The Internet of Things, when used to improve healthcare and help those with chronic conditions, could have an economic impact ranging from $170 billion to $1.7 trillion a year, according to a recent report from McKinsey & Company.
By 2025, the report estimates that the IoT will have a "total potential economic impact" of almost $4 trillion up to a possible $11.1 trillion per year.
That healthcare figures are based on "cost savings in treatment and the value of longer lives and improved quality of life that patients with chronic conditions could enjoy if IoT monitoring helps them avoid disease complications," the report adds.
McKinsey is not the only entity that sees the potential connected devices will have on healthcare. According to a new report from Goldman Sachs, the IoT may soon fuel a revolution that could result in nearly $305 billion in savings for the industry.
However, challenges a health IoT will face remain, most notably a lack of interoperability between systems and devices. This will require coordination of technology, capital investment cycles, provider organization and more, the McKinsey report says.
Other changes the industry must make for IoT to have full impact include:
- Payers will have to realize "investments in IoT systems are justified"
- Patient acceptance of wellness and health devices will have to grow
- Privacy and security problems will have to be addressed
The report's authors say that those that supply the technology will have to continue to innovate, that business users will have to make investments in both the technology and the culture and structure, and that policymakers will need to ensure the safety of devices.
To learn more:
- download the report (.pdf)