The mobile health devices market is set to grow to $41.8 billion in 2023, according to a new report from Lux Research.
That is an eight fold increase from what the mHealth devices market was worth in 2013, which was $5.1 billion. The growth is being fueled by demand for vital signs monitoring devices and in vitro diagnostic devices, the report found.
Combined these two will make up 75% of the mHealth device market by 2023. That amounts to $32.9 billion by 2023.
Interestingly, after a slow start, clinical mHealth devices will zoom past their consumer counterparts - 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 in the same period.
Neither the slow start of clinical mHealth devices nor its eventual overtaking of consumer mHealth devices is that surprising. Regulatory processes can slow the approval and market adoption of novel clinical mHealth devices, a hurdle that consumer mobile health devices and applications do not have to overcome.
Yet, a recent report suggested that one-third of Americans abandon their wearable tracking devices within six months, suggesting that they may not be as meaningful in changing behaviors and improving outcomes of those who bought them. While wearbale mHealth devices are a subset of the overal mHealth market devices, it's conceivable that when wearable or other mHealth devices have clinical applications that are monitored by providers and clinicians, they might have a much better chance in moving the needle when it comes to a patient's health outcome. Providers are also attracted by such technology's ability to reduce overall healthcare costs as a result of improving patient outcomes.
"“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, in a Lux Research news release.
Kurkjy, who is the lead author of the report titled, “mHealth Showdown: Consumer and Clinical Devices’ Battle for Market Dominance” added that:
“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.