Internet of Things (IoT) is transforming the pharmaceutical industry at a rapid pace. IoT has the potential to enhance almost all the processes of the pharmaceutical industry ranging from clinical trials, drug disclosure, manufacturing, and supply chain to remote patient monitoring, according to GlobalData, a leading data and analytics company.
IoT software and services in pharmaceutical industry is expected to grow from US$420million in 2015 to US$2,486 million by 2020, at a Compound Annual Growth Rate (CAGR) of 42.7% from 2016 to 2020. It is to be noted that Global IoT market will hit $1.29 trillion of worth By 2020, according an IDC-Aeris report.
Alok Singh, Senior Technology Analyst, at GlobalData, comments: “IoT software and services effortlessly connect and create the base upon which IoT applications and use cases can be realized to develop a comprehensive solution that will benefit organizations to reduce response times, enhance product quality, security, and boost performance.”
“IoT software and services spending is driven by the large adoption of cloud platform as a service (PaaS) along with advanced data analytics, new application, and use cases, which transforms data into substantial information and eventually into the activity that will boost business productivity, or better customer service.”
GlobalData’s pharmaceutical IoT software and services revenue forecast depicts significant growth in the Asia Pacific region, to reach a value of $655 million by 2020, growing almost fivefold against the 2015 baseline. The Asia-Pacific region’s robust IoT software and services growth in the pharmaceutical sector is primarily driven by the large number of upcoming pharmaceutical manufacturing organizations, increasing expenditure, high internet penetration rates, government investment policies, demand for quality treatment, and rising adoption of new technologies like cloud computing, big data, and artificial intelligence (AI).
Moreover, it is interesting to note that Middle East & Africa (MEA) will deliver the fastest overall growth in IoT spending with a five-year CAGR of 49.9%, but from a far smaller base. Meanwhile, North America and Europe are the largest regions in terms of investment at the beginning of the forecast period and combined represent a $1.5 billion market by 2020.
Singh concludes: “IoT will revolutionize the way pharmaceutical organization will operate and do business. IoT software and services can help pharmaceutical organizations to digitize and connect critical actions, increase efficiencies, compliance, and persuade product quality that will benefit organizations to achieve a faster time to value.”
Using IoT platforms and solutions, pharmaceuticals companies can digitize and connect vital functions, elevate efficiencies, and assure product quality and compliance. Pharma companies must follow strict guidelines for determining the way a drug is transported, administered, and consumed. Thus, tracking the movement of drug
inventory at every point can potentially save supply chain participants billions of dollars, says an IoT report by Cognizant.
To recall, an another report IoT’s market is projected to grow from $16B in 2016 to $195 Billion in 2023. This exponential growth is courtesy the ubiquitous manufacturing of smarter mobile, in-home, and transportation devices and the increased interest in capturing that data and enhance communication infrastructure.
Speaking about India in particular a report by research and strategy consultancy Zinnov Zones has highlighted that the India holds a whopping 43% of the global IoT market. The second position was occupied by Western Europe with 27 per cent and North America with 23 per cent.