MHealth applications (world market)

2015

software for diabetics it is called the main driver of growth of m-Health

During the period from 2015 to 2020 sales of the medical technologies connected with mobile devices (mHealth) will grow on a third. Such forecast was made in Big Market Research analytical company in March, 2015.

Experts counted that in 2014 the size of the market of mobile health care reached $10.5 billion. Annual average growth of the market in 2015-2020 is expected at the level of 33.5% in many respects because of increase in the diseases connected with the wrong way of life and also at the expense of government initiatives and the growing penetration of smartphones. In turn analysts of Brookings consider aging of the population one of drivers of market development of mHealth.

In 2014 the size of the market of mobile health care reached $10.5 billion, counted in Big Market Research company

In the mHealth market of analytics select several segments: services of diagnostics, monitoring, prevention and treatment and also medical exercise machines. In 2015 the greatest sales fell on services of monitoring of a status of patients. Besides, this segment will be able to show the greatest growth rates till 2020, the study says.

M-Health is applied in treatment of different diseases. Among them — cardiovascular, respiratory, neurologic, diabetes and others. According to forecasts of researchers of Big Market Research, the segment of applications for treatment of diabetes will grow at the highest rates during the period from 2015 to 2020.

As for regions, most of all income of suppliers of mHealth technologies in 2015 was the share of North America, and on dynamics of growth the Pacific Rim was in the lead. It is expected that such trend will remain within the next several years.^[1]

According to the forecast of Statista, world growth rates of the mHealth market during the period from 2015 to 2019 will be 31%. By 2020 growth of the market to $58.8 billion whereas in 2014 it was measured by $10.97 billion is expected.

Development of M2M-technologies in health care goes slowly

Analysts from Infonetics Research (now is a part of IHS) in the new report of Connected Health M2M Connections and Services estimated perspectives of a segment of the market of M2M focused on the integrated medical systems (connected health). Connected Health M2M, according to determination of TechNavio research firm, is understood as the delivery pattern of medical services functioning in an IT ecosystem; M2M technologies provide access to medical information, management with it and sharing, data analysis.

The main driving force of this market, note in Infonetics Research, – the high efficiency allowing the medical organizations to cut down operating expenses. Analysts expect increase in income in this area, but market development goes slowly, encountering a number of obstacles. Among them John Byrne, the leading analyst of Infonetics Research in the field of M2M and IoT, calls requirements of regulating authorities, especially in the USA.

"But that circumstance that suppliers of medical services and other players of the market reluctantly invest in M2M-solutions as they do not see from them still real return is more essential, in our opinion, and return requires time", – Byrne adds.

Operators, according to the expert, lack employees who could build deeper customer relations from health sector; they need to look for partners who have strong communications in medical circles, and it will help to accelerate growth.

Infonetics expects that the market of M2M for health care will remain small on volume, by 2018 income on it will reach $2.4 billion (it means that cumulative growth rates of CAGR will be 36% a year, but high rates are explained by low initial base).

Approximately the same estimates are given by TechNavio which is annually issuing the forecast of Global Connected Health M2M market: the company considers that during 2014-2019 the value CAGR will be equal to 33.08%.

Among regions in the next years in this sphere Europe where large telecom operators, such as Vodafone and Deutsche Telekom, already achieved some success in the market of the integrated medical systems will be in the lead. North America will follow it with small lag.

2014

Statista: The market grew by 32% to $10.9 billion

The mHealth market in 2014 was estimated by Statista company at the level of $10.97 billion. At the same time the growth rate of the market in 2014 was 32%. When preserving of the operating trend, by 2020 the mHealth market will reach a point of $58.8 billion. For this period annual average growth rate of CAGR=31%.

Amount of the world market of m-Health, bln. dollars.

The largest investment transactions in the mHealth market in 2014

The analysis of the largest investment transactions in the field of medical technologies allows to draw conclusions:

• The amount of investments into medical projects considerably increased in comparison with 2013. In 2014 investment volume was $6.5 billion. Growth in comparison with 2013 was 125%.

• The large and known companies consider this sphere attractive and perspective, including Google Ventures, Tencent.

• Mobile technologies play an important role in development of medical technologies as 5 of 9 companies of the list below use mobile technologies in the products.

The largest investment transactions in the market of medical technologies, 2014

Mobile applications

Fast-growing segment of the mHealth market - mobile applications for smartphones in the field of health care. It is possible to select four main categories of mobile applications:

• general health and fitness (fitness and power supply, etc.)
• medical information (reference books, informing, diagnostics, education),
• remote consultations and monitoring,
• management of health (electronic cards of patients, logical and payment support).

World experience shows that market development of mHealth^[2].

Brookings: Russia will take the 6th place in the market by 2017

As of March, 2015 the mHealth market is in Russia at an early stage of development that complicates exact estimates. At the same time, according to forecasts of Brookings company, by 2017 the Russian mHealth market will reach $800 million. Brookings predicts that by 2017 Russia will be on the 6th place in the world on total revenue from implementation of technologies of m-Health.

The rating of the countries in the mHealth market, 2014

M-Health, according to Brookings, in the next years will become one of the main trends in development of medical technologies. The main concerned parties contributing to market development:

• payers of medical services (the states and insurance companies) – the main concerned party in the world because use of mHealth technologies allows to reduce costs for medical care;

• institutes of health sector (clinics, hospital, etc.);

• producers of the medical equipment;

• technology companies (devices and sensors, software, infrastructure, analysis of medical information, etc.).

Estimates of ABI Research and Research2Guidance

ABI Research published results of the research of the market of applications mHealth begun in 2012 in November, 2014 (where are included both medical, and fitness-applications). As it appears from the report of mHealth Applications: Developments, Trends and Directions, the main line of this market – inconsistency, constant fluctuations in popularity of these or those products; the wide range of suppliers and a variety of functionality of applications result in its dissociation.

As analysts consider, the segment ripened for transformation which should begin with a contact to him of new large players – among which Samsung, Google and Apple. The mHealth applications became quickly popular with users of smartphones and tablets, note in ABI.

In a research two categories softwares (one – fitness-applications and control facilities of a status, the second – medical applications) for both leading platforms, by IOS and Android were considered.

"In both categories the strong dispersion in popularity of applications – both of a quarter by a quarter, and between the IOS and Android platforms was observed", – the leading analyst of ABI Research Johnathan Collins says.

According to other research firm, Research2Guidance, for May, 2014, in online stores for iOS and Android there were more than 100 thousand applications of mHealth. The company estimated the volume of this market at $2.4 billion, and for the end of 2017 sales volume in $26 billion was predicted.

The number of players of the market is really high, the report of Research2Guidance demonstrates, and only the few achieve good results, and most the companies "flounders at the bottom". For example, last year mobile applications from 82% of suppliers were loaded by only 50 thousand times, and more than 500 thousand loadings fell to the share of top five. Besides, 68% from those who placed the applications in online stores less than $10 thousand gained an annual income (including those who earned nothing at all); another 17% had income from $50 thousand to $1 million, and the companies from top-5 – more than $1 million.

Nevertheless experts have no disagreements concerning what types of applications are popular, Collins notes. And as a top trend in ABI see "gain of data integration, collected by different wearable devices, in the general ecosystem with a great number of players".

In category of medical applications more and more interest is attracted by the programs which are at the same time delivering medical information and providing access to medical services. For patients will begin a routine case to transfer data on the status to the doctor by means of mobile applications, analysts consider. Not accidentally two popular applications – Epocrates from the company of the same name and MyChart from Epic – are offered by the companies which specialize in development of electronic medical records, and they work at both mobile platforms.

Giants of the mobile market, Apple, Google and Samsung, started also recently the mHealth-platforms for transfer of the data registered by devices in health sector. As believe in ABI Research, it will give wider scale to collection of information by means of applications of mHealth that, in turn, will significantly strengthen data integration from different applications. Application developers and wearable devices, experts note, face the choice now: whether to save data of users under the control or to permit data exchange with the new platforms appearing in the market including belonging to competitors. "Suppliers of devices and applications should improve more and stronger the experience and the user base for transition to this new world of integration", – Collins says.

However, already in the first half of year in Research2Guidance counted that are available for 71% of applications or interfaces for import and export of data on health are planned. Those from applications which were capable to interact with the greatest number of different devices had about 30 API. In turn two most "sociable" devices could communicate one with 70, another – with 90 applications. So integration already went.

Drivers and barriers of the mHealth market

• State policy in a support area of upgrade of health care within which special attention is paid to issues of informatization of this industry.
• Reduction of public financing of health care.
• Growth of paid services in health care.
• Aging population
• Significant amount of the localities which are in the hardly accessible and remote territories.

Barriers to development of mHealth in Russia partly repeat like those for the world market, however there are some national peculiarities. For example, the unavailability of the population and medical staff to use of mobile technologies in medicine is extremely high. According to the statistics of PMLiVE only 7.5% of the Russian doctors have an Internet access. Security of medical data, owing to poor development of IT culture in the medical sphere can become one more barrier to development of mHealth in Russia.

However, insufficient financing of the market can be considered the most important barrier to the Russian mHealth market. World experience showed that market development of mHealth is possible only with direct support of payers of medical services. Insurance companies invest means in development of technologies of m-Health for reduction of own costs in a long-term outlook. But in Russia the insurance medicine is not ready to implementation of similar projects yet that makes essential negative impact on development of m-Health in our country. Also, insufficient public financing in upgrade of a health care system and medical infrastructure complicates development of mHealth companies in Russia.

Thus, despite a large amount of advantages of mHealth, market development of the Russian Federation is still complicated by a number of factors. Only interaction of all concerned parties (the states, suppliers of medical services, insurance companies, patients, the technology companies, etc.) will be able to give a necessary impetus for development of m-Health in Russia.

2013: Growth by 15%

In 2013 the volume of the world market of M2M technologies for health care, according to Infonetics, was $533 million, having increased by 15% in comparison with previous year, and the number of the set connections reached 44 million, is 23% more, than in 2012.

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Шаблон:Subject Medicine

Notes