The spending on commercial health insurance grew 4.4% to $991 billion in 2014, or 33% of total national healthcare expenditures, while out-of-pocket expense rose 1.3% to $329.8 billion, or 11 % of domestic healthcare expenditures.
The global healthcare industry comprises of sectors including pharmaceuticals, medical wearable devices, and medical imaging. The spending on healthcare and medical devices has been radically increasing in recent years, and stakeholders in the medical wearable devices are facing the need for technology and operational efficiency to address the social determinants of health. Additionally, with the recent shift from a volume-based to a more value-based environment, players in the medical wearable devices space are facing the need to deploy innovative care delivery methods to meet the relentless demand among the consumer segment. The industry is also largely influenced by factors as such:
- Innovations: Leading organizations in the medical wearable devices space are concerned about offering advanced medical assistance while compromising on the costs. To address such concerns, leading businesses must rely on R&D and innovations to improve healthcare outcomes and reduce costs.
- Increasing spending on healthcare: The overall spending on healthcare services is increasing owing to the incidence of several macroeconomic factors such as increasing aging population and the growing prevalence of chronic disorders. Therefore, to meet the rising needs of the end-user segments, organizations are facing pressures to bring about robust clinical innovations to improve their service levels.
To combat such factors, organizations in the medical wearable devices space are leveraging market opportunity assessments. Market opportunity assessments provide firms with a better understanding of the overall market scenario by categorizing the market in terms of products and services. Additionally, with shifts toward a more consumer-driven economy, market opportunity engagement assists companies in sustaining the challenges and the barriers to entry.
The Business Challenge
- The client: Medical wearable devices manufacturer
The client, a leading medical wearable devices manufacturer with retail units spread across the globe, wanted to profile the prominent competitors and devise an accurate go-to-market strategy and business strategies. The client also wanted to identify the potential barriers to enter niche market areas and understand the market sizing and growth projections of the wearable devices industry. Furthermore, the client wanted to categorize the demand-supply scenario for their offerings and accordingly tailor resources.
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Infiniti’s market opportunity experts carried out extensive research comprising of interviews and discussions with leading stakeholders across the medical wearable devices space to help the client improve business efficiency. The experts at Infiniti further compiled information from a wide array of secondary sources such as paid industry databases, company presentations, and industry forums to help the client understand the competitive scenario.
The Solution and the Business Impact
With the help of Infiniti’s market opportunity engagement, the medical wearable devices manufacturer identified potential market opportunities and was able to meet the needs and requirements of the customers. This engagement also helped the client design a robust go-to-market strategy by considering the data gathered from SWOT analysis. This helped them gain a holistic understanding of the market and improved their offerings.
Although wearable devices are not yet a mainstay in the healthcare field, most medical device providers are adding wearable components to their product lines. Additionally, to grasp the impact of this trend, firms have to understand how it differs from widely-used consumer products, the market drivers causing the demand and, perhaps even more important, what is powering these devices.