Opportunities Lie in the Integration of Big Data, AI, Aging-in-Place, Disease Management, and Wellness to Optimize a Single Consumer Health Platform

Global Transformational Health Research Team at Frost & Sullivan

Key Findings

With people demonstrating active interest in tracking their health, healthcare delivery has gradually moved to the home. The increase in the sales of smart speakers is an encouraging sign and a trend that shows the uptick in adoption of such technology.

  • From a current connected home environment, we are gradually moving toward a true ‘smart home’, which will evolve into an ‘intelligent home
  • Connected or smart homes are ideal environments to monitor the health of residents, as several health monitoring sensors and devices are already available in the market. Healthcare services of the past (e.g., remote patient monitoring and personal emergency response systems), the present (e.g., chronic disease management, medication management, activity monitoring), and those of the future (e.g., diet and nutritional monitoring, digital coaching and environmental monitoring) can be implemented in a smart home
  • The interfaces are also likely to evolve from basic smartphone and tablet apps to voice, chatbots, and even mixed reality.
  • Each smart home healthcare service will have to be modular and customizable to the unique care requirements of resident profiles: infants, children, teenagers, adult females and males, elderly, disabled and even pets
  • Aging-in-place, chronic disease management, and post-acute care are the critical care segments that can be served in the smart home. Though several vendors offer these services, the evolving ones gravitate to health and wellness catering to maternal and infant health and the physically and intellectually disabled.

In the future, a true smart home delivering care will not just monitor sick residents but also all healthy members for earlier diagnosis and timely medical intervention

North America leads the ranking by readiness for smart home care delivery; it is followed by Europe, Asia-Pacific, Latin America, and Middle East and Africa. When compared by current connected home penetration, the United States leads, followed by several European countries, such as Norway, Estonia, Denmark, and Sweden. In fact European countries dominate the top 10 list by penetration of connected homes. In contrast, Asia-Pacific countries dominate the bottom 10, with India, Philippines and Vietnam figuring at the bottom. [Note: Middle Eastern and African countries are not included in this analysis.]

  • The connected homes market revenue was $142.1 billion in 2017; it is expected to grow to $288.4 billion by 2022, at a CAGR of 15.2% between 2017 and 2022. The Media and Entertainment segment was the largest contributor, accounting for 77.8% of the revenue in 2017. With $6.67 billion in 2017, Health and Wellbeing is the smallest segment; however, it is expected to be the second largest segment, with a revenue contribution of 7.7%, by 2022. The other two segments are Home Energy Management and Home Automation and Control.
  • Though several vendors already offer solutions for several smart home healthcare needs, integration of such solutions into a single smart home platform—instead of traditional silos—will greatly enhance the collective value proposition.
  • Alphabet (Google’s parent company), Apple, Amazon, and Microsoft are the tech companies that figure on our list of key companies to watch. Samsung is the sole consumer company and Philips the sole healthcare company. From the communication service provider category, Deutsche Telekom, AT&T and Comcast are featured on the list.
  • Each, the smart homes industry, and healthcare industry have unique business models that will need to converge for better serving this space.

CEO’s Perspective

  1. Global sales of smart speakers are growing at a phenomenal rate, and it augurs well for the adoption of home automation products.
  2. To deliver care services, a smart home must cater to the individual needs of every resident profile, from an infant to the elderly.
  3. Aging-in-place, chronic disease management, and post-acute care are the critical care segments of interest, and they are gaining momentum.
  4. European nations dominate connected homes penetration, with the United States topping the top 10 list. Asia-Pacific countries figure in the bottom 10.
  5. The health and wellbeing segment of the smart home market was worth $6.67 billion in 2017; it is expected to grow to $22.26 billion by 2022, at the rate of 27.3%.

Executive Summary—3 Big Predictions

  1. By 2022, health monitoring and reporting will become a standard feature in smart homes designed for aging-in-place. In addition to current fall-detection services, tracking of vitals, sleep and daily activities will be accessible health data for remote consulting physicians that provide tele-consults via virtual visits and for routine monitoring.
  2. By 2025, chronic disease management in smart homes will be a reality due to: wider adoption of smart home tech, integration of health products into smart home frameworks, and (the convenience of) continuous monitoring of patients with chronic diseases, especially diabetics and cardiovascular diseases.
  3. While some property insurers are making smart home tech available, and some health payers are testing out smart devices (e.g., wearables), health insurers may not look at smart home healthcare tech favorably before 2030. The insurance industry will need success stories before piloting the technology, which by then will begin to leverage data analytics to offer intelligent insights into residents’ health conditions
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