“GlobalData believes that Apple’s strategy to unite medical applications, electronic health records and peripheral devices through a platform, reported to be the HealthKit, will be a major milestone in the wave of technology-healthcare alliances,” said Linda Tian, GlobalData’s Analyst covering medical devices. “This move into the mobile health (mHealth) space promises significant future returns for Apple, as GlobalData forecasts this market to grow at a Compound Annual Growth Rate (CAGR) of 31.5%, from an estimated $3 billion in 2013 to $11.8 billion by 2018.
“In addition, Apple’s timely market penetration and established consumer engagement strategies will potentially enable the company to set the industry standards for future developments, similar to how it revolutionized the smartphone space.”
“Given the current innovation-driven market dynamics, an increasing number of companies are reconsidering how their products can fit within the hospital ecosystem. One recent example is the partnership between Google and Novartis for monitoring glucose levels in human tears. New technologies mean that data concerning a patient’s heart rate, heart rate variability, respiratory rate, skin temperature, body posture, glucose levels, and many other vital signs, can be collated over time. These data can be leveraged for enhanced healthcare delivery and management,” said Niharika Midha who covers medical devices for GlobalData. Apple’s HealthKit will offer a platform for developers to unveil new approaches to help physicians monitor patient health. Big technology companies also provide the ability to collect the data, transform it into meaningful information, and then disseminate it on a large scale.
“However, GlobalData anticipates that tech-medtech alliances looking to take advantage of new mHealth market opportunities will encounter hurdles in seeking regulatory approval in various countries and subsequently overcoming the reimbursement disconnect. Many medical devices are currently able to achieve regulatory approval, but fail to meet reimbursement criteria and therefore face barriers in adoption.”