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Remote Patient Monitoring Market in Europe Witnessing a High Growth Trajectory
Somsainathan C K, Research Associate Patient MonitoringHealthcare EMEAJuly 1, 2010
2
Agenda
Market Overview1
Trends in Remote Patient Monitoring2
Geographic Analysis3
Market Analysis4
Technology Trends5
Market Drivers and Restraints6
Industry Challenges7
Opportunities to capitalize8
Recommendations9
3
Market Overview
�Remote patient monitoring in Europe in 2009 was dominated by UK with 25% market share and Germany with 21%. Other prominent markets include France, Italy and Benelux.
�The scenario is likely to remain the same throughout the forecast period, with no major change in each country’s market share in the region.
Geographic ScopeMarket segmentation
Telehealth provides remote
monitoring of a patient's vital
signs through the use of devices
customized by healthcare service
providers. Vital signs data, such
as blood pressure levels, are
transmitted to a response center
or the clinician's computer where
it will be monitored and
interpreted according to the
individual's health requirements.
Telehealth provides remote
monitoring of a patient's vital
signs through the use of devices
customized by healthcare service
providers. Vital signs data, such
as blood pressure levels, are
transmitted to a response center
or the clinician's computer where
it will be monitored and
interpreted according to the
individual's health requirements.
Telecare provides real time
monitoring of emergencies
and social care directly to the
user, in their homes, with
support from information and
communication technology.
Telecare is provided through
an integration of wide range
of equipment and services
tailored to the needs of
customers.
Telecare provides real time
monitoring of emergencies
and social care directly to the
user, in their homes, with
support from information and
communication technology.
Telecare is provided through
an integration of wide range
of equipment and services
tailored to the needs of
customers.
United
Kingdom
RPM
Germany
France
Spain
Italy
Scandinavia
Benelux
4
Trends in Remote Patient Monitoring
Intensity of Rivalry
Medium
Bargaining Power
of Customers
Medium
Bargaining Power
of Suppliers
Low
Threat of New Entrants
Medium
Threat of Substitutes
Low
SocietyLegislation
Political
Economic
Technology
Environment
0
2.5
5
7.5
10
Tier I includes companies such as Philips, Biotronik, and Tunstall etc. These are companies who are the biggest
market share holders in the European RPM market. They serve all the countries in the region, and have a vast
product portfolio with huge clientele from service providers to healthcare institutes involved in RPM.
Tier II comprises of companies such as Bosch, Aerotel, Vivatec, Fold Telecare, Initial Attendo etc. These have a
significant market share in the region, but their prominence is limited to few countries in the region. This group of
companies, which are highly competitive.
Tier III includes Card Guard, TBS GB, RSL Steeper, BodyTel Scientific Inc etc. This group of companies are mostly
small in terms of revenue earned from RPM. Their core focus areas may not be RPM and are present in limited
countries. Their market share is also not significant.
5
Geographic Analysis
Long Term
Long TermShort Term
UK
Germany
France
Italy
Spain
Scandinavia
Benelux
Market prospects in long term and short term
0
50
100
150
200
250
300
350
UK Germany France Italy Spain Scandinavia Benelux Total
25%
21%
15%
15%6%
7%
11%� Remote patient monitoring in Europe in
2009 was dominated by UK with 25% market
share and Germany with 21%.
� Other prominent markets include France,
Italy and Benelux.
� UK dominated the remote patient
monitoring market in Europe with relatively
high adoption rates for telecare and telehealth
solutions.
� The scenario is likely to remain the same
throughout the forecast period, with no major
change in each country’s market share in the
region.
Factors that make a country or its market attractive
are the government spending and the public
willingness and receptivity towards technological
advancement.
UK and Germany are investing into such technology
and are leading markets. France and Italy are big
markets in terms of ageing population that demand
such services.
Source: Frost & Sullivan
6
Trends in Telehealth
Telehealth market in Europe is mainly
driven by ageing population and increase in
number of patients reporting chronic
diseases.
There is a growing need to manage patients
in remote locations, as the hospital
expenses are increasing manifold and there
are decreasing number of physicians to
assist the patients.
Health Management Devices
Audio / Video Consultation
Web Based
HIT
Monitoring Centre
Vital Signs Monitoring
Telehealth
Depression
Chronic
Disease
Health
Promotion
Medication
Adherence
General Wellness
Source: Frost & Sullivan
7
Trends in Telecare
Source: Frost & Sullivan
First Generation Telecare
Social Alarms
Second Generation Telecare
Sensors Tracking
Third Generation Telecare
AAL (Ambient Assisted Living)
Mobile
ITV Video
Voice
Data
Call Centres
Telecare market in Europe is
witnessing abundance of activities
especially in big markets like the UK
and Germany. Governments are
investing heavily into the telecare
sector to handle its dependant
population and to taken preventive
measures.
Though mainstreaming of Telecare
is limited to the first generation
systems, the second and third
generation systems are used widely
in pilot programmes and research
activities.
8
Revenue Forecast
Remote patient monitoring market in Europe registered revenues of $ 325.0 million in 2009 and is expected to
double its annual revenues by 2015. The market is expected to witness a CAGR of 12.2% during the forecast period
between 2010 to 2015. However the market was growing at the 10.0% in the period between 2006 and 2009. The
major factors that expected to drive the market are growing awareness, customization of products and services to
suit the end-user’s needs and the government initiatives and funding.
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
2007 2008 2009 2010 2011 2012 2013 2014 2015
Revenue Growth
Rate (%)
Growing awareness
Customization of
products and services
Government initiatives
and funding
Factors contributing to
growth
Source: Frost & Sullivan
9
Market Drivers and Restraints
� Ageing Population - Demographic Ageing a priority under Europe 2020
� Need for continuous care becoming a priority among the aged and the healthcare service providers
� Deployment of various European Programmes for assisted living, improving the investments and
funding into Telecare market
� Governments in Europe adopting various support structures such as Telecare Learning & Improvement
Network increases the visibility of Telecare.
� Increasing demand due increase in chronic illnesses.
� Shortage of specialists in hospitals who can dedicate their time to individual patients.
� Increasing hospital expenses, forcing patient’s to switch to affordable remote monitoring options.
� Geographical disparities in availability of services in some countries
� Unclear and varying perceptions about the value of Telecare within social care.
� Interoperability issues due to limited infrastructural readiness in certain countries. This influences the
slow adoption of advanced solutions.
� Lack of common European standards making the regulatory environment unfavorable for growth.
� High costs involved in deployment of telehealth systems are curbing wider adoption rate and the
growth rate.
� Lack of information on funding/ reimbursement practices deter many potential users from adopting this
system.
10
Industry Challenges
Low Awareness affecting
wider deployment
High Costs involved in
deployment of RPM
Technical integration seeming a
challenge due to presence of old
systems, that are not compatible
with latest technology
Geographic and cultural
diversities hinder broader
market penetration
Slow reporting and analysis
is a major concern to
several service providers
11
Opportunities to Capitalize on High Growth
Short Term Medium Term Long Term
Big Markets
BAN (Body Area
Network) & AAL
Increasing
Investments
Home
Healthcare
Importance
of RPM
Wireless
Technology
Increasing Ageing
Population Chronic
Conditions
Small
Markets
12
Recommendations
Short Term Recommendations
Long Term Recommendations
� Customize products to suit customer needs.
� Channel the services and devices to UK and Germany markets to achieve better results.
� Services including Audio / video consultation and Health management devices are likely to provide a good platform for growth. Targeting them will provide better margins.
� Target smaller markets by adopting various distribution methods.
� Technologically sound and open platform devices that are compatible with most communication systems will help in expanding the customer base.
� Cost-competitiveness will hold prominence in the business strategies that will be devised.
13
Next Steps
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For Additional Information
Katja Feick
Corporate Communications
Healthcare
0049 (0) 69 7703343
Noel Anderson
European Vice President
New Business Development
+44 (0)207 343 8389
Siddharth Saha
Director of Research
Healthcare
+ 44 (0) 207 343 8374