Smart Hospital Market By Hospital Type (General Hospitals, Specialty Hospitals, Multi-Specialty Hospitals, Teaching & University Hospitals, Small & Mid-sized Hospitals), By Technology (Internet of Things (IoT), Artificial Intelligence (AI), Big Data & Analytics, Cloud Computing, Machine Learning, Robotics, 5G Connectivity, Others), By Application (Remote Patient Monitoring, Electronic Health Records (HER), Clinical Workflow Automation, Patient Engagement & Experience Management, Smart Imaging & Diagnostics, Surgery Assistance & Robotic Surgery, Others), By Component (Hardware, Software, Services), and By End User (Hospitals & Clinics, Ambulatory Surgical Centers, Diagnostic Centers, Research & Academic Institutes, Government & Military Healthcare Facilities), Global Market Size, Segmental analysis, Regional Overview, Company share analysis, Leading Company Profiles And Market Forecast, 2025 – 2035

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What trends will shape Smart Hospital Market in the coming years?

The Smart Hospital Market accounted for USD 59.43 Billion in 2024 and USD 68.20 Billion in 2025 is expected to reach USD 270.21 Billion by 2035, growing at a CAGR of around 14.76% between 2025 and 2035. The smart hospital market is a developing market that is concerned with incorporating high-tech technologies such as the Internet of Things, AI, big data, and cloud computing into the healthcare infrastructure that can improve the experience of patients, the efficiency of the work, and clinical outcomes. Intelligent systems and interconnected devices of smart hospitals are taking care of real-time monitoring of patients, automated administrative processes, and the provision of data-driven medical decision-making. The products addressed in this market are smart medical devices, digital health platforms, and hospital automation solutions. The smart hospital market is increasing at a high rate all over the world as the needs of healthcare grow and technology advances.

What do industry experts say about the Smart Hospital market trends?

“Patients will increasingly monitor themselves at home via wearables and sensors, shifting hospitals toward managing critical care and surgical cases. This shift necessitates new digital workflows and expanded roles for teams.”

• Dr. Eric J. Topol, MD, Vice-Chairman, Scripps Research & “Dean of Digital Medicine”

Which segments and geographies does the report analyze?

What are the key drivers and challenges shaping the Smart Hospital market?

What role does IoT play in improving clinical care delivery?

The Internet of Things (IoT) can drastically improve the provision of clinical care by making it possible to monitor patients in real time and observe and manage them remotely, as well as streamline hospital processes. Wearable sensors and connected medical equipment in the form of IoT devices can be used to monitor patient vitals on an ongoing basis, and complications can be identified early, and interventions can be timely. It is reported by the U.S. Food and Drug Administration (FDA) that chronic disease management increased due to the implementation of remote monitoring with the help of IoT, which has significantly decreased hospital readmissions by up to 30%.

The CDC reports that systems based on IoT enhance infection control by monitoring environmental sanitation and adherence to hygiene practices in hospitals. Optimal use of resources is also achieved with these types of technologies, resulting in increased efficiency of the staff and treatment outcomes of the patients. IoT presents as a game-changing factor in the smart hospital market because it helps create a proactive and data-driven clinical setting that will assist in delivering cost-effective and personalised care.

How does automation enhance efficiency in smart hospital operations today?

Automation greatly improves the efficiency of smart hospital operations through reduced manual labour and faster consistency and accuracy of administrative functions and patient care management. Electronic health record (EHR) systems permit cutting documentation time by almost 20-30%, according to the U.S. Department of Health and Human Services, as a result of which clinicians can contribute to direct patient care.

The Centres for Disease Control and Prevention (CDC) claim that automated generation of infection control surveillance can reduce hospital-related infections by up to 40%, showing an immediate impact of automation on patient outcomes. Moreover, the National Institutes of Health (NIH) note that when it comes to automation in scheduling and resource allocation, it ensures efficiency in operations by streamlining bed management and staffing to minimise the time patients wait around.

Implementation of AI-powered diagnostics and automation of workflows has resulted in hospitals producing their test results and decision-making up to 25% faster. These optimisation effects lead to cost reductions and an increase in resource utilisation, thus making automation a very important contributor to the smart hospital market and the improvement of patient care within the healthcare sector.

Why do high infrastructure costs hinder smart hospital adoption globally?

The global spread of smart hospitals' slowdown is caused by high infrastructure prices, as the installation of a high-technology system will need considerable spending on the technology, upgrades, and maintenance. Digital upgrades of a rural health centre would cost them almost 18% of their annual funds. In the U.S., initial implementation costs of electronic health records can reach well over $50,000 per provider, and there are additional costs beyond that.

Older hospitals' retrofitting is sometimes even more costly than their new construction as a result of the difficulties in accommodating integration. Another country that has not been very successful in modernising to digital is the UK through the NHS, due to historical underfunding. There are repeated expenditures on software upgrades and security, which are a burden to most health systems, to enable the use of smart hospital technologies. Such a high expense hinders the uptake of innovative healthcare solutions and is more likely to restrain the global movement toward efficient patient-centred care, particularly in low-resource environments.

How can AI-driven analytics transform predictive diagnostics in hospitals?

Predictive diagnostics in hospitals are being transformed in terms of diagnosing patients quicker and more accurately with the use of AI-driven analytics that help enhance patient outcomes. A study conducted at AIIMS has revealed that AI models can detect the cause of the disease in chest X-rays with an accuracy of more than 95%. The Indian Council of Medical Research notes that AI-enhanced cancer screening advanced the rates of diagnosis of the disease by an additional 30%. Cardiovascular risks are also predicted using AI with more than 80% success, and actions can be taken beforehand.

Government programs have also cut down the turnaround time of diagnostic tests, which is very important in critical care. It has been found in surveys that more than 70% of the rural healthcare workers are very easy to change and receive AI tools to help curb the shortage of specialists. Specific institutions such as IIT Madras also come up with models that are specific to the regions, thus omitting the errors of this nature of diagnosis, increasing the quality of care. The results point to the assistance of AI in changing predictive diagnostics in intelligent hospitals.

What potential exists in telemedicine expansion for remote patient management?

With the advance of telemedicine, there is a pioneering scope for the improvement of remote patient management in the smart hospital market. Telemedicine helps in monitoring a patient continuously and helps the physician when there is a need for intervention in time, especially in cases of chronic illnesses and readmission of patients. A U.S. Centers for Medicare & Medicaid Services (CMS) report conducted in 2021 illustrates that telehealth visits increased more than 63-fold due to the COVID-19 pandemic and demonstrated the significant role of telehealth in the provision of care.

The National Institutes of Health (NIH) note that remote patient monitoring with the assistance of telemedicine may result in a 20-30% reduction in the number of emergency room visits and hospital stays of patients with chronic conditions. With multi-connected devices and AI-driven analytics in place, hospitals can offer individualised care plans, more effectively promoting patient outcomes and the overall efficiency of the work. This transition increases the availability of healthcare in underserved regions and the value-based care model, in which telemedicine would play an important role in the future Smart Hospital landscape.

What are the key market segments in the Smart Hospital industry?

Based on the Hospital Type, the Smart Hospital Market is classified into General Hospitals, Specialty Hospitals, Multi-Specialty Hospitals, Teaching & University Hospitals, and Small & Mid-sized Hospitals. General hospitals become the most influential part of the smart hospital market. It is because they treat a large number of patients and have a lot of integration of smart technologies to automate their work, increase the quality of care for patients, and manage resources between departments. The wide range of services they provide and the capacity to adopt best-of-breed digital solutions, such as the use of IoT, AI, and telemedicine in increasing efficiency and patient outcomes, make them ideal adopters. General hospitals create high demand for smart hospital innovations in them as opposed to more specialised or smaller, different types of hospitals.

Based on the Technology, the Smart Hospital Market is classified into Internet of Things (IoT), Artificial Intelligence (AI), Big Data & Analytics, Cloud Computing, Machine Learning, Robotics, 5G Connectivity, and Others. Artificial Intelligence (AI) forms the most important segment of the technology in the Smart Hospital Market. Hospitals can boost accuracy in diagnosis and personalise treatment plans, as well as administer tasks automatically, owing to AI. Its ability to engage in predictive analytics, image recognition, and natural language processing is making clinical workflow and decision-making revolutionary. Consequently, there is a fast pace of growth in the usage of AI in smart hospitals, which is a leading technology in providing advances and changing the institution of healthcare delivery.

Which regions are leading the Smart Hospital market, and why?

The North American smart hospital market is dominant due to the presence of a high level of healthcare infrastructure, high investments in digital health technology, and the presence of market actors. High adoption of electronic health records (EHRs), artificial intelligence, and medical devices based on the use of IoT is all part of smart hospitals and is prevalent in the region. The high level of expenditure on healthcare services, favourable governmental programs, and strong R&D are also the sources of expansion.

The U.S. takes an active stance in terms of incorporating automation and data analytics solutions into the activities of hospitals to increase patient outcomes and cut down on expenditures. Moreover, growing population frailty and an expanding customer base due to the increased chronic conditions strain the need for more efficient and futuristic healthcare facilities, making the North American market supreme in the market. Moreover, there are established successful tech companies and startups that stimulate innovation, and partnerships between hospitals and tech providers are promoting the acceleration of smart hospital implementation throughout the region.

The Asia Pacific smart hospital market has grown since the region has been able to adopt technology, increase its healthcare infrastructure, and invest heavily in digital health programs, especially by the government. China, Japan, South Korea, and India are some of the countries with big investments in AI, IoT, and robot technology to transform their healthcare delivery systems. The fact that the region has a large and ageing population adds value to it in terms of raising the demand for effective and readily available healthcare services.

The process of urbanisation, growth in healthcare awareness, and enhancement of smartphone and internet connectivity also reinforce the usage of smart hospital solutions. Innovation and deployment are being fast-tracked by public-private partnerships and attractive regulatory frameworks. The affordability of smart technologies in the region in emerging economies adds to the popularity of adoption. Such a combination of forces makes Asia Pacific a world leader in the landscape of smart hospitals.

What does the competitive landscape of the Smart Hospital market look like?

Major players, including Philips, GE Healthcare, Medtronic, Honeywell, Microsoft, and Cerner, are heavily investing in digital transformations and AI-based healthcare solutions, which make the smart hospital market even more competitive. These companies are embarking on broadening the range of available technology products that they offer in the market by engaging in strategic alliances, acquisitions, and innovation factories, especially in new avenues like India and Southeast Asia. Examples include Philips, which has increased its R&D capabilities in India, giving more local customisation of smart health technologies, and GE Healthcare, which has stepped up the integration of AI-assisted analytics within the workflow of hospitals.

The cloud computing capability of technological giants such as Microsoft and Oracle is facilitating a scalable, interoperable smart hospital infrastructure. The rivalry is also about the better experience of patients through real-time monitoring and predictive analytics, and the better efficiency of the operations of different companies. With the market shifting, such cooperation is increasingly necessary as IT companies and traditional medical device companies combine their efforts to offer an ecosystem-based approach to medical devices with clinical context in combination with the latest technology.

Smart Hospital Market, Company Shares Analysis, 2024

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Which recent mergers, acquisitions, or product launches are shaping the Smart Hospital industry?

• In July 2025, Flok Health, launched through the NHS in Cambridgeshire & Peterborough, introduced England’s first AI-run physiotherapy clinic. During a 12-week pilot starting in February, waiting times for musculoskeletal (MSK) appointments dropped by 44%, and back pain waitlists fell by 55%.
• In June 2025, King Faisal Specialist Hospital & Research Centre (KFSHRC) in Riyadh expanded its Smart Hospital initiative by using AI, VR simulation labs, and a Patient Flow Command Centre. These technologies cut bed wait times from 32 to 6 hours and reduced emergency delays by 14%. KFSHRC was also named one of the World’s Best Smart Hospitals in 2025.

Report Coverage:

By Hospital Type

• General Hospitals
• Specialty Hospitals
• Multi-Specialty Hospitals
• Teaching & University Hospitals
• Small & Mid-sized Hospitals

By Technology

• Internet of Things (IoT)
• Artificial Intelligence (AI)
• Big Data & Analytics
• Cloud Computing
• Machine Learning
• Robotics
• 5G Connectivity
• Others

By Application

• Remote Patient Monitoring
• Electronic Health Records (EHR)
• Clinical Workflow Automation
• Patient Engagement & Experience Management
• Smart Imaging & Diagnostics
• Surgery Assistance & Robotic Surgery
• Others

By Component

• Hardware
• Software
• Services

By End User

• Hospitals & Clinics
• Ambulatory Surgical Centers
• Diagnostic Centers
• Research & Academic Institutes
• Government & Military Healthcare Facilities

By Region

North America

• U.S.
• Canada

Europe

• U.K.
• France
• Germany
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Singapore
• Rest of Asia Pacific

Latin America

• Brazil
• Argentina
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC Countries
• South Africa
• Rest of Middle East & Africa

List of Companies:

• Koninklijke Philips N.V.
• General Electric Company (GE Healthcare)
• Medtronic plc
• Honeywell International Inc.
• Stanley Black & Decker
• SAP SE
• Microsoft Corporation
• Allscripts Healthcare Solutions, LLC
• Oracle Corporation (Cerner)
• McKesson Corporation
• ThoughtWire Corp.
• Qualcomm Technologies, Inc.
• AdhereTech
• Proteus Digital Health
• PhysIQ

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