white paperthis tractica white paper examines 10 trends that are key factors in the ongoing...

CHARUL VYAS Principal Analyst

CLINT WHEELOCK

Managing Director

Digital Health: 10 Trends to Watch Published 1Q 2016

WHITE PAPER

Digital Health: 10 Trends to Watch

© 2016 Tractica LLC. All Rights Reserved. This publication may be used only as expressly permitted by license from Tractica LLC and may not otherwise by accessed or used, without the express written permission of Tractica LLC

1

SECTION 1

INTRODUCTION

Digital health technologies are beginning to change the way healthcare is delivered. Advances in technology, such as wireless connectivity, sensors, and the growth of mobile devices, are allowing organizations to move to more of a virtual care model, and more regularly monitor patients on a remote basis. In addition, the growth in patient data is supporting certain types of digital health activities, including healthcare analytics and population health management.

Three main factors are driving the increased interest in digital health: a clear requirement to curtail increasing healthcare costs, the need to find new ways to handle the growing number of individuals with chronic diseases, and the desire to provide better and safer medical care. In addition, key players in the healthcare ecosystem are also searching for ways to better support aging populations and improve patient satisfaction. While digital health is by no means a silver bullet, if properly implemented and managed, it can provide a way for organizations to make progress on their goals.

This Tractica white paper examines 10 trends that are key factors in the ongoing evolution the digital health sector, including market forecasts for emerging technologies that will continue to shape the industry for many years to come. The trends reviewed in this paper are:

Return on investment is a top priority

The market is moving to a virtual care model

Digital health use cases are expanding

Telehealth video consultations are beginning to see strong traction

Remote patient monitoring is gaining momentum

Eldercare is a key application for digital and mobile health

Wearable biosensors, patches, and clothing are key emerging sectors

Biometrics will be widely used in healthcare

Data analytics are a key pillar of digital health

Artificial intelligence will be a key enabler of digital health capabilities



2

SECTION 2

10 KEY DIGITAL HEALTH TRENDS TO WATCH

2.1 RETURN ON INVESTMENT IS A TOP PRIORITY

Digital health is no longer a space where organizations are investing in technology for the sake of the technology itself. While experimentation, proof of concepts, and trials are still taking place, many technologies have moved beyond these early phases and are now able to clearly demonstrate results.

More than ever, in order for healthcare organizations to deploy digital health technologies, there needs to be a greater emphasis on improvements to the bottom line and/or to patient care. Vendors in the digital health space realize this and are presenting their offerings in the context of real return on investment (ROI) in order to speed adoption of health products and services. There is also an increased need for greater efficiency, keeping healthcare costs in line, and avoiding penalties, largely driven by policy changes, such as accountable care in the United States.

ROI can be proven in a variety of ways. For software and services-oriented offerings, such as population health management (PHM), vendors are focusing on reducing admissions, better managing chronic conditions, and increasing compliance for routine or preventive care, all of which can result in greater profitability.

Wellcentive, for example, worked with the Children’s Health Alliance (CHA), a not-for-profit association of more than 100 independent primary care pediatricians in Oregon and southwest Washington, on a PHM solution. Using Wellcentive’s PHM offering, the CHA was able to achieve emergency department (ED) visit rates for its asthma population that were 20% to 40% lower than benchmarks, and an 80% to 800% increases in the number of patients receiving evidence-based clinical protocols. Another health information technology (IT) company, Athenahealth, states that its PHM offering helps organizations increase network retention by 16% (which improves revenue), and clients also see a 45% increase in accountable care organization (ACO) scores and 55% lower cost growth than the national average.

A number of PHM vendors have adopted a “shared risk” model, which limits or eliminates the vendor’s profitability if the client organization does not see cost savings or improvements in revenue; some vendors have pricing structures where they receive a portion of the savings. Both options help decrease the risk of deploying PHM solutions for payers and providers, showing that the vendor is focused on cost savings and ROI.

With regard to telehealth video consultations (TVCs), costs are easy to demonstrate today, as they are often linked to the cost of an office visit, shorter hospital stays, and decreased mortality. One vendor, Philips Hospital to Home, reports that patients receiving critical care services from a hospital with Philips eICU (a telehealth intensive care unit solution) were 16% more likely to survive the hospital portion of their stay and were discharged 15% faster from the hospital portion of their stay. Telehealth intensive care units (TeleICUs) enable faster responses to emergencies, alarms, and degradation in patient health. In addition, TeleICUs remove some burden on intensive care unit (ICU) staff, allowing hospitals to better manage their staffing costs (for example, not always having to have a doctor in-house), more consistency of care, and for patients to be treated at local hospitals, rather than being transferred to larger hospitals farther from home, which can increase satisfaction. Such



3

examples of cost savings have caused providers and payers alike to offer or actively investigate ways to include remote video consultations in their services.

In the area of remote patient monitoring, the cost savings can be shown in a variety of ways. Some vendors point to shorter hospital stays, as patients can be monitored at home at a much lower cost and on a more frequent basis. As an example, a home health agency that sends a nurse to visit a patient at their home on a weekly basis, can save $150 per nurse visit if the patient is monitored remotely. There can also be cost savings for patients, as they are not required to travel to a medical facility as frequently. Eldercare is another area where cost savings can be quantified. Offerings like personal emergency response systems (PERS) can help seniors live more independently and call for help more quickly in case of emergencies.

In the area of connected wearable patches and medical wearables, ROI is somewhat more difficult to quantify, as the number of commercially available products is still small. However, the cost savings is slowly being demonstrated. For example, if a heart patient is provided a wearable cardiac monitor, they can be released from the hospital more quickly, and re-admitted more quickly if their condition begins to deteriorate.

2.2 THE MARKET IS MOVING TO A VIRTUAL CARE MODEL

The move to digital health is taking place on a number of fronts. The main areas of activity include TVCs, remote patient monitoring, and connected wearable patches for healthcare, which are discussed in greater detail below. While virtual care will not be a replacement for the traditional patient care model (i.e., a patient visiting a doctor’s office), it can, in some cases, help supplement or enhance patient care.

The market for virtual care is moving forward for a number of reasons. As discussed above, all players in the healthcare ecosystem are searching for ways to decrease healthcare costs, while providing a higher level of care. Secondly, the number of individuals with chronic conditions is growing and expected to increase for the foreseeable future. In addition, the number of older individuals is increasing, which comes with an increase in chronic conditions and age-related healthcare issues.

These factors will place a larger burden on the healthcare system. Virtual care provides a way to meet the growing demand for healthcare by increasing accessibility to care at lower costs. For example, healthcare providers are finding that after an injury or illness, it is much more cost effective to remotely monitor a patient at home versus keeping them in the hospital or sending them to another care facility. In some cases, when a person is diagnosed with a chronic condition, using a number of remote patient monitoring solutions is a better way to monitor the patient and prevent more rapid disease progression.

Technology is also enabling more patients to be treated or monitored via virtual care. Today, a large portion of the world has broadband Internet access and mobile devices, such as smartphone and tablets with video capabilities, are opening the door for services like TVCs. In addition, the cost of technology (ranging from components and devices to Internet access) is declining, bringing new economies of scale to digital health.

Challenges do remain. For some technologies, such as TVCs or PHM, implementation on a large scale or within a large organization can require investments ranging from tens of thousands of dollars to millions of dollars. Complex technologies can require longer deployment times (ranging from months to over a year), plus time to train users. While there is ROI, it may take many years for this return to be realized. There are also challenges with patient acceptance and provider/physician acceptance, the latter largely due to payment and



4

reimbursement models for virtual care.

2.3 DIGITAL HEALTH USE CASES ARE EXPANDING

A new driver of digital health adoption is the expansion of use cases for these applications, services, and devices. Over the past several years, growth in connected devices and the Internet of Things (IoT), increasing ease of use, along with declining costs and clearer ROI, have opened up the market for new digital health use cases.

One example is TVCs. In their early days, TVCs were limited in terms of their use, such as supporting a hospital’s ICU (physician-to-physician) or for specialties like tele-psychiatry (often in the form of Skype video calls between a patient and provider). TVCs are now being used for primary care (well child visits, urgent care), by a variety of specialist types (cardiologists, dermatologists), and for new therapeutic uses, such as physical and occupational therapy. In addition, TVCs are being deployed in new situations, such as within ambulances transporting patients to a hospital, with first responders to aide in determining the best care pathway, in schools that cannot afford an on-site, full-time nurse, in correctional facilities to help speed access to care and guard safety, and in remote and hard to reach workplaces, such as oil rigs.

Pharmaceutical and life sciences companies are becoming more active in the digital health space. For example, using remote patient monitoring technology in clinical trials can help with recruiting and retaining participants (retention is often a major challenge, as many participants drop out of trials due to strict monitoring requirements). Remote patient monitoring can help ease the reporting and monitoring requirements participants face and reduce participant dropout rates. This, in turn, speeds the data collection process, decreases the amount of time and money needed to prove the efficacy of new medications and treatments, and speeds the drug approval process.

In the area of population health and healthcare analytics, the target market is growing beyond payers (public and private) and healthcare providers. Some organizations are looking beyond medical health and focusing on health population for mental/behavioral care. Because patients with chronic or serious health issues also commonly suffer from mental health problems (i.e., depression due to the decline in quality of life caused by a chronic disease), PHM offerings that include mental/behavioral health can bring a more holistic approach to patient care. The growing interest in PHM has also spawned companies that aim to provide one element of the overall PHM ecosystem. For example, there are firms focusing solely on providing care management, mental health services, patient counseling, etc. And employers are expressing interest in using PHM to keep their employees healthy and improve overall health of their employee pool. This benefits the employers; healthier employees mean the organization’s healthcare costs are lower, with employees needing fewer sick days and shorter disability leaves, which benefit the company’s bottom line.

The market is also seeing some convergence of the use of digital health technologies. A number of providers, such as Ideal Life and Health Net Connect, are combing remote patient monitoring devices with TVC to enable greater patient interaction, communications, and coaching. Others like Cerner and Qualcomm Life are working together to bring together data from connected medical devices in the home and incorporate the information into Cerner’s electronic health records (EHRs) and PHM solution.

2.4 TELEHEALTH VIDEO CONSULTATIONS ARE BEGINNING TO SEE STRONG TRACTION

TVCs are also referred to as eConsults, eVisits, remote video consultations, or even the broader term telemedicine. While many elements of digital and mobile health technologies



5

are still emerging, TVCs have a firm foothold and are poised for strong and stable growth in the coming years. New vendors providing TVC devices and services are emerging, and some have gone public (Teledoc), plan to go public, or are raising additional capital.

While various types of interaction can be classified as a remote consultation, Tractica defines the TVC market as one that includes devices, services, and applications that support remote patient care using an element of real-time video interaction. The interaction can be between a healthcare provider and a patient, or between clinicians. TVCs are used for treating or diagnosing patients, or enabling collaboration and consultation between healthcare professionals. TVCs can also be conducted in a clinical environment, such as a hospital or clinic, or in a non-clinical environment, such as a patient’s home or place of work.

Key technology enablers for growth in the TVC market include better video conferencing technologies, a decrease in the cost of deploying TVC technology from both a hardware and software perspective, increased device penetration (smartphones, tablets, laptops, and PCs), and broadband adoption. Market dynamics also make use of a TVC’s value, including physician shortages, increasing healthcare costs and the search for alternatives that bring costs down, the need to serve growing aging populations, the increase in people with chronic diseases, and the need to increase access to medical care. As discussed above, the TVC market is growing because the technology lends itself to a variety of medical treatments and use cases (everything from primary care/urgent care to dermatology to psychiatry). One healthcare system in the United States, Mercy, has built an entire facility just to support the delivery of telehealth services. Mercy states that its facility has the nation’s largest electronic ICU, along with other telehealth services, including telestroke, Nurse On Call, and physician tele-consultation.

Equally as important, there is now quantifiable value in deploying video-based patient monitoring solutions, both in terms of positive patient outcomes and cost savings. In a study published in 2015, the UC Davis Children's Hospital in Sacramento, California, examined whether its pediatric telemedicine consultation program with rural emergency departments saved money, as compared to traditional telephone consults. The study found that while video consultation programs are expensive to deploy and maintain due to equipment, software, and IT costs, they do pay for themselves. The study found that the program achieved an average savings of $4,662 per use, partially due to a decrease in patient transfers between hospitals. In 2013, the UC Davis Children's Hospital had analyzed the revenue impact of deploying a telehealth outreach program. That study looked at patient transfers, average hospital revenue, and average professional billing revenue, and found that hospitals could see increases in hospital revenue and professional billing revenue.

There are challenges to TVC, including the initial high cost of deploying services, particularly for critical care services, such as ICUs. In addition, not all payers reimburse for services rendered via video conferencing, and some resistance by physician, patients, and regulatory bodies remains. In fact, South Korea only recently allowed physicians to conduct TVCs and some states like Texas have put up roadblocks to TVCs.

Even with these challenges, Tractica expects strong and steady growth in TVCs in the coming years. Starting from a base of 19.7 million consults in 2014, the market will expand at a compound annual growth rate (CAGR) of 34.7% through 2020, at which time there will be 158.4 million TVC sessions performed annually. Currently, the majority of revenue is derived from TVCs conducted in a clinical environment. Over time, the mix will shift and, in 2019, there will be parity between clinical and non-clinical consultations.



6

Chart 2.1 Total Telehealth Video Consultation Sessions, Clinical and Non-Clinical, World Markets: 2014-2020

(Source: Tractica)

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

2014 2015 2016 2017 2018 2019 2020

(Th

ou

san

ds)

Clinical Setting

Non-Clinical Setting



7

TVCs are also merging with other types of technology, such as robotics. Several vendors, including InTouch Health and VGo, are offering telepresence robots, along with other suites of video conferencing offerings. Although the use of robots in healthcare is still limited, for example, InTouch states that the technology is nowhere near the infection point, Tractica expects healthcare to be one of the top industries for telepresence robots.

Chart 2.2 Telepresence Robot Revenue in the Healthcare Market, World Markets: 2015-2020

(Source: Tractica)

2.5 REMOTE PATIENT MONITORING IS GAINING MOMENTUM

In addition to TVCs, remote patient monitoring is another key component to the virtual care model. Tractica’s definition of remote patient monitoring involves devices, services, and applications that include some form of connectivity (wireless wide area networks, Wi-Fi, Bluetooth, NFC, etc.) and enable the monitoring and managing of a patient’s health, most often in the form of measuring vitals in a non-clinical setting like in the home or in an eldercare facility. Examples for remote patient monitoring include connected devices, such as blood pressure monitors, pulse oximeters, thermometers, glucose monitors, weight scales, and home health hubs/gateways, as well as smartphone apps. Over time, remote monitoring devices will enable the treatment and diagnosis of ailments as well.

Remote patient monitoring is valuable for a number of reasons. This type of offering can provide a new care pathway for sick patients who are challenged to even make the trip to a medical facility. Home monitoring can be less disruptive to patient’s lives. Remote monitoring also addresses some of the demands of a more connected, health-centric, and in-control population. Medical establishments also realize that consumers want more input and decision making power in regard to their own healthcare. Home health technologies offer one avenue to allow for this change in consumer demand.

$-

$10

$20

$30

$40

$50

$60

$70

$80

$90

$100

2015 2016 2017 2018 2019 2020

($ M

illio

ns)



8

Technology is also playing a role in speeding the adoption of remote patient monitoring. The adoption of smartphones and the increased use of wearable devices will make tracking health and medical information easier. The proliferation of wireless connectivity, particularly Wi-Fi, cellular, and Bluetooth, allow new services, such as TVCs and broader home health monitoring services, to be delivered seamlessly.

The use cases for remote patient monitoring are also expanding, including hospitals that want to monitor patients after they are released from a facility; and home health agencies, eldercare facilities, and physicians that want to better monitor chronically ill patients. Adopting and using home health technologies in the pharmaceutical space is nascent, but likely to grow and expand in interesting ways in the coming years. Pharmaceutical firms can reap the benefits of connected health technologies to increase time to market for new drugs, monitor participants in trials, and gather higher quality data, with the ultimate goal of bringing new drugs to market in a faster and safer manner.

As discussed earlier in this paper, ROI is the key to deploying digital health technologies, and there are now demonstrated cost benefits to remote patient monitoring. For example, if a patient has a chronic condition and is using home health technologies to monitor vitals, a change in condition could be detected sooner and acted upon faster, thus reducing medical costs. If a medical profession is able to remotely review patient information, they may be able to recommend a different and less expensive path to care. For example, they can send a patient with a possible heart attack or stroke to the emergency room (ER), or for a more common and less severe problem, to the urgent care facility.

Monitoring at home can also be less expensive for both patients and care facilities. Facilities do not have to hire staff to handle routine checks if they can be done at home, and remotely monitoring at home reduces the space requirements at the healthcare facility, thus reducing overhead costs.

There are, of course, challenges to the remote patient monitoring approach. These include data security, as sensitive health information is being transmitted on a regular basis, and questions around the data itself, such as who will have access to the information collected and how it can be used. In the United States, reimbursement for remote patient monitoring also remains limited, which certainly dampens interest in deploying the technology from a provider’s point of view. There is also the device cost to consider. While these costs are decreasing, connected monitoring devices are still more expensive than non-connected devices. These devices are also bundled together (for example, a blood pressure monitor, pulse oximeter, weight scale, health gateway/hub, or tablet), which can bring the cost up to several hundreds of dollars. Some providers are also concerned about collecting too much data, and the amount of time and resources it will take to review and process this new stream of information.

Furthermore, the fragmented and still developing ecosystem of applications, services, and devices in the remote patient monitoring technology space still poses challenges to adoption and full utilization of capabilities, and will remain until greater interoperability and integration is achieved. Finally, there are questions about usefulness and accuracy of some offerings, particularly on the mobile application side. While this is likely to change over time, as smartphones and wearable devices, such as smart watches, include more sensor technology, this currently presents a very real barrier to adoption.



9

Chart 2.3 Medical Monitoring, Management, Diagnosis, and Treatment Revenue by Region, World Markets: 2014-2020

(Source: Tractica)

2.6 ELDERCARE IS A KEY APPLICATION FOR DIGITAL AND MOBILE HEALTH

Aging populations represent both a challenge for the healthcare system and an opportunity for digital health solutions.

According to the 2013 United Nations report, World Population Ageing, the percentage of people age 60 and above increased from 9.2% of the world’s population in 1990 to 11.7% by 2013, and will reach 21.1% by 2050. In terms of actual individuals, this equates to an increase from 841 million people age 60 and over in 2013 to more than 2 billion in 2050. As people age, they are also more likely to develop chronic conditions, adding to the healthcare burden. According to a Medical Expenditure Panel Survey from 2006, almost three out of four people age 65 and older have multiple chronic conditions, adding to the cost of healthcare for these individuals.

In addition, there is a growing desire and movement to allow people to age at home. While this trend is made difficult as children of older individuals are not always in proximity to care of them, it presents an opportunity for digital and mobile health solutions to help fill the gap and allow older people to live at home for longer periods of time.

Offerings like PERS have existed for some time. A broader of set of solutions is making it easier to monitor older and ill individuals at home. For example, a growing number of PERS solutions use cellular connectivity, making the coverage area for the devices larger and allowing users greater mobility.

A number of companies are expanding the senior care monitoring market beyond PERS, and are selling sensors that can be placed on furniture, appliances, medications, etc., which make it possible to track movements and routines of those living at home and alert caregivers of changes in behavior. Some examples include Mother by Sen.se, which offers sensors

$-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

2014 2015 2016 2017 2018 2019 2020

($ M

illi

on

s)

Middle East & Africa

Latin America

Asia Pacific

Europe

North America



10

called “motion cookies” that can be attached to a number of devices and monitored remotely, and Lively, a connected home health platform for older adults that was acquired by GreatCall Inc. in late 2015. In addition, there is interest in the eldercare opportunity among a broader set of companies, including home health agencies that want to expand their offerings, mobile operators and broadband service providers, and even players in the home security and monitoring space.

Tractica believes the market for eldercare digital health offerings is a profitable and large one, particularly due to the established market for services like PERS, the ongoing recurring revenue derived from PERS (which can range from $25 to $50 per month), and the growth opportunity for new monitoring technologies coming to market. Tractica believes the eldercare device and services market will see an 11.5% CAGR between 2014 and 2020, with revenue increasing from $2.39 billion in 2014 to $4.58 billion by 2020. The majority of the revenue for eldercare services and devices will come from emerging markets, namely North America and Europe.

Chart 2.4 Eldercare Device and Service Revenue by Region, World Markets: 2014-2020

(Source: Tractica)

2.7 WEARABLE BIOSENSORS, PATCHES, AND CLOTHING ARE KEY EMERGING SECTORS

Perhaps one of the most interesting areas of digital health is the emergence of connected wearable patches, biosensors, and clothing.

Connected wearable patches (CWPs) are defined as patches, sensors, tattoos, or small devices that are affixed to the skin and worn for a limited period of time, ranging from an hour to several weeks. The patches also have an element of wireless connectivity, and have a medical, health, or wellness purpose that can range from monitoring physiological data to delivering medication. Tractica believes that connected wearable patches will fall into three main categories: 1) medical monitoring, detection, and diagnosis; 2) medication management and treatment; and 3) health, wellness, and prevention. Tractica does not

$-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

$5,000

2014 2015 2016 2017 2018 2019 2020

($ M

illio

ns)

North America

Europe

Asia Pacific

Latin America




11

include devices with a larger form factor, such as continuous insulin pumps, some cardiac telemetry devices, implantable devices like cardiac pacemakers, and devices that are wired or do not have an element of connectivity, within the definition of CWPs.

There are already a number of use cases and business models for connected medical patches, in clinical and non-clinical settings. Vendors are developing CWPs for use cases ranging from fitness to diagnosing cardiac conditions to transdermal drug delivery (TDD). In addition, early evidence suggests that CWPs can help identify a patient’s health issues and decrease the time a patient spends in a hospital. The cardiac monitoring space already has commercial solutions available (largely due to the high cost of treating and monitoring cardiac patients) from vendors like Medtronic, and Tractica expects others will come to market in the next few years.

The coming years will also see a broadening of use cases and applications for CWPs, such as in the medication monitoring and dispensing space. As an example, Otsuka Pharmaceutical is working with Proteus Digital Health on a medication tablet/pill (the Proteus ingestible sensor) to measure actual medication-taking patterns and physiologic response from the medication. The information from the ingestible sensor is collected from a connected patch the patient wears on their skin, and that data is then transmitted to the physician or patient. Other vendors are bringing more consumer-oriented wearable patches to market. A number of vendors, such as TempTraq, STEMP, and Fever Scout by VivaLnk, monitor body temperature and send the data to a smartphone.

Even with its high potential, the market for CWPs is still very much evolving. A sizable number of vendors are developing solutions for both the home and medical environments. In the long term, connected wearable patches and the information they collect hold the promise of being able to impact treatment and diagnosis, increase medication compliance, and improve population health. While being able to use these types of data and information from connected medical patches to their fullest extent is likely many years away, it provides a glimpse into what medical professionals and researchers hope to achieve through a more connected and data-rich environment. However, a variety of challenges remain, including long development cycles, limitations of sensors and components, regulations and approval processes, and the cost of the devices.

Chart 2.5 provides a forecast for unit shipments of CWPs for both the clinical and non-clinical environments. Due to the nascent state of the market, Tractica assumes a conservative view of shipments. Actual shipments could easily exceed the estimates below, if vendors are able to develop and bring to market products within their stated timeframes. At the present time, Tractica expects unit shipments of CWPs to reach 12.3 million annually by 2020.



12

Chart 2.5 Connected Wearable Patches by Region, World Markets: 2014-2020

(Source: Tractica)

Another area of opportunity in the wearables space is connected clothing. The majority of companies designing connected wearable clothing are focused on the fitness market, mainly athletes or individuals aiming to improve their fitness. However, due the variety of sensors smart clothing vendors are beginning to incorporate, a number of vendors see opportunity for their products for medical use, including cardiac and respiratory monitoring, sleep monitoring, and even position monitoring that can detect a fall or indicate when a patient needs to be moved in order to prevent issues like pressure ulcers. However, due to stricter standards and longer approval and review processes for medical-related wearables, some wearable clothing vendors say they will continue to focus on the fitness and health market.

2.8 BIOMETRICS WILL BE WIDELY USED IN HEALTHCARE

Tractica believes the healthcare industry is a promising market for biometrics. Worldwide healthcare spending is about 10% of the global gross domestic product (GDP), and closer to 18% GDP in the United States, presenting a large opportunity. Healthcare is highly automated, highly regulated, and requires a high level of security and data protection. Squeezed by budget constraints, while medical technology and costs advance, healthcare facilities are eager to find more time to devote to caregiving and less time for ever-increasing administrative tasks.

Unlike other digital technologies discussed in this paper, Tractica believes biometrics will be used for identifying and authenticating patients and providers, rather than diagnosing or treating patients. Therefore, it is likely that biometrics will be embedded in medical devices or systems that are, in turn, embedded into business solutions for healthcare facilities and networks.

Biometrics can be useful in healthcare and applied in a variety of settings. If properly implemented and used correctly, it can improve and speed up the user experience. As

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2014 2015 2016 2017 2018 2019 2020

(Th

ou

san

ds)

North America

Europe

Asia Pacific

Latin America

Middle East &Africa



13

discussed earlier in this report, recent advances in devices, networks, and applications make it easier to provide care remotely. However, remote care requires strong assurance that the correct patient is being treated. Biometrics can provide that assurance. For example, instead of having to answer security questions and remember passwords, patients or providers could verify their identity via a fingerprint or an iris scan. In this type of application, biometrics can help reduce fraud, eliminate mistakes, and decrease costs by helping organizations achieve greater efficiency. Biometrics can also provide improved security when compared to passwords, which are more easily stolen or hacked.

Although the potential is there, biometrics for healthcare remains a nascent market. Success stories are scarce; largely due to the fact that providers and payers are barely dipping their toes in the water, with one-off proofs of concept. To grow this market, biometrics vendors must cultivate the right sales channels, and eventually show ROI or cost savings. Healthcare facilities will not shop directly for biometrics, but will instead seek fully integrated business and healthcare solutions. Those solutions may or may not include biometrics, so it is up to individual vendors to ensure that biometrics are integrated into the building blocks of those solutions.

There are also challenges with biometrics, such as accuracy, which, if not up to par, can frustrate users and harm adoption. There are also concerns about false reject rates and response times. And because of the nature of the market (very new and not commonplace), there may be some lag time in terms of enrollment rates, as consumers will need to become comfortable with this new form of authentication in order to adopt it.

Tractica has examined the market opportunity for biometrics in the healthcare market, as shown in Chart 2.6 below. The global revenue for healthcare biometrics is forecast to increase from $250 million in 2015 to $3.5 million in 2024, at a CAGR of 34%. Total revenue for the 10-year forecast period is $12.5 billion. Biometrics in healthcare is likely to be driven by four key use cases: pharmacy dispensing, care provider authentication, patient identification and tracking, and home/remote patient access. Revenue figures are only for biometrics capabilities added to mobile devices, not for the entire device.



14

Chart 2.6 Healthcare Biometrics Revenue by Region, World Markets: 2015-2024

(Source: Tractica)

2.9 DATA ANALYTICS ARE A KEY PILLAR OF DIGITAL HEALTH

Advances in machine learning and analytics, along with the digitization of health information and growth of big data, are opening new areas of investment and growth within the digital health space. It is likely that these trends will help payers and providers, as well as employers, achieve their goals of greater efficiency, cost savings, and improved patient care.

One area that is seeing a great deal of traction is population health management and healthcare analytics. Payers, providers, and employers alike are recognizing the benefits of identifying patients based on their risk level, and the value that can be gained from both a cost and patient health perspective by intervening and engaging patients.

Tractica believes healthcare analytics and population health management will see the most traction in some developed markets, particularly in the United States, as the country moves from a fee-based model of care to value-based reimbursement. In order to remain competitive, payers and providers will need to use all the tools at their disposal to control costs and provide the best patient care. The increase in the number of ACOs, as shown below, is further helping to drive growth in this market.

$-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

North America

Europe

Asia Pacific

Latin America

Middle East and Africa

($ M

illio

ns)



15

Chart 2.7 Growth in Public and Private ACOs by Quarter, United States: 2011-2015

(Source: Leavitt Partners Center for Accountable Care Intelligence)

The move to EHRs and the growth of connected medical devices provides new data sources that can be harnessed and analyzed in a number of ways, leading to more insights on patient health and provider performance. Big data analytics and machine learning makes it easier to identify and classify patients, manage care, and recommend care plans. Tools like predictive analytics can also be employed to discover when health issues are likely to occur with certain patients. In addition, the availability of cloud-based and software-as-a-service (SaaS)-oriented models is helping to keep costs down, and new revenue models, including share-risk, are helping to drive adoption of PHM and healthcare analytics.

Vendors clearly see the opportunity for PHM and big data analytics, and many are investing in the technology and acquiring smaller companies (for example, IBM purchased population health company Phytel and Explorys, a cloud-based analytics firms). The growth of PHM has also opened the door to a wide range of companies addressing the various aspects of PHM, including data analytics, care management, and patient engagement.

Although the market is expected to experience strong growth in the coming years, barriers to PHM remain. Key challenges include aggregating and analyzing multiple data sets, deployment costs, and long deployment times, acceptance of PHM strategies, and patient engagement. PHM will also require many providers to shift their care model, for example, hiring more care managers and taking a more proactive approach to patient care, a process that will take time to implement.

Tractica forecasts that the market for PHM will see strong growth in the coming years. Due to the fact that deployments can be costly and time intensive, particularly for large institutions, many organizations will take a phased approach to PHM software and services. Tractica forecasts that revenue for PHM software and services will increase from $14 billion in 2015 to $31.9 billion by 2020, at a CAGR of 17.8%. While the portion of overall revenue generated by the North American region will decrease over the forecast period, the region

0

100

200

300

400

500

600

700

800

900

2Q2011

3Q2011

4Q2011

1Q2012

2Q2012

3Q2012

4Q2012

1Q2013

2Q2013

4Q2013

1Q2014

2Q2014

3Q2014

4Q2014

1Q2015

Q22015

Q32015

Q42015

Number ACOs



16

will remain the largest market in terms of overall revenue. Europe is and will remain the second largest market for PHM, although the Asia Pacific region will see the highest growth over the forecast period.

Chart 2.8 Population Health Management Revenue by Region, World Markets: 2014-2020

(Source: Tractica)

2.10 ARTIFICIAL INTELLIGENCE WILL BE A KEY ENABLER OF DIGITAL HEALTH CAPABILITIES

Advances in the areas of artificial intelligence (AI) are broadening its potential in the healthcare market. As spending on healthcare increases worldwide and healthcare premiums continue to rise, all players in the ecosystem are examining ways to curb costs. While there is currently limited adoption of AI, it is growing rapidly, but will not be fully adopted by the sector on a worldwide basis for many years.

AI will likely be used in healthcare in a way similar to how it is applied other industries such as consumer finance, to detect fraud and increase security. This will be increasingly relevant as healthcare continues to move out of the clinical setting into more home-based and remote care, monitoring, and treatment. Eventually, AI may also be used to foster evidence-based medicine.

Another promising use case for AI is in the field of medical diagnostics. Given the complexity of human illnesses and the personal and financial benefits of promoting evidence-based treatments, AI is likely to be adopted more quickly here than in any other part of healthcare.

There are also a number of AI predictive analysis applications. They can be used in business to find new opportunities and identify certain risks. Healthcare is being improved with the use of these AI systems, for example in the area of PHM, as clinical decisions are beginning to be supported by predictive analysis and decision-making software. Predicting which patients are at risk of illnesses, such as diabetes and heart disease, has been instrumental in helping doctors provide better care for their patients.

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

2015 2016 2017 2018 2019 2020

($ M

illio

ns)

North America

Europe

Asia Pacific

Latin America




17

One of the hottest AI technology categories, deep learning is already proving its value in sectors like ad services, investments, and media. Thanks to technologies like electronic medical records (EMRs), wearable devices, medical patches and biosensors, and the Internet of Things (IoT), deep learning will have an increasingly greater impact on sectors such as healthcare. Deep learning will find many of its most important uses as an enabling technology for voice recognition, natural language processing (NLP), and image recognition. In countries with high health expenses, governments may use it to push for the adoption of evidence-based medicine. Despite slow adoption, healthcare executives must pay attention to this technology, because of its potential to enable a low-touch business model that companies like Walmart and Target have mastered.

A number of vendors are already active in the AI healthcare market. For example, IBM is heavily invested in AI, actively researching and developing next-generation analytics platforms like Watson. The Watson platform is currently being deployed and tested in a variety of settings, such as healthcare diagnostics and population-level sentiment analysis. AiCure has developed mobile apps that use facial recognition to determine if patients are taking the medication. Next IT has developed virtual health coaches to guide patients through treatment, with the potential to improve the efficacy of medicine. Many more vendors with AI offerings will emerge in the years to come to tackle varying needs of the healthcare system.

There do remain challenges. Healthcare is often slow to adopt certain types of technology, and the ROI for this emerging area remains largely unproven. There are also challenges in terms of patient and provider awareness, and receptiveness to use these technologies. While some AI technologies will be used worldwide across different regions, differences in culture, healthcare infrastructure maturity, and the design of healthcare systems in different regions of the world will result a variety of different adoption rates.

Tractica believes the healthcare industry will lag behind other sectors in adopting AI and use will be inconsistent. Implementations and technology will vary widely across regions, reflecting the different ways societies and cultures see health. In countries with high health expenses, governments may push for adoption and may use AI technology to drive evidence-based medicine. Chart 2.9 shows the market for AI revenue in the healthcare industry between 2015 and 2024. Tractica forecasts that the market will grow from $1.5 million in 2015 to more than $80 million by 2020.



18

Chart 2.9 Artificial Intelligence Revenue in the Healthcare Industry by Region, World Markets: 2015-2024

(Source: Tractica)

2.11 CONCLUSIONS

Tractica believes that ROI will continue to be a driving force in the adoption of digital health technologies. As new use cases emerge, vendors, payers, and providers will continue to work to improve cost savings, furthering investment in this area. However, digital health technologies are not without their challenges. In fact, many of the technologies discussed in this white paper face similar challenges, including costs, deployment time, and data security concerns. In addition, interest in digital health will come from a variety of organizations, including governments, payers, care providers, pharmaceutical and health science companies, traditional technology firms, and even employers, all of whom are searching for efficiencies, cost savings, and ways to differentiate.

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

North America

Western Europe

Eastern Europe

Asia Pacific

Latin America

Middle East

Africa

($ M

illio

ns)



19

SECTION 3

COMPANY DIRECTORY

Athenahealth 311 Arsenal Street Watertown, MA 02472 USA www.athenahealth.com +1.800.981.5084 AICure 19 West 24th Street New York, NY 10010 USA www.aicure.com +1.800.570.0448 Cerner 2800 Rockcreek Parkway North Kansas City, MO 64117 www.cerner.com +1.816.221.1024 GreatCall 10935 Vista Sorrento Pkwy, Suite 200 San Diego, CA 92130 USA www.greatcall.com +1.858.720.7500 Health Net Connect 50496 Pontiac Trail Wixom, MI 48393-2088 http://healthconnectlive.com +1.855.284.3363 IDEAL Life 2200 Yonge Street, Suite 1300 Toronto, ON M4S 2C8 Canada www.ideallife.com +1.888.433.2541 International Business Machines Corp. New Orchard Road Armonk, NY 10504 USA www.ibm.com +1.914.499.1900 Lively P.O. Box 29003 San Francisco, CA 94129 www.lively.com +1.877.697.3533

Mercy www.mercy.net Medtronic 20 Lower Hatch Street Dublin 2, Ireland www.medtronic.com +1.800.633.8766 Next IT 12809 E. Mirabeau Parkway Spokane Valley, WA 99216 USA http://www.nextit.com/about-us/ +1.509.242.0767 Otsuka America Pharmaceutical, Inc. 508 Carnegie Center Princeton, NJ 08540 USA http://www.otsuka-us.com +1.609.524.6788 Philips Healthcare P.O. Box 10.000 5680 DA Best, The Netherlands www.healthcare.philips.com Proteus Digital Health 2600 Bridge Parkway Suite 101 Redwood City, CA 94065 USA www.proteus.com +1.650.632.4031 Qualcomm 5775 Morehouse Drive San Diego, CA 92121 www.qualcomm.com +1.858.587.1121 Sen.se https://sen.se/mother/ STEMP www.getstemp.com



20

Teladoc, Inc. 1945 Lakepointe Drive Lewisville, TX 75057 USA www.teledoc.com +1.844.798.3810 VivaLnk (FeverScout) 4655 Old Ironsides Drive, Suite 390 Santa Clara, CA 95054 USA www.vivalnk.com +1.408.868.2898

Wellcentive 100 North Point Center East, Suite 320 Alpharetta, GA 30022 USA www.wellcentive.com +1.877.295.0886



21

SECTION 4

ACRONYM AND ABBREVIATION LIST

Accountable Care Organization .............................................................................................................. ACO

Artificial Intelligence ..................................................................................................................................... AI

Children’s Health Alliance ........................................................................................................................CHA

Compound Annual Growth Rate ........................................................................................................... CAGR

Connected Wearable Patch .................................................................................................................... CWP

Electronic Health Record .........................................................................................................................EHR

Emergency Department ............................................................................................................................. ED

Emergency Room ...................................................................................................................................... ER

Gross Domestic Product ......................................................................................................................... GDP

Information Technology ................................................................................................................................ IT

Internet of Things ....................................................................................................................................... IoT

Intensive Care Unit .................................................................................................................................... ICU

Natural Language Processing .................................................................................................................. NLP

Personal Emergency Response Systems ............................................................................................. PERS

Population Health Management .............................................................................................................. PHM

Return on Investment ................................................................................................................................ ROI

Software-as-a-Service ............................................................................................................................ SaaS

Telehealth Intensive Care Unit ........................................................................................................... TeleICU

Telehealth Video Consultations ............................................................................................................... TVC

Transdermal Drug Delivery ...................................................................................................................... TDD



22

SECTION 5

TABLE OF CONTENTS

SECTION 1 ...................................................................................................................................................... 1 Introduction ................................................................................................................................................. 1 SECTION 2 ...................................................................................................................................................... 2 10 Key Digital Health Trends to Watch ..................................................................................................... 2

2.1 Return on Investment is a Top Priority .......................................................................................... 2 2.2 The Market is Moving to a Virtual Care Model .............................................................................. 3 2.3 Digital Health Use Cases are Expanding ...................................................................................... 4 2.4 Telehealth Video Consultations are Beginning to See Strong Traction ........................................ 4 2.5 Remote Patient Monitoring is Gaining Momentum ....................................................................... 7 2.6 Eldercare is a Key Application for Digital and Mobile Health ........................................................ 9 2.7 Wearable Biosensors, Patches, and Clothing are Key Emerging Sectors ................................. 10 2.8 Biometrics will be Widely Used in Healthcare ............................................................................. 12 2.9 Data Analytics are a Key Pillar of Digital Health ......................................................................... 14 2.10 Artificial Intelligence will be a Key Enabler of Digital Health Capabilities ................................... 16 2.11 Conclusions ................................................................................................................................. 18

SECTION 3 .................................................................................................................................................... 19 Company Directory ................................................................................................................................... 19 SECTION 4 .................................................................................................................................................... 21 Acronym and Abbreviation List ............................................................................................................... 21 SECTION 5 .................................................................................................................................................... 22 Table of Contents ...................................................................................................................................... 22 SECTION 6 .................................................................................................................................................... 23 Table of Charts and Figures..................................................................................................................... 23 SECTION 7 .................................................................................................................................................... 24 Additional Reading ................................................................................................................................... 24 SECTION 8 .................................................................................................................................................... 28 Scope of Study .......................................................................................................................................... 28 Sources and Methodology ....................................................................................................................... 28 Notes .......................................................................................................................................................... 29



23

SECTION 6

TABLE OF CHARTS AND FIGURES

Chart 2.1 Total Telehealth Video Consultation Sessions, Clinical and Non-Clinical, World Markets: 2014-2020 ................................................................................................................ 6 Chart 2.2 Telepresence Robot Revenue in the Healthcare Market, World Markets: 2015-2020 ........... 7 Chart 2.3 Medical Monitoring, Management, Diagnosis, and Treatment Revenue by Region, World Markets: 2014-2020 ...................................................................................................... 9 Chart 2.4 Eldercare Device and Service Revenue by Region, World Markets: 2014-2020 ................. 10 Chart 2.5 Connected Wearable Patches by Region, World Markets: 2014-2020................................. 12 Chart 2.6 Healthcare Biometrics Revenue by Region, World Markets: 2015-2024 .............................. 14 Chart 2.7 Growth in Public and Private ACOs by Quarter, United States: 2011-2015 ......................... 15 Chart 2.8 Population Health Management Revenue by Region, World Markets: 2014-2020 .............. 16 Chart 2.9 Artificial Intelligence Revenue in the Healthcare Industry by Region, World Markets: 2015-2024 ............................................................................................................................. 18 Chart 5.1 Tractica Research Methodology ............................................................................................ 29



24

SECTION 7

ADDITIONAL READING

Tractica's Digital Health advisory service examines technologies, business models, and industry dynamics surrounding the burgeoning market for connected healthcare. Major topics analyzed within the service include mobile health, home health technologies, healthcare information systems, wearables for health and fitness, and the application of artificial intelligence and robotics to the healthcare industry. Tractica's Digital Health research reports provide an in-depth analysis of market issues and business models, end-user demand, technology development, and the competitive landscape, in addition to global market sizing and segmentation for connected health devices, software, and services.

Artificial Intelligence for Enterprise Applications Deep Learning, Predictive Computing, Image Recognition, Speech Recognition, and Other AI Technologies for Enterprise Markets: Global Market Analysis and Forecasts

Published 2Q 2015 https://www.tractica.com/research/artificial-intelligence-for-enterprise-applications/ This Tractica report examines the practical application of artificial intelligence within commercial enterprises. The technologies covered include cognitive computing, deep learning, machine learning, predictive APIs, natural language processing, image recognition, and speech recognition. The report presents 10-year forecasts for AI software, along with AI-driven services and hardware sales, for the period from 2015 through 2024. Forecasts are segmented by world region as well as by technology and industry application. The study also includes detailed profiles of more than 30 key industry players. Biometrics in the Healthcare Industry Patient Identification and Tracking, Care Provider Authentication, Pharmacy Dispensing, and Home/Remote Patient Access: Market Analysis and Forecasts

Published 3Q 2015 https://www.tractica.com/research/biometrics-in-the-healthcare-industry/ This Tractica report analyzes the market opportunity for biometrics in the healthcare industry, including 10-year forecasts for the period from 2015 through 2024. The report examines four use cases specific to healthcare, with a focus on biometrics to identify and authenticate people, rather than diagnosing or treating patients. The report forecasts revenue, device shipments, and software licensing volumes. Within each world region, market forecasts are further segmented by biometrics modality and use case. The report also includes profiles of 19 key industry players in the healthcare biometrics market.



25

Connected Wearable Patches Clinical and Non-Clinical Patches for Patient Monitoring, Treatment, and Health & Wellness Applications: Global Market Analysis and Forecasts Published 2Q 2015

https://www.tractica.com/research/connected-wearable-patches/

This Tractica report examines the market trends, drivers and barriers, applications and use cases, technology issues, and key industry players for connected wearable patches within the clinical and non-clinical environments. It presents forecasts for unit shipments, revenues, ASPs, and segments/use cases during the period from 2014 through 2020. The report focuses on three main use cases for connected wearable patches: medical monitoring, detection, and diagnosis; medication management and treatment; and health, wellness, and prevention.

Home Health Hubs Standalone and Mobile/Wearable Home Health Hubs for Chronic Conditions, Pharma, Eldercare, and Health and Wellness: Global Market Analysis and Forecasts

Published 2Q 2015

https://www.tractica.com/research/home-health-hubs/

This Tractica report examines the market trends, drivers and barriers, applications/use cases, and technology issues surrounding home health hubs, including standalone hub devices as well as hub applications that can be downloaded and accessed on mobile devices and wearable devices. The study includes global forecasts for users, revenue, and use cases during the period from 2014 through 2020. Various aspects of the market dynamics surrounding home health hubs are examined, and the report also includes profiles of key industry players.

Home Health Technologies Medical Monitoring and Management, Remote Consultations, Eldercare, and Health and Wellness Applications: Global Market Analysis and Forecasts

Published 1Q 2015

https://www.tractica.com/research/home-health-technologies/

This Tractica report examines the market trends and technology issues surrounding home health monitoring and presents global market forecasts for users, services, and applications during the period from 2014 through 2020. Services, devices and applications are analyzed in depth, and the report also includes profiles of key industry players across the home health ecosystem. Market forecasts, which are segmented by world region, include 20 different market segments and product categories within the areas of medical monitoring and management, remote consultations, eldercare, and health and wellness.



26

Population Health Management Data Management, Analytics, Care Plan Development and Management, and Care Coordination and Patient Interaction: Global Market Analysis and Forecasts

Published 4Q 2015

https://www.tractica.com/research/population-health-management-software-and-services/

This Tractica report examines the global market opportunity for PHM software and services, including an assessment of market drivers and barriers, applications and use cases, technology issues, and key industry players. It presents revenue forecasts on a global and regional basis during the period from 2015 through 2020. The report focuses on the main applications for PHM software, including care coordination and patient interaction, care plan development and management, analytics, and data management, along with PHM services such as outsourced care and coaching, consulting, ongoing maintenance, and implementation.

Telehealth Video Consultations Remote Video Consultations in Clinical and Non-Clinical Environments: Global Market Analysis and Forecasts

Published 2Q 2015

https://www.tractica.com/research/telehealth-video-consultations/

This Tractica report examines the market trends, drivers and barriers, use cases, business models, and technology issues surrounding telehealth video consultations for both clinical and non-clinical applications. It presents forecasts for TVC sessions and revenue during the period from 2014 through 2020, segmented by session type and world region. The report also includes in-depth profiles of 18 key industry players.

Telepresence Robots Telecommuting, Teleconference, Tele-education, Telemedicine, and Remote Monitoring: Global Market Analysis and Forecasts Published 4Q 2015 https://www.tractica.com/research/telepresence-robots/ This Tractica report examines the market trends and technology issues surrounding telepresence robots, and presents 5-year forecasts for telepresence robot systems during the period from 2015 through 2020. Telepresence robot application markets are analyzed in depth, and the report also includes detailed profiles of key industry players. This market forecast is segmented by world region, including unit shipments, unit pricing and revenue, application pricing, and application revenue.



27

Wearable Devices for Enterprise and Industrial Markets Corporate Wellness, Manufacturing, Warehouse, Field Maintenance, Mobile Workforce Management, First Person Communications, Holographic Modeling, Workplace Authentication, and Other Applications

Published 2Q 2015

https://www.tractica.com/research/wearable-devices-for-enterprise-and-industrial-markets/

This Tractica report provides a comprehensive examination of the market opportunity for enterprise and industrial wearables, analyzing various device categories, their specific roles, and adoption timelines in the workplace. Key device categories include smart watches, smart glasses, fitness trackers, smart clothing, body sensors, wearable cameras, and other wearables. The report also contains market sizing and forecasts from 2013 through 2020, providing shipments and revenues along with segmentation by device category, region, and enterprise and industrial use cases.



28

SECTION 8

SCOPE OF STUDY

This Tractica white paper highlights 10 key market trends for digital health technologies, services and applications that are worth watching as the market moves from an early adopter stage to becoming a mass-market proposition. Among the categories covered are population health management, home health and remote monitoring technologies, eldercare, connected wearable patches and biosensors, and telehealth video consultations. The white paper provides a comprehensive view of the digital health market with its diversified set of products and services that are seeing varying levels of traction in different regions of the world. These trends are based on the ongoing research and analysis that is part of Tractica’s Digital Health Advisory Service.

SOURCES AND METHODOLOGY

Tractica is an independent market research firm that provides industry participants and stakeholders with an objective, unbiased view of market dynamics and business opportunities within its coverage areas. The firm’s industry analysts are dedicated to presenting clear and actionable analysis to support business planning initiatives and go-to-market strategies, utilizing rigorous market research methodologies and without regard for technology hype or special interests including Tractica’s own client relationships. Within its market analysis, Tractica strives to offer conclusions and recommendations that reflect the most likely path of industry development, even when those views may be contrarian.

The basis of Tractica’s analysis is primary research collected from a variety of sources including industry interviews, vendor briefings, product demonstrations, and quantitative and qualitative market research focused on consumer and business end-users. Industry analysts conduct interviews with representative groups of executives, technology practitioners, sales and marketing professionals, industry association personnel, government representatives, investors, consultants, and other industry stakeholders. Analysts are diligent in pursuing interviews with representatives from every part of the value chain in an effort to gain a comprehensive view of current market activity and future plans. Within the firm’s surveys and focus groups, respondent samples are carefully selected to ensure that they provide the most accurate possible view of demand dynamics within consumer and business markets, utilizing balanced and representative samples where appropriate and careful screening and qualification criteria in cases where the research topic requires a more targeted group of respondents.

Tractica’s primary research is supplemented by the review and analysis of all secondary information available on the topic being studied, including company news and financial information, technology specifications, product attributes, government and economic data, industry reports and databases from third-party sources, case studies, and reference customers. As applicable, all secondary research sources are appropriately cited within the firm’s publications.

All of Tractica’s research reports and other publications are carefully reviewed and scrutinized by the firm’s senior management team in an effort to ensure that research methodology is sound, all information provided is accurate, analyst assumptions are carefully documented, and conclusions are well-supported by facts. Tractica is highly responsive to feedback from industry participants and, in the event errors in the firm’s research are identified and verified, such errors are corrected promptly.



29

Chart 8.1 Tractica Research Methodology

(Source: Tractica)

NOTES

CAGR refers to compound annual growth rate, using the formula:

CAGR = (End Year Value ÷ Start Year Value)(1/steps) – 1.

CAGRs presented in the tables are for the entire timeframe in the title. Where data for fewer years are given, the CAGR is for the range presented. Where relevant, CAGRs for shorter timeframes may be given as well.

Figures are based on the best estimates available at the time of calculation. Annual revenues, shipments, and sales are based on end-of-year figures unless otherwise noted. All values are expressed in year 2016 U.S. dollars unless otherwise noted. Percentages may not add up to 100 due to rounding.

PRIMARY

RESEARCH

SECONDARY

RESEARCH

SUPPLY SIDE DEMAND SIDE

Industry Interviews

Vendor Briefings

Product Evaluations

End-User Surveys

End-User Focus Groups

Company News & Financials

Technology & Product Specs

Government & Economic Data

Case Studies

Reference Customers

QUALITATIVE

ANALYSIS

QUANTITATIVE

ANALYSIS

Company Analysis

Business Models

Competitive Landscape

Technology Assessment

Applications & Use Cases

MarketSizing

Market Segmentation

Market Forecasts

Market Share Analysis

Scenario Analysis

MARKET RESEARCH

MARKET ANALYSIS



30

Published 1Q 2016

© 2016 Tractica LLC

1111 Pearl Street, Suite 201

Boulder, CO 80302 USA

Tel: +1.303.248.3000

Email: [email protected]

www.tractica.com

This publication is provided by Tractica LLC (“Tractica”). This publication may be used only as expressly permitted by license from Tractica and may not otherwise be reproduced, recorded, photocopied, distributed, displayed, modified, extracted, accessed or used without the express written permission of Tractica. Notwithstanding the foregoing, Tractica makes no claim to any Government data and other data obtained from public sources found in this publication (whether or not the owners of such data are noted in this publication). If you do not have a license from Tractica covering this publication, please refrain from accessing or using this publication. Please contact Tractica to obtain a license to this publication.

white paperthis tractica white paper examines 10 trends that are key factors in the ongoing...

Documents