Internet of Things (IoT) In Healthcare Market

• In September 2023, Infosys announced the expansion of its strategic collaboration with NVIDIA Corporation. This collaboration aimed to generate technology and expertise needed to drive productivity with generative AI applications and solutions across various industries, including healthcare.

• In May 2023, SAP SE collaborated with Accenture. The aim behind the collaboration was to work collaboratively on several AI-based projects and extend product portfolios.

In this report, the Internet of Things in Healthcare Market has been segmented by Component, Connectivity, Application, End User and Geography.

Internet of Things in Healthcare Market, Segmentation by Component

The Internet of Things in Healthcare Market has been segmented by Component into Devices, System, and Software and Services.

Devices
Devices contribute over 40% to the IoT in healthcare market share. This includes wearable devices, monitoring sensors, and smart medical implants. Growing demand for real-time patient monitoring and remote diagnostics is fueling the expansion of this segment.

System
The system segment accounts for approximately 30% of the total market. These include data integration platforms, connectivity frameworks, and healthcare communication networks. Their role in seamless device connectivity and interoperability makes them crucial for IoT adoption in healthcare settings.

Software and Services
Software and services represent around 30% of the market, driven by increasing reliance on cloud-based platforms, AI analytics, and data management services. These components are essential for processing patient data, ensuring cybersecurity, and supporting predictive healthcare models.

Internet of Things in Healthcare Market, Segmentation by Connectivity

The Internet of Things in Healthcare Market has been segmented by Conectivity into Cellular and Low Power Wide Area Networks.

Cellular
The cellular segment accounts for approximately 60% of the IoT in healthcare market. It supports real-time monitoring, enabling faster clinical decisions. With the rapid rollout of 5G, this connectivity option continues to drive remote diagnostics and telemedicine adoption.

Low Power Wide Area Networks (LPWAN)
LPWAN makes up nearly 40% of the market and is valued for its energy efficiency, ideal for long-term patient monitoring. These networks enable wearable devices and asset tracking in remote areas while ensuring low power consumption for extended use.

Internet of Things in Healthcare Market, Segmentation by Application

The Internet of Things in Healthcare Market has been segmented by Application into Patient Monitoring, Clinical Operation and Workflow Optimization, Clinical Imaging, Fitness and Wellness Measurement, and Drug Development.

Patient Monitoring
Patient monitoring accounts for over 35% of the IoT in healthcare market, driven by the growing demand for remote patient care. Wearable IoT devices and smart monitors allow real-time tracking of vital signs, improving chronic disease management and reducing hospital readmissions.

Clinical Operation and Workflow Optimization
This segment contributes around 25% of the market share, as hospitals increasingly adopt IoT-enabled systems to streamline administrative tasks, reduce errors, and enhance workflow efficiency. Automated inventory, bed management, and resource tracking are key applications.

Clinical Imaging
Accounting for nearly 15%, clinical imaging benefits from IoT through smart diagnostic tools and AI integration. IoT-driven devices enhance image quality, improve data sharing, and speed up decision-making in radiology and diagnostics.

Fitness and Wellness Measurement
This segment holds approximately 10% market share and is growing rapidly with the popularity of wearable fitness devices. IoT technology enables personalized health insights and real-time tracking of physical activity, sleep, and nutrition.

Drug Development
With a share of around 15%, IoT plays a pivotal role in drug trials, remote data collection, and monitoring of patient responses. It helps pharmaceutical companies in accelerating development timelines and improving trial efficiency.

Internet of Things in Healthcare Market, Segmentation by End User

The Internet of Things in Healthcare Market has been segmented by End User into Healthcare Providers, Patients, Healthcare Payers, Research Laboratories (Biotech/Pharma), and Government Authority.

Healthcare Providers
Healthcare providers represent nearly 40% of the IoT healthcare market share. They extensively use connected medical devices, real-time patient monitoring systems, and data analytics platforms to enhance treatment outcomes, minimize errors, and optimize hospital workflows.

Patients
Patients account for approximately 25% of the market. With growing adoption of wearable health trackers, mobile health apps, and remote consultation tools, patients are more empowered to take control of their personal health management.

Healthcare Payers
Contributing around 15% of the market, healthcare payers—such as insurance companies—leverage IoT data to assess risk profiles, personalize health plans, and reduce fraud. Access to real-time patient data helps in proactive cost management.

Research Laboratories
Research labs and pharmaceutical companies hold about 12% share. IoT enables efficient clinical trials, accelerates drug discovery processes, and ensures accurate tracking of lab equipment performance and specimen data.

Government Authority
Government agencies constitute roughly 8% of the market. They use IoT to monitor public health trends, manage pandemic response, and improve healthcare policy planning through real-time population health data.

Internet of Things in Healthcare Market, Segmentation by Geography

In this report, the Internet of Things in Healthcare Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Internet of Things in Healthcare Market Share (%), by Geographical Region

North America
North America dominates the IoT in healthcare market, contributing over 40% of the global share. High adoption of advanced healthcare technologies, presence of leading IoT solution providers, and significant healthcare spending drive market growth in the region.

Europe
Europe holds around 25% market share. Rising investments in smart hospital infrastructure, growing aging population, and supportive government initiatives for digital healthcare are key contributors to IoT adoption across the region.

Asia Pacific
Asia Pacific is the fastest-growing region, projected to grow at over 18% CAGR. Expanding healthcare infrastructure, rising awareness, and increased smartphone and wearable device penetration are accelerating IoT implementation in countries like China, India, and Japan.

Middle East & Africa
The Middle East and Africa account for nearly 7% of the market. Growth is supported by initiatives like smart city programs, increasing focus on remote patient monitoring, and public-private partnerships in digital healthcare.

Latin America
Latin America holds close to 5% share in the IoT healthcare space. Countries such as Brazil and Mexico are investing in e-health platforms, enhancing healthcare delivery, especially in rural areas.