The global healthcare wearable devices market earned revenues of $5.1 billion in 2015 and is forecast to reach $18.9 billion in 2020, at a compound annual growth rate (CAGR) of 29.9 percent, research analyst firm Frost & Sullivan reveals.
Meanwhile, consumer health wearables medical and clinical-grade wearables are expected to grow at a CAGR of 27.8 percent, and 32.9 percent, respectively.
“Breakthrough technological innovations in wearable electronics, sensors, alternate power sources and wireless platforms are enabling novel applications that would not have been feasible even five years ago,” said Frost & Sullivan’s Transformational Health Research Director, Venkat Rajan. “Moving beyond basic consumer-centric applications, newer wearable devices with more robust and reliable feature sets open a wide spectrum of clinical use cases.”
The research firm also noted that wearables dedicated to chronic disease monitoring and other clinical applications are expected to transform care provision models.
Clinical grade wearables technologies enable care anywhere, anytime support paradigms. “Clinical wearables must concurrently justify their value to payers, patients, and clinicians to gain a market foothold,” noted Rajan. “Confidence in the accuracy of collected data is paramount to the utility of information in any medical decision support.”
However, despite this tremendous opportunity, many wearable launches have struggled or failed to achieve expected traction. Frost & Sullivan said one common pitfall are systems that are over engineered or unnecessarily complex.
"The effort required on the user side to understand, maintain or properly operate the device would often lead to high abandonment rates after a few months," Frost & Sullivan noted.