The smart hospital market is valued at USD 11.19 billion in 2020 a CAGR of 15%, during the forecast period, 2021-2026. The rising trend of the Internet of Things (IoT) continues to transform healthcare delivery at an unprecedented pace. Connected medical devices are bringing increased patient safety and efficiency. When this applies to the whole healthcare organization ecosystem, it becomes a "Smart Hospital".
- As per GE Healthcare, imaging generates 90 % of healthcare data but only 3 % of that information gets analyzed and used by hospitals to improve operations. Thus, to overcome such situations, in 2018, GE Healthcare launched an application named Edison which is an AI platform. It is designed to support hospitals to analyze more data from technology such as clinical apps on devices, and by combining diverse data sets from various settings, such as healthcare networks and life sciences companies. Such development is expected to have a positive outlook on the market.
- Moreover, mobile and wearable devices are becoming more prevalent among both staff members and patients, they are creating new opportunities for user engagement. For example, in October 2019, Cosinuss GmbH, developed a wearable device that is placed in the ear like a hearing aid, which it claims can track heart rate, heart rate variability, body core temperature, blood oxygen level, breathing rate, and blood pressure. The information collected can be used to optimize the fitness levels of the patients. Thus, it helps in augmenting the market.
- However, hospitals have long been reluctant to adopt emerging technologies mainly due to the high cost of investment and lack of trained professionals. This is one of the major hindrances which is restraining the market growth.
Key Market Trends
Software Segment is Expected to Show Significant Growth
- Nowdays, one of the most challenging task for the hospitals' staff include reducing the wait time for any patient, and by implementing different software would help n optimizing workflows, improve patient care and reduce staff burnout. Therefore, vendors are focusing on developing software and solutions which would enhance the efficiency of hospitals.
- For instance, in October 2019, Schneider Electric and ThoughtWire announced a strategic partnership to create smarter digital hospitals that operate seamlessly. Through this partnership, customers are expected to benefit from the connected hospital environment, where facilities management and clinical workflow operations are orchestrated seamlessly and can deliver the best outcomes for patients and staff.
- Moreover, according to the National Institutes of Health, clinicians spend 35% of their time on documentation and only 19% spent on patient care. Therefore, the implementation of smart platforms is expected to help the doctors to serve patients in a much batter way.
- For instance, Hamilton Health Sciences (HHS), has realized a 61 % reduction in code blues (calls signaling the risk of a cardiac arrest) with the help of ThoughtWire's EarlyWarning. The EarlyWarning applications also address some of the biggest challenges for health systems which include the rising cost of healthcare, clinician burnout, the inability to operationalize data quickly, disconnected data silos and more. Such applications are expected to boost the market.
North America Occupies the Largest Market Share
- The North American region has a well-established healthcare and medicine system, which integrates the use of the latest technologies. With huge investments from large companies in the U.S smart hospital industry, the market is expected to witness further growth.
- For instance, in July 2019, Koninklijke Philips N.V.announced that it has expanded its patient management solutions in the US with the acquisition of Medumo. By combining Medumo's direct patient interaction services with Philips' diagnostic imaging systems, enterprise diagnostic informatics and operational performance management Philips is able to deliver a patient-centric solution and by streamlining labor-intensive workflows.
- Moreover, research & development, and other healthcare departments are also expected to utilize IoT and AI and incorporate it in industries, driving the growth of the market.
- For example, Boston Children's Hospital and GE Healthcare have been working together since 2016 to develop and commercialize digital solutions by developing a decision support platform in order to help distinguish the large variability in brain MRI scans. The hospital is also piloting the use of voice recognition technology and machine learning with organ transplants. The algorithm and software are under development now and it is expected that it would prevent children from being misdiagnosed, not only those treated in the Children's Hospital but on a larger scale.
- Therefore, all the above factors are expected to drive the smart hospital market in the North America region.
The smart hospital market is moderately fragmented because of the presence of major players such as GE Healthcare ( General Electric), Koninklijke Philips N.V, Medtronic plc, and Honeywell Life Care Solutions ( Honeywell International Inc)etc. Product launches, high expense on research and development, partnerships and acquisitions, etc. are the prime growth strategies adopted by these companies to sustain the intense competition. Few recent developments are:
- April 2019 - Koninklijke Philips N.V and Vietnamese' Hong Duc General Hospital signed a multi-year strategic partnership agreement. Under this partnership, Philips would provide Hong Duc General Hospital with the latest medical imaging, patient monitoring, and healthcare IT solutions. In addition, Philips would also deliver training programs to strengthen the hospital's clinical capabilities with the aim of delivering better clinical outcomes.
- November 2018 - GE Healthcare launched the Edison platform with applications designed to help hospitals and health systems make better use of AI. The Edison applications provide clinicians with an integrated digital platform, combining diverse data sets from across modalities, vendors, healthcare networks and life sciences. This is expected to help clinicians to make faster, more informed decisions to improve patient outcomes.
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