IoT in Healthcare Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global IoT in Healthcare Market is projected to experience substantial growth, rising from a valuation of USD 45.89 Billion in 2025 to USD 126.23 Billion by 2031, reflecting a compound annual growth rate of 18.37%. This market is characterized by a web of interconnected medical devices, software applications, and systems that enable the smooth exchange of health data to enhance remote monitoring and clinical decision-making. The core drivers fueling this expansion include a rapidly aging global population and the increasing incidence of chronic diseases, both of which require continuous and cost-efficient patient management strategies. These foundational elements generate a lasting demand for remote care capabilities and operational efficiency, distinguishing the market's trajectory from fleeting technological fads that primarily impact feature sets.

However, the market faces a considerable obstacle in the form of heightened risks regarding cybersecurity breaches and data privacy violations associated with widespread device connectivity. Protecting sensitive patient information from increasingly complex cyber threats is essential for preserving the trust of both providers and patients. According to the 'Consumer Technology Association', the U.S. consumer technology industry is anticipated to achieve a record $537 billion in retail revenue in '2025', a figure largely supported by the rapid uptake of digital health innovations and connected medical technologies, underscoring the critical nature of securing this expanding digital infrastructure.

Market Drivers

The evolution of wearable medical devices and sensor technology acts as a major catalyst for the Global IoT in Healthcare Market, facilitating a shift from episodic patient visits to continuous care. These tools enable the real-time tracking of vital signs, which is crucial for managing the growing burden of long-term conditions and minimizing hospital readmissions. According to the American Medical Association, in December 2025, 52.5% of physicians indicated that their practices utilized telehealth and remote monitoring tools specifically for chronic disease management throughout 2024. This uptake highlights a structural transformation in which provider workflows increasingly rely on data streams produced by patient-worn sensors to improve clinical outcomes and operational efficiency.

The incorporation of artificial intelligence and big data analytics further propels market expansion by handling the massive volumes of data generated by these connected endpoints. AI algorithms are vital for extracting actionable intelligence from diverse data sources, thereby enhancing diagnostic precision and predictive abilities. According to Investing.com, Oracle reported a 359% year-over-year surge in remaining performance obligations in September 2025, a growth primarily driven by the demand for AI and cloud infrastructure essential for complex digital health ecosystems. Nevertheless, this connectivity requires strong defenses; according to Connection, in February 2025, 92% of healthcare organizations acknowledged suffering a cyberattack in 2024, emphasizing the urgent need for resilient network architectures within the IoT landscape.

Market Challenges

The danger of cybersecurity breaches and data privacy violations represents a major barrier to the advancement of the global IoT in healthcare market. As medical networks become increasingly crowded with interconnected devices, the risk of sensitive health data being exposed to digital threats grows proportionately. This vulnerability generates considerable reluctance among healthcare providers, who worry that implementing these systems might jeopardize patient confidentiality and breach stringent compliance standards. Consequently, the threat of financial sanctions and reputational harm compels many organizations to postpone the adoption of remote monitoring technologies.

Moreover, security lapses directly negate the operational efficiency that IoT systems are intended to provide. When digital infrastructure is compromised, resources are diverted from patient care innovation to system recovery and damage control. This interruption severely affects the financial stability of medical providers, making them hesitant to broaden their digital footprint. According to the 'American Medical Association', in '2024', '80 percent of physicians reported that cyberattacks on connected healthcare systems resulted in lost revenue for their practices'. Such financial instability deters further capital investment in connected medical devices, thereby slowing the overall momentum of the market.

Market Trends

The growth of virtual wards and hospital-at-home models marks a significant structural change in patient management, shifting acute care delivery from centralized facilities to domestic settings. This trend surpasses simple remote monitoring by deploying comprehensive IoT ecosystems that replicate inpatient-level supervision through continuous data streams and integrated response protocols. Healthcare systems are increasingly adopting these models as standard practice to relieve capacity pressures and enhance patient satisfaction, rather than merely utilizing them as emergency measures. This rapid expansion of decentralized care infrastructure is evident in national health data; according to NHS England Digital, in March 2025, the 'Virtual Ward Capacity and Occupancy statistics' showed 12,825 virtual ward beds available across England, reflecting a massive year-on-year operational increase to support non-hospitalized acute care.

Simultaneously, the rollout of 5G connectivity is creating the low-latency infrastructure necessary for advanced real-time healthcare applications, such as telesurgery and high-definition remote diagnostics. In contrast to earlier network generations that mainly facilitated asynchronous data transfer, 5G provides the reliability and bandwidth required for mission-critical medical IoT functions where immediate responsiveness is mandatory. This progression evolves the market from passive data gathering to active, real-time intervention capabilities, underpinned by the broader economic expansion of mobile connectivity. According to GSMA, in its March 2025 'The Mobile Economy 2025' report, mobile technologies and services now contribute 5.8% to global GDP, totaling $6.5 trillion in economic value, demonstrating the massive scale of the connectivity framework supporting these advanced healthcare innovations.

Key Players Profiled in the IoT in Healthcare Market

• Medtronic, PLC
• Koninklijke Philips N.V.
• GE Healthcare Inc.
• International Business Machines Corporation
• Microsoft Corporation
• Oracle Cerner
• AgaMatrix, Inc.
• Cisco Systems, Inc.
• Intel Corporation
• Siemens Healthineers AG

Report Scope

In this report, the Global IoT in Healthcare Market has been segmented into the following categories:

IoT in Healthcare Market, by Component:

• Medical Devices
• System and Software
• Services

IoT in Healthcare Market, by Medical Devices:

• Stationery Medical Devices
• Implants
• Wearables

IoT in Healthcare Market, by System and Software:

• Remote Device Management
• Data Analytics
• Application Security
• Others

IoT in Healthcare Market, by Services:

• Managed Services
• Professional Services

IoT in Healthcare Market, by Application:

• Telemedicine
• Remote Patient Monitoring
• Clinical Operations and Workflow Management
• Connected Imaging
• Others

IoT in Healthcare Market, by End User:

• Hospitals and Clinics
• Clinical Research Centres
• Diagnostic Labs

IoT in Healthcare Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global IoT in Healthcare Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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