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Mobile operators to generate billions in revenues from hypochondriacs

26 мая 2011

The global market for machine-to-machine (M2M) healthcare applications will be worth €69 billion in 2020, a large portion of which could go to the mobile operators, according to a new report from Machina Research.

The company predicts that connected devices in the healthcare space will number 774 million by the same date, identifying people's concern for their health and well-being as "the single most significant driver behind the largest M2M healthcare opportunities," in terms of connected devices. In other words, healthcare monitoring devices for the market segment known as the "worried well" will be very popular.

Consumer-oriented devices will make up 76% of the total connected devices, or 586 million units, but the revenue opportunity will be greatest in the non-consumer space, where devices cost significantly more.

As a result, the lion's share of M2M healthcare revenues will go to established medical equipment manufacturers. However, that still leaves a significant sum for other players, including mobile operators, to fight for.

"We expect that €3.1 billion of this [€69 billion] revenue will go to mobile network operators for provision of data carriage services," said Jim Morrish, director at Machina Research and author of the report, Machine-to-Machine (M2M) Communications in Healthcare 2010-20.

"A further €36 billion will be contested between systems integrators, device manufacturers, mobile operators and other service providers," Morrish answered, noting that medical equipment makers stand to capture €30 billion.

Realistically, the analyst firm puts the opportunity for mobile operators at around €26 billion, if they position themselves well in the value chain. It advises mobile operators to "focus mainly on the consumer connected healthcare market, where brand assets, distribution channels and billing and customer service capabilities can be leveraged most effectively." However, they should also consider partnering with systems integrators and medical kit makers in certain areas, such as clinical remote monitoring of patients in their homes and assisted living solutions.

Источник: Total Telecom

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