July 18, 2024

Innovation As A Service Market Gains Traction Due to Growing healthcare sector

The innovation as a service (IaaS) market provides technological innovations in the healthcare sector by enabling collaborative working and sharing of ideas between medical professionals and medical device companies. Innovation as a service offers state-of-the-art surgical instruments, medical devices, and implants to hospitals, physicians, and ambulatory surgical centers. These innovations help perform complex surgeries efficiently and facilitate faster recovery of patients.

The global Innovation as a Service Market is estimated to be valued at US$ 1.76 Bn in 2023 and is expected to exhibit a CAGR of 17% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

The growing healthcare sector has been the key driver propelling the growth of innovation as a service market. With increasing elderly population suffering from chronic diseases, there has been rising demand for advanced medical care. Innovation as a service aids healthcare organizations to deliver quality care to patients by providing continuous innovations in surgical instruments and implants. The growing integration of emerging technologies such as 3D printing, augmented reality and cloud computing in the healthcare industry is also facilitating medical innovation at a faster pace. Innovation as a service offers these technological advances to medical professionals through subscription models, thereby enhancing healthcare outcomes. The market players are collaborating with hospitals, physicians and startups to develop novel solutions catering to unmet clinical needs. This widens the scope of IaaS and contributes significantly to the market growth over the forecast period.

SWOT Analysis

Strength: Innovation as a service enables companies to focus on their core competencies and outsource innovation needs to specialized service providers. This allows companies to innovate faster and at lower costs.

Weakness: Dependence on external service providers for innovation initiatives may reduce control and ownership rights over the intellectual property developed. Constant communication is needed to ensure goals and objectives are met as per client requirements.

Opportunity: The ongoing digital transformation across industries is driving the need for innovation to develop new digital business models and solutions. Growing R&D expenditure globally presents an opportunity to offer innovation services.

Threats: Intense competition from in-house innovation teams, management consultancies, and other innovation service providers. Economic slowdowns may negatively impact clients’ innovation budgets reducing spending on innovation as a service.

Key players operating in the innovation as a service market are Johnson & Johnson (DePuy Synthes), Medtronic plc, Stryker Corporation, Zimmer Biomet Holdings, Inc., Smith & Nephew plc, NuVasive, Inc., Globus Medical, Inc., Wright Medical Group N.V., Arthrex, Inc., DJO Global, Inc., Össur hf., CONMED Corporation, Breg, Inc., Orthofix Medical Inc., Bioventus LLC. Innovation service providers focus on offering custom solutions tailored to clients’ specific requirements in areas such as new product development, user experience design, and business model innovation to help organizations innovate faster.

Key Takeaways

The global Innovation as a Service Market is expected to witness high growth over the forecast period supported by digital transformation initiatives across industries. The global Innovation as a Service Market is estimated to be valued at US$ 1.76 Bn in 2023 and is expected to exhibit a CAGR of 17% over the forecast period 2023 to 2030.

North America currently dominates the market owing to high technology adoption and presence of major innovation service providers in the region. Europe is another major regional market for innovation as a service.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it