Healthcare Divided on IoT Investment, Research Finds

Eseye

IoT Hardware and Connectivity Specialists

LinkedIn

Healthcare systems across the globe are under immense strain. An aging population overburdened public services, and longer wait times are driving more people toward private care in both the UK and US. Against this backdrop, smart medical devices promise a lifeline: continuous monitoring, early warnings, and better long-term outcomes.

But while the technology is ready, the industry’s approach to IoT adoption remains mixed. Our fifth annual IoT research survey reveals that some are investing confidently in scaling device estates, while others are cutting budgets and questioning ROI. The result is a sector caught between promise and hesitation, just when it has the most to gain and the most to lose.

The state and scale of IoT adoption in healthcare

The pressures on healthcare are structural and urgent. Rising demand collides with finite resources, leaving clinicians and patients alike searching for relief. IoT-enabled medical devices are already playing a critical role: from wearables that monitor heart health to remote patient monitoring systems that track chronic conditions without the need for in-person visits.

Our 2025 State of IoT research survey shows how adoption is spreading. While 20% of healthcare organizations manage relatively small estates (up to 1,000 devices), 61% run between 1,001 and 10,000, and 19% operate large-scale deployments of 10,001 to 100,000. This even distribution highlights a sector still expanding, albeit more cautiously than peers in manufacturing or supply chain.

IoT budgets present a mixed picture

In 2024, healthcare was the most cautious of all six industries we surveyed. Just 66% of organizations planned to expand IoT estates, the lowest share across sectors.

In 2025, confidence has grown but remains tempered. While 44% of respondents expect to increase IoT investment, 40% anticipate cuts. Optimism about scaling is balanced by budget constraints and ongoing questions about return on investment.

This stop-start approach risks holding the sector back. Unlike other industries, where delays might mean lost revenue, in healthcare the cost of hesitation is measured in delayed diagnoses, missed interventions, and worse outcomes for patients.

Priorities are shifting

Healthcare’s motivations for investing in IoT are also changing.

• 2024: The top cited benefit was increased revenue (54%).
• 2025: The focus has moved to sustainability (43%) and operational efficiency (39%).

This evolution makes sense. Healthcare organizations are under pressure to reduce costs, improve efficiency, and lower environmental impact. IoT can play a critical role here, from energy-efficient connected medical equipment to optimized logistics for hospital supply chains.

Revenue growth still matters, but the emphasis is clearly moving toward system resilience and cost control, not just financial performance.

Poor IoT connectivity risks patient lives

No industry has more to gain, or more to lose, from IoT than healthcare.

The potential is clear:

• Remote patient monitoring to ease the burden on overstretched hospitals.
• Connected wearables that provide early warnings and reduce emergency admissions.
• Smart medical devices that improve long-term outcomes while lowering costs.

IoT barriers remain stubbornly familiar. For the second year in a row, accessing technical IoT support is the top challenge, cited by 22% of respondents. As estates mature, complexity rises, and healthcare organizations face the reality that IoT deployments are never plug-and-play.

This complexity is amplified in healthcare because downtime is not just inconvenient, it can be life threatening. Devices are worn on the body, often on the move, monitoring critical parameters in real time. Connectivity gaps undermine trust and could put patients at risk.

Poorly connected or unsupported deployments risk damaging patient safety and eroding trust in healthcare providers. A failed connected insulin pump or a wearable that goes offline is not just a technical glitch, it is a serious threat to patient wellbeing. That is why technical support, reliability, and lifecycle management are not optional extras in this sector. They are core requirements.

The IoT prescription healthcare needs

To succeed, healthcare organizations need IoT that is secure, reliable, and scalable by design. That means clear strategies, robust partnerships, and solutions that remove complexity rather than add to it.

Eseye’s cellular IoT connectivity solutions deliver the reliability smart healthcare devices demand. From medical devices in patients’ homes to equipment in hospitals and clinics, Eseye provides:

• Seamless global connectivity so devices work anywhere, without interruptions.
• Regulatory compliance to safeguard patient data and meet stringent healthcare standards.
• Device lifecycle management including remote updates and monitoring to keep devices secure and effective.

A powerful example is Telli Health, which delivers remote patient monitoring devices that work anywhere in the US. By partnering with Eseye, Telli Health has:

• Onboarded patients 80% faster
• Improved unique daily data transmissions by 73%
• Reduced support costs by 94%
• Reduced patient churn by 67%

The lesson is clear: healthcare does not just need IoT that connects. It needs IoT that clinicians, patients, and providers can depend on every time.

What’s next for the smart healthcare sector?

In this article

• The state and scale of IoT adoption in healthcare
• IoT budgets present a mixed picture
• Priorities are shifting
• Poor IoT connectivity risks patient lives
• The IoT prescription healthcare needs
• What's next for the smart healthcare sector?