Proving the Business Case for the Internet of Things

Connected health and fitness revenues to grow sixfold by 2019

Steve Rogerson
March 31, 2015
 
Annual revenues from connected healthcare and fitness services will approach $2bn by 2019, nearly six times the $320m value estimated for this year, according to a report from Juniper Research.In a separate report, SNS Research estimates that the mhealth market will account for nearly $13bn in 2015 alone. Despite barriers relating to regulation, patient acceptance and privacy concerns, SNS estimates further growth at a CAGR of nearly 40% over the next six years.
 
The Juniper research argues that connected healthcare devices and the data they generate will offer large benefits to stakeholders and consumers, potentially improving preventative healthcare. However, deployments will initially be constrained by inconsistent regulation, alongside continued privacy concerns surrounding the sharing and security of personal data.
 
Highlighted is the quantified others trend: the use of someone’s data by a professional or concerned party – such as a parent – to provide meaning and advice. Companies such as GOQii and Filip Technologies are using this to provide services beyond mere data provision.
 
However, this has the potential to be undermined by unreliable data. While medical devices have validation standards, fitness devices have no such benchmark. The development of standards would alleviate consumer and medical professional concerns, driving up adoption.
 
“Connected fitness and health devices provide a way to collect biometric data, not interaction platforms,” said report author James Moar. “People want to interact with the devices at the app level – the draw is the information. Because of this, and the omnipresence of sensors, the importance of the hardware will diminish at a much faster rate than other CE market segments.”
 
Other findings from the report include:smart wireless devices will permeate the enterprise, with smart glasses in particular having a large impact; mobile point-of-sale devices are poised to take off in developing markets, with several key players looking to move into Latin America and Asia Pacific in the coming years; and smart watches will be the most popular consumer electronics connected devices, overtaking more established wearable cameras.
 
SNS Research estimates that mhealth centric wearable devices will account for over 150 million unit shipments by the end of 2020. Mhealth has the potential to reduce the costs of healthcare operations dramatically, while improving the quality of healthcare, says the report. SNS estimates that by the end of 2015, mhealth could represent up to $290bn in annual healthcare cost savings worldwide.