Research2guidance MHealth App Developer Economics

May 2014

mHealth App Developer Economics 2014

Largest Global Study on mHealth App Publishing

2 © research2guidance 2014

The „mHealth Developer Economics 2014“ is the largest study on mHealth app publishing globally

Source: research2guidance, mHealth App Developer Economics Study 2014

Survey participants and mHealth app numbers by region

12% Share of survey respondents 350 # No. of mHealth apps of survey participants

Legend

38%

North America

# 3,752

36%

Europe

# 1,327

12%

South America

# 360

12%

APAC

# 420

2%

Africa

# 21

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Research2guidance is a market leading analyst and advisory company in 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 the impact on the healthcare industry will

be significant. We provide insights to make it happen and to

successfully lead your business.

Contact: Ralf-Gordon Jahns [email protected] Fix: +49 (0)30 609 89 3366 www.research2guidance.com




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“What are the topics?”

Current status of the mHealth app publishing Who is publishing and what can be learned from successful mHealth app publishers The Connected Elite Outlook



The mHealth app market will reach USD 26bn revenue by 2017

Revenues (US$ Millions)

Global mHealth market revenue in USD (2013-2017)

Source: research2guidance, mHealth App Market Report 2013-2017

2,453 4,000

6,353

13,587

26,560

-

5,000

10,000

15,000

20,000

25,000

30,000

2013 2014 2015 2016 2017Services

69%

Device sales 21%

Paid downloads

5%

Transaction

4%

Advertisement 1%

2017



Fitness and medical reference apps are the largest mHealth app categories

Source: research2guidance, 808 apps form Apple App Store, Goolge Play, BlackBerry App World and Windows Phone Store (March 2014)

mHealth app category share

>100k mHealth

Apps

Fitness, 30.9%

Medical reference, 16.6%

Wellness, 15.5%

Nutrition, 7.4%

Medical condition management, 6.6%

PHR, 2.6%

CME, 2.1%

Compliance, 1.6%

Diagnostics, 1.4%

Reminders and alerts, 1.1%

Remote consultation & monitoring, 0.6%

Others, 13.6%







7.6%

3.6% 5.4%

13.5% 14.1%

19.7%

26.7%

9.5%

0%

5%

10%

15%

20%

25%

30%

Before 2008 2008 2009 2010 2011 2012 2013 Q1 2014

Publishing year of the first mHealth app

More than 36% only recently entered the mHealth app market

Source: research2guidance mHealth App Developer Economics survey 2014, n= 2032



50% of mHealth app publisher have released only one or two mHealth apps

Publisher share of mHealth app portfolio size

Comment: An app that is published on multiple platforms is counted as one app.

Source: research2guidance mHealth App Developer Economics survey 2014, n=2032

1 29.9%

2 20.1%

3 9.7%

4 7.0%

5 6.6%

6 4.4%

7 1.1%

8 2.0%

9 0.6%

10 4.0%

11-20 5.0%

21-50 4.6%

51-100 5.1%

#



Chronically ill and fitness seekers are the main target groups for mHealth app publishers

Target group share of mHealth app publishers

Chronically ill people 31%

Health and fitness interested people

28%

Physicians 14%

Temporarily ill people 8%

Hospitals 7%

Others 12%

Source: research2guidance mHealth App Developer Economics survey 2014, n=2032



There are six groups of mHealth app publishers that are behind the apps

Establ. Health Players

Helpers

Medical Specia-lists

Con-necters

App Specia-lists

Fitness Specia-lists

Brand awareness

Revenue Help

people Help

people Revenue Revenue

Goal of apps

Downloads (<5k/ >1m)

67%/ 3.2%

25.7%/ 7.8%

42.7%/ 9.1%

51.4%/ 5.1%

39.4%/ 7.4%

39.0%/ 8.9%

Revenues (0/ >1m)

low average average high all APIs usage average

low average average high very

heavy Tool usage high

$

57,6% 40,1% 100%

47,5% 43,7% 49,7%

Medical ex-pert in team ✚ Ø

Typical company size

11-100 11-100 3-10 3-10 3-10 5,000+

53.1% / 7.7%

44.6% / 7.4%

58.6% / 6.3%

61.2% / 5.8%

60.1% / 6.4%

43.3% / 6.7%

Mainly yes Partly Mainly not Goals achieved: Source: research2guidance mHealth App Developer Economics survey 2014, n= 2032

Percentage of total % 3 % 14 % 32 % 20 % 10 % 18 %

Goal achieved



Commercially successful mHealth publishers do 6 things differently

35%

Top revenue type

More experience (start 2010 or ealier)

60%

mHealth API usage 1 (average)

61%

Tool usage (average)

37%

iOS focus (top rank platform)

76%

22%

40%

23%

56%

16%

Large app portfolio (>20 apps)

$

#

Pay per download 31%

Service sales 35%

Millionaires: mHealth app revenues 2013 > 1m USD Low Earners: mHealth app revenues 2013 < 10,000 USD

1

2

3

4

5

6

1) Actual and planned usage of APIs that connect to personal&general health database APIs and medical and fitness device APIs








There is a “Connected Elite” of mHealth app publishers that drive interoperability between apps and sensors

No. of connected app publishers & sensor vendors by an app

0 10 20 30

Digfit iCardio

Lose It!

Endomondo

Carepass

dacadoo

Tactio Health

Runkeeper

Moves

Fitbit

myFitnessCompanion

EveryMove

MapMyFitness

MyFitnessPal

Source: research2guidance and app & vendor data (March 2014)



A new „Enabling Layer“ is connecting the new and the old healthcare industry

Source: research2guidance

App users

App Stores

Apps

Shops

Sensors

Connected Apps Connected Sensors

Connected Elite

API Aggregators

Enabling Layer

App Aggregators

API Managed Services

Health Database

• Food • Medicine • Disease

Health Insurance Database

Universities, Medical

Institutions

HCPs Patients Payers Smartphone users

€ €

VALIDIC



mHealth measures by Monthly Active Users

Up to 100m vital metrics are collected regularly

3

100

MAU (In m)

1

No. of metrics

Patient monitoring

Medical examination

Health&fitness tracking

Steps, duration, speed, heart rate, hydration, perspiration, mood, calories & other nutritional values, sleep

Blood pressure, temperature, glucose level, posture, medicine adherence, mouth hygiene, alcohol consumption, sun exposure

Respiratory rate, lung air volume, ECG, EEG, blood tests, color tests, urine tests, ultrasound imaging

Source: research2guidance MAU: Monthly active users that track health parameters







Devices with highest business potential for mHealth app by rank in 5 years

75% 14% 4%

Rank 1 Rank 2 Rank 3

Smartphones

Tablets

Watches

Glasses

Others

Feature Phone

11% 45% 12%

6% 21% 24%

4% 8% 12%

1% 2% 5%

3% 8% 27%

Comment: Figures do not sum up to 100% as not all participants provided answers for the rank 2+3 Source: research2guidance mHealth App Developer Economics survey 2014, n=2032

Smartphones are the primary device for mHealth apps



Source: research2guidance mHealth App Developer Economics survey 2010, 2011, 2012 and 2014, n= 2032

2010 2011 2012 2013 2014

1

2

3

4

5

Mobile operating systems with highest business potential for mHealth apps by rank in 5 years

Rank

Android and iOS remain the top ranked operating systems for mHealth app publishers in five years time

74%

72%

42%

32%

17%

77%

75%

29%

16%

6%

83%

76%

32%

3%

5%

3%

82,1%

72,3%

35,9%

35,3%

11,1%

In For 2015 2016 2017 2019



Source: research2guidance mHealth App Developer Economics survey 2010, 2011, 2012 and 2014, n= 2032

CHD refers to coronary heart disease

2010 2011 2012 2013 2014

1

2

3

4

5

Diabetes Diabetes Diabetes

Obesity Obesity Obesity Obesity

Hypertension Hypertension Depression Hypertension

CHD CHD Hypertension Depression

Astma Depression CHD Cancer

Business potential of different therapeutic areas for mHealth apps by rank in 5 years

Rank

Diabetes and Obesity remain the top ranked therapeutic areas for mHealth app publishers

Diabetes 78% 80% 76% 69%

57% 45% 56% 39%

55% 40%

41%

29%

50% 39%

40% 40% 25%

42%

22%

19%

In For 2015 2016 2017 2019




2010 2011 2012 2013 2014

1

2

3

4

5

Hospitals App stores Physicians

Physicians App stores Hospitals Hospitals

Healthcare webpages Physicians Physicians App stores

App stores Healthcare webpages

Healthcare webpages Pharmacies

Pharmacies Pharmacies Pharmacies Healthcare webpages

Distribution channels that offer the best business opportunities for mHealth solutions in 5 years time

Rank

Physicians and hospitals are constantly seen as the primary distribution channel for mHealth apps in the future

Hospitals 68% 56% 62% 52%

65% 55% 59% 49%

56% 52%

50%

47%

51% 44%

47% 46% 39%

59%

38%

36%

6. mHealth solution provider

7. MNOs


7. MNOs


7. MNOs


7. MNOs

In For 2015 2016 2017 2019




Barriers Hygiene factors Drivers

1

2

3

4

Barriers, hygiene factors and drivers of the mHealth app market by rank in the next 5 years

Rank

Summary: Drivers and barriers

58%

Smartphone & tablet penetration

User/patient demand

43%

Patient-centered care

39%

Technology innovation

32%

5%

Solution costs

Clinical requirements

8%

Regulations

9%

Clinical studies

10%

Lack of data security

Lack of standards

Difficult discoverability

Resistance from trad. healthcare providers

34%

30%

29%

28%



Download the mHealth App Developer Economics Report

Largest study on mHealth app publishing • Size of the opportunity • mHealth app developer segments • Learning from best practice • The Connected Elite • Drivers and barriers • Key trends that will shape future of mHealth app

publishing • 43 pages • Published May 2014 • First time presented during the Europe’s mHealth Summit

2014 in Berlin

Download Full Report (Free)





We do: mHealth Strategy Workshops

Ralf-Gordon Jahns presenting insights on mHealth

We have: Diabetes App Market Report

We offer tailored workshops for all healthcare players to

discuss mHealth strategies. Content of our 1- or 2-day

interactive workshop includes:

• Size of the opportunity or challenge for your

company / business / institution

• Principals of mobile business models in healthcare

industry

• Impact of mHealth apps on traditional healthcare

• Analysis of competitive landscape

• Discussion of potential roles to be played

If interested, send us an email: [email protected]

The Diabetes App Market Report 2014 is a comprehensive

analysis of the market. The 113 pages report includes:

• Analysis and categorization of more than 1,000

diabetes apps

• Performance of diabetes apps, key players, best

practices

• Detailed market forecast including downloads,

revenues, user penetration, app-related sensor

shipment and service user numbers

• Analysis of country markets, regulatory impact,

market trends and revenues from 2008 - 2018.

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Research2guidance MHealth App Developer Economics