The Internet of Things (IoT) in healthcare market is among the fastest-growing segments of digital health. According to Grand View Research, the global Internet of Things in healthcare market was valued at USD 65.1 billion in 2025. It is estimated at USD 78.9 billion in 2026 and is projected to reach USD 308.5 billion by 2033, a CAGR of 21.5% from 2026 to 2033. Connected devices, wearables, cloud platforms and analytics are moving care out of the hospital and into patients’ daily lives.

Key Market Drivers & Applications

Remote monitoring and telehealth are the main growth engines. The pandemic pushed remote patient monitoring into the mainstream. Providers began using wearable sensors, smart inhalers and connected blood pressure monitors to track vitals from a distance. The shift has lasted. American Medical Association data cited in the report shows 71.4% of physicians used telehealth weekly in 2024, up from 25.1% in 2018. Each virtual visit increases demand for devices that can stream reliable, real-time health data.

Smartphones and wearables extend the reach of care. Glucometers, smartwatches, heart-rate bands and tablets give clinicians a continuous view of patients. They can also trigger emergency alerts when something goes wrong. Smartphone penetration is rising, with the report citing 67% of the global population in 2021 and a projected 70% by 2025. Mobile subscriptions are growing in emerging economies such as India, China and Indonesia. Both trends widen the base of people who can use connected health tools.

Structural demand adds momentum. Rising investment in digital infrastructure, an ageing population, a growing burden of chronic disease and falling hardware costs all support adoption. Security is also improving. For example, Palo Alto Networks introduced a Zero Trust security solution for medical IoT in December 2022.

Applications. Telemedicine held the largest application share in 2025 and is expected to grow fastest through 2033. Patient monitoring, connected imaging, clinical operations and medical management make up the rest of the application mix. Connected imaging is also expected to grow at a significant rate.

AI is the next opportunity. As connected devices generate more data, providers need platforms that can integrate, normalize and turn it into insight. Grand View Research highlights the convergence of IoT, AI and healthcare data platforms as a major opportunity. It points to Redox’s June 2026 launch of AI capabilities for scaling integration workflows as an example.

Go Deeper! Ask Prism AI about the Global Internet of Things in Healthcare Market. Get instant answers to questions related to market sizing, growth drivers & their impact, and more.

Market Segmentation & Regional Landscape

The market is segmented by component, connectivity technology, application, end-use and region. Several segments stand out:

• Component: Medical devices led with a 37.7% revenue share in 2025. They provide continuous streams of glucose, heart-rate and blood pressure data. The system and software segment is expected to grow fastest as providers invest in analytics, device management and security.
• Connectivity technology: Cellular held the largest share in 2025, favored for reliable real-time remote monitoring. LPWANs are expected to grow rapidly because of their low power use and long range, which suit telemedicine and wireless monitoring.
• Application: Telemedicine leads today and is also the fastest-growing application.
• End-use: Hospitals and clinics accounted for 43.2% of revenue in 2025. IoT helps them manage workflows, medical records, billing and medication compliance. Clinical research organizations (CROs) are expected to post the fastest growth. They use IoT to improve patient recruitment and retention and the accuracy of research.

Regionally, North America led the market with a 34.7% revenue share in 2025. Asia Pacific is expected to be the fastest-growing region through 2033.

Stumbling Blocks & Market Challenges

The outlook is strong, but several hurdles remain.

High implementation and infrastructure costs. Healthcare IoT depends on connected devices, sensors, networks, cloud infrastructure, cybersecurity systems and analytics platforms. Providers must also fund system integration, interoperability upgrades, staff training and ongoing maintenance. These capital and operating costs can put adoption out of reach for small or resource-constrained providers.

Interoperability and fragmentation. Grand View Research’s analyst perspective describes a highly fragmented market. Interoperability gaps between devices, EHR systems and analytics tools slow large-scale integration.

Cybersecurity concerns. Every connected device is a potential entry point for attackers. Protecting patient data across devices, applications and networks remains a top priority.

Uneven digital infrastructure. Emerging economies often lack the network coverage and healthcare IT maturity needed for large-scale deployment. Regulatory caution can also slow progress. In Japan, for example, only a limited number of mobile health applications have been approved because of safety and accuracy concerns.

Regional Dynamics

North America. The region owes its leadership to high adoption of telehealth, e-prescribing and mHealth, plus government support for digital health. Nearly nine in ten U.S. physicians had adopted electronic health records by 2021, according to the report. The region also has a dense base of hospitals, research organizations, universities and device manufacturers. Within the region, the U.S. holds the largest share. Drivers include healthcare management software, secure data-sharing platforms for EHRs, network infrastructure and remote health services.

Asia Pacific. The fastest-growing region benefits from improving healthcare infrastructure, rising healthcare spending and the push to cut medical costs and streamline hospital workflows. Government programs also help. In Australia, state-level programs such as HealthSmart and national programs such as HealthConnect support healthcare IT integration. In Japan, rising government health spending is fueling demand for eHealth services, even though the digital ecosystem is still unevenly developed.

The Competitive Landscape

Dominant players include Medtronic, Cisco Systems, IBM and GE Healthcare. Emerging participants include Infosys, Cerner, Wipro and Qualcomm. Established companies such as Philips, GE HealthCare and Siemens Healthineers rely on deep hospital integration and a large installed base. IT and technology players such as Bosch and Infosys compete on cloud, AI and integration expertise. M&A activity by companies including Medtronic, Cisco, SAP and Microsoft continues to expand geographic reach.

Final Thoughts

The IoT in healthcare market is expanding quickly as care becomes more connected, continuous and data-driven. Telehealth, wearables, AI-enabled analytics and supportive digital health policy are driving growth, while cost, interoperability and security remain the main obstacles. Organizations that can bridge those gaps stand to gain the most from the market’s trajectory to 2033.

Download a Free Sample Report to explore market data points, trend analyses, estimates and forecasts.