Driven by the remote monitoring opportunity
The smart home healthcare market is experiencing steady growth, but there is still significant untapped potential. In 2022, global smart home healthcare shipment and service revenues reached $US22.9 billion, growing by 25 per cent compared to the previous year. However, sustaining such a high growth rate will be challenging, and revenues are projected to reach $US26.5 billion in 2023, a 15 per cent increase from 2022, according to ABI Research.
Smart home healthcare includes connected home care, remote patient monitoring, and social robotics, offering opportunities to improve healthcare and reduce costs. It also allows various players in the smart home industry and beyond to extend their offerings into this market. However, the market faces challenges such as channel issues, funding complexity, and inertia, limiting its growth potential, as highlighted by Jonathan Collins, Smart Home and Buildings Research Director at ABI Research.
Home care presents a significant opportunity, where wearable devices, home sensors, and robot companions can discreetly monitor and engage with individuals requiring light care and companionship. Although there has been a surge in do-it-yourself approaches utilizing smart home equipment during the pandemic, the smart home industry has not fully capitalized on offering comprehensive services. Traditional Personal Emergency Response players, like Connect America, have expanded their offerings by incorporating enhanced sensing and capabilities.
Certain segments, particularly remote patient monitoring applications, are experiencing pockets of growth. This is supported by health insurance requirements and increased consumer awareness of the value of connected services. Continuous Glucose Monitoring (CGM) shipments and services, offered by companies like Abbott Labs, Dexcom, and Medtronic, have shown strong growth, especially outside the U.S. market. In 2022, CGM shipments grew by 28 per cent year-on-year, demonstrating how connectivity can enhance the management of chronic conditions and create valuable opportunities.
Consumer appeal and single-vendor offerings are driving adoption in the market, rather than healthcare services. To realize substantial growth and value, broad support from the healthcare industry is necessary to integrate monitoring and management devices and applications effectively, concludes Collins.
The findings mentioned are from ABI Research’s Smart Home Healthcare market data report, which provides in-depth analysis based on extensive primary interviews. The report is part of the company’s Smart Home and Buildings research service, encompassing research, data, and analyst insights.
