How Wearable Technologies Will Impact the Future of Health Care March, 2014 BLOG POST
How Wearable Technologies Will Impact the Future of Health Care Mobile networks are the enablers of digital health, while the wearable technology, which is growing rapidly, is expected to be the next big wave in health care, similar to that created by the Smartphone revolution. Use of wearable technology in healthcare devices is on the rise, and everyone from fitness enthusiasts to diabetes patients will benefit from the advancement. Adoption of the wearable technology in healthcare applications is accelerated with the increasing demand for real time data for assisted living and home care patients. Concurrently dealing with rising costs, healthcare is now shifting to preventing diseases before they arise. Among healthcare devices, wearable sensors are expected to create a major impact in fitness and clinical diagnostics. In recent years, some innovative wearable technologies have come up, which promise to modernize the healthcare industry. Wearable technology would be helpful in many ways including the following: • • • • •
Educating and empowering patients to take control of their health Helping physicians and patients diagnose and monitor disease Assisting in medical procedures Allowing patients to control and manage their pain Making personal fitness more enjoyable
Market Opportunity Wearable technology market is in the nascent stage of evolution, with growing adoption in various enduse segments such as fitness & wellness, healthcare & medical, industrial & military and infotainment sectors. Global wearable technology market was in the range of USD2 billion to USD7 billion in 2011 and is forecasted to triple by 2018. Approximately, 15 million to 20 million units were shipped in 2011 and the figure is likely to exceed 100 million units by 2018. Among all the wearable technology end use segments, healthcare & medical segment held the largest revenue share followed by fitness & wellness in 2012. Healthcare & medical segment accounted for more than 40% of the overall wearable technology market in 2012, primarily due to the rising aging population and increase in diabetic population. Globally, North America led the wearable technology market growth with high adoption rate and better consumer awareness in the region. North America region contributed over 40% to the global wearable technology market revenue and the share is likely to remain constant by 2018. Europe and Asia-Pacific region will collectively account for about 50% of the market revenue by 2018. Wearable technology is driven by factors like compactness, portability and ease of use along with the multi-functionality and increasing applications of these products in various sectors. Increasing adoption of such technically advanced products among youth coupled with increasing demand for real time and actionable data will also fuel the growth of the wearable technology market. However, factors including high price and lack of consumer awareness are expected to hinder the market growth.
Consumer Acceptance of Wearable Technology According to a research by the Consumer Electronics Association (CEA), consumer interest in purchasing dedicated wearable fitness devices in the next 12 months quadrupled to 13% in 2013, from just 3% in 2012, making it the largest year-over-year increase for any category of fitness device.
How Wearable Technologies Will Impact the Future of Health Care
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Dedicated Wearable Fitness Devices • • •
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Dedicated wearable fitness devices also tripled in ownership from 2012 (3%) to 2013 (9%) These devices experienced the largest gain in purchase intent (10 percentage points) compared to 2012, more than quadrupling from 3% in 2012 The top three reasons people gave for using their wearable fitness devices include motivation (52%), monitoring fitness goal progress (47%) and monitoring physical activity levels or intensity (46%) Owners of dedicated wearable fitness devices and sleep trackers are most likely to use their products on a daily basis (47%) compared to other fitness technology products
Overall Fitness Technology Product Ownership and Purchase Intent • • •
Three quarters of online U.S. consumers (75%) now say they own a fitness technology product, up from 61% in 2012 Pedometers remain the most popular fitness technology owned by consumers (37%), followed by fitness video games (26%) and portable blood pressure monitors (21%) Around 60% plan to purchase a fitness consumer electronics product in the next year, with 13% desiring a wearable fitness device – more than four times the 2012 figure
Fitness technology owners indicate they are seeing personal progress in their overall health and/or on specific goals, such as losing weight or lowering blood pressure, using their devices as much or even more than they originally expected. The market for dedicated wearable fitness devices like body monitors and pedometers will continue to expand for the foreseeable future as more consumers become aware of these devices and an array of new products enter the market.
Wearable Technologies Driving Employer Wellness Programs In recent times, high rise in employee healthcare cost and a necessary need to extend healthcare services into proactive health management have paved the way for wearable devices into corporate wellness programs. Over the last decade, healthcare premiums have increased by 113%, and employers are looking for ways to reduce this skyrocketing expenditure. Specifically, companies are looking to new technologies to engage employees in caring for their health. Companies tend to benefit from this growing trend, as they can negotiate lower premiums for a healthier employee population and others will pay less as a share of employee health expenditures. On a positive side, companies will benefit from reduced employee absenteeism and lost productivity associated with poor health. Over the next five years, more than 15 million wearable devices with embedded wireless connectivity will be integrated into wellness plans offered by businesses. Corporate wellness is increasingly being targeted by a mix of specialists and consumer focused device vendors, and competition will also extend to software applications on mobile devices. Vendors including FitBit, BodyMedia, FitLinxx and others are all developing contrasting products and strategies with an eye on the corporate wellness market; however, device adoption will not just be about device characteristics. Adoption will be dependent on forming the right partnerships with existing players already in the corporate healthcare management space. Wearable gear being tested by employers and their workers range from activity trackers and blood pressure devices, to heart monitors and devices that measure glucose levels and calories burned. How Wearable Technologies Will Impact the Future of Health Care
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