Smart Hospitals Market by Component (Hardware, Software, Services), Technology (AI, IoT, Cloud Computing, Robotics), Application (Remote Patient Monitoring, Medical Connected Devices, Asset Tracking, Smart Imaging), and Connectivity (5G, Wi-Fi, Bluetooth) – Global Forecast to 2036

What is the Smart Hospitals Market Size?

The global smart hospitals market was valued at USD 71.82 billion in 2025. The market is expected to reach approximately USD 406.52 billion by 2036 from USD 82.95 billion in 2026, growing at a CAGR of 18.6% from 2026 to 2036. The growth of the overall smart hospitals market is driven by the intensifying global focus on digital transformation in healthcare and the rapid expansion of the Internet of Medical Things (IoMT) and artificial intelligence (AI) sectors. As healthcare providers seek to integrate more functionality into clinical workflows and patient management systems, smart hospital infrastructure has become essential for maintaining high-quality patient outcomes and operational efficiency. The rapid expansion of 5G infrastructure and the increasing need for real-time data analytics in remote patient monitoring and robotic-assisted surgeries continue to fuel significant growth of this market across all major geographic regions.

Market Highlights: Global Smart Hospitals Market

• In terms of revenue, the global smart hospitals market is projected to reach USD 406.52 billion by 2036.
• The market is expected to grow at a CAGR of 17.2% from 2026 to 2036.
• North America dominates the global smart hospitals market with the largest market share in 2026, driven by advanced healthcare infrastructure and the presence of leading technology innovators in the U.S. and Canada.
• Asia-Pacific is expected to witness the fastest growth during the forecast period, supported by massive investments in healthcare modernization and the rapid adoption of digital health solutions in China, India, and Japan.
• By component, the software segment holds the largest market share in 2026, particularly in supporting AI-driven diagnostics, electronic health records (EHR), and hospital management systems.
• By application, the remote patient monitoring segment holds the largest market share in 2026, due to the rising demand for decentralized care and the increasing prevalence of chronic diseases.
• By technology, the artificial intelligence (AI) segment holds the largest share of the overall market in 2026.

Market Overview and Insights:

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Smart hospitals are critical healthcare environments that leverage advanced technologies to provide optimized clinical processes and improved patient experiences through a connected digital infrastructure. These systems include integrated hardware, software, and services designed to automate workflows and enhance decision-making across the care continuum. The market is defined by high-efficiency technologies such as AI-powered diagnostics and IoT-enabled asset tracking, which significantly enhance clinical precision and resource utilization in high-pressure medical environments. These systems are indispensable for healthcare administrators seeking to optimize their internal operations and meet aggressive patient safety and efficiency targets.

The market includes a diverse range of solutions, ranging from simple wearable sensors for basic vitals monitoring to complex robotic surgical systems and AI-driven imaging platforms. These systems are increasingly integrated with advanced components such as cloud-based data lakes and 5G-enabled connectivity to provide services such as real-time patient tracking and predictive maintenance of medical equipment. The ability to provide stable, high-precision data while minimizing manual intervention has made smart hospital technology the choice for institutions where clinical accuracy and operational reliability are paramount.

The global healthcare sector is pushing hard to modernize facility capabilities, aiming to meet AI-driven clinical targets and patient-centric care goals. This drive has increased the adoption of high-speed connectivity solutions, with advanced 5G networks helping to stabilize data transmission for ultra-high-definition medical imaging. At the same time, the rapid growth in the telemedicine and virtual care markets is increasing the need for high-reliability, secure digital solutions.

What are the Key Trends in the Smart Hospitals Market?

Proliferation of AI-Driven Clinical Decision Support and Generative AI

Healthcare providers across the industry are rapidly shifting to AI-optimized workflows, moving well beyond traditional data entry toward predictive and generative AI setups. GE HealthCare’s latest AI-powered imaging platforms deliver significantly higher diagnostic accuracy, while Siemens Healthineers’ recent installations have slashed reporting times in radiology departments. The real game-changer comes with “generative” EHR systems featuring integrated natural language processing that maintains peak documentation efficiency even in high-volume clinical environments. These advancements make high-precision clinical decision support practical and cost-effective for everyone from community clinics to global academic medical centers chasing excellence in patient care and lower operational costs.

Innovation in Robotic-Assisted Surgery and Autonomous Logistics

Innovation in robotic-assisted surgery and autonomous logistics is rapidly driving the smart hospitals market, as medical procedures become more precise and facility operations more automated. Equipment suppliers are now designing units that combine the dexterity of robotic arms with the intelligence of real-time navigation in a single platform, saving valuable operating room time and simplifying surgical logistics. These systems often involve advanced haptic feedback and 3D visualization capable of handling complex minimally invasive procedures without compromising patient safety or clinical reliability.

At the same time, growing focus on sustainable healthcare is pushing manufacturers to develop smart hospital solutions tailored to energy efficiency and waste reduction principles. These systems help reduce environmental impact through smart building automation and the use of recyclable medical components. By combining high-density data connectivity with robust environmental performance, these new designs support both technological advancement and corporate sustainability, strengthening the resilience of the broader healthcare value chain.

Market Summary:

Market Dynamics

Drivers: Digital Transformation of Healthcare and Rise of Remote Monitoring

A key driver of the smart hospitals market is the rapid movement of the global healthcare industry toward digital-first, patient-centric care models. Global demand for seamless patient journeys, real-time health monitoring, and data-driven diagnostics has created significant incentives for the adoption of smart hospital infrastructure. The trend toward “hospital-at-home” and the integration of medical devices into unified digital platforms drive providers toward scalable solutions that smart hospitals can uniquely provide. It is estimated that as patient adoption of IoT-enabled wearables rises and diagnostic tools become more decentralized through 2036, the need for robust, connected infrastructure increases significantly; therefore, AI-driven software and high-speed connectivity, with their ability to ensure high-density data processing, are considered a crucial enabler of modern healthcare delivery strategies.

Opportunity: 5G Integration and Expansion of Robotic Surgery

The rapid growth of the 5G network market and robotic-assisted surgery technologies provides great opportunities for the smart hospitals market. Indeed, the global surge in 5G deployment has created a compelling demand for systems that can handle massive data throughput and provide ultra-low latency for telesurgery. These applications require high reliability, data security, and the ability to handle high-bandwidth imaging, all attributes that are met with advanced smart hospital solutions. The robotic surgery market is set to expand significantly through 2036, with smart hospitals poised for an expanding share as providers seek to maximize surgical precision and minimize patient recovery times. Furthermore, the increasing demand for AI-driven diagnostics and smart pharmacy automation is stimulating demand for modular digital solutions that provide high-speed data transmission and operational flexibility.

Component Insights

Why Does the Software Segment Lead the Market?

The software segment accounts for a significant portion of the overall smart hospitals market in 2026. This is mainly attributed to the versatile use of this technology in supporting AI-driven diagnostics, electronic health records (EHR), and complex hospital management systems within modern clinical environments. These systems offer the most comprehensive way to ensure data interoperability across diverse healthcare applications. The clinical and administrative sectors alone consume a large share of smart hospital software, with major projects in North America and Europe demonstrating the technology’s capability to handle high-density data requirements. However, the services segment is expected to grow at a rapid CAGR during the forecast period, driven by the growing need for robust implementation, cybersecurity consulting, and technical support in complex hospital digital transformations.

Application Insights

How Does the Remote Patient Monitoring Segment Dominate?

Based on application, the remote patient monitoring segment holds the largest share of the overall market in 2026. This is primarily due to the massive volume of connected medical devices and the rigorous monitoring standards required for chronic disease management. Current large-scale healthcare systems are increasingly specifying high-density digital platforms to ensure compliance with global care standards and patient expectations for decentralized healthcare services.

The smart imaging and diagnostics segment is expected to witness the fastest growth during the forecast period. The shift toward AI-enhanced radiology and the complexity of multi-modal diagnostic suites are pushing the requirement for advanced smart systems that can handle varied data formats and high-resolution images while ensuring absolute reliability for safety-critical medical decisions.

Technology Insights

Why Does Artificial Intelligence (AI) Lead the Market?

The artificial intelligence (AI) segment commands the largest share of the global smart hospitals market in 2026. This dominance stems from its superior ability to process vast amounts of clinical data, provide predictive analytics, and automate routine administrative tasks, making it the technology of choice for high-performance smart hospitals. Large-scale operations in diagnostics, patient management, and personalized medicine drive demand, with advanced algorithms from providers like GE HealthCare and Siemens Healthineers enabling reliable performance in complex clinical environments.

However, the Internet of Things (IoT) segment is poised for steady growth through 2036, fueled by expanding applications in asset tracking and real-time patient monitoring. Manufacturers face mounting pressure to optimize costs for high-volume, less demanding applications, where IoT provides a cost-effective alternative for basic facility connectivity.

Regional Insights

How is North America Maintaining Dominance in the Global Smart Hospitals Market?

North America holds the largest share of the global smart hospitals market in 2026. The largest share of this region is primarily attributed to the advanced healthcare infrastructure and the presence of the world’s leading technology innovators, particularly in the United States. The U.S. alone accounts for a significant portion of global smart hospital investment, with its position as a leading adopter of AI and digital health driving sustained growth. The presence of leading manufacturers like GE HealthCare and a well-developed healthcare IT supply chain provides a robust market for both standard and high-density smart solutions.

Which Factors Support Asia-Pacific and Europe Market Growth?

Asia-Pacific and Europe together account for a substantial share of the global smart hospitals market. The growth of these markets is mainly driven by the need for technological modernization in the public health and private hospital sectors. The demand for advanced smart systems in Asia-Pacific is mainly due to its large-scale healthcare infrastructure projects and the presence of innovators in China, Japan, and South Korea.

In Europe, the leadership in medical engineering and the push for digital health innovation are driving the adoption of high-reliability smart solutions. Countries like Germany, France, and the UK are at the forefront, with significant focus on integrating smart digital solutions into clinical workflows and advanced patient care systems to ensure the highest levels of performance and reliability.

Key Players

The companies such as GE HealthCare Technologies Inc., Siemens Healthineers AG, Koninklijke Philips N.V., and Medtronic plc lead the global smart hospitals market with a comprehensive range of digital and AI-driven solutions, particularly for large-scale clinical applications and high-speed diagnostics. Meanwhile, players including Honeywell International Inc., Cisco Systems, Inc., IBM Corporation (Merative), and Microsoft Corporation focus on specialized network infrastructure, data analytics, and cloud platforms targeting the hospital operations and administrative sectors. Emerging manufacturers and integrated players such as Oracle Corporation (Cerner), Abbott Laboratories, and Johnson & Johnson MedTech are strengthening the market through innovations in connected devices and modular digital platforms.

Key Questions Answered in the Report: