Market Definition

Smart healthcare is a technology-enabled approach to modernizing healthcare delivery by integrating digital tools such as IoT devices, AI-driven analytics, mobile health platforms, and connected systems.

It focuses on improving patient outcomes, enhancing operational efficiency, reducing costs, and enabling data-driven decision-making across healthcare providers and patients. The report highlights key market drivers, major trends, regulatory frameworks, and the competitive landscape shaping the industry’s growth.

Smart Healthcare Market Overview

The global smart healthcare market size was valued at USD 195.22 billion in 2024 and is projected to grow from USD 215.92 billion in 2025 to USD 478.51 billion by 2032, exhibiting a CAGR of 12.04% during the forecast period.

The market is driven by the rising prevalence of chronic diseases prompting healthcare providers to adopt smart technologies that enable continuous patient monitoring and evidence-based clinical decision-making. Moreover, rapid advancements in artificial intelligence (AI) and machine learning are increasing the adoption of tools for predictive diagnostics, personalized treatment planning, and workflow automation, thereby driving market growth.

Major companies operating in the smart healthcare industry are General Electric Company, Medtronic, Access Healthcare, athenahealth, Inc., CorroHealth, Inc., Siemens, firsthand, HealthJoy, Reliance Retail Limited, Koninklijke Philips N.V., Sword Health, Inc., Stryker, Abbott, Click Therapeutics, Inc. and Octave Health-Tech Services.

Maturing electronic health systems is accelerating the adoption of smart healthcare by enabling seamless digital integration across healthcare infrastructures. Hospitals and clinics are adopting AI-powered tools, electronic records, and interoperable platforms to streamline decision-making and minimize administrative workloads, thereby driving the smart healthcare ecosystem across the public and private sectors.

According to the EU’s Digital Decade 2024 eHealth Indicator Study, the average eHealth maturity score across the 27 member states rose from 72% in 2022 to 79% in December 2023, reflecting strong adoption of digital health technologies such as AI and data-driven tools.

Key Highlights:

The smart healthcare industry size was valued at USD 195.22 billion in 2024.
The market is projected to grow at a CAGR of 12.04% from 2025 to 2032.
North America held a market share of 36.73% in 2024, with a valuation of USD 71.70 billion.
The telemedicine segment garnered USD 53.86 billion in revenue in 2024.
The monitoring segment is expected to reach USD 195.06 billion by 2032.
The home care settings segment is anticipated to witness the fastest CAGR of 14.81% over the forecast period.
Asia Pacific is anticipated to grow at a CAGR of 12.64% through the projection period.

Market Driver

Supporting Government Initiatives

Government initiatives are accelerating the adoption of smart healthcare solutions by promoting the development of secure, integrated digital infrastructure across healthcare systems.

Strategic policies focused on universal access to electronic health records are prompting providers to upgrade legacy systems and implement interoperable platforms that support efficient data sharing and clinical collaboration. These initiatives are encouraging investments in scalable digital tools, including real-time monitoring and automated documentation systems.

The EU's Digital Decade Policy Programmed 2030 aims to ensure that 100% of EU citizens have access to electronic health records by 2030, propelling demand for advanced digital health infrastructure and seamless data integration across care providers.

Market Challenge

High cost of smart medical devices and implementation

The high cost of smart medical devices and their implementation is posing a significant barrier to the widespread adoption of smart healthcare solutions, particularly in developing and rural regions. Advanced technologies such as AI-enabled diagnostic tools, remote monitoring systems, and wearable devices often come with substantial upfront investment, maintenance expenses, and infrastructure requirements.

These financial burdens are straining healthcare providers, particularly smaller clinics and public institutions and slowing down the digital transformation across the broader healthcare ecosystem.

To address this challenge, market players are adopting subscription-based models that reduce upfront costs for healthcare providers. They are developing scalable cloud-based solutions that minimize infrastructure requirements and support easier deployment.

They are introducing modular technologies that support phased implementation, allowing providers to integrate smart healthcare tools gradually and manage costs more effectively. Additionally, they are designing affordable device variants with essential features that meet clinical needs and eliminate the need for heavy investment, which makes smart solutions more feasible for smaller facilities.

Market Trend

AI-Based Platform to Streamline Workflows

AI-based clinical platforms are transforming healthcare operations by streamlining workflows across administrative and clinical functions. These systems automate time-consuming tasks such as medical coding, documentation, claims processing and prescription management by reducing human error and improving operational accuracy.

By integrating seamlessly with electronic health records the AI-based Platform enables real-time data access and efficient communication among care teams. This accelerates decision-making and reduces the administrative burden on healthcare professionals, due to which providers are able to allocate more time to patient care while improving financial performance and enhancing the overall quality and responsiveness of healthcare delivery.

In January 2025, IntelligentDX launched an AI-based deep learning software designed to optimize EHR and EMR systems. The solution automates critical workflows, improves revenue cycle management, and minimizes claim rejections to streamline healthcare operations.

Smart Healthcare Market Report Snapshot

Segmentation	Details
By Product Type	Telemedicine (Video Consultation Platforms, Remote Patient Monitoring (RPM) Devices, Telehealth Software Solutions), mHealth (Mobile Health) (Mobile Health Apps, Wearable Health Devices, Mobile Health Monitoring Solutions), Electronic Health Records (EHR), Others
By Application	Monitoring, Treatment, Storage and Inventory Management, Clinical Operations and Workflow Management
By End-User Industry	Hospitals and Clinics, Home Care Settings, Pharmaceutical and Biotechnology Companies, Research Institutes and Academic Centers, Others
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation:

By Product Type (Telemedicine, mHealth (Mobile Health), Electronic Health Records (EHR), and Others): The telemedicine segment earned USD 53.86 billion in 2024 due to increasing demand for remote consultations and the growing integration of virtual care platforms into mainstream healthcare services.
By Application (Monitoring, Treatment, Storage and Inventory Management, Clinical Operations, and Workflow Management): The monitoring segment held 38.32% of the market in 2024, due to the widespread adoption of wearable devices, remote patient monitoring tools, and real-time health tracking technologies that support proactive and preventive care models.
By End-User Industry (Hospitals and Clinics, Home Care Settings, Pharmaceutical and Biotechnology Companies, Research Institutes and Academic Centers, and Others): The hospitals and clinics segment is projected to reach USD 153.03 billion by 2032, owing to the large-scale deployment of smart medical devices and digitized health record systems.

Smart Healthcare Market Regional Analysis

Based on region, the market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

Smart Healthcare Market Size & Share, By Region, 2025-2032

North America smart healthcare market accounted for a share of 36.73% in 2024, with a valuation of USD 71.70 billion. This dominance is attributed to North America’s strong digital healthcare infrastructure and continuous investment in healthcare innovation by public and private stakeholders. The region is witnessing accelerated integration of AI-driven platforms and virtual care solutions which are transforming clinical workflows and enabling smarter care delivery.

Additionally, healthcare providers in the region are actively addressing workforce challenges and operational inefficiencies through virtual care platforms that enhance staff productivity and patient engagement. Moreover, the presence of leading key players that are developing advanced smart healthcare solutions is further driving the market across this region.

In August 2024, Stryker entered into a definitive agreement to acquire care.ai, a company specializing in AI-assisted virtual care, smart room technology, and ambient intelligence solutions. The acquisition is expected to enhance Stryker’s healthcare IT capabilities and connected medical device portfolio, addressing industry challenges such as staff shortages and cognitive overload.

The Asia Pacific smart healthcare industry is set to grow at a robust CAGR of 12.64% over the forecast period. This growth is attributed to the rising focus on preventive care and increasing health awareness across the Asia Pacific region.

Countries like India and Japan in this region are increasingly adopting IoT-enabled monitoring devices and integrated digital platforms such as remote diagnostic tools, and cloud-based EHRs to address growing smart healthcare demands in the region.

Moreover, increased collaboration between technology firms and healthcare providers is enabling real-time data sharing, remote patient management, and AI-assisted clinical decision-making is further driving the market in this region. Additionally, the rising middle-class population and increasing demand for cost-effective, technology-driven healthcare services are driving the growth of the market across the Asia-Pacific region.

In February 2025, MediBuddy partnered with Japan’s ELECOM to introduce IoT-enabled smart health devices in India, aiming to enhance preventive healthcare. The collaboration focuses on personalized health insights, lifestyle disease management, and expanding access to digital care through integrated monitoring solutions.

Regulatory Frameworks

In the U.S., the Food and Drug Administration (FDA) regulates digital health products, including medical devices, mobile health apps, AI/ML-based software, telemedicine technologies, and electronic health records (EHRs). They ensure product safety, efficacy, and compliance with medical device regulations and cybersecurity standards.
In India, the Central Drugs Standard Control Organization (CDSCO) regulates digital medical devices, diagnostic software, and health-related mobile applications.
In China, the National Medical Products Administration (NMPA) governs the approval and regulation of smart medical devices, AI-based diagnostic systems, and health software. It ensures products meet safety and quality standards and align with China’s cybersecurity and data protection laws.

Competitive Landscape

Major players in the smart healthcare industry are strengthening their portfolios by integrating AI-driven imaging tools and real-time diagnostic support to improve workflow efficiency. They are focusing on reducing clinician workload and simplifying complex procedures through intelligent automation. They are expanding their innovation pipelines by embedding advanced AI capabilities into existing systems to boost functionality and improve user experience.

Additionally, players are upgrading ultrasound technologies by incorporating smart algorithms that guide image capture, reduce scanning time, and enhance diagnostic accuracy and speed.

In October 2024, GE HealthCare acquired Intelligent Ultrasound’s clinical AI business to enhance its ultrasound portfolio with real-time, AI-driven imaging tools. The acquisition aims to improve diagnostic accuracy and workflow efficiency by integrating advanced AI capabilities into GE’s existing ultrasound platforms.

List of Key Companies in Smart Healthcare Market:

General Electric Company
Medtronic
Access Healthcare
athenahealth, Inc.
CorroHealth, Inc.
Siemens
firsthand
HealthJoy
Reliance Retail Limited
Koninklijke Philips N.V
Sword Health, Inc.
Stryker
Abbott
Click Therapeutics, Inc.
Octave Health-Tech Services.

Recent Developments (Product Launch)

In April 2025, Baby & Mom Retail launched CORVELL, a brand for smart healthcare equipment, aimed at delivering accessible and reliable solutions. The brand’s flagship smart nebulizer offers advanced respiratory care features such as automated mist control, real-time usage monitoring, and app-based connectivity to support personalized treatment and improve patient compliance.