mHealth App Developer Economics 2015 by research2guidance
This document summarizes the findings of a study on the global mHealth app market conducted by research2guidance, a market research company focused on the mobile app ecosystem. Some key findings of the study include: - The majority of mHealth app publishers have less than 10 apps and are not achieving their goals or seeing significant financial returns. - Features like reminders that are easy to implement are seen as the most effective for changing patient behavior. - Patients and healthcare providers are expected to benefit the most from mHealth over the next 5 years, while providers face the biggest threats to their core business models.
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mHealth App Developer Economics 2015 by research2guidance
- 1. ©reseach2guidance 2015 mHealth AppDeveloper Economics 2015 The current status and trends of the mHealth app market The Largest Annual Study on the Global mHealth Market
- 2. RESEARCH2GUIDANCE IS AMARKET-LEADING ANALYST AND ADVISORY COMPANY FOR THE MHEALTH APP MARKET About research2guidance research2guidance is a strategy advisory and market research company. We concentrate on the mobile app eco-system. We are convinced that mobile health solutions will make a difference to people’s lives and that their impact on the healthcare industry will be significant. We provide insights to successfully lead your business in an emerging, challenging market. Contact: Ralf-Gordon Jahns [email protected] Fix: +49 (0)30 609 89 3366 www.research2guidance.com
- 3. THE MHEALTH APPDEVELOPER ECONOMICS 2015 REPRESENTS THE GLOBAL MHEALTH APP MARKET Source: research2guidance - mHealth App Developer Economics study 2015, n=5,009 Share of survey participants by region Europe 40% North America 32% APAC 23% South America 3% Afica 2% 5,009 mHealth practitioners 10,914 mHealth apps Copyright research2guidance 2015
- 4. OUR MHEALTH ECONOMICSPROJECT IS THE LARGEST RESEARCH PROGRAM ABOUT MHEALTH APP PUBLISHING GLOBALLY Get your free copy Read through this summary presentation Download the full 36 page report Share it Get in contact. We want to hear your feedback!
- 5. CONTENTS Current status ofthe mHealth app market: The hype continues The reality: How do mHealth app publisher perform? App publishers: Who is behind the hype? What strategies do “Millionaires” use mHealth app tool and APIs usage The impact of mHealth apps on behaviour change and healthcare Market trends and outlook
- 6. MORE THAN HALFOF MHEALTH APP PUBLISHERS ONLY RECENTLY ENTERED THE MARKET When did you publish your first mHealth app? 7% 3% 4% 8% 9% 15% 17% 24% 13% 10% Before 2008 2008 2009 2010 2011 2012 2013 2014 Q1 2015 Recently entered the market Q1 2014 Q1 2015 Source: research2guidance - mHealth App Developer Economics study 2015, n=5,009 Copyright research2guidance 2015 DOWNLOAD FULLREPORTHERE
- 7. THE LEADING APPSTORES OFFER THREE TIMES MORE MHEALTH APPS THAN OTHER APP STORES Number of mHealth apps displayed in app stores 0K 10K 20K 30K 40K 50K 60K 70K 80K Google Play Apple App Store Windows Phone Store Amazon App Store Blackberry World TotalnumberofmHealthapps Source: research2guidance, app stores (June 2015) Copyright research2guidance 2015 DOWNLOAD FULLREPORTHERE
- 8. THE DEMAND FORMHEALTH APPS IS INCREASING EVERY YEAR Estimated total downloads of mHealth apps (billions) 1.7 2.3 3.0 2013 2014 2015 +36% +35% Source: research2guidance Copyright research2guidance 2015 Billions DOWNLOAD FULLREPORTHERE
- 9. CONTENTS Current status ofthe mHealth app market: The hype continues The reality: How do mHealth app publisher perform? App publishers: Who is behind the hype? What strategies do “Millionaires” use mHealth app tool and APIs usage The impact of mHealth apps on behaviour change and healthcare Market trends and outlook DOWNLOAD FULLREPORTHERE
- 10. ALMOST 60% OFAPP PUBLISHERS ARE UNSATISFIED WITH ACHIEVING THEIR GOALS 3% 12% 27% 50% 8% Didn‘t achieve any goals Our dreams came true Unsatisfied app publishers To what extent have you achieved the goals you set in publishing mHealth apps so far? Change since 2014 Source: research2guidance - mHealth App Developer Economics study 2015, n=5,009 Copyright research2guidance 2015 DOWNLOAD FULLREPORTHERE
- 11. MAJORITY OF MHEALTHCOMPANIES DON’T GENERATE SIGNIFICANT DOWNLOADS How many downloads did all your mHealth apps generate last year (2014)? 62% 21% 6% +1% -1% -1% +1% -10% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Below 5K 5K - 50K 50K- 100K 100K - 250K 250K - 500K 500K- 1M 1M - 5M Above 5M Change since 2014 Source: research2guidance - mHealth App Developer Economics study 2015, n=5,009 Copyright research2guidance 2015 DOWNLOAD FULLREPORTHERE
- 12. MAJORITY OF COMPANIESARE NOT GETTING ANY SIGNIFICANT FINANCIAL RETURN ON THEIR INVESTMENT 48% 19% 10% +2% -3% +1% -1% +1% +1% +1% -10% 0% 10% 20% 30% 40% 50% 60% No revenues Below 10K 10K - 50K 50K - 100K 100K - 1M 1M - 5M 5M - 10M Above 10M 3% increase in generated revenue above 100,000 $ Zero and low earners USD Change since 2014 How much revenue did your organization generate with mHealth apps last year (2014)? Source: research2guidance - mHealth App Developer Economics study 2015, n=5,009 Copyright research2guidance 2015 DOWNLOAD FULLREPORTHERE
- 13. CONTENTS Current status ofthe mHealth app market: The hype continues The reality: How do mHealth app publisher perform? App publishers: Who is behind the hype? What strategies do “Millionaires” use mHealth app tool and APIs usage The impact of mHealth apps on behaviour change and healthcare Market trends and outlook DOWNLOAD FULLREPORTHERE
- 14. MAJORITY OF MHEALTHCOMPANIES ARE NOT “GARAGES” ANY MORE How many people does your company employ? 15% 8% 23% 28% 24% 28% 11% 11% 13% 8% 13% 17% 2014 2015 1-2 3-10 11-100 101-500 501 – 5,000 Above 5,000 Source: research2guidance - mHealth App Developer Economics study 2015, n=5,009 Copyright research2guidance 2015 DOWNLOAD FULLREPORTHERE
- 15. THE MAJORITY OFMHEALTH APP PUBLISHERS HAVE AN IT OR TECH BACKGROUND Your organization is best described as: IT / Tech 25% App developer 23% Consultancy / Market Analysis 6% Medical Device Manufacturer 6% Pharmaceutical 5% Telehealth service 5% University 3% Hospital 3% NGO 2% Other 22% IT / Tech 22% App developer 16% Consultancy / Market Analysis 11% Medical Device Manufacturer 6% Pharmaceutical 3% Telehealth service 5% University 4% Hospital 4% NGO 2% Other 28% 2015 2014 Source: research2guidance - mHealth App Developer Economics study 2015, n=5,009 Copyright research2guidance 2015 DOWNLOAD FULLREPORTHERE
- 16. 84% OF APPPUBLISHERS HAVE LESS THAN 10 APPS IN THEIR MHEALTH PORTFOLIO How many mHealth apps has your company published so far? Note: An app that is published on multiple platforms is counted as one app. 0% 5% 10% 15% 20% 25% 30% 30% 54 % 16% 1 2-10 11 and more Number of apps 1 1005010 6020 30 40 70 80 90 % of app publishers Number of apps Shareofapppublishers 84% Source: research2guidance - mHealth App Developer Economics study 2015, n=5,009 Copyright research2guidance 2015 DOWNLOAD FULLREPORTHERE
- 17. IT BECAME MANDATORYTO HAVE MEDICAL PROFESSIONALS IN A TEAM To what extent do medical professionals participate in the development of mHealth apps? Have medical professionals in team Collaborate with medical pofessionals Don‘t work with medical professionals Other 51% 41% 45% 44% 3% 11% 20152014 +11% Involvemedicalprofessionals inappdevelopment Source: research2guidance - mHealth App Developer Economics study 2015, n=5,009 Copyright research2guidance 2015 DOWNLOAD FULLREPORTHERE
- 18. HELPING PEOPLE ISNOW THE STRONGEST MOTIVATION FOR PUBLISHING MHEALTH APPS Which goals do you pursue when developing mHealth apps? -4% +4% +1% -1% -4% +1% +5% +6% -10% 0% 10% 20% 30% 40% 50% 60% Other Do it for myself Seize the opportunity and learn Increase sales of existing products and services Generate revenue with apps Improve brand awareness and reputation Reduce costs/increase efficiency Help people to improve their health conditions Change since 2014 Source: research2guidance - mHealth App Developer Economics study 2015, n=5,009 Copyright research2guidance 2015 DOWNLOAD FULLREPORTHERE
- 19. CHRONICALLY ILL PEOPLEREMAIN THE MAIN TARGET GROUP FOR MHEALTH APP PUBLISHERS What are the main user groups you target with your mHealth apps? -7% +4% -9% -6% 0% -4% -2% -12% NA NA -10% 0% 10% 20% 30% 40% 50% 60% Chronically ill people Hospitals Physicians Health and fitness oriented Relatives Health insurance companies Nursing services Pharmaceutical Temporarilly ill Pharmacies Change since 2014 Source: research2guidance - mHealth App Developer Economics study 2015, n=5,009 Copyright research2guidance 2015 DOWNLOAD FULLREPORTHERE
- 20. “MILLIONAIRES” HAVE MOREEXPERIENCE WITH PUBLISHING MHEALTH APPS Share of app publishers that started before 2010 and average portfolio size First app pulished in 2010 or earlier 47% 17% Average number of apps Millionaires Low earners (no revenues or below $10,000) In the market longer Larger portfolio 12 7 +5 Change since 2014 +30% Source: research2guidance - mHealth App Developer Economics study 2015, n=5,009 Copyright research2guidance 2015 DOWNLOAD FULLREPORTHERE
- 21. MHEALTH APP ”MILLIONAIRES”HAVE A SIGNIFICANTLY DIFFERENT MARKET APPROACH Profiles of low earners and millionaires 55% 47% Help people Reduce costs Motivation 55% 50% Increase sales Improve brand awareness Target group Main revenue source Leading platforms used 46% 36% Hospitals Chronically ill 50% 29% Chronically ill Physicians 15%App development fee20%Service sales Millionaires Low earners 83% 78% Android iOS 93% 90% Android iOS Low earners – revenue in 2014 less than 10,000 USD or no revenue Millionaires – revenue in 2014 higher than 1,000,000 USD Change since 2014 (Millionaires) Source: research2guidance - mHealth App Developer Economics study 2015, n=5,009 Copyright research2guidance 2015 DOWNLOAD FULLREPORTHERE
- 22. CONTENTS Current status ofthe mHealth app market: The hype continues The reality: How do mHealth app publisher perform? App publishers: Who is behind the hype? What strategies do “Millionaires” use mHealth app tool and APIs usage The impact of mHealth apps on behaviour change and healthcare Market trends and outlook DOWNLOAD FULLREPORTHERE
- 23. FITNESS SPECIALISTS AREFAR AHEAD IN CONNECTING TO APIS Publisher groups’ usage of APIs Established healthcare players Hospitals, health insurance, pharma, Medtech App specialists App developers, IT/Tech companies Helpers mHealth publishers motivated by helping people Fitness specialists mHealth publishers specialised on fitness and nutrition apps Medical specialists mHealth publishers with medical team on board Direct APIs (e.g. MyFitnessPal) Sensor APIs (e.g. Fitbit) low medium low medium medium medium Aggregation APIs (e.g. Apple HealthKit) mediummediumlow high high high medium medium medium Low – below average usage Medium – average usage High – above average usage Source: research2guidance - mHealth App Developer Economics study 2015, n=5,009 Copyright research2guidance 2015 DOWNLOAD FULLREPORTHERE
- 24. POPULARITY OF TOOLSSUCH AS ANALYTICS, TESTING&PERFORMANCE AND SECURE STORAGE HAS INCREASED SINCE 2014 Which tools/SDKs do you use within your mHealth apps? Analytics 49% Social networks 43% Testing & performance 38% Storage 30% Cross platform tools 24% Ad network 18% Other 9% -10% 0% 10% 20% 30% 40% 50% 28% 72% +6% -6% Don't use tools Use tools Note: At least one app in the company‘s portfolio Change since 2014 Source: research2guidance - mHealth App Developer Economics study 2015, n=5,009 Copyright research2guidance 2015 DOWNLOAD FULLREPORTHERE
- 25. CONTENTS Current status ofthe mHealth app market: The hype continues The reality: How do mHealth app publisher perform? App publishers: Who is behind the hype? What strategies do “Millionaires” use mHealth app tool and APIs usage The impact of mHealth apps on behaviour change and healthcare Market trends and outlook DOWNLOAD FULLREPORTHERE
- 26. REMINDERS ARE SEENAS THE MOST EASILY IMPLEMENTED AND MOST EFFECTIVE IN CHANGING PATIENT BEHAVIOR Impact and implementation of behavior changing app features Dashboards Dialogs with doctors Economic incentives Education Gamification Peer monitoring Personalized messages Reminders Social monitoring User generated content easyhard medium lowmediumhigh Difficulty of implementation Impactonbehaviourchange Note: Size of circle shows usage of the feature by app publishers Lower impact and harder implementation Higher impact and easy implementation Source: research2guidance - mHealth App Developer Economics study 2015, n=5,009 Copyright research2guidance 2015 DOWNLOAD FULLREPORTHERE
- 27. PATIENTS AND PROVIDERSWILL BENEFIT THE MOST FROM MHEALTH Which of the key healthcare stakeholders will be impacted most in the next 5 years? 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Patients Providers Medtech Payers Pharmaceutical industry Pharmacies 4,35 4,17 3,79 3,66 3,37 3,28 Average score 1 532 4 No impact High impact Source: research2guidance - mHealth App Developer Economics study 2015, n=5,009 Copyright research2guidance 2015 DOWNLOAD FULLREPORTHERE
- 28. HEALTHCARE PROFESSIONALS AREEXPECTED TO BE THE MOST THREATENED For which of the traditional healthcare industries do mHealth apps represent the biggest threat to their core business in the next 5 years? 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Providers Medtech Pharmaceutical industry Payers Pharmacies Patients 3,18 3,05 2,82 2,82 2,77 2,12 1 5 Average score 32 4 No threat High threat Source: research2guidance - mHealth App Developer Economics study 2015, n=5,009 Copyright research2guidance 2015 DOWNLOAD FULLREPORTHERE
- 29. FOLLOW-UP MONITORING WILLBE THE MOST INFLUENCED BY MHEALTH Where along the "Patients’ Journey“ will mHealth apps/solutions have the biggest impact in the next 5 years? 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Follow-up monitoring Seeking health information Disease prevention Diagnosis Treatment (long term care) 4,44 4,08 3,79 3,63 3,58 Average score 1 532 4 No impact High impact Source: research2guidance - mHealth App Developer Economics study 2015, n=5,009 Copyright research2guidance 2015 DOWNLOAD FULLREPORTHERE
- 30. MHEALTH WILL HAVETHE HIGHEST IMPACT ON REDUCING COSTS FOR READMISSION AND DURATION OF STAY IN HOSPITAL On which cost drivers will mHealth have the highest positive impact in the next 5 years? +10% +3% +12% -1% -4% +1% -2% -4% -10% 0% 10% 20% 30% 40% 50% 60% Reduce costs for hospital readmission and duration of stay Reduce costs of patients non-adherence to a treatment Reduce doctor visits costs Reduce prevention costs Reduce redundant examinations and medication costs Reduce labor costs Reduce medical trial costs Reduce investment in technologies Change since 2014 Source: research2guidance - mHealth App Developer Economics study 2015, n=5,009 Copyright research2guidance 2015 DOWNLOAD FULLREPORTHERE
- 31. CONTENTS Current status ofthe mHealth app market: The hype continues The reality: How do mHealth app publisher perform? App publishers: Who is behind the hype? What strategies do “Millionaires” use mHealth app tool and APIs usage The impact of mHealth apps on behaviour change and healthcare Market trends and outlook DOWNLOAD FULLREPORTHERE
- 32. SMARTPHONES REMAIN THEMAIN PREFERRED DEVICE FOR MHEALTH APPS Which devices will be the main target device for mHealth apps in 5 years? -8% +1% -22% +8% -6% -14% -4% +2% +2% -10% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Smartphones Watches Tablets Wrist bands Feature phones TV & set-top boxes Glasses PC netbooks eReaders Game consoles Change since 2014 Source: research2guidance - mHealth App Developer Economics study 2015, n=5,009 Copyright research2guidance 2015 DOWNLOAD FULLREPORTHERE
- 33. ANDROID AND IOSWILL REMAIN THE LEADING SMARTPHONE PLATFORMS What smartphone platforms offer the best market potential in the next 5 years? 82% 79% 32% 31% 7% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2010 2011 2012 2014 2015 Android iOS WindowsPhone HTML5 BlackBerry Note: Study wasn‘t conducted in 2013 Source: research2guidance - mHealth App Developer Economics study 2015, n=5,009 Copyright research2guidance 2015 DOWNLOAD FULLREPORTHERE
- 34. SENSORS BUILT-IN TOSMARTPHONES OFFER THE HIGHEST POTENTIAL FOR MHEALTH SOLUTIONS Which sensor categories will be most relevant for mHealth app solutions in the next 5 years? -9% -1% +10% -6% -8% -1% 0% -10% 0% 10% 20% 30% 40% 50% 60% 70% 80% Built-in to smartphones and tablets Wearables Plugged-in to smartphones and tablets Implantable sensors Intimate contact Watches Ingestible sensors Other Change since 2014 Source: research2guidance - mHealth App Developer Economics study 2015, n=5,009 Copyright research2guidance 2015 DOWNLOAD FULLREPORTHERE
- 35. DIABETES REMAINS THELEADING THERAPY FIELD FOR MHEALTH SOLUTIONS Which therapy fields offer the best market potential for mHealth in the next 5 years? 70% 38% 29% 16% 23% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2010 2011 2012 2014 2015 Diabetes Obesity Hypertension Depression Note: Study wasn‘t conducted in 2013 CHD Source: research2guidance - mHealth App Developer Economics study 2015, n=5,009 Copyright research2guidance 2015 DOWNLOAD FULLREPORTHERE
- 36. DIAGNOSTIC APPS ARENOW THE CATEGORY WITH THE HIGHEST BUSINESS POTENTIAL RATING FOR THE NEXT 5 YEARS Which mHealth app categories will offer the highest market potential in the next 5 years? +3% -21% +9% +7% -12% +3% +8% NA -2% -12% Diagnostic Remote monitoring Medical condition management Patient health record Remote consultation Fitness tracking Nutrition&weight loss Clinical study support Medical compliance Reminders and alerts -20% -10% 0% 10% 20% 30% 40% Change since 2014 Source: research2guidance - mHealth App Developer Economics study 2015, n=5,009 Copyright research2guidance 2015 DOWNLOAD FULLREPORTHERE
- 37. APP STORES AREBACK TO BEING THE NUMBER ONE DISTRIBUTION CHANNEL FOR MHEALTH APPS UNTIL 2020 Which distribution channels offer the best market potential in the next 5 years? 46% 48% 29% 52% 33% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70% 2010 2011 2012 2014 2015 App stores Physicians Hospitals Pharmacies Note: Study wasn‘t conducted in 2013 Healthcare webpages Source: research2guidance - mHealth App Developer Economics study 2015, n=5,009 Copyright research2guidance 2015 DOWNLOAD FULLREPORTHERE
- 38. DOWNLOAD THE MHEALTHAPP DEVELOPER ECONOMICS REPORT 5th edition 5,000+ mHealth practitioners Current status of mHealth app market Learning from best practice The impact of mHealth apps Key trends that will shape future of mHealth app publishing 36 pages Published November 2015 Download free report THE LARGEST STUDY ON MHEALTH APP PUBLISHING
- 39. MORE FROM RESEARCH2GUIDANCE MHEALTHAPP MARKET SIZING 2015 -2020 EU MHEALTH MARKET CONDITIONS BENCHMARKING 2015 Data driven report which sizes the mHealth app market until 2020 and provides details for countries and business models. Published: November 2015 Number of pages: 101 A comprehensive source of information about 28 EU countries and their market conditions for doing mHealth business. Published: June 2015 Number of pages: 96 SEE PREVIEW SEE PREVIEW Current mHealth app market sizing App categories market share Market revenues and downloads 17 mHealth business models Profiles of Top 10 mHealth countries Profiles of Top 20 mHealth publishers mHealth app market forecast 2015 - 2020 mHealth user developement Market forecast by business model Connected device shipment and app downloads forecast Developers ranking Global and local practitioners view of market conditions Country drivers and barriers Market readiness ranking Country comparison by 5 dimensions – eHealth adoption, market potential, etc Country comparison by 26 criteria 28 EU country profiles