Remote possibilities - GlobaData14 October 2011
The total value of the global remote patient monitoring market is expected to reach $556.9 million in 2016, driven by the rise in the elderly population in developed countries and an increase in the number of patients suffering from chronic diseases. GlobalData reports.
A new report from industry analyst GlobalData, entitled 'Remote Patient Monitoring - Global Pipeline Analysis, Opportunity Assessment and Market Forecasts to 2016', provides key data, information and analysis on the global remote patient monitoring (RPM) market.
RPM involves patient monitoring from distant locations, primarily from the patient's home. In the RPM process, the data from the point-of-care monitoring devices is transferred to a transmitter, which in turn transfers the data to the physician or clinic. Point-of-care devices such as pacemakers, implantable cardioverter defibrillators (ICDs), glucometers and weight scales are used to monitor the health indicators of patients and communicate the clinical data to the transmitter. The data transferred can be medical data (e.g. blood glucose levels), device integrity (e.g. battery status) or any other programming issue.
Many of the RPM processes are able to automatically carry out tests that must otherwise be performed manually in the clinic. The data from the transmitter is transferred via landline telephone connection, internet or cellular modes to the clinic, healthcare provider or family caregiver. Further courses of action are then taken by the physician or healthcare worker.
In the case of an urgent problem, immediate intervention is carried out to prevent any further damage to the patient's health. This is achieved by notification via alerts sent to the patient and/or physician. Hence, timely and accurate information is delivered which is critical for the RPM process.
The global RPM market is expected to grow at a CAGR of 10% from 2009 to reach $556.9 million in 2016 (see Figure 1, page 19). The market for RPM is expected to grow due to the continuous increase in the number of patients suffering from chronic conditions such as cardiovascular disease (CVD)
Furthermore, the rise in the elderly population in developed countries will also propel the RPM market, as older patients tend to prefer in-house monitoring because it reduces waiting and travelling time. The rise in chronic diseases will lead to an increase in healthcare expenditure and will in turn increase pressure on governments and healthcare providers to find alternatives in order to lower costs. RPM can significantly reduce healthcare expenditure and the number of clinic visits. As a result, the Center for Technology and Aging in the US announced the Remote Patient Monitoring Diffusion Grants Program in 2010 to encourage the use of RPM among healthcare organisations.
The growth of cardio
Cardio is the largest segment of the RPM market and is expected to grow at a CAGR of 11% to reach $399.9 million in 2016. The increase in the growth of cardio RPM will be linked to the rise in CVD. This increase indicates a shift in the rate of growth of patients with CVD from developed economies to emerging economies. However, the major share of the cardio RPM market will be from the US and Europe where the level of penetration of RPM is much higher.
Primary RPM drivers
RPM has the potential to reduce the number of clinic visits, which would be a primary driver for the market. Research studies conducted by Biotronik and Medtronic indicate that remote monitoring was preferred to conventional clinic check-ups and has thereby decreased the number of clinic visits.
The efficacy of these studies is well supported by the publication of the 'Automatic Remote Monitoring of ICD Lead and Generator Performance: The TRUST Trial' study, which has shown that the time lapse between regular clinic visits could be brought down by the home remote monitoring technology developed by Biotronik. Preliminary results from this study indicate that remote monitoring reduced the number of in-person visits by 43%. RPM can play a greater role in reducing healthcare costs due to decreased emergency visits, regular visits and pharmacy consumption.
US to remain key RPM market
The US RPM market is forecast to reach $296.8 million in 2016 at a CAGR of 7% during the forecast period 2009-16. The cardio RPM segment will continue to lead the market with a CAGR of 8% during the forecast period and is expected to reach $199.5 million in 2016. Home healthcare expenditure in the US is expected to increase significantly over the next ten years due to the rise in chronic diseases such as CVD and diabetes.
Nearly 70% of the total number of patients currently receiving home healthcare in the US are aged 65 years and above. According to the Administration of Aging, people in the US aged 65 years and above represented 12.4% of the population in the year 2000, but are expected to represent 19% of the population by 2030. As a result, the RPM market will continue to grow due to the preference of elderly patients for home monitoring.
In 2009, Medtronic, St Jude Medical, Boston Scientific Corporation and Biotronik were the four leading companies in the RPM market and together accounted for 90% of the total market share (see Figure 2, above). Medtronic was the leading company with 36% of the market share, followed by St Jude Medical and Boston Scientific Corporation with 27% and 15% respectively. Biotronik accounted for 12% of the total market share.
The information in this article was taken from the report 'Remote Patient Monitoring - Global Pipeline Analysis, Opportunity Assessment and Market Forecasts to 2016'. The report provides market landscape, competitive landscape and market trends information on the remote patient monitoring market; comprehensive information on the key trends affecting the market; key analytical content on the market dynamics; a review of the competitive landscape and technology offerings. The report is built using data and information sourced from proprietary databases, primary and secondary research and in-house analysis by GlobalData's team of industry experts. For this report and additional research, visit www.globaldata.com/reportstore.