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Smartphone Apps Market Model Takes mHealth Market to New Level

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Will mobile apps become the killer application of the mHealth market?

By Markus Pohl                                                                                   

research2guidance / The Mobile Research Specialists

phone: +49 (0) 30 60 989 3363

mobile: +49 (0) 178 4007736

fax: +49 (0) 30 60 989 3369

email: mp@research2guidance.com

Join Our Mailing List 

Dear Dr. Marcinko,  

New research by research2guidance concludes that mobile applications and the new smartphone market model will help the mHealth market to reach a new level. The mHealth market will develop from a trial market to a global market, which is about to realize its full potential.

A Long Time Topic 

mHealth solutions have been discussed since the end of the 90s. There were very positive market projections indicating that the mHealth market would soon become a billion Dollar market at that time. But the market never really took off. What stopped the early mHealth market from being successful?

In the last years a new market model has been created by Apple: The mobile applications eco-system. Can this new system ignite the market development that everybody has been expecting for the last years? Will smartphone apps become the killer application of the mHealth market?

Barriers to Entry

The following list shows the main barriers which prevented the mHealth market from growing in the past and the changes the new model will bring:

1. Devices: Early solution providers had to live with limited device capabilities and in order to achieve successful market entry and profitability had to find hardware partners to develop the mobile device. Furthermore, reach was very limited for any kind of smarter phone. Many of the features that early solutions providers had to find special solutions for are now included as standard on smartphones (e.g. GPS or sensors). Reach of smartphones, although limited today, won’t be in 2 years time with the number of smartphone users projected to be 1 in 2013.

2. Distribution: In the early days mHealth solutions providers had to seek partnerships with MNOs in order to gain some support with the distribution of the service or had to do it on their own. The new market model offers global reach without having to deal with an MNO.  Still, traditional distribution channels like doctors, hospitals and health insurance providers are not being affected by the new model.

3. Patients and doctors: The awareness of mHealth solutions was very limited. The new market model offers a better user experience along the entire value chain: discovery and access, billing and usage. The hype for smartphone apps also brings mHealth apps into the spotlight of its potential users. Still, one of the biggest target groups for mHealth solutions, the elderly, will have the biggest issues with technology adoption, although they would benefit most from mHealth application usage. This mismatch will not be changed by the new market model in the near future.

4. Regulations: The new market model has only limited impact on one of the key barriers regulation. As long as mHealth solutions and services don’t get clearance from national regulators and are thus not reimbursable by health insurance providers, patients must pay expenses them-selves. Doctors won’t prescribe e.g. a pill reminder application and will have no financial incentive to propose such solutions to the majority of their patients. The market will remain a consumer driven market, which means that the full potential will remain untapped.  Another barrier remains the discussion around security and confidentiality of data. Major projects like electronic health records have been mandated a decade ago in some countries but implementation has been delayed until now mainly because of security and confidentiality reasons.

The findings are a part of a new report by market research institute research2guidance about the global mHealth market. The report analyzes in detail the impact of the new market model, the business opportunities for mHealth app publishers, and how the market will look like in 2015 and will be published at the end of October 2010

Assessment 

Link to related blog post: http://www.research2guidance.com/will-smartphone-apps-become-the-killer-application-of-the-mhealth-market/

Link to graph: http://www.research2guidance.com/wp-content/uploads/2010/10/Barriers.jpg

For more information please contact:

Robert Krsten,

email: rk@research2guidance.com

phone: +49 30 60 989 3366

web: www.research2guidance.com

Conclusion

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4 Responses

  1. Can we get physicians to use modular apps?

    http://www.thehealthcareblog.com/the_health_care_blog/2010/11/can-we-get-physicians-to-use-modular-apps.html#comments

    Read this essay by Matthew Holt.

    Ann Miller RN MHA
    Executive-Director

    Like

  2. Global mHealth Developer Survey
    [How The mHealth Market Will Change Within The Next 5 Years]

    Smartphone penetration is the main driver for the growth of the mobile healthcare market. Lack of standardization, regulation and market opacity are the main barriers according to developers of mobile healthcare applications.

    These are two findings from the new “Global mHealth Developer Survey” by mobile market research specialist research2guidance. The research, conducted amongst independent application developers and traditional healthcare industry players reveals that:

    · The majority of participants predict mHealth will break through in the next 5 years.
    · Nearly 80% see diabetes as the therapeutic area with highest business potential.
    · Healthcare interested people and doctors are the main target groups for mHealth solutions, as seen by 61% and 58% of respondents, respectively.
    · Smartphone penetration is seen as the driver for mHealth by 63% of respondents.
    · Lack of standardization (50%), regulation (49%) and market transparency (49%) are the main barriers facing mHealth.
    · App stores will lose their role as main distribution channels for mHealth solutions.
    · Android and iOS will be preferred mobile platforms for mHealth solutions.

    The survey results are available as a free whitepaper.
    To download a copy of the “Global mHealth Developer Survey” please click here: http://www.research2guidance.com/shop/index.php/mhealth-survey-summary

    The “Global mHealth Developer Survey” aims at providing insights on how mHealth developers view the future of the mHealth market. A total number of 231 companies participated and shared their views, experience and insights.

    Link to Whitepaper “The Developer View: How Will The mHealth Market Change Within The Next 5 Years” (Free Whitepaper): http://www.research2guidance.com/shop/index.php/mhealth-survey-summary

    Robert Kuersten

    Like

  3. Should Doctors Prohibit Photos in the Office?

    Smartphones may be causing problems in the waiting room — aside from the loud conversations. Photos in the office taken with smartphones may lead to security or privacy breaches.

    http://www.ama-assn.org/amednews/2012/05/21/bica0521.htm

    So what can you do?

    Ann Miller RN MHA

    Like

  4. HIE Executives

    JAMF conducted a study of 550 healthcare information technology executives, and found that 39% of patients with access to a mobile device will use that device to connect with a healthcare organization, up from 36% in 2016.

    But, at 83% security tops the list of the biggest concerns healthcare information technology managers have with implementing and managing a mobile health program followed by data privacy (77%) and inappropriate employee use (49%).

    The survey finds that 85% of healthcare organizations have provided care givers within their organization a wireless Apple device.

    Source: JAMF

    Like

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