CSMG, the strategy division of TMNG Global, which provides professional services, products and services to the communications, media and entertainment industries, has released a report on the state of the US mobile health (mHealth) market. According to the report, mHealth: Taking the Pulse, finds that while the mHealth market presents significant growth opportunities, when taking into account device, software, connectivity and overall service revenue streams, the market and ecosystem are fragmented, creating challenges for any single player to address the full breadth of opportunities.
“mHealth is well positioned to address the needs and evolution of the US health care delivery because it provides cost-efficient care delivery and increases access to quality health care,” says TMNG Global Chairman and CEO, Rich Nespola. “The proliferation of embedded wireless connected devices and Smartphone growth creates significant transformational opportunities to deliver cost-effective and viable mobile health care options. However, broader reform of the health care industry structure is needed to reach the full potential for integrating mHealth into the US health care delivery system.”
The report finds that the mHealth market will reach an estimated $4.6 billion (3.1 billion) opportunity by 2014, but will be fragmented across many solutions and device types. mHealth is already a significant market ($1.5B in estimated 2009 revenue including fixed telemedicine solutions), and is expected to grow over the next five years at a 25% CAGR (compound annual growth rate). If certain broad health care reforms are instituted, such as pay-for-performance, CSMG believes that adoption could accelerate.
The company outlines seven key mHealth technology opportunities that comprise the market, including monitoring; personal emergency response services (PERS); telemedicine; mobile medical equipment; mobile health information; RFID tracking; and health/fitness software.
According to CSMG, four key drivers will influence the pace and direction of mHealth evolution. Firstly, mobile/connected device technology innovation will drive near-to-mid-term growth. Secondly, the appeal of mHealth will overcome short-term barriers on consumer concerns about the quality of mHealth solutions. Thirdly, health care-specific technology developments such as adoption of electronic medical record (EMR) will remove barriers to mHealth adoption. And finally, broader health care industry reform will be required to reach the full market potential.
The report is based on interviews with key stakeholders in the mobile health ecosystem, including wireless service providers, health care software and hardware specialists, insurance providers, hospital systems and physician practices, as well as qualitative and quantitative strategic analysis of emerging trends and its impact on the mHealth market.
You can see the full report here.