mHealth App Developer Economics 2015 by research2guidance

©reseach2guidance 2015
mHealth App Developer
Economics 2015
The current status and trends of the mHealth app market
The Largest Annual Study on the Global mHealth Market

RESEARCH2GUIDANCE IS A MARKET-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
ralf.jahns@research2guidance.com
Fix: +49 (0)30 609 89 3366
www.research2guidance.com

THE MHEALTH APP DEVELOPER 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

OUR MHEALTH ECONOMICS PROJECT IS THE LARGEST RESEARCH PROGRAM
ABOUT MHEALTH APP PUBLISHING GLOBALLY
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CONTENTS
Current status of the 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

MORE THAN HALF OF 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
Copyright research2guidance 2015 DOWNLOAD
FULLREPORTHERE

THE LEADING APP STORES 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)
FULLREPORTHERE

THE DEMAND FOR MHEALTH 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

CONTENTS
Current status of the 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

ALMOST 60% OF APP 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
FULLREPORTHERE

MAJORITY OF MHEALTH COMPANIES 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
FULLREPORTHERE

MAJORITY OF COMPANIES ARE 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)?
FULLREPORTHERE

MAJORITY OF MHEALTH COMPANIES 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
FULLREPORTHERE

THE MAJORITY OF MHEALTH 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
FULLREPORTHERE

84% OF APP PUBLISHERS 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%
FULLREPORTHERE

IT BECAME MANDATORY TO 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
FULLREPORTHERE

HELPING PEOPLE IS NOW 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
FULLREPORTHERE

CHRONICALLY ILL PEOPLE REMAIN 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
FULLREPORTHERE

“MILLIONAIRES” HAVE MORE EXPERIENCE 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%
FULLREPORTHERE

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)
FULLREPORTHERE

FITNESS SPECIALISTS ARE FAR 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
FULLREPORTHERE

POPULARITY OF TOOLS SUCH 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
FULLREPORTHERE

REMINDERS ARE SEEN AS 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
FULLREPORTHERE

PATIENTS AND PROVIDERS WILL 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
FULLREPORTHERE

HEALTHCARE PROFESSIONALS ARE EXPECTED 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
FULLREPORTHERE

FOLLOW-UP MONITORING WILL BE 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
FULLREPORTHERE

MHEALTH WILL HAVE THE 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
FULLREPORTHERE

SMARTPHONES REMAIN THE MAIN 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
FULLREPORTHERE

ANDROID AND IOS WILL 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
FULLREPORTHERE

SENSORS BUILT-IN TO SMARTPHONES 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
FULLREPORTHERE

DIABETES REMAINS THE LEADING 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
CHD
FULLREPORTHERE

DIAGNOSTIC APPS ARE NOW 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
FULLREPORTHERE

APP STORES ARE BACK 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
Healthcare webpages
FULLREPORTHERE

DOWNLOAD THE MHEALTH APP 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
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 mHealth user developement
 Market forecast by business model
 Connected device shipment and app downloads
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 Global and local practitioners view of market
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 Country drivers and barriers
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 Country comparison by 5 dimensions – eHealth
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