The Asia-Pacific region’s robust IoT software and services growth in the pharma sector is primarily driven by the large number of upcoming pharma manufacturing organisations
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 pharma 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 the pharma industry is expected to grow from $420 million in 2015 to $2,486 million by 2020, at a Compound Annual Growth Rate (CAGR) of 42.7 per cent from 2016 to 2020.
Alok Singh, Senior Technology Analyst, GlobalData, comments, “IoT software and services effortlessly connect and create the base upon which IoT applications and use cases can be realised to develop a comprehensive solution that will benefit organisations 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 pharma 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 pharma sector is primarily driven by the large number of upcoming pharma manufacturing organisations, 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 per cent, 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 revolutionise the way pharma organisation will operate and do business. IoT software and services can help pharma organisations to digitise and connect critical actions, increase efficiencies, compliance, and persuade product quality that will benefit organisations to achieve a faster time to value.”