Given the innovation learning curve the U.S. Food and Drug Administration has been working through, it’s not surprising that the number of providers using clinical mobile health devices has been growing slowly. But a new report from Lux Research predicts that healthcare reform is going to be a game changer that will see clinical devices dominate the mobile health market within the next 10 years.
Hospitals have also been cautious in adopting these devices to ensure they fit in with their own standards of care. But that’s expected to change, according to a report by Lux Research.
Although the mobile health market was valued at $5.1 billion in 2013, the report, “mHealth Showdown: Consumer and Clinical Devices’ Battle for Market Dominance,” predicts that mobile health will be worth $41.8 billion by 2023.
When Investment Rhymes with Canada
Canada has a proud history of achievement in the areas of science and technology, and the field of biomanufacturing and life sciences is no exception.
Although the consumer side has dominated since 2010, particularly with apps and wearables that help users track their health and fitness, the clinical side is catching up. It’s not so surprising when you consider that clinical devices would be more expensive than consumer tools because they need to go through the rigors of testing and have higher operational costs. They’ll also have higher profit margins.
Clinical vital-sign monitoring and in vitro diagnostic devices make up a big portion of the clinical mobile device market. In 2013, the clinical vital-sign monitoring device market was $372 million. In nine years that is projected to grow to $16 billion. The vital-sign monitoring device market also has a consumer-facing side.
Nick Kurkjy, a Lux Research associate and lead author of the report, said the consumer market has enjoyed a lot of hype. But once hospitals can maximize the usefulness of mobile health devices, especially at the point of care, that’s when the market will take off.
“Clinical markets will be able to pay much more for comparable services, especially if a device is able to reduce patient recovery times or re-admission rates, which can lead to outsized cost savings for the health care provider.”
Berg Insights’ market research report on remote monitoring further illustrates the increasing clinical-facing side of mobile devices and also adds a glance at the consumer side that’s influencing it.
