Smart Hospital Market

• Increase in the prevalence of chronic diseases is driving the market growth

With the rising economic growth, people are more interested in long-term health and wellness. The encumbrance of chronic disease is briskly increasing across the globe. In most Western countries, the major reason behind the increasing number of chronic diseases is the continuous increase in the aged population. The increasing rates of diseases are directly proportional to the growth of better healthcare in every country. With growing numbers of infectious diseases, the mortality rate is increasing rapidly. Because of the sedentary lifestyle of people, the prevalence of lifestyle-associated disorders such as hypertension and diabetes is rising. 

Thus, the rising prevalence of chronic diseases with the growing integration of healthcare data with portable devices is expected to demand proper health management, leading to the anticipated increase in the demand for e-health services. This will propel the market CAGR growth in the forecast period.

Additionally, acceleration in technology development in the healthcare sector has tremendously increased in the last few years. Advancement in technology in hospital and pharmacy automation supports the meticulous and safe handling of patients during disease management. Moreover, innovation and upgradation in pharmacy and hospital automation assist in the precise and rapid result of disease diagnosis. Additionally, pharmacy and hospital automation innovation provide the cost-effectiveness of technology-based therapeutic tools during disease treatment.

The innovation and advancement in technology have upgraded the surgical robotics systems in all prospects including advanced features such as better resolution, increased area coverage, flexibility, advanced software, accessories, and spatial arrangements among more. Technological advancement brings many advantages to the patient's treatment program with improvements in clinical efficiency and patient safety. Thus, technological advancement and development are anticipated to bolster smart hospital market revenue.

The rising costs of healthcare are significantly influencing the Global Smart Hospital Market Industry. Hospitals are under pressure to reduce expenses while maintaining high-quality care. Smart technologies, such as automation and data analytics, offer solutions to streamline operations and minimize costs. For instance, predictive analytics can optimize resource allocation, leading to more efficient use of staff and equipment. As healthcare providers seek to manage costs effectively, the adoption of smart hospital solutions is likely to increase. This trend underscores the potential for market growth as hospitals strive to balance quality care with financial sustainability.

The Global Smart Hospital Market Industry is propelled by rapid technological advancements in healthcare. Innovations such as artificial intelligence, Internet of Things, and telemedicine are transforming hospital operations. For instance, AI-driven diagnostic tools enhance accuracy and efficiency, while IoT devices facilitate real-time patient monitoring. These technologies not only improve patient outcomes but also reduce operational costs. As hospitals adopt these innovations, the market is projected to reach 17.5 USD Billion in 2024, indicating a robust growth trajectory. This trend suggests that the integration of advanced technologies will continue to be a key driver in the evolution of smart hospitals.

Government initiatives play a crucial role in the growth of the Global Smart Hospital Market Industry. Various countries are investing in healthcare infrastructure to promote the adoption of smart technologies. For example, initiatives aimed at digitizing health records and improving telemedicine capabilities are gaining traction. These efforts are often supported by funding programs that encourage hospitals to implement smart solutions. As a result, the market is expected to experience a compound annual growth rate of 20.41% from 2025 to 2035. This governmental support not only facilitates technological adoption but also enhances the overall quality of healthcare services.

The aging population and the prevalence of chronic diseases are critical factors driving the Global Smart Hospital Market Industry. As the global demographic shifts towards an older population, the demand for healthcare services is expected to rise. Smart hospitals are equipped to manage chronic conditions through remote monitoring and personalized treatment plans. This capability is essential in addressing the needs of an aging population, which often requires ongoing medical attention. Consequently, the market is poised for substantial growth, with projections indicating a significant increase in adoption rates as healthcare systems adapt to these demographic changes.

A notable driver of the Global Smart Hospital Market Industry is the increasing demand for patient-centric care. Patients today expect personalized services and improved healthcare experiences. Smart hospitals leverage technology to enhance patient engagement through mobile applications and telehealth services, allowing for better communication and access to medical information. This shift towards patient-centric models is likely to contribute to the market's growth, with projections indicating a rise to 135.0 USD Billion by 2035. As healthcare providers prioritize patient satisfaction, the adoption of smart technologies will likely become more prevalent, further driving market expansion.

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American smart hospital market area will dominate this market, due to the prevalence of improved healthcare infrastructure and increasing adoption of artificial intelligence-enabled products within the Region.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: SMART HOSPITAL MARKET SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Europe's smart hospital market accounts for the second-largest market share due to the burgeoning need for loT and increased focus on developing healthcare solutions. Further, the German smart hospital market held the largest market share and the UK smart hospital market was the fastest-growing market in the European Region.

The Asia-Pacific smart hospital market is expected to grow at the fastest CAGR from 2024 to 2032. This is due to expanding awareness of a healthy lifestyle and nutrition and rising per capita disposable income. Moreover, China’s smart hospital market held the largest market share, and the Indian smart hospital market was the fastest-growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the smart hospital market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The Smart Hospital industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturer’s uses in the global smart hospital industry to benefit clients and increase the market sector. In recent years, the smart hospital industry has offered some of the most significant advantages to the healthcare industry. 

Major players in the smart hospital market, including Allengers Groups, Qualcomm Life, Siemens Healthineers, Mckesson Corporation, Cerner Corporation, Adhere Tech, Medtronic PLC., Koninklijke Philips N.V, GE Healthcare, Honeywell Life Care Solutions, and others, are attempting to increase market demand by investing in research and development operations.

GE Healthcare Technologies Inc., trading as GE HealthCare, is a global medical technology company headquartered in Chicago, Illinois. It was spun off from GE on January 4, 2023, with GE retaining 20%. GE Healthcare inaugurated the company’s first 5G innovation lab. 

The lab aimed at developing healthcare solutions by employing 5G and other smart solutions, such as artificial intelligence, augmented and virtual reality, and advanced visualization to streamline image transfers and teleradiology. It also enabled the company to foster collaborations with various academia, industry researchers, and startups to co-create future-ready solutions.

Cosinuss GmbH is a tech company based in Munich, Germany. Pioneering in vital mobile signs monitoring, Cosinuss GmbH aims to provide evidence-based mHealth solutions for families' most pressing health problems. Cosinuss GmbH developed a wearable device placed in the ear like a hearing aid, which it claims can track heart rate, heart rate variability, body core temperature, blood oxygen level, breathing rate, and blood pressure.