The top five providers of wearable medical devices held over 47% of the market in 2014, finds Transparency Market Research (TMR) in a new study. Key companies – such as Medtronic Plc., OMRON Corporation, Fitbit, Inc., and Polar Electro – have helped strengthen this otherwise fragmented market. Through a strong presence in wearable medical devices meant for home healthcare, OMRON Corporation had held one of the largest revenue shares of close to 11% in 2014. Their product emphasis is particularly high on pedometers, blood pressure monitors, and similar home healthcare medical devices. Another key player, Fitbit, Inc., has made its mark in consumer electronics through its widely popular wearable fitness devices series.
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According to TMR, the large number of regional players makes for a highly competitive landscape. Smaller players are constantly pushing innovative boundaries in order to gain market share, while the larger names enjoy a greater amount of consumers’ trust and have a strong distribution chain.
High Innovation Rate and Growing Patient Pool Drive Wearable Medical Devices Sales
“The two key drivers that players in the wearable medical devices can latch on to are the giant scope of innovation and the growing number of people that need these devices,” states a TMR expert. “Market penetration is, however, easier said than done, due to the large number of players that already exist on regional and global scales. But despite these numbers, the right kind of innovative effort can bring about major success for new entrants in wearable medical devices.”
Companies are generally providing devices for two types of customers. The first is the wealthy, tech-savvy consumer who is highly conscious about his/her health, and the second type comes from a lower economic bracket and is looking for cheaper devices that provide basic utilities. Targeting both audiences can prove to be successful with the right kind of products and concepts, and will additionally depend on the region in which a player wishes to hold base.
At the same time, the sales of wearable medical devices are consistently driven by a growing global population that comes with a higher percentage of the elderly and patient pool with chronic diseases. Those suffering from issues such as diabetes are showing a high demand for fitness trackers and other wearable medical devices that can help them keep track of their physical health.
Asia Pacific Diabetics Count Rises, Results in Higher Demand for Wearable Medical Devices
As mentioned before, the patients suffering from chronic diseases are the ones showing the highest demand for wearable medical devices. “The World Journal of Diabetes has stated that over 60% of the total diabetics in the world were located in Asia Pacific. Studies have shown that Asians are prone to falling prey to Type II diabetes. Additionally, the OECD, over 90 mn people from China alone are suffering from diabetes, while over US$75 bn has already been spent on diabetic patient care throughout Asia Pacific in 2011,” stated the TMR expert. It is expected that these high numbers are set to pose a growing demand for wearable medical devices in the near future.
The global wearable medical devices market is expected to reach about US$10 bn in 2023 owing to the above drivers and opportunities. This market was valued close to US$2.7 bn in 2014. The device type with the fastest growth rate is heart monitors, with a CAGR of 18.0% between 2015 and 2023. It is expected to help the market gain a greater revenue stream in the near future.