market expansion, the government is fusing a variety of amenities with the quick creation of fresh, innovative technology. For instance, the World Health Organisation (WHO) reports that in 2020, medical personnel and patients at a field hospital in Wuhan, China, began using Al-synched smart medical equipment from Cloud-Mind, including bracelets and rings.

Further, China's healthcare industry is entering an era of full digitalization by applying new technologies across multiple medical scenarios, including preventing illnesses, diagnosing them, surgery, hospital management, health management, and healthcare data analysis and processing which was possible through advancements in technologies such as the internet, artificial intelligence, robotics, 5G, blockchain, big data, and 3D printing. Due to the creative uses of Internet technology and the execution of national policies supporting "Internet plus Healthcare," telemedicine has emerged as one of the most well-liked and rapidly growing sectors of China's digital healthcare business. Further, according to the 2020 report, the Chinese government is also using telemedicine and digital healthcare to assist in rural and isolated areas. Additionally, according to a National Health Commission official, more than 1,600 Internet hospitals have been built in China, and by 2020, over 49 million people have used online diagnostic and therapeutic services.

Market Developments:

• In February 2021, Palo Alto Networks, a California-based cybersecurity leader, will introduce its new product called the Internet of medical things or IoMT. This will enable patients and physicians to use the Internet of Things to its fullest. Such innovations and investments in the market will help the market for IoT in healthcare with cellular to grow.
• In June 2021, an AI-driven diagnostics platform called "Xray Setu" was created in India to support rural areas through quick screening and Chest X-ray interpretation of subpar X-ray pictures.
• In 2020. Elanco, a global animal health company, completed the acquisition of Bayer Animal Health. This merger expanded Elanco's portfolio of injectable vaccines for pets, including for companion animals such as dogs and cats.

Market Segmentation:

By Connectivity

• Cellular
• Wi-Fi
• Bluetooth
• ZigBee
• NFC
• MQTT
• Others

By Geography

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• United Kingdom
• Germany
• France
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Others
• Asia Pacific
• Japan
• China
• India
• South Korea
• Indonesia
• Thailand
• Others