RESEARCH REPORT. Published 2Q CHARUL VYAS Principal Analyst. CLINT WHEELOCK Managing Director

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1 RESEARCH REPORT NOTE: This document is a free excerpt of a larger research report. If you are interested in purchasing the full report, please contact Tractica at sales@tractica.com. EXECUTIVE SUMMARY Home Health Technologies Medical Monitoring and Management, Remote Consultations, Eldercare, and Health and Wellness Applications: Global Market Analysis and Forecasts Published 2Q 2015 CHARUL VYAS Principal Analyst CLINT WHEELOCK Managing Director

2 EXECUTIVE SUMMARY 1.1 INTRODUCTION The home health technology market is poised for strong growth throughout this decade and will have an impact on nearly every area of the healthcare ecosystem. Defined as connected devices, services, and applications used by a consumer outside of a clinical setting for medical, health, or wellness purposes, home health technology adoption will be driven by the need to curb healthcare costs, yet provide better outcomes, adjust to demographic changes, mange population health issues, and address the demands of a more connected, health-centric, and in-control population. Tractica sees home health technologies addressing four main use cases: (1) chronic care and post-acute care; (2) routine, non-emergency, ongoing care, and treatment; (3) eldercare; and (4) health maintenance and wellness. The tools used to address these use cases will vary by patient need and patient condition, but will include remote medical monitoring, management, treatment, and diagnosis devices and services, as well as remote consultations (evisits), smartphone and wearable applications, emergency response solutions, and devices designed to help in maintaining a healthy lifestyle. 1.2 KEY FINDINGS A combination of financial pressures, demographic changes, and technology advancements demonstrate the need for home health solutions. Healthcare costs are driven by medical and technological advances, but also by changing demographic and growing health problems. Key to cost containment is identifying and implementing ways to reduce spending on chronic disease care and management. It is estimated that 60% of all healthcare spending is for individuals with chronic conditions. In addition, the aging global population will impact healthcare spending. Today, approximately 12% of the world s population is over age 60 and the percentage of people in this demographic group is expected to double by As people age, they are also much more likely to develop a chronic condition. This clearly opens up opportunity for chronic disease management, eldercare, and aging on home initiatives. Technology is the third piece of the puzzle that will move the needle on connected home health offerings. Medical establishments realize that consumers want more input and decision making power in regard to their own healthcare. Home health technologies offer one avenue to allow this change in consumer demand. In addition, the adoption of smartphones and rise of wearable devices makes tracking health and medical information easier. Finally, the proliferation of wireless connectivity, particularly Wi-Fi, cellular, and Bluetooth, allow new services, such as remote consultations and broader home health monitoring services, to be delivered in a seamless way. Data security is another prominent issue that may prevent uptake, both on the healthcare provider side as well as the consumer side of the equation. Consumers themselves are also likely to have privacy concerns regarding the use of their data. In addition, legislative and regulatory variation and uncertainty, particularly for applications across countries, presents another hurdle to overcome. 1

3 The fragmented and still developing ecosystem of applications, services, and devices in home health technology still poses challenges to adoption and full utilization of capabilities. Attention will also need to be focused on interoperability and integration issues with existing healthcare infrastructure and systems, both useful to help create a more rounded picture of patient health, particularly as the amount and nature of patient health data collected grows. Finally, usefulness and accuracy of some home health offerings, particularly on the mobile application side, vary in terms of usefulness and accuracy. 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. 1.3 MARKET FORECAST This report examines the potential market for home health technologies worldwide. Tractica forecasts that the market for devices, services, and applications in this area will see strong growth over the 2014 to 2020 forecast period. Starting from a base of $3.3 billion in 2014, Tractica anticipates that revenue from devices, services, and applications will reach $13.7 billion by 2020, a healthy compound annual growth rate (CAGR) of 26.6% over the forecast period. Chart 1.1 Total Home Health Technologies Revenue by Region, World Markets: ($ Millions) $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 Middle East and Africa Latin America Asia Pacific Europe North America $4,000 $2,000 $ (Source: Tractica) 2

4 ACRONYM AND ABBREVIATION LIST Accountable Care Organization... ACO Application Programming Interface... API Average Selling Price... ASP Bluetooth Low Energy... BLE Bring Your Own Device... BYOD Business-to-Business... B2B Centers for Disease Control... CDC Chief Executive Officer... CEO Compounded Annual Growth Rate... CAGR Continuous Glucose Monitor... CGM Data Protection Act... DPA Economist Intelligence Unit... EIU Electrocardiogram... ECG Electroencephalogram...EEG Electronic Health Records...EHR Electronic Medical Records... EMR Emergency Room... ER European Conformity... CE European Union... EU Federal Drug Administration... FDA Fourth Generation... 4G Global Positioning Satellite...GPS Gross Domestic Product... GDP The Health Insurance Portability and Accountability Act of HIPAA High Definition... HD 94

5 In Case of Emergency... ICE Information Technology... IT Integrated Circuit... IC Interactive Voice Response... IVR Internet of Things... IoT Local Area Network... LAN Long Term Evolution...LTE Machine-to-Machine... M2M Metropolitan Statistical Area... MSA National Health Service...NHS Near Field Communications... NFC Personal Area Network... PAN Personal Emergency Response System... PERS Personal Health Record...PHR Plain Old Telephone Service... POTS Quick Response... QR Radio Frequency... RF Radio Frequency Identification... RFID Scalable Voice Coding... SVC Short Message Service... SMS Subscriber Identity Module... SIM Television... TV United Nations... UN Universal Serial Bus... USB Wide Area Network... WAN Wireless Body Area Network... WBAN 95

6 TABLE OF CONTENTS... 1 Executive Summary Introduction Key Findings Market Forecast Market Issues Overview and Definitions Home Health Technology Ecosystem Market Conditions and the Need for Home Health Technologies Healthcare Costs, Aging Populations, and Chronic Disease Healthcare Costs Aging Populations Chronic Conditions Impact on Ecosystem Players Managed Care Companies and National Health Systems Healthcare Systems and Providers Pharma Technology Vendors Mobile Operators and Broadband Service Providers Consumers Applications for Home Health Marketing Chronic Care and Post-acute Care Routine or Regular Care Eldercare/Aging Population Health and Wellness Benefits Providers/Healthcare Industry Consumers Drivers Improving Healthcare, Reducing Costs Government Encouragement and Changes in Compensation Aging Population Technological Advances Connected Consumers Challenges and Issues Legislation Government Regulation and Uncertainty Liability Data Use Security and Risk Physicians Health Insurance Companies Ease and Frequency of Use Accuracy Multiple Devices and Services Interoperability and Integration

7 2.9 Business Models Costs Hardware and Software Services Applications Competition User Experience Consumer Medical Professionals Technology Issues Interfaces and Networks Data Rates Range Battery Life Size Precision Interoperability Data Security and Compliance Devices Services and Applications Key Industry Players AirStrip AliveCor Bosch Healthcare Cerner ExamMed Freescale HealthTap ihealth Lab Honeywell Life Care Humetrix Lively Medidata Solutions NeuroMetrix OnKöl Orange Philips Healthcare QNX Qualcomm Telus Health Texas Instruments ViATOM Technology Vidyo Vivify Health Vodafone Welch Allyn WiseWear Market Forecasts Forecast Methodology Total Home Health Technologies Market

8 5.3 Application and Service Revenues Market Forecasts by Product Category Connected Blood Pressure Monitors Connected Pulse Oximeters Connected Glucose Monitors Continuous Glucose Monitors and Insulin Pumps Other Connected Monitoring Devices Connected Multifunctional Monitoring Devices Connected Medication Management Devices Connected Wearable Medical Patches Home Health Hubs Smartphone and Wearable Medical Applications Remote Consultations Eldercare Personal Emergency Response Systems Health and Wellness Pregnancy and Baby Monitors Heart Rate Monitors Sleep Monitors Connected Weight Scales Other Connected Health and Wellness Devices Connectivity Technologies Conclusions Company Directory Acronym and Abbreviation List Table of Contents Table of Charts and Figures Scope of Study Sources and Methodology Notes

9 TABLE OF CHARTS AND FIGURES Chart 1.1 Total Home Health Technologies Revenue by Region, World Markets: Chart 5.1 Home Health Technologies Units/Users by Region, World Markets: Chart 5.2 Home Health Technologies Revenue by Region, World Markets: Chart 5.3 Home Health Technologies Device Revenue by Region, World Markets: Chart 5.4 Home Health Technologies Service and Application Revenue by Region, World Markets: Chart 5.5 Home Health Technologies Units/Users by Category, World Markets: Chart 5.6 Home Health Technologies Device Revenue by Category: Chart 5.7 Home Health Technologies Application and Service Revenue by Category, Chart 5.8 Chart 5.9 Chart 5.10 Medical Monitoring, Management, Diagnosis, and Treatment Units/Users by Region, World Markets: Medical Monitoring, Management, Diagnosis, and Treatment Device/Unit Revenue by Region, World Markets: Medical Monitoring, Management, Diagnosis, and Treatment Service Revenue by Region, World Markets: Chart 5.11 Connected Blood Pressure Monitor Units by Region, World Markets: Chart 5.12 Connected Blood Pressure Monitor Revenue by Region, World Markets: Chart 5.13 Connected Pulse Oximeter Units by Region, World Markets: Chart 5.14 Connected Pulse Oximeter Revenue by Region, World Markets: Chart 5.15 Connected Glucose Monitor Units by Region, World Markets: Chart 5.16 Connected Glucose Monitor Revenue by Region, World Markets: Chart 5.17 Connected Continuous Glucose Monitor and Insulin Pump Units by Region, World Markets: Chart 5.18 Connected Continuous Glucose Monitor and Insulin Pump Revenue by Region, World Markets: Chart 5.19 Other Connected Monitoring Device Units by Region, World Markets: Chart 5.20 Other Connected Monitoring Device Revenue by Region, World Markets: Chart 5.21 Connected Multifunctional Monitoring Device Units by Region, World Markets: Chart 5.22 Connected Multifunctional Monitoring Device Revenue by Region, World Markets: Chart 5.23 Connected Medication Management Device Units by Region, World Markets: Chart 5.24 Connected Medication Management Device Revenue by Region, World Markets: Chart 5.25 Connected Wearable Medical Patches Units by Region, World Markets: Chart 5.26 Connected Wearable Medical Patches Revenue by Region, World Markets: Chart 5.27 Connected Home Health Hub Units by Region, World Markets: Chart 5.28 Connected Home Health Hub Revenue by Region, World Markets: Chart 5.29 Chart 5.30 Smartphone and Wearable Medical Application Units by Region, World Markets: Smartphone and Wearable Medical Application Revenue by Region, World Markets: Chart 5.31 Remote Consultations Units by Region, World Markets: Chart 5.32 Remote Consultations Revenue by Region, World Markets: Chart 5.33 Eldercare Device Units by Region, World Markets: Chart 5.34 Eldercare Device Revenue by Region, World Markets:

10 Chart 5.35 Eldercare Service Revenue by Region, World Markets: Chart 5.36 PERS Users by Region, World Markets: Chart 5.37 PERS Revenue by Region, World Markets: Chart 5.38 Eldercare Home Monitoring Users by Region, World Markets: Chart 5.39 Eldercare Home Monitoring Revenue by Region, World Markets: Chart 5.40 Health and Wellness Units by Region, World Markets: Chart 5.41 Health and Wellness Device Revenue by Region, World Markets: Chart 10.1 Tractica Research Methodology Figure 2.1 Home Health Technology Ecosystem

11 SCOPE OF STUDY 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 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. 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. 101

12 Chart 10.1 Tractica Research Methodology MARKET RESEARCH SUPPLY SIDE DEMAND SIDE PRIMARY RESEARCH Industry Interviews Vendor Briefings Product Evaluations End-User Surveys End-User Focus Groups SECONDARY RESEARCH Company News & Financials Technology & Product Specs Government & Economic Data Case Studies Reference Customers MARKET ANALYSIS QUALITATIVE ANALYSIS Company Analysis Business Models Competitive Landscape Technology Assessment Applications & Use Cases QUANTITATIVE ANALYSIS Market Sizing Market Segmentation Market Forecasts Market Share Analysis Scenario Analysis (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 2015 U.S. dollars unless otherwise noted. Percentages may not add up to 100 due to rounding. 102

13 Published 2Q Tractica LLC 1111 Pearl Street, Suite 201 Boulder, CO USA Tel: 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. 103