Consumer Analytics

Corporate Discounts Encourage Connected Health & Fitness Adoption

by Parks Associates | Aug. 1, 2015

Connected health devices and health apps are making headway in the market. According to Parks Associates research, 29% of U.S. broadband households now own a connected health device. Connected fitness trackers account for 6.7 million units sold in the U.S. in 2014, making it the largest connected fitness device category.

Corporate discounts go a long way in increasing adoption of connected health devices. Nearly one-third of consumers who reported owning a connected fitness device at year-end 2014 also reported that they benefitted from a corporate discount when they purchased the device. Though fitness trackers are less likely to benefit from corporate discounts when compared to other digital health devices -- connected digital weight scales, smart watches, or sleep quality monitors, for example -- consumers who received a corporate discount on a digital health device were more likely to use a health app on a weekly basis to track their fitness and health than consumers who did not receive a discount.

For industry players, this finding means opportunity. Between one-fourth and approximately 40% of device owners would be willing to share health data from their connected health devices in exchange for a discount on their health insurance. Assuming insurance companies can use such data to lower their costs (by encouraging healthy behavior and identifying costly health problems early), a partnership could yield benefits for all -- higher adoption for manufacturers, cost-savings for insurance providers, and discounted connected health devices and insurance rates for consumers. A win-win-win.

Parks Associates

Parks Associates

About Parks Associates

Parks Associates is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start-ups through market reports, primary studies, consumer research, custom research, workshops, executive conferences, and annual service subscriptions.

The company's expertise includes new media, digital entertainment and gaming, home networks, Internet and television services, digital health, mobile applications and services, consumer electronics, energy management, and home control systems and security.

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