5G in Healthcare Market - Size, Share, Industry Trends, and Forecasts (2024 - 2031)

By Component :

Based on components, the market is categorized into hardware, services, and connectivity.

Trends in the Component:

• The increasing adoption of digital health solutions is positively impacting the adoption of 5G components.
• Provision of 5G networks, particularly in rural and underserved areas, to improve access to healthcare services and remote monitoring.

The hardware segment accounted for the largest market share in 2023.

• 5G technology relies on several hardware components to deliver its transformative capabilities in healthcare applications. 5G base stations handle the wireless connection between devices and the core network. Massive MIMO (multiple input, multiple output) antennas, small cells, and fiber optic cables play crucial roles in expanding network coverage and enhancing data transmission.
• The 5G core network, consisting of components such as the user plane function and control plane function, manages data traffic and network control.
• The increasing requirements for high-speed connectivity in healthcare settings and the frequent need for upgrades and replacements to accommodate the latest technological advancements are fueling the adoption of advanced 5G hardware solutions.
• For instance, in October 2024, the Malaysian Communications and Multimedia Commission identified hospitals as a key priority area for addressing connectivity issues. The focus is on ensuring the deployment of 5G infrastructure in hospitals to support the utilization of advanced medical applications. The implementation of 5G infrastructure in hospitals creates a requirement for hardware components.
• Overall, the transformative potential of 5G in healthcare is contingent upon a robust hardware infrastructure that is fuelling the trend of the hardware segment.

The services segment is expected to grow at the fastest CAGR over the forecast period.

• The services component of 5G in healthcare encompasses a diverse array of offerings that support the integration, implementation, and ongoing optimization of 5G networks within the healthcare sector.
• In implementation and integration, 5G providers offer system integration expertise. They work closely with healthcare organizations and providers to develop customized solutions that align with existing IT infrastructure and workflows.
• As the adoption of 5G technology continues to grow in healthcare, the services component is expected to play a significant role in integrating the 5G network with hardware and connectivity components.
• The surge of the segment is fueled by the escalating need for advanced medical device connectivity and accelerated and dependable data transfer offered by 5G technology.
• For instance, in October 2022, Medulance Healthcare announced the utilization of 5G service from Reliance Jio for smart ambulance services.
• Thus, the 5G services component is a critical enabler for the transformation of healthcare.

By Application:

Based on the application the market is categorized into telehealth, healthcare information systems, augmented reality (AR) and virtual reality (VR), connected medical devices, and others.

Trends in the Application:

• The growing demand for real-time patient monitoring is a trend influencing the adoption of 5G networks.
• Integration of artificial intelligence and machine learning in healthcare is positively impacting requirements for 5G.
• Advancements in wearable medical technology are the trend boosting the application of 5G.

The telehealth segment accounted for the largest market share of 44.05% in 2023 and is expected to grow at the fastest CAGR over the forecast period.

• Telehealth is the use of digital information and communication technologies to access health care services remotely and manage health care. In telehealth 5G is widely adopted for applications such as telemedicine and remote patient monitoring (RPM). Telemedicine including teleradiology, and telediagnostics among others allows healthcare providers to deliver care remotely, utilizing audio and video connections. RPM, a subset of telehealth, helps patients in their healthcare by using mobile medical devices to collect and transmit health data to healthcare professionals
• 5G technology enables high-definition video consultations, seamless sharing of medical data, and remote monitoring of patient vital signs. 5G-powered devices allow for continuous patient monitoring and early detection of health issues. The growing adoption of telehealth is boosting the demand for 5G technology.
• For instance, the February 2022 McKinsey report revealed that 55% of patients reported higher satisfaction with virtual consultations compared to in-person visits. Additionally, 60% found telemedicine more convenient, and 40% planned to continue using it post-pandemic. 32% of clinicians believed telemedicine enhanced patient experiences, and 36% agreed on its convenience.
• Thus, 5G's high speed and low latency make it suitable for telehealth applications, improving patient experience and healthcare delivery.

By End-User :

Based on end users, the market is categorized into healthcare providers, healthcare payers, and others.

Trends in the End-User:

• Growing emphasis on patient engagement and communication tools is a trend influencing the adoption of 5G networks.
• Rising demand for personalized healthcare is supporting the integration of 5G networks.

The healthcare provider segment accounted for the largest market share in the year 2023.

• Healthcare providers serve as primary end-users of 5G in the healthcare industry. Integration of 5G enables unprecedented capabilities in patient care delivery, diagnostic procedures, and overall healthcare management. Healthcare providers ranging from large hospital networks to individual clinics leverage 5G's ultra-high bandwidth, minimal latency, and massive device connectivity to transform healthcare delivery.
• 5G is widely employed for hospital system implementation, clinic operations enhancement, remote patient care capabilities, and emergency response & critical care among others.
• Additionally, the prospect of improved patient outcomes and operational efficiencies offered by innovative application cases is driving healthcare organizations to make the requisite investments in 5G technology.
• For instance, according to the data published by Inc. in May 2022, it is stated that approximately three out of four healthcare providers reported plans to pilot or deploy 5G through 2023; 7.8% of respondents stated that they were in production in 2021 and 12.3% will be in production in 2022.
• Adopting new approaches to connectivity using 5G technology increases business resilience through a variety of telehealth initiatives. Moreover, 5G also plays a pivotal role in improving emergency care such as connected ambulances. Overall, healthcare providers are the primary users of 5G.

The others are expected to grow at the fastest CAGR over the forecast period.

Other segments includes diagnostic centers, pharmaceutical & medical device companies, and others.

• 5G technology, with its high speed, low latency, and massive connectivity capabilities, is advancing the healthcare sector. Diagnostic centers benefit from real-time remote consultations, rapid data transfer for timely analysis, and remote patient monitoring.
• Research organizations are able to accelerate research processes, collaborate seamlessly across distances, and leverage AI-powered analysis. Employing 5G technology allows pharmaceutical companies to conduct remote clinical trials, optimize supply chains, and enable precision medicine through data-driven insights.
• Additionally, the utilization of 5G helps medical device companies to develop advanced devices, deploy telemedicine solutions, and leverage data-driven innovation.
• For instance, in July 2022, GE Healthcare, launched its 5G Innovation Lab in Bengaluru, India. This facility leverages the power of 5G technology to revolutionize patient care by enabling faster diagnosis, more effective therapies, and improved prognoses. By providing state-of-the-art infrastructure, including a private 5G network, the lab fosters collaboration between academia, healthcare industry experts, and startups.
• Thus, 5G is influencing the delivery of more efficient, effective, and personalized healthcare solutions.