The uS smart healthcare market size is projected to be USD 84.61 billion in 2025, USD 100 billion in 2026, and reach USD 234.27 billion by 2031, growing at a CAGR of 18.5% from 2026 to 2031. This report is Segmented by Component (Hardware, Software, Services), Technology (AI, Iot, Cloud, Telehealth, Wearables), Product (Wearables, Monitoring, EHR, Mhealth, Telemedicine), Deployment (Web-Based, Saas, Hybrid), Application (RPM, Chronic Disease, Fitness, Medication, Diagnosis, Elderly), End User (Hospitals, Home Care, Payers, Pharma, Ascs, Patients), Connectivity (Wired, Wireless). Value (USD).
Other drivers and restraints analyzed in the detailed report include:
Services are projected to grow at 21.2% through 2031, the fastest among components. Subscription monitoring, implementation support, and platform administration are transforming one-time device sales into recurring revenue. Bundled solutions combining hardware, software, and managed services offer a scalable alternative to standalone devices.
IoT held 40.45% of the United States smart healthcare market share by technology in 2025, serving as the core data layer for patient monitoring, asset tracking, and workflow automation. Its structural importance lies in enabling consistent data capture, which supports other intelligence layers.
Artificial Intelligence is expected to grow at a 22.8% CAGR through 2031, making it the fastest-growing technology segment. AI tools are increasingly integrated into hospital workflows, reducing clinician burnout and improving documentation, which accelerates enterprise adoption and enhances the value of connected infrastructure.
Smart Wearable Devices led the United States smart healthcare market in 2025 with a 38.3% share, driven by their use in clinical monitoring and consumer health engagement. Their ability to support continuous data collection and multiple care pathways ensures their central role in patient monitoring and engagement.
Telemedicine Platforms are forecast to grow at a 23.5% CAGR through 2031, the fastest among products. The flexibility to deliver care in-person, virtually, or asynchronously has elevated telemedicine from a convenience tool to a critical component of chronic care and care coordination models.
US Smart Healthcare Market Trends and Insights
FHIR API and Interoperability Compliance Spending
Interoperability spending has shifted from a long-term IT goal to an immediate operational priority in the United States smart healthcare market. Providers and payers face increasing pressure to modernize workflows for prior authorization, patient access, and data exchange as federal regulations demand effective digital connections. Compliance costs extend beyond initial milestones, requiring middleware, testing, workflow redesigns, and version upgrades. Legacy systems in hospitals and payer organizations struggle to integrate modern interfaces, driving ongoing investments in integration services, workflow automation, and platform upgrades. This creates a sustained revenue cycle for interoperability vendors.Chronic-Disease-Led RPM and Virtual Care Demand
Remote monitoring demand in the United States smart healthcare market is driven by chronic care economics rather than device innovation. The 2026 Physician Fee Schedule introduced CPT codes 99445 and 99470, expanding billing eligibility to shorter monitoring windows and episodic care settings. This change allows more patients to enroll outside traditional long-term programs. Providers are incentivized to track patients proactively, as payments are tied to measurable outcomes for conditions like hypertension and diabetes. Vendors now have opportunities in episodic, post-discharge, and near-adherence monitoring workflows.Cybersecurity Breach Exposure and Remediation Burden
Cybersecurity remains a critical challenge in the United States smart healthcare market. The 2024 Change Healthcare ransomware attack highlighted systemic risks, affecting 190 million records and resulting in USD 2.457 billion in costs through Q3. In 2026, HHS OCR imposed USD 1,165,000 in HIPAA settlements across four ransomware cases, reflecting stricter enforcement. Providers and payers are diverting budgets to security upgrades, audits, and recovery planning, delaying investments in monitoring devices, analytics tools, and care platforms. Cyber risks also make buyers cautious about expanding endpoints in home care and remote monitoring.Other drivers and restraints analyzed in the detailed report include:
- Care-Team Productivity and Ambient Clinical AI Adoption
- Home-Based Care and Hospital-at-Home Digital Stack Expansion
- Legacy Integration and Budget Pressure in Community Providers
Segment Analysis
In 2025, hardware accounted for 46.21% of the United States smart healthcare market, driven by investments in connected devices across hospitals, diagnostic centers, and homes. While hardware is essential for remote monitoring and diagnostics, its long-term value declines as programs scale, shifting focus to software and services that ensure connectivity and compliance.Services are projected to grow at 21.2% through 2031, the fastest among components. Subscription monitoring, implementation support, and platform administration are transforming one-time device sales into recurring revenue. Bundled solutions combining hardware, software, and managed services offer a scalable alternative to standalone devices.
IoT held 40.45% of the United States smart healthcare market share by technology in 2025, serving as the core data layer for patient monitoring, asset tracking, and workflow automation. Its structural importance lies in enabling consistent data capture, which supports other intelligence layers.
Artificial Intelligence is expected to grow at a 22.8% CAGR through 2031, making it the fastest-growing technology segment. AI tools are increasingly integrated into hospital workflows, reducing clinician burnout and improving documentation, which accelerates enterprise adoption and enhances the value of connected infrastructure.
Smart Wearable Devices led the United States smart healthcare market in 2025 with a 38.3% share, driven by their use in clinical monitoring and consumer health engagement. Their ability to support continuous data collection and multiple care pathways ensures their central role in patient monitoring and engagement.
Telemedicine Platforms are forecast to grow at a 23.5% CAGR through 2031, the fastest among products. The flexibility to deliver care in-person, virtually, or asynchronously has elevated telemedicine from a convenience tool to a critical component of chronic care and care coordination models.
Complete Report Scope:
- By Component
- Hardware
- Software and Platforms
- Services
- By Technology
- Artificial Intelligence (AI)
- Internet of Things (IoT)
- Big Data Analytics
- Cloud Computing
- Blockchain
- Telehealth Technologies
- Wearable Technologies
- By Product
- Smart Wearable Devices
- Smart Monitoring Devices
- Electronic Health Records (EHR)
- mHealth Applications
- Telemedicine Platforms
- Smart Pills & Connected Devices
- By Deployment Model
- On-premise
- Web-based or Hosted
- Cloud-based or SaaS
- Hybrid
- By Application
- Remote Patient Monitoring
- Chronic Disease Management
- Fitness & Wellness
- Clinical Workflow Management
- Medication Management
- Diagnosis & Treatment
- Elderly Care
- By End User
- Hospitals & Clinics
- Home Healthcare Settings
- Diagnostic Centers
- Healthcare Payers
- Pharmaceutical & Biotechnology Companies
- Ambulatory Surgical Centers
- Patients/Consumers
- By Connectivity
- Wired
- Wireless
List of Companies Covered in this Report:
- Abbott Laboratories
- American Well
- Athenahealth
- Baxter
- Doximity, Inc.
- eClinicalWorks
- Epic Systems
- GE Healthcare
- iRhythm Technologies
- Koninklijke Philips
- Masimo
- Medical Information Technology, Inc. (MEDITECH)
- Medtronic
- NextGen Healthcare
- Omnicell
- Oracle
- Resmed
- Siemens Healthineers
- Teladoc Health
- Veradigm Inc.
Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
Table of Contents
1 Introduction
4 Market Landscape
5 Market Size & Growth Forecasts (Value, USD)
6 Competitive Landscape
7 Market Opportunities & Future Outlook
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Abbott
- American Well Corporation
- athenahealth, Inc.
- Baxter International Inc.
- Doximity, Inc.
- eClinicalWorks, LLC
- Epic Systems Corporation
- GE HealthCare
- iRhythm Technologies, Inc.
- Koninklijke Philips N.V.
- Masimo Corporation
- Medical Information Technology, Inc. (MEDITECH)
- Medtronic plc
- NextGen Healthcare, Inc.
- Omnicell, Inc.
- Oracle
- ResMed Inc.
- Siemens Healthineers AG
- Teladoc Health, Inc.
- Veradigm Inc.
