China and the US will grow to account for over 60% of global smart hospital spending by 2026, according to the latest report by Juniper Research. The research firm predicts that both countries’ pre-existing smart hospital services, allied with the formulation of favourable reimbursement structures, will provide an ideal basis for further smart hospital roll-outs.
The concept of the smart hospital includes healthcare providers leveraging advanced analytics, connected devices, and healthcare platforms to improve care, productivity, and operational efficiency.
The new report entitled “Smart Hospitals: Technologies, Global Adoption & Market Forecasts 2021-2026”, identified the China and the US as leading smart hospital adopters; accounting for US$17 billion of market value in 2021. Digital healthcare initiatives implemented in light of the COVID-19 pandemic and the high levels of existing digitalisation within healthcare infrastructure are essential to these countries’ positions as leaders.
Juniper Research however warns that the need for pre-existing digital infrastructure, such as electronic health records, will limit smart hospital roll-outs to developed regions.
“As a result, it anticipates that Latin America, Africa, and the Middle East will represent less than 5% of global smart hospital spending by 2026,” said research author Adam Wears.
In the next five years, Juniper Research estimates that the smart hospital market will have an average annual growth of 15%, with a value of US$59 billion by 2026 from US$29 billion in 2021.
Meanwhile, the new report outlined how a current lack of interoperability between devices and platforms has resulted in a high degree of fragmentation that will require regulatory intervention on a country-level basis.
Wears pointed out that vendor lock-in and high investment requirements are the most prevalent issues for healthcare providers in adopting smart hospital services.
“At a time when healthcare industries are still feeling the impacts of the global pandemic, the long-term benefits of smart hospital services must be demonstrated to foster confidence in these services’ ability to secure a return on investment,” Wears said.