BIG DATA BIG BUSINESS IN MHEALTH?
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1 BIG DATA BIG BUSINESS IN MHEALTH? Ralf Jahns, MD Research 2 Speaker twitter handle research2guidance
2 R2G IS THE ANALYST AND STRATEGY CONSULTANT OF THE DIGITAL HEALTH MARKET K YEARS IN BUSINESS 10 CONSULTANTS RUNNING WORLD S BIGGEST ANNUAL SERVED 50 FORTUNE 500 CLIENTS TO DEFINE THE CONTACT BASE OF 50K MHEALTH SPECIALIZED ON MHEALTH RESEARCH MOBILE APP STRATEGY DEVELOPERS AND DIGITAL HEALTH PROGRAM SINCE 6 YEARS PUBLISHERS research2guidance
3 THE MHEALTH MARKET IS BECOMING CROWDED MHEALTH APP PUBLISHERS MHEALTH APPS MHEALTH APP DOWNLOADS > 80,000 > 325,000 >3.7 bn Source: research2guidance - mhealth App Developer Economics study 2017 research2guidance
4 BUT ONLY 32% OF DIGITAL HEALTH INNOVATIONS ARE COMING FROM THE INDUSTRY MHEALTH APP MARKET COMPANY SEGMENTATION University 4% Telecommunications 1% App developer/ Agency 4% Consultancy/ Market research company 5% Government 1% Education/Training company 3% Non-profit organization (NGO) 3% IT/Tech company 13% Other 6% Investor 1% Nonhealthcare 23% Traditional healthcare 32% Healthcare 60% Digital health 28% Medical device 9% Pharma 6% Health insurance 6% Hospital 5% Telehealth service 3% Independent practitioner 1% Medical Publishers 1% Sport/ Fitness company 1% 32% Traditional health care company share Accelerator/Incubator 2% mhealth app company 26% Source: research2guidance - mhealth App Developer Economics study 2017 research2guidance
5 TODAY: AN APP IS NOT JUST AN APP Apps & SDKs 2 Track and help to self-manage Community Sensors 3 Automate input Integrate 6 D-Devices 4 1 Engaging and beautiful Coach and consult 5 Save data Health plan EHR Physician dashboard Source: research2guidance - mhealth App Developer Economics study 2017 research2guidance
6 MOST OF THE APP CATEGORIES TRACK USER GENERATED DATA Other, 11.50% Compliance, 1.60% Tools, 1.80% Medical Reference, 23.70% Children's Health, 5.00% Medical Education, 7.70% mhealth apps Medical Condition Management, 7.60% Women's Health, 8.60% Sample size n=1,030, ios and Android apps Source: Research2Guidance; App Annie; Prioridata; Apple App Store; Google Play. Nutrition & Wellness, 11.60% Fitness (Health Improvement), 21.00% research2guidance
7 CURRENTLY 110M PEOPLE ARE ACTIVELY USING MHEALTH APPS MHEALTH MONTHLY ACTIVE USERS #8OCTOBER 2017, GLOBAL IOS/ANDROID Medical, 14% 110 Million mhealth users Health&Fitness, 86% research2guidance
8 ACTIVE USERS MAINLY GENERATE HEALTH AND FITNESS TRACKING DATA MHEALTH METRICS BY MONTHLY ACTIVE USERS 50 MAU (In m) Health&fitness tracking Steps, duration, speed, heart rate, hydration, perspiration, mood, calories & other nutritional values, sleep 10 1 Patient monitoring Blood pressure, temperature, glucouse level, posture, medicine adherence, mouth hygiene, alcohol consumption, sun exposure Medical examination Respiratory rate, lung air volume, ECG, EEG, blood tests, color tests, urine tests, ultrasound imaging No. of metrics Source: research2guidance mhealth App Developer Economics research2guidance
9 THE MARKET WAS ABLE TO CAPTURE 18BN USD IN BIG DATA HAS NOT HAD A SIGNIFICANT SHARE YET MHEALTH APP MARKET SIZE 2016 Service Sales, 10% Transactions, 5% Paid downloads, 3% Advertisment, 1% 18 Bn USD Device Sales, 51% External Financing, 30% Source: research2guidance - mhealth App Developer Economics study 2017, R2G mhealth App Market Sizing research2guidance
10 THERE ARE ONLY A FEW MAKING BIG MONEY WITH MHEALTH REVENUE GENERATE WITH MHEALTH APPS LAST YEAR (2016) 6% decrease in revenue below US$10,000 LOW-ANNUAL REVENUE EARNERS MID-ANNUAL REVENUE EARNERS HIGH-ANNUAL REVENUE EARNERS Poverty Line 69% 4% 40% 13% 10% 9% 7% 16% -5% -1% 3% 3% -4% 2% 1% 1% 3% 1% Change since 2016 No revenues Below 10K 10K - 50K 50K - 100K 100K - 1M 1M - 5M 5M - 10M Above 10M USD Low earners High earners Europe (55%) Region North America (64%) 2.7 # of apps published 6.6 $146,000 External budget $389,000 89k Downloads in m 76% Developing for ios 91% Premium content (33%) Monetization Licensing (58%) 52% Health APIs integrated 79% 27% EHR integrated 65% Source: Research2Guidance - mhealth App Developer Economics study n = 2,400 research2guidance
11 WHAT ARE THE BUSINESS MODELS FOR BIG DATA IN MEDICAL DRIVING COMPANY EVALUATION OPEN PLATFORM /SELLING DEVICES SUPPORTING RESEARCH SUPERIOR APP USER SERVICE HCP SUPPORT QUALITY AND EFFICIENCY RESEARCH Drive MAU numbers up and develope potential Big Data use cases to drive company evaluation Let research institution/unsiversi ties buy devices to fill an open platform Enrich self empowerment serivces via pattern recognition and AI Supporting HCP diagnoses, treatment plan writing Efficiency and quality gains in medical trails EG. Myfitness Pal Clue EG. Body sounds EG. Medtronic SugrIQ EG. IBM Watson on Oncology EG. Medical trails MOST BIG DATA BUSINESS MODELS TODAY DON T HAVE AN IMPACT ON COMPANY S P&L research2guidance
12 MYFITNESSPAL STILL IS THE LARGEST DEAL IN THE MHEALTH INDUSTRY EXAMPLE MYFITNESSPAL Data: Steps, food consumption Purchased by Under Armour in 2015 Deal: $475 M $5-7 US per cumulated download $ US per active user research2guidance
13 LARK PROVIDE DIGITAL HEALTH COACHING THROUGH AI EXAMPLE LARK How much it cost? 22 per month YTD Downloads? 40,000 research2guidance
14 IT IS STILL A LONG WAY TO MAKE MEANINGFULL USE OF THE DATA TO SUPPORT SERVICE SALES EXAMPLE SUGAR.IQ The app only provides insights into retrospective events It links user to educational resources Supporting behaviour change Source: research2guidance - mhealth App Developer Economics study 2017 research2guidance
15 OTHER CONCEPTS TRY TO MONETIZE ON SUPPORTING RESEARCH EXAMPLE THINKLABS Open platform project to save sound data Captured by the company s connected stethoscope Drive device sales research2guidance
16 THANK YOU. FREE DOWNLOAD MHEALTH APP DEVELOPER ECONOMICS 2017 REPORT Current status and trends participants 26 pages Free download Ralf-Gordon Jahns Phone: +49 (0) research2guidance
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