White Paper: Digital Health: 10 Trends To Watch

WHITE PAPER
Digital Health: 10 Trends to Watch
Published 1Q 2016
CHARUL VYAS
Principal Analyst
CLINT WHEELOCK
Managing Director
SECTION 1
INTRODUCTION
Digital health technologies are beginning to change the way healthcare is delivered.
Advances in technology, such as wireless connectivity, sensors, and the growth of mobile
devices, are allowing organizations to move to more of a virtual care model, and more
regularly monitor patients on a remote basis. In addition, the growth in patient data is
supporting certain types of digital health activities, including healthcare analytics and
population health management.
Three main factors are driving the increased interest in digital health: a clear requirement to
curtail increasing healthcare costs, the need to find new ways to handle the growing number
of individuals with chronic diseases, and the desire to provide better and safer medical care.
In addition, key players in the healthcare ecosystem are also searching for ways to better
support aging populations and improve patient satisfaction. While digital health is by no
means a silver bullet, if properly implemented and managed, it can provide a way for
organizations to make progress on their goals.
This Tractica white paper examines 10 trends that are key factors in the ongoing evolution
the digital health sector, including market forecasts for emerging technologies that will
continue to shape the industry for many years to come. The trends reviewed in this paper
are:
 Return on investment is a top priority

 The market is moving to a virtual care model
 Digital health use cases are expanding
 Telehealth video consultations are beginning to see strong traction
 Remote patient monitoring is gaining momentum
 Eldercare is a key application for digital and mobile health
 Wearable biosensors, patches, and clothing are key emerging sectors
 Biometrics will be widely used in healthcare
 Data analytics are a key pillar of digital health
 Artificial intelligence will be a key enabler of digital health capabilities
© 2016 Tractica LLC. All Rights Reserved. This publication may be used only as expressly permitted by license from Tractica LLC
and may not otherwise by accessed or used, without the express written permission of Tractica LLC
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SECTION 2
10 KEY DIGITAL HEALTH TRENDS TO WATCH
2.1 RETURN ON INVESTMENT IS A TOP PRIORITY

Digital health is no longer a space where organizations are investing in technology for the
sake of the technology itself. While experimentation, proof of concepts, and trials are still
taking place, many technologies have moved beyond these early phases and are now able
to clearly demonstrate results.
More than ever, in order for healthcare organizations to deploy digital health technologies,
there needs to be a greater emphasis on improvements to the bottom line and/or to patient
care. Vendors in the digital health space realize this and are presenting their offerings in the
context of real return on investment (ROI) in order to speed adoption of health products and
services. There is also an increased need for greater efficiency, keeping healthcare costs in
line, and avoiding penalties, largely driven by policy changes, such as accountable care in
the United States.
ROI can be proven in a variety of ways. For software and services-oriented offerings, such
as population health management (PHM), vendors are focusing on reducing admissions,
better managing chronic conditions, and increasing compliance for routine or preventive
care, all of which can result in greater profitability.
Wellcentive, for example, worked with the Children’s Health Alliance (CHA), a not-for-profit
association of more than 100 independent primary care pediatricians in Oregon and
southwest Washington, on a PHM solution. Using Wellcentive’s PHM offering, the CHA was
able to achieve emergency department (ED) visit rates for its asthma population that were
20% to 40% lower than benchmarks, and an 80% to 800% increases in the number of
patients receiving evidence-based clinical protocols. Another health information technology
(IT) company, Athenahealth, states that its PHM offering helps organizations increase
network retention by 16% (which improves revenue), and clients also see a 45% increase in
accountable care organization (ACO) scores and 55% lower cost growth than the national
average.
A number of PHM vendors have adopted a “shared risk” model, which limits or eliminates
the vendor’s profitability if the client organization does not see cost savings or improvements
in revenue; some vendors have pricing structures where they receive a portion of the
savings. Both options help decrease the risk of deploying PHM solutions for payers and
providers, showing that the vendor is focused on cost savings and ROI.
With regard to telehealth video consultations (TVCs), costs are easy to demonstrate today,
as they are often linked to the cost of an office visit, shorter hospital stays, and decreased
mortality. One vendor, Philips Hospital to Home, reports that patients receiving critical care
services from a hospital with Philips eICU (a telehealth intensive care unit solution) were
16% more likely to survive the hospital portion of their stay and were discharged 15% faster
from the hospital portion of their stay. Telehealth intensive care units (TeleICUs) enable
faster responses to emergencies, alarms, and degradation in patient health. In addition,
TeleICUs remove some burden on intensive care unit (ICU) staff, allowing hospitals to better
manage their staffing costs (for example, not always having to have a doctor in-house), more
consistency of care, and for patients to be treated at local hospitals, rather than being
transferred to larger hospitals farther from home, which can increase satisfaction. Such
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examples of cost savings have caused providers and payers alike to offer or actively
investigate ways to include remote video consultations in their services.
In the area of remote patient monitoring, the cost savings can be shown in a variety of ways.
Some vendors point to shorter hospital stays, as patients can be monitored at home at a
much lower cost and on a more frequent basis. As an example, a home health agency that
sends a nurse to visit a patient at their home on a weekly basis, can save $150 per nurse
visit if the patient is monitored remotely. There can also be cost savings for patients, as they
are not required to travel to a medical facility as frequently. Eldercare is another area where
cost savings can be quantified. Offerings like personal emergency response systems
(PERS) can help seniors live more independently and call for help more quickly in case of
emergencies.
In the area of connected wearable patches and medical wearables, ROI is somewhat more
difficult to quantify, as the number of commercially available products is still small. However,
the cost savings is slowly being demonstrated. For example, if a heart patient is provided a
wearable cardiac monitor, they can be released from the hospital more quickly, and re-
admitted more quickly if their condition begins to deteriorate.
2.2 THE MARKET IS MOVING TO A VIRTUAL CARE MODEL

The move to digital health is taking place on a number of fronts. The main areas of activity
include TVCs, remote patient monitoring, and connected wearable patches for healthcare,
which are discussed in greater detail below. While virtual care will not be a replacement for
the traditional patient care model (i.e., a patient visiting a doctor’s office), it can, in some
cases, help supplement or enhance patient care.
The market for virtual care is moving forward for a number of reasons. As discussed above,
all players in the healthcare ecosystem are searching for ways to decrease healthcare costs,
while providing a higher level of care. Secondly, the number of individuals with chronic
conditions is growing and expected to increase for the foreseeable future. In addition, the
number of older individuals is increasing, which comes with an increase in chronic conditions
and age-related healthcare issues.
These factors will place a larger burden on the healthcare system. Virtual care provides a
way to meet the growing demand for healthcare by increasing accessibility to care at lower
costs. For example, healthcare providers are finding that after an injury or illness, it is much
more cost effective to remotely monitor a patient at home versus keeping them in the hospital
or sending them to another care facility. In some cases, when a person is diagnosed with a
chronic condition, using a number of remote patient monitoring solutions is a better way to
monitor the patient and prevent more rapid disease progression.
Technology is also enabling more patients to be treated or monitored via virtual care. Today,
a large portion of the world has broadband Internet access and mobile devices, such as
smartphone and tablets with video capabilities, are opening the door for services like TVCs.
In addition, the cost of technology (ranging from components and devices to Internet access)
is declining, bringing new economies of scale to digital health.
Challenges do remain. For some technologies, such as TVCs or PHM, implementation on a

large scale or within a large organization can require investments ranging from tens of
thousands of dollars to millions of dollars. Complex technologies can require longer
deployment times (ranging from months to over a year), plus time to train users. While there
is ROI, it may take many years for this return to be realized. There are also challenges with
patient acceptance and provider/physician acceptance, the latter largely due to payment and
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reimbursement models for virtual care.
2.3 DIGITAL HEALTH USE CASES ARE EXPANDING

A new driver of digital health adoption is the expansion of use cases for these applications,
services, and devices. Over the past several years, growth in connected devices and the
Internet of Things (IoT), increasing ease of use, along with declining costs and clearer ROI,
have opened up the market for new digital health use cases.
One example is TVCs. In their early days, TVCs were limited in terms of their use, such as
supporting a hospital’s ICU (physician-to-physician) or for specialties like tele-psychiatry
(often in the form of Skype video calls between a patient and provider). TVCs are now being
used for primary care (well child visits, urgent care), by a variety of specialist types
(cardiologists, dermatologists), and for new therapeutic uses, such as physical and
occupational therapy. In addition, TVCs are being deployed in new situations, such as within
ambulances transporting patients to a hospital, with first responders to aide in determining
the best care pathway, in schools that cannot afford an on-site, full-time nurse, in correctional
facilities to help speed access to care and guard safety, and in remote and hard to reach
workplaces, such as oil rigs.
Pharmaceutical and life sciences companies are becoming more active in the digital health
space. For example, using remote patient monitoring technology in clinical trials can help
with recruiting and retaining participants (retention is often a major challenge, as many
participants drop out of trials due to strict monitoring requirements). Remote patient
monitoring can help ease the reporting and monitoring requirements participants face and
reduce participant dropout rates. This, in turn, speeds the data collection process, decreases
the amount of time and money needed to prove the efficacy of new medications and
treatments, and speeds the drug approval process.
In the area of population health and healthcare analytics, the target market is growing
beyond payers (public and private) and healthcare providers. Some organizations are
looking beyond medical health and focusing on health population for mental/behavioral care.
Because patients with chronic or serious health issues also commonly suffer from mental
health problems (i.e., depression due to the decline in quality of life caused by a chronic
disease), PHM offerings that include mental/behavioral health can bring a more holistic
approach to patient care. The growing interest in PHM has also spawned companies that
aim to provide one element of the overall PHM ecosystem. For example, there are firms
focusing solely on providing care management, mental health services, patient counseling,
etc. And employers are expressing interest in using PHM to keep their employees healthy
and improve overall health of their employee pool. This benefits the employers; healthier
employees mean the organization’s healthcare costs are lower, with employees needing
fewer sick days and shorter disability leaves, which benefit the company’s bottom line.
The market is also seeing some convergence of the use of digital health technologies. A
number of providers, such as Ideal Life and Health Net Connect, are combing remote patient
monitoring devices with TVC to enable greater patient interaction, communications, and
coaching. Others like Cerner and Qualcomm Life are working together to bring together data
from connected medical devices in the home and incorporate the information into Cerner’s
electronic health records (EHRs) and PHM solution.
2.4 TELEHEALTH VIDEO CONSULTATIONS ARE BEGINNING TO SEE STRONG TRACTION

TVCs are also referred to as eConsults, eVisits, remote video consultations, or even the
broader term telemedicine. While many elements of digital and mobile health technologies
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are still emerging, TVCs have a firm foothold and are poised for strong and stable growth in
the coming years. New vendors providing TVC devices and services are emerging, and
some have gone public (Teledoc), plan to go public, or are raising additional capital.
While various types of interaction can be classified as a remote consultation, Tractica defines
the TVC market as one that includes devices, services, and applications that support remote
patient care using an element of real-time video interaction. The interaction can be between
a healthcare provider and a patient, or between clinicians. TVCs are used for treating or
diagnosing patients, or enabling collaboration and consultation between healthcare
professionals. TVCs can also be conducted in a clinical environment, such as a hospital or
clinic, or in a non-clinical environment, such as a patient’s home or place of work.
Key technology enablers for growth in the TVC market include better video conferencing
technologies, a decrease in the cost of deploying TVC technology from both a hardware and
software perspective, increased device penetration (smartphones, tablets, laptops, and
PCs), and broadband adoption. Market dynamics also make use of a TVC’s value, including
physician shortages, increasing healthcare costs and the search for alternatives that bring
costs down, the need to serve growing aging populations, the increase in people with chronic
diseases, and the need to increase access to medical care. As discussed above, the TVC
market is growing because the technology lends itself to a variety of medical treatments and
use cases (everything from primary care/urgent care to dermatology to psychiatry). One
healthcare system in the United States, Mercy, has built an entire facility just to support the
delivery of telehealth services. Mercy states that its facility has the nation’s largest electronic
ICU, along with other telehealth services, including telestroke, Nurse On Call, and physician
tele-consultation.
Equally as important, there is now quantifiable value in deploying video-based patient

monitoring solutions, both in terms of positive patient outcomes and cost savings. In a study
published in 2015, the UC Davis Children's Hospital in Sacramento, California, examined
whether its pediatric telemedicine consultation program with rural emergency departments
saved money, as compared to traditional telephone consults. The study found that while
video consultation programs are expensive to deploy and maintain due to equipment,
software, and IT costs, they do pay for themselves. The study found that the program
achieved an average savings of $4,662 per use, partially due to a decrease in patient
transfers between hospitals. In 2013, the UC Davis Children's Hospital had analyzed the
revenue impact of deploying a telehealth outreach program. That study looked at patient
transfers, average hospital revenue, and average professional billing revenue, and found
that hospitals could see increases in hospital revenue and professional billing revenue.
There are challenges to TVC, including the initial high cost of deploying services, particularly
for critical care services, such as ICUs. In addition, not all payers reimburse for services
rendered via video conferencing, and some resistance by physician, patients, and regulatory
bodies remains. In fact, South Korea only recently allowed physicians to conduct TVCs and
some states like Texas have put up roadblocks to TVCs.
Even with these challenges, Tractica expects strong and steady growth in TVCs in the
coming years. Starting from a base of 19.7 million consults in 2014, the market will expand
at a compound annual growth rate (CAGR) of 34.7% through 2020, at which time there will
be 158.4 million TVC sessions performed annually. Currently, the majority of revenue is
derived from TVCs conducted in a clinical environment. Over time, the mix will shift and, in
2019, there will be parity between clinical and non-clinical consultations.
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Chart 2.1 Total Telehealth Video Consultation Sessions, Clinical and Non-Clinical, World
Markets: 2014-2020
180,000
Clinical Setting
160,000
Non-Clinical Setting
140,000
120,000
(Thousands)
100,000
80,000
60,000
40,000
20,000
0
2014 2015 2016 2017 2018 2019 2020
(Source: Tractica)
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TVCs are also merging with other types of technology, such as robotics. Several vendors,
including InTouch Health and VGo, are offering telepresence robots, along with other suites
of video conferencing offerings. Although the use of robots in healthcare is still limited, for
example, InTouch states that the technology is nowhere near the infection point, Tractica
expects healthcare to be one of the top industries for telepresence robots.
Chart 2.2 Telepresence Robot Revenue in the Healthcare Market, World Markets: 2015-2020
$100
$90
$80
$70
$60
($ Millions)
$50
$40
$30
$20
$10
$-
2015 2016 2017 2018 2019 2020
(Source: Tractica)
2.5 REMOTE PATIENT MONITORING IS GAINING MOMENTUM

In addition to TVCs, remote patient monitoring is another key component to the virtual care
model. Tractica’s definition of remote patient monitoring involves devices, services, and
applications that include some form of connectivity (wireless wide area networks, Wi-Fi,
Bluetooth, NFC, etc.) and enable the monitoring and managing of a patient’s health, most
often in the form of measuring vitals in a non-clinical setting like in the home or in an
eldercare facility. Examples for remote patient monitoring include connected devices, such
as blood pressure monitors, pulse oximeters, thermometers, glucose monitors, weight
scales, and home health hubs/gateways, as well as smartphone apps. Over time, remote
monitoring devices will enable the treatment and diagnosis of ailments as well.
Remote patient monitoring is valuable for a number of reasons. This type of offering can
provide a new care pathway for sick patients who are challenged to even make the trip to a
medical facility. Home monitoring can be less disruptive to patient’s lives. Remote monitoring
also addresses some of the demands of a more connected, health-centric, and in-control
population. Medical establishments also realize that consumers want more input and
decision making power in regard to their own healthcare. Home health technologies offer
one avenue to allow for this change in consumer demand.
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Technology is also playing a role in speeding the adoption of remote patient monitoring. The
adoption of smartphones and the increased use of wearable devices will make tracking
health and medical information easier. The proliferation of wireless connectivity, particularly
Wi-Fi, cellular, and Bluetooth, allow new services, such as TVCs and broader home health
monitoring services, to be delivered seamlessly.
The use cases for remote patient monitoring are also expanding, including hospitals that
want to monitor patients after they are released from a facility; and home health agencies,
eldercare facilities, and physicians that want to better monitor chronically ill patients.
Adopting and using home health technologies in the pharmaceutical space is nascent, but
likely to grow and expand in interesting ways in the coming years. Pharmaceutical firms can
reap the benefits of connected health technologies to increase time to market for new drugs,
monitor participants in trials, and gather higher quality data, with the ultimate goal of bringing
new drugs to market in a faster and safer manner.
As discussed earlier in this paper, ROI is the key to deploying digital health technologies,
and there are now demonstrated cost benefits to remote patient monitoring. For example, if
a patient has a chronic condition and is using home health technologies to monitor vitals, a
change in condition could be detected sooner and acted upon faster, thus reducing medical
costs. If a medical profession is able to remotely review patient information, they may be
able to recommend a different and less expensive path to care. For example, they can send
a patient with a possible heart attack or stroke to the emergency room (ER), or for a more
common and less severe problem, to the urgent care facility.
Monitoring at home can also be less expensive for both patients and care facilities. Facilities
do not have to hire staff to handle routine checks if they can be done at home, and remotely
monitoring at home reduces the space requirements at the healthcare facility, thus reducing
overhead costs.
There are, of course, challenges to the remote patient monitoring approach. These include
data security, as sensitive health information is being transmitted on a regular basis, and
questions around the data itself, such as who will have access to the information collected
and how it can be used. In the United States, reimbursement for remote patient monitoring
also remains limited, which certainly dampens interest in deploying the technology from a
provider’s point of view. There is also the device cost to consider. While these costs are
decreasing, connected monitoring devices are still more expensive than non-connected
devices. These devices are also bundled together (for example, a blood pressure monitor,
pulse oximeter, weight scale, health gateway/hub, or tablet), which can bring the cost up to
several hundreds of dollars. Some providers are also concerned about collecting too much
data, and the amount of time and resources it will take to review and process this new stream
of information.
Furthermore, the fragmented and still developing ecosystem of applications, services, and
devices in the remote patient monitoring technology space still poses challenges to adoption
and full utilization of capabilities, and will remain until greater interoperability and integration
is achieved. Finally, there are questions about usefulness and accuracy of some offerings,
particularly on the mobile application side. While this is likely to change over time, as
smartphones and wearable devices, such as smart watches, include more sensor
technology, this currently presents a very real barrier to adoption.
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Chart 2.3 Medical Monitoring, Management, Diagnosis, and Treatment Revenue by Region,
World Markets: 2014-2020
$3,500
Middle East & Africa

$3,000
Latin America
$2,500 Asia Pacific

Europe
($ Millions)
$2,000 North America
$1,500
$1,000
$500
$-
2014 2015 2016 2017 2018 2019 2020
(Source: Tractica)
2.6 ELDERCARE IS A KEY APPLICATION FOR DIGITAL AND MOBILE HEALTH

Aging populations represent both a challenge for the healthcare system and an opportunity
for digital health solutions.
According to the 2013 United Nations report, World Population Ageing, the percentage of
people age 60 and above increased from 9.2% of the world’s population in 1990 to 11.7%
by 2013, and will reach 21.1% by 2050. In terms of actual individuals, this equates to an
increase from 841 million people age 60 and over in 2013 to more than 2 billion in 2050. As
people age, they are also more likely to develop chronic conditions, adding to the healthcare
burden. According to a Medical Expenditure Panel Survey from 2006, almost three out of
four people age 65 and older have multiple chronic conditions, adding to the cost of
healthcare for these individuals.
In addition, there is a growing desire and movement to allow people to age at home. While
this trend is made difficult as children of older individuals are not always in proximity to care
of them, it presents an opportunity for digital and mobile health solutions to help fill the gap
and allow older people to live at home for longer periods of time.
Offerings like PERS have existed for some time. A broader of set of solutions is making it
easier to monitor older and ill individuals at home. For example, a growing number of PERS
solutions use cellular connectivity, making the coverage area for the devices larger and
allowing users greater mobility.
A number of companies are expanding the senior care monitoring market beyond PERS,
and are selling sensors that can be placed on furniture, appliances, medications, etc., which
make it possible to track movements and routines of those living at home and alert caregivers
of changes in behavior. Some examples include Mother by Sen.se, which offers sensors
9
called “motion cookies” that can be attached to a number of devices and monitored remotely,
and Lively, a connected home health platform for older adults that was acquired by GreatCall
Inc. in late 2015. In addition, there is interest in the eldercare opportunity among a broader
set of companies, including home health agencies that want to expand their offerings, mobile
operators and broadband service providers, and even players in the home security and
monitoring space.
Tractica believes the market for eldercare digital health offerings is a profitable and large
one, particularly due to the established market for services like PERS, the ongoing recurring
revenue derived from PERS (which can range from $25 to $50 per month), and the growth
opportunity for new monitoring technologies coming to market. Tractica believes the
eldercare device and services market will see an 11.5% CAGR between 2014 and 2020,
with revenue increasing from $2.39 billion in 2014 to $4.58 billion by 2020. The majority of
the revenue for eldercare services and devices will come from emerging markets, namely
North America and Europe.
Chart 2.4 Eldercare Device and Service Revenue by Region, World Markets: 2014-2020
$5,000
North America
$4,500
Europe
$4,000
Asia Pacific
$3,500 Latin America
$3,000 Middle East & Africa

($ Millions)
$2,500
$2,000
$1,500
$1,000
$500
$-
2014 2015 2016 2017 2018 2019 2020
(Source: Tractica)
2.7 WEARABLE BIOSENSORS, PATCHES, AND CLOTHING ARE KEY EMERGING SECTORS
Perhaps one of the most interesting areas of digital health is the emergence of connected
wearable patches, biosensors, and clothing.
Connected wearable patches (CWPs) are defined as patches, sensors, tattoos, or small
devices that are affixed to the skin and worn for a limited period of time, ranging from an
hour to several weeks. The patches also have an element of wireless connectivity, and have
a medical, health, or wellness purpose that can range from monitoring physiological data to
delivering medication. Tractica believes that connected wearable patches will fall into three
main categories: 1) medical monitoring, detection, and diagnosis; 2) medication
management and treatment; and 3) health, wellness, and prevention. Tractica does not
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include devices with a larger form factor, such as continuous insulin pumps, some cardiac
telemetry devices, implantable devices like cardiac pacemakers, and devices that are wired
or do not have an element of connectivity, within the definition of CWPs.
There are already a number of use cases and business models for connected medical
patches, in clinical and non-clinical settings. Vendors are developing CWPs for use cases
ranging from fitness to diagnosing cardiac conditions to transdermal drug delivery (TDD). In
addition, early evidence suggests that CWPs can help identify a patient’s health issues and
decrease the time a patient spends in a hospital. The cardiac monitoring space already has
commercial solutions available (largely due to the high cost of treating and monitoring
cardiac patients) from vendors like Medtronic, and Tractica expects others will come to
market in the next few years.
The coming years will also see a broadening of use cases and applications for CWPs, such
as in the medication monitoring and dispensing space. As an example, Otsuka
Pharmaceutical is working with Proteus Digital Health on a medication tablet/pill (the Proteus
ingestible sensor) to measure actual medication-taking patterns and physiologic response
from the medication. The information from the ingestible sensor is collected from a
connected patch the patient wears on their skin, and that data is then transmitted to the
physician or patient. Other vendors are bringing more consumer-oriented wearable patches
to market. A number of vendors, such as TempTraq, STEMP, and Fever Scout by VivaLnk,
monitor body temperature and send the data to a smartphone.
Even with its high potential, the market for CWPs is still very much evolving. A sizable
number of vendors are developing solutions for both the home and medical environments.
In the long term, connected wearable patches and the information they collect hold the
promise of being able to impact treatment and diagnosis, increase medication compliance,
and improve population health. While being able to use these types of data and information
from connected medical patches to their fullest extent is likely many years away, it provides
a glimpse into what medical professionals and researchers hope to achieve through a more
connected and data-rich environment. However, a variety of challenges remain, including
long development cycles, limitations of sensors and components, regulations and approval
processes, and the cost of the devices.
Chart 2.5 provides a forecast for unit shipments of CWPs for both the clinical and non-clinical
environments. Due to the nascent state of the market, Tractica assumes a conservative view
of shipments. Actual shipments could easily exceed the estimates below, if vendors are able
to develop and bring to market products within their stated timeframes. At the present time,
Tractica expects unit shipments of CWPs to reach 12.3 million annually by 2020.
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Chart 2.5 Connected Wearable Patches by Region, World Markets: 2014-2020
14,000
North America
12,000 Europe
Asia Pacific
10,000
Latin America
(Thousands)
8,000
Middle East &
Africa
6,000
4,000
2,000
0
2014 2015 2016 2017 2018 2019 2020
(Source: Tractica)
Another area of opportunity in the wearables space is connected clothing. The majority of
companies designing connected wearable clothing are focused on the fitness market, mainly
athletes or individuals aiming to improve their fitness. However, due the variety of sensors
smart clothing vendors are beginning to incorporate, a number of vendors see opportunity
for their products for medical use, including cardiac and respiratory monitoring, sleep
monitoring, and even position monitoring that can detect a fall or indicate when a patient
needs to be moved in order to prevent issues like pressure ulcers. However, due to stricter
standards and longer approval and review processes for medical-related wearables, some
wearable clothing vendors say they will continue to focus on the fitness and health market.
2.8 BIOMETRICS WILL BE WIDELY USED IN HEALTHCARE

Tractica believes the healthcare industry is a promising market for biometrics. Worldwide
healthcare spending is about 10% of the global gross domestic product (GDP), and closer
to 18% GDP in the United States, presenting a large opportunity. Healthcare is highly
automated, highly regulated, and requires a high level of security and data protection.
Squeezed by budget constraints, while medical technology and costs advance, healthcare
facilities are eager to find more time to devote to caregiving and less time for ever-increasing
administrative tasks.
Unlike other digital technologies discussed in this paper, Tractica believes biometrics will be
used for identifying and authenticating patients and providers, rather than diagnosing or
treating patients. Therefore, it is likely that biometrics will be embedded in medical devices
or systems that are, in turn, embedded into business solutions for healthcare facilities and
networks.
Biometrics can be useful in healthcare and applied in a variety of settings. If properly

implemented and used correctly, it can improve and speed up the user experience. As
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discussed earlier in this report, recent advances in devices, networks, and applications make
it easier to provide care remotely. However, remote care requires strong assurance that the
correct patient is being treated. Biometrics can provide that assurance. For example, instead
of having to answer security questions and remember passwords, patients or providers could
verify their identity via a fingerprint or an iris scan. In this type of application, biometrics can
help reduce fraud, eliminate mistakes, and decrease costs by helping organizations achieve
greater efficiency. Biometrics can also provide improved security when compared to
passwords, which are more easily stolen or hacked.
Although the potential is there, biometrics for healthcare remains a nascent market. Success
stories are scarce; largely due to the fact that providers and payers are barely dipping their
toes in the water, with one-off proofs of concept. To grow this market, biometrics vendors
must cultivate the right sales channels, and eventually show ROI or cost savings. Healthcare
facilities will not shop directly for biometrics, but will instead seek fully integrated business
and healthcare solutions. Those solutions may or may not include biometrics, so it is up to
individual vendors to ensure that biometrics are integrated into the building blocks of those
solutions.
There are also challenges with biometrics, such as accuracy, which, if not up to par, can
frustrate users and harm adoption. There are also concerns about false reject rates and
response times. And because of the nature of the market (very new and not commonplace),
there may be some lag time in terms of enrollment rates, as consumers will need to become
comfortable with this new form of authentication in order to adopt it.
Tractica has examined the market opportunity for biometrics in the healthcare market, as
shown in Chart 2.6 below. The global revenue for healthcare biometrics is forecast to
increase from $250 million in 2015 to $3.5 million in 2024, at a CAGR of 34%. Total revenue
for the 10-year forecast period is $12.5 billion. Biometrics in healthcare is likely to be driven
by four key use cases: pharmacy dispensing, care provider authentication, patient
identification and tracking, and home/remote patient access. Revenue figures are only for
biometrics capabilities added to mobile devices, not for the entire device.
13
Chart 2.6 Healthcare Biometrics Revenue by Region, World Markets: 2015-2024
$4,000
North America
$3,500
Europe
$3,000
Asia Pacific
($ Millions)
$2,500
Latin America
$2,000 Middle East and Africa
$1,500
$1,000
$500
$-
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
(Source: Tractica)
2.9 DATA ANALYTICS ARE A KEY PILLAR OF DIGITAL HEALTH

Advances in machine learning and analytics, along with the digitization of health information
and growth of big data, are opening new areas of investment and growth within the digital
health space. It is likely that these trends will help payers and providers, as well as
employers, achieve their goals of greater efficiency, cost savings, and improved patient care.
One area that is seeing a great deal of traction is population health management and
healthcare analytics. Payers, providers, and employers alike are recognizing the benefits of
identifying patients based on their risk level, and the value that can be gained from both a
cost and patient health perspective by intervening and engaging patients.
Tractica believes healthcare analytics and population health management will see the most
traction in some developed markets, particularly in the United States, as the country moves
from a fee-based model of care to value-based reimbursement. In order to remain
competitive, payers and providers will need to use all the tools at their disposal to control
costs and provide the best patient care. The increase in the number of ACOs, as shown
below, is further helping to drive growth in this market.
14
Chart 2.7 Growth in Public and Private ACOs by Quarter, United States: 2011-2015
900
800 Number ACOs

700
600
500
400
300
200
100
0
2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 4Q 1Q 2Q 3Q 4Q 1Q Q2 Q3 Q4
2011 2011 2011 2012 2012 2012 2012 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015 2015
(Source: Leavitt Partners Center for Accountable Care Intelligence)
The move to EHRs and the growth of connected medical devices provides new data sources
that can be harnessed and analyzed in a number of ways, leading to more insights on patient
health and provider performance. Big data analytics and machine learning makes it easier
to identify and classify patients, manage care, and recommend care plans. Tools like
predictive analytics can also be employed to discover when health issues are likely to occur
with certain patients. In addition, the availability of cloud-based and software-as-a-service
(SaaS)-oriented models is helping to keep costs down, and new revenue models, including
share-risk, are helping to drive adoption of PHM and healthcare analytics.
Vendors clearly see the opportunity for PHM and big data analytics, and many are investing
in the technology and acquiring smaller companies (for example, IBM purchased population
health company Phytel and Explorys, a cloud-based analytics firms). The growth of PHM
has also opened the door to a wide range of companies addressing the various aspects of
PHM, including data analytics, care management, and patient engagement.
Although the market is expected to experience strong growth in the coming years, barriers
to PHM remain. Key challenges include aggregating and analyzing multiple data sets,
deployment costs, and long deployment times, acceptance of PHM strategies, and patient
engagement. PHM will also require many providers to shift their care model, for example,
hiring more care managers and taking a more proactive approach to patient care, a process
that will take time to implement.
Tractica forecasts that the market for PHM will see strong growth in the coming years. Due
to the fact that deployments can be costly and time intensive, particularly for large
institutions, many organizations will take a phased approach to PHM software and services.
Tractica forecasts that revenue for PHM software and services will increase from $14 billion
in 2015 to $31.9 billion by 2020, at a CAGR of 17.8%. While the portion of overall revenue
generated by the North American region will decrease over the forecast period, the region
15
will remain the largest market in terms of overall revenue. Europe is and will remain the
second largest market for PHM, although the Asia Pacific region will see the highest growth
over the forecast period.
Chart 2.8 Population Health Management Revenue by Region, World Markets: 2014-2020
$35,000
North America
$30,000 Europe
Asia Pacific
$25,000 Latin America
Middle East & Africa
($ Millions)
$20,000
$15,000
$10,000
$5,000
$-
2015 2016 2017 2018 2019 2020
(Source: Tractica)
2.10 ARTIFICIAL INTELLIGENCE WILL BE A KEY ENABLER OF DIGITAL HEALTH CAPABILITIES

Advances in the areas of artificial intelligence (AI) are broadening its potential in the
healthcare market. As spending on healthcare increases worldwide and healthcare
premiums continue to rise, all players in the ecosystem are examining ways to curb costs.
While there is currently limited adoption of AI, it is growing rapidly, but will not be fully adopted
by the sector on a worldwide basis for many years.
AI will likely be used in healthcare in a way similar to how it is applied other industries such
as consumer finance, to detect fraud and increase security. This will be increasingly relevant
as healthcare continues to move out of the clinical setting into more home-based and remote
care, monitoring, and treatment. Eventually, AI may also be used to foster evidence-based
medicine.
Another promising use case for AI is in the field of medical diagnostics. Given the complexity
of human illnesses and the personal and financial benefits of promoting evidence-based
treatments, AI is likely to be adopted more quickly here than in any other part of healthcare.
There are also a number of AI predictive analysis applications. They can be used in business
to find new opportunities and identify certain risks. Healthcare is being improved with the use
of these AI systems, for example in the area of PHM, as clinical decisions are beginning to
be supported by predictive analysis and decision-making software. Predicting which patients
are at risk of illnesses, such as diabetes and heart disease, has been instrumental in helping
doctors provide better care for their patients.
16
One of the hottest AI technology categories, deep learning is already proving its value in
sectors like ad services, investments, and media. Thanks to technologies like electronic
medical records (EMRs), wearable devices, medical patches and biosensors, and the
Internet of Things (IoT), deep learning will have an increasingly greater impact on sectors
such as healthcare. Deep learning will find many of its most important uses as an enabling
technology for voice recognition, natural language processing (NLP), and image recognition.
In countries with high health expenses, governments may use it to push for the adoption of
evidence-based medicine. Despite slow adoption, healthcare executives must pay attention
to this technology, because of its potential to enable a low-touch business model that
companies like Walmart and Target have mastered.
A number of vendors are already active in the AI healthcare market. For example, IBM is
heavily invested in AI, actively researching and developing next-generation analytics
platforms like Watson. The Watson platform is currently being deployed and tested in a
variety of settings, such as healthcare diagnostics and population-level sentiment analysis.
AiCure has developed mobile apps that use facial recognition to determine if patients are
taking the medication. Next IT has developed virtual health coaches to guide patients
through treatment, with the potential to improve the efficacy of medicine. Many more
vendors with AI offerings will emerge in the years to come to tackle varying needs of the
healthcare system.
There do remain challenges. Healthcare is often slow to adopt certain types of technology,
and the ROI for this emerging area remains largely unproven. There are also challenges in
terms of patient and provider awareness, and receptiveness to use these technologies.
While some AI technologies will be used worldwide across different regions, differences in
culture, healthcare infrastructure maturity, and the design of healthcare systems in different
regions of the world will result a variety of different adoption rates.
Tractica believes the healthcare industry will lag behind other sectors in adopting AI and use
will be inconsistent. Implementations and technology will vary widely across regions,
reflecting the different ways societies and cultures see health. In countries with high health
expenses, governments may push for adoption and may use AI technology to drive
evidence-based medicine. Chart 2.9 shows the market for AI revenue in the healthcare
industry between 2015 and 2024. Tractica forecasts that the market will grow from $1.5
million in 2015 to more than $80 million by 2020.
17
Chart 2.9 Artificial Intelligence Revenue in the Healthcare Industry by Region, World Markets:
2015-2024
$90
North America
$80
Western Europe
$70 Eastern Europe
$60 Asia Pacific

($ Millions)
$50 Latin America
Middle East
$40
Africa
$30
$20
$10
$0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
(Source: Tractica)
2.11 CONCLUSIONS
Tractica believes that ROI will continue to be a driving force in the adoption of digital health
technologies. As new use cases emerge, vendors, payers, and providers will continue to
work to improve cost savings, furthering investment in this area. However, digital health
technologies are not without their challenges. In fact, many of the technologies discussed in
this white paper face similar challenges, including costs, deployment time, and data security
concerns. In addition, interest in digital health will come from a variety of organizations,
including governments, payers, care providers, pharmaceutical and health science
companies, traditional technology firms, and even employers, all of whom are searching for
efficiencies, cost savings, and ways to differentiate.
18
SECTION 3
COMPANY DIRECTORY
Athenahealth Mercy
311 Arsenal Street www.mercy.net
Watertown, MA 02472 USA
www.athenahealth.com Medtronic
+1.800.981.5084 20 Lower Hatch Street
Dublin 2, Ireland
AICure www.medtronic.com
19 West 24th Street +1.800.633.8766
New York, NY 10010 USA
www.aicure.com Next IT
+1.800.570.0448 12809 E. Mirabeau Parkway
Spokane Valley, WA 99216 USA
Cerner http://www.nextit.com/about-us/
2800 Rockcreek Parkway +1.509.242.0767
North Kansas City, MO 64117
www.cerner.com Otsuka America Pharmaceutical, Inc.
+1.816.221.1024 508 Carnegie Center
Princeton, NJ 08540 USA
GreatCall http://www.otsuka-us.com
10935 Vista Sorrento Pkwy, Suite 200 +1.609.524.6788
San Diego, CA 92130 USA
www.greatcall.com Philips Healthcare
+1.858.720.7500 P.O. Box 10.000
5680 DA Best, The Netherlands
Health Net Connect www.healthcare.philips.com
50496 Pontiac Trail
Wixom, MI 48393-2088 Proteus Digital Health
http://healthconnectlive.com 2600 Bridge Parkway
+1.855.284.3363 Suite 101
Redwood City, CA 94065 USA
IDEAL Life www.proteus.com
2200 Yonge Street, Suite 1300 +1.650.632.4031
Toronto, ON M4S 2C8 Canada
www.ideallife.com Qualcomm
+1.888.433.2541 5775 Morehouse Drive
San Diego, CA 92121
International Business Machines Corp. www.qualcomm.com
New Orchard Road +1.858.587.1121
Armonk, NY 10504 USA
www.ibm.com Sen.se
+1.914.499.1900 https://sen.se/mother/
Lively STEMP
P.O. Box 29003 www.getstemp.com
San Francisco, CA 94129
www.lively.com
+1.877.697.3533
19
Teladoc, Inc. Wellcentive

1945 Lakepointe Drive 100 North Point Center East, Suite 320
Lewisville, TX 75057 USA Alpharetta, GA 30022 USA
www.teledoc.com www.wellcentive.com
+1.844.798.3810 +1.877.295.0886
VivaLnk (FeverScout)
4655 Old Ironsides Drive, Suite 390
Santa Clara, CA 95054 USA
www.vivalnk.com
+1.408.868.2898
20
SECTION 4
ACRONYM AND ABBREVIATION LIST
Accountable Care Organization .............................................................................................................. ACO
Artificial Intelligence ..................................................................................................................................... AI
Children’s Health Alliance ........................................................................................................................CHA
Compound Annual Growth Rate ........................................................................................................... CAGR
Connected Wearable Patch .................................................................................................................... CWP
Electronic Health Record .........................................................................................................................EHR
Emergency Department ............................................................................................................................. ED
Emergency Room ...................................................................................................................................... ER
Gross Domestic Product ......................................................................................................................... GDP
Information Technology................................................................................................................................ IT
Internet of Things ....................................................................................................................................... IoT
Intensive Care Unit.................................................................................................................................... ICU
Natural Language Processing .................................................................................................................. NLP
Personal Emergency Response Systems............................................................................................. PERS
Population Health Management .............................................................................................................. PHM
Return on Investment ................................................................................................................................ ROI
Software-as-a-Service............................................................................................................................ SaaS
Telehealth Intensive Care Unit ........................................................................................................... TeleICU
Telehealth Video Consultations ............................................................................................................... TVC
Transdermal Drug Delivery ...................................................................................................................... TDD
21
SECTION 5
TABLE OF CONTENTS
SECTION 1 ...................................................................................................................................................... 1
Introduction ................................................................................................................................................. 1
SECTION 2 ...................................................................................................................................................... 2
10 Key Digital Health Trends to Watch ..................................................................................................... 2
2.1 Return on Investment is a Top Priority .......................................................................................... 2
2.2 The Market is Moving to a Virtual Care Model .............................................................................. 3
2.3 Digital Health Use Cases are Expanding ...................................................................................... 4
2.4 Telehealth Video Consultations are Beginning to See Strong Traction ........................................ 4
2.5 Remote Patient Monitoring is Gaining Momentum ....................................................................... 7
2.6 Eldercare is a Key Application for Digital and Mobile Health ........................................................ 9
2.7 Wearable Biosensors, Patches, and Clothing are Key Emerging Sectors ................................. 10
2.8 Biometrics will be Widely Used in Healthcare ............................................................................. 12
2.9 Data Analytics are a Key Pillar of Digital Health ......................................................................... 14
2.10 Artificial Intelligence will be a Key Enabler of Digital Health Capabilities ................................... 16
2.11 Conclusions ................................................................................................................................. 18
SECTION 3 .................................................................................................................................................... 19
Company Directory ................................................................................................................................... 19
SECTION 4 .................................................................................................................................................... 21
Acronym and Abbreviation List ............................................................................................................... 21
SECTION 5 .................................................................................................................................................... 22
Table of Contents ...................................................................................................................................... 22
SECTION 6 .................................................................................................................................................... 23
Table of Charts and Figures..................................................................................................................... 23
SECTION 7 .................................................................................................................................................... 24
Additional Reading ................................................................................................................................... 24
SECTION 8 .................................................................................................................................................... 28
Scope of Study .......................................................................................................................................... 28
Sources and Methodology ....................................................................................................................... 28
Notes .......................................................................................................................................................... 29
22
SECTION 6
TABLE OF CHARTS AND FIGURES
Chart 2.1 Total Telehealth Video Consultation Sessions, Clinical and Non-Clinical, World
Markets: 2014-2020 ................................................................................................................ 6
Chart 2.2 Telepresence Robot Revenue in the Healthcare Market, World Markets: 2015-2020 ........... 7
Chart 2.3 Medical Monitoring, Management, Diagnosis, and Treatment Revenue by Region,
World Markets: 2014-2020 ...................................................................................................... 9
Chart 2.4 Eldercare Device and Service Revenue by Region, World Markets: 2014-2020 ................. 10
Chart 2.5 Connected Wearable Patches by Region, World Markets: 2014-2020................................. 12
Chart 2.6 Healthcare Biometrics Revenue by Region, World Markets: 2015-2024 .............................. 14
Chart 2.7 Growth in Public and Private ACOs by Quarter, United States: 2011-2015 ......................... 15
Chart 2.8 Population Health Management Revenue by Region, World Markets: 2014-2020 .............. 16
Chart 2.9 Artificial Intelligence Revenue in the Healthcare Industry by Region, World Markets:
2015-2024 ............................................................................................................................. 18
Chart 5.1 Tractica Research Methodology............................................................................................ 29
23
SECTION 7
ADDITIONAL READING
Tractica's Digital Health advisory service examines technologies, business models, and industry dynamics
surrounding the burgeoning market for connected healthcare. Major topics analyzed within the service
include mobile health, home health technologies, healthcare information systems, wearables for health and
fitness, and the application of artificial intelligence and robotics to the healthcare industry. Tractica's Digital
Health research reports provide an in-depth analysis of market issues and business models, end-user
demand, technology development, and the competitive landscape, in addition to global market sizing and
segmentation for connected health devices, software, and services.
Artificial Intelligence for Enterprise Applications

Deep Learning, Predictive Computing, Image Recognition, Speech Recognition,
and Other AI Technologies for Enterprise Markets: Global Market Analysis and Forecasts
Published 2Q 2015
https://www.tractica.com/research/artificial-intelligence-for-enterprise-applications/
This Tractica report examines the practical application of artificial intelligence within commercial
enterprises. The technologies covered include cognitive computing, deep learning, machine learning,
predictive APIs, natural language processing, image recognition, and speech recognition. The report
presents 10-year forecasts for AI software, along with AI-driven services and hardware sales, for the period
from 2015 through 2024. Forecasts are segmented by world region as well as by technology and industry
application. The study also includes detailed profiles of more than 30 key industry players.
Biometrics in the Healthcare Industry

Patient Identification and Tracking, Care Provider Authentication, Pharmacy Dispensing,
and Home/Remote Patient Access: Market Analysis and Forecasts
Published 3Q 2015
https://www.tractica.com/research/biometrics-in-the-healthcare-industry/
This Tractica report analyzes the market opportunity for biometrics in the healthcare industry, including 10-
year forecasts for the period from 2015 through 2024. The report examines four use cases specific to
healthcare, with a focus on biometrics to identify and authenticate people, rather than diagnosing or treating
patients. The report forecasts revenue, device shipments, and software licensing volumes. Within each
world region, market forecasts are further segmented by biometrics modality and use case. The report also
includes profiles of 19 key industry players in the healthcare biometrics market.
24
Connected Wearable Patches

Clinical and Non-Clinical Patches for Patient Monitoring, Treatment,
and Health & Wellness Applications: Global Market Analysis and Forecasts
Published 2Q 2015
https://www.tractica.com/research/connected-wearable-patches/
This Tractica report examines the market trends, drivers and barriers, applications and use cases,
technology issues, and key industry players for connected wearable patches within the clinical and non-
clinical environments. It presents forecasts for unit shipments, revenues, ASPs, and segments/use cases
during the period from 2014 through 2020. The report focuses on three main use cases for connected
wearable patches: medical monitoring, detection, and diagnosis; medication management and treatment;
and health, wellness, and prevention.
Home Health Hubs

Standalone and Mobile/Wearable Home Health Hubs for Chronic Conditions,
Pharma, Eldercare, and Health and Wellness: Global Market Analysis and Forecasts
Published 2Q 2015
https://www.tractica.com/research/home-health-hubs/
This Tractica report examines the market trends, drivers and barriers, applications/use cases, and
technology issues surrounding home health hubs, including standalone hub devices as well as hub
applications that can be downloaded and accessed on mobile devices and wearable devices. The study
includes global forecasts for users, revenue, and use cases during the period from 2014 through 2020.
Various aspects of the market dynamics surrounding home health hubs are examined, and the report also
includes profiles of key industry players.
Home Health Technologies

Medical Monitoring and Management, Remote Consultations, Eldercare, and Health and Wellness
Applications: Global Market Analysis and Forecasts
Published 1Q 2015
https://www.tractica.com/research/home-health-technologies/
This Tractica report examines the market trends and technology issues surrounding home health monitoring
and presents global market forecasts for users, services, and applications during the period from 2014
through 2020. Services, devices and applications are analyzed in depth, and the report also includes
profiles of key industry players across the home health ecosystem. Market forecasts, which are segmented
by world region, include 20 different market segments and product categories within the areas of medical
monitoring and management, remote consultations, eldercare, and health and wellness.
25
Population Health Management

Data Management, Analytics, Care Plan Development and Management, and Care Coordination and
Patient Interaction: Global Market Analysis and Forecasts
Published 4Q 2015
https://www.tractica.com/research/population-health-management-software-and-services/
This Tractica report examines the global market opportunity for PHM software and services, including an
assessment of market drivers and barriers, applications and use cases, technology issues, and key industry
players. It presents revenue forecasts on a global and regional basis during the period from 2015 through
2020. The report focuses on the main applications for PHM software, including care coordination and
patient interaction, care plan development and management, analytics, and data management, along with
PHM services such as outsourced care and coaching, consulting, ongoing maintenance, and
implementation.
Telehealth Video Consultations

Remote Video Consultations in Clinical and Non-Clinical Environments:
Global Market Analysis and Forecasts
Published 2Q 2015
https://www.tractica.com/research/telehealth-video-consultations/
This Tractica report examines the market trends, drivers and barriers, use cases, business models, and
technology issues surrounding telehealth video consultations for both clinical and non-clinical applications.
It presents forecasts for TVC sessions and revenue during the period from 2014 through 2020, segmented
by session type and world region. The report also includes in-depth profiles of 18 key industry players.
Telepresence Robots
Telecommuting, Teleconference, Tele-education, Telemedicine,
and Remote Monitoring: Global Market Analysis and Forecasts
Published 4Q 2015
https://www.tractica.com/research/telepresence-robots/
This Tractica report examines the market trends and technology issues surrounding telepresence robots,
and presents 5-year forecasts for telepresence robot systems during the period from 2015 through 2020.
Telepresence robot application markets are analyzed in depth, and the report also includes detailed profiles
of key industry players. This market forecast is segmented by world region, including unit shipments, unit
pricing and revenue, application pricing, and application revenue.
26
Wearable Devices for Enterprise and Industrial Markets

Corporate Wellness, Manufacturing, Warehouse, Field Maintenance, Mobile Workforce Management,
First Person Communications, Holographic Modeling, Workplace Authentication, and Other Applications
Published 2Q 2015
https://www.tractica.com/research/wearable-devices-for-enterprise-and-industrial-markets/
This Tractica report provides a comprehensive examination of the market opportunity for enterprise and
industrial wearables, analyzing various device categories, their specific roles, and adoption timelines in the
workplace. Key device categories include smart watches, smart glasses, fitness trackers, smart clothing,
body sensors, wearable cameras, and other wearables. The report also contains market sizing and
forecasts from 2013 through 2020, providing shipments and revenues along with segmentation by device
category, region, and enterprise and industrial use cases.
27
SECTION 8
SCOPE OF STUDY
This Tractica white paper highlights 10 key market trends for digital health technologies, services and
applications that are worth watching as the market moves from an early adopter stage to becoming a mass-
market proposition. Among the categories covered are population health management, home health and
remote monitoring technologies, eldercare, connected wearable patches and biosensors, and telehealth
video consultations. The white paper provides a comprehensive view of the digital health market with its
diversified set of products and services that are seeing varying levels of traction in different regions of the
world. These trends are based on the ongoing research and analysis that is part of Tractica’s Digital Health
Advisory Service.
SOURCES AND METHODOLOGY

Tractica is an independent market research firm that provides industry participants and stakeholders with
an objective, unbiased view of market dynamics and business opportunities within its coverage areas. The
firm’s industry analysts are dedicated to presenting clear and actionable analysis to support business
planning initiatives and go-to-market strategies, utilizing rigorous market research methodologies and
without regard for technology hype or special interests including Tractica’s own client relationships. Within
its market analysis, Tractica strives to offer conclusions and recommendations that reflect the most likely
path of industry development, even when those views may be contrarian.
The basis of Tractica’s analysis is primary research collected from a variety of sources including industry
interviews, vendor briefings, product demonstrations, and quantitative and qualitative market research
focused on consumer and business end-users. Industry analysts conduct interviews with representative
groups of executives, technology practitioners, sales and marketing professionals, industry association
personnel, government representatives, investors, consultants, and other industry stakeholders. Analysts
are diligent in pursuing interviews with representatives from every part of the value chain in an effort to gain
a comprehensive view of current market activity and future plans. Within the firm’s surveys and focus
groups, respondent samples are carefully selected to ensure that they provide the most accurate possible
view of demand dynamics within consumer and business markets, utilizing balanced and representative
samples where appropriate and careful screening and qualification criteria in cases where the research
topic requires a more targeted group of respondents.
Tractica’s primary research is supplemented by the review and analysis of all secondary information
available on the topic being studied, including company news and financial information, technology
specifications, product attributes, government and economic data, industry reports and databases from
third-party sources, case studies, and reference customers. As applicable, all secondary research sources
are appropriately cited within the firm’s publications.
All of Tractica’s research reports and other publications are carefully reviewed and scrutinized by the firm’s
senior management team in an effort to ensure that research methodology is sound, all information provided
is accurate, analyst assumptions are carefully documented, and conclusions are well-supported by facts.
Tractica is highly responsive to feedback from industry participants and, in the event errors in the firm’s
research are identified and verified, such errors are corrected promptly.
28
Chart 8.1 Tractica Research Methodology
MARKET RESEARCH
SUPPLY SIDE DEMAND SIDE
PRIMARY Industry Vendor Product End-User End-User

RESEARCH Interviews Briefings Evaluations Surveys Focus Groups
SECONDARY Company News Technology & Government & Case Reference

RESEARCH & Financials Product Specs Economic Data Studies Customers
MARKET ANALYSIS
QUALITATIVE Company Business Competitive Technology Applications

ANALYSIS Analysis Models Landscape Assessment & Use Cases
QUANTITATIVE Market Market Market Market Share Scenario

ANALYSIS Sizing Segmentation Forecasts Analysis Analysis
(Source: Tractica)
NOTES
CAGR refers to compound annual growth rate, using the formula:
CAGR = (End Year Value ÷ Start Year Value)(1/steps) – 1.
CAGRs presented in the tables are for the entire timeframe in the title. Where data for fewer years are
given, the CAGR is for the range presented. Where relevant, CAGRs for shorter timeframes may be given
as well.
Figures are based on the best estimates available at the time of calculation. Annual revenues, shipments,
and sales are based on end-of-year figures unless otherwise noted. All values are expressed in year 2016
U.S. dollars unless otherwise noted. Percentages may not add up to 100 due to rounding.
29
Published 1Q 2016
© 2016 Tractica LLC

1111 Pearl Street, Suite 201
Boulder, CO 80302 USA
Tel: +1.303.248.3000
Email: info@tractica.com
www.tractica.com
This publication is provided by Tractica LLC (“Tractica”). This publication may be used only as expressly
permitted by license from Tractica and may not otherwise be reproduced, recorded, photocopied,
distributed, displayed, modified, extracted, accessed or used without the express written permission of
Tractica. Notwithstanding the foregoing, Tractica makes no claim to any Government data and other data
obtained from public sources found in this publication (whether or not the owners of such data are noted in
this publication). If you do not have a license from Tractica covering this publication, please refrain from
accessing or using this publication. Please contact Tractica to obtain a license to this publication.
30

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WHITE PAPER

Digital Health: 10 Trends to Watch

 Return on investment is a top priority

2.1 RETURN ON INVESTMENT IS A TOP PRIORITY

2.2 THE MARKET IS MOVING TO A VIRTUAL CARE MODEL

Challenges do remain. For some technologies, such as TVCs or PHM, implementation on a

reimbursement models for virtual care.

2.3 DIGITAL HEALTH USE CASES ARE EXPANDING

2.4 TELEHEALTH VIDEO CONSULTATIONS ARE BEGINNING TO SEE STRONG TRACTION

Equally as important, there is now quantifiable value in deploying video-based patient

2.5 REMOTE PATIENT MONITORING IS GAINING MOMENTUM

Middle East & Africa

$2,500 Asia Pacific

$2,000 North America

2.6 ELDERCARE IS A KEY APPLICATION FOR DIGITAL AND MOBILE HEALTH

$3,000 Middle East & Africa

Chart 2.5 Connected Wearable Patches by Region, World Markets: 2014-2020

2.8 BIOMETRICS WILL BE WIDELY USED IN HEALTHCARE

Biometrics can be useful in healthcare and applied in a variety of settings. If properly

Chart 2.6 Healthcare Biometrics Revenue by Region, World Markets: 2015-2024

$2,000 Middle East and Africa

2.9 DATA ANALYTICS ARE A KEY PILLAR OF DIGITAL HEALTH

800 Number ACOs

(Source: Leavitt Partners Center for Accountable Care Intelligence)

2.10 ARTIFICIAL INTELLIGENCE WILL BE A KEY ENABLER OF DIGITAL HEALTH CAPABILITIES

$60 Asia Pacific

$50 Latin America

Teladoc, Inc. Wellcentive

Artificial Intelligence ..................................................................................................................................... AI

Children’s Health Alliance ........................................................................................................................CHA

Compound Annual Growth Rate ........................................................................................................... CAGR

Connected Wearable Patch .................................................................................................................... CWP

Electronic Health Record .........................................................................................................................EHR

Emergency Department ............................................................................................................................. ED

Emergency Room ...................................................................................................................................... ER

Gross Domestic Product ......................................................................................................................... GDP

Internet of Things ....................................................................................................................................... IoT

Intensive Care Unit.................................................................................................................................... ICU

Natural Language Processing .................................................................................................................. NLP

Personal Emergency Response Systems............................................................................................. PERS

Population Health Management .............................................................................................................. PHM

Return on Investment ................................................................................................................................ ROI

Telehealth Intensive Care Unit ........................................................................................................... TeleICU

Telehealth Video Consultations ............................................................................................................... TVC

Transdermal Drug Delivery ...................................................................................................................... TDD

Artificial Intelligence for Enterprise Applications

Biometrics in the Healthcare Industry

Connected Wearable Patches

Home Health Hubs

Home Health Technologies

Population Health Management

Telehealth Video Consultations

Wearable Devices for Enterprise and Industrial Markets

SOURCES AND METHODOLOGY

Chart 8.1 Tractica Research Methodology

SUPPLY SIDE DEMAND SIDE

PRIMARY Industry Vendor Product End-User End-User

SECONDARY Company News Technology & Government & Case Reference