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The Life Sciences industry is poised for a significant transformation as it anticipates a substantial portion of its revenue to come from connected health products in the next five years. According to a recent report from IT firm Capgemini, connected health is expected to contribute 22 percent of the total revenue for Life Sciences organizations by 2029. This projection is driven by the increasing market presence and development of connected health products, with 63 percent of organizations in biopharma and medtech already having such products available or in the pipeline.
The report underscores the critical role of Generative AI in this shift, with three in five Life Sciences organizations currently developing a roadmap for integrating this technology. Over half of these organizations are piloting Generative AI for enhanced interactions with patients and healthcare providers (HCPs). Thorsten Rall, Global Life Sciences Industry Leader at Capgemini, highlighted the transformative potential of these technologies, stating, “Unlocking the power of healthcare data and leveraging the possibilities posed by breakthrough technologies, such as Generative AI, will be at the heart of this connected health revolution. They can accelerate drug development, enhance patient care, and have the potential to reshape what ‘product’ actually means for pharmaceuticals, especially medtech companies.”
The comprehensive report surveyed 420 executives from biotechnology, pharmaceutical, and medtech organizations, all with annual revenues exceeding $500 million. It revealed a six-fold increase in biopharma organizations with market-ready connected products since 2021. This surge is particularly evident in areas such as oncology, immunology, and cardiology, with emerging fields like mental health, diabetes, obesity, and dermatology also experiencing significant growth.
AI, Machine Learning (ML), and Cloud technologies have seen notable advancements in their application within the biopharma sector over the last three years. The percentage of biopharma organizations utilizing AI for predictive analysis of real-time data from connected health products has nearly doubled from 24 percent in 2021 to 46 percent. Furthermore, over two-fifths (42 percent) of these organizations now have a Cloud platform in place for data integration from various sources.
Despite these advancements, the report highlights a critical gap in the availability of technical skills, such as Augmented Reality (AR), Virtual Reality (VR), and Generative AI, which could hinder the full realization of connected health’s potential. Addressing this skills shortage will be essential for sustaining the momentum and achieving the projected revenue targets.
As the Life Sciences industry continues to innovate and integrate cutting-edge technologies, connected health is set to redefine patient care and pharmaceutical development. With the anticipated revenue boost, organizations are likely to accelerate their efforts in this domain, paving the way for a more connected and data-driven healthcare ecosystem.
