Contact tracing apps uptake tipped to grow beyond COVID

The market for contact tracing applications is set to post a compound annual growth rate of 15% through 2030.

This is according to research by Free Market Insights, which notes these products have been steadily gaining interest on the back of the COVID-19 pandemic.

The report points out that the role of digital technologies in containing infectious diseases is expected to witness strong growth between 2020 and 2030.

The market for contact tracing applications is expected to benefit in the short-term, with governments around the world investing in their own mobile applications, it adds.

The success of contact tracing applications has largely been reliant on adoption by smartphone users, says the firm, pointing out that although the Chinese government has made it mandatory for citizens to download its app, most countries rely on voluntary adoption.

In SA, president Cyril Ramaphosa recently made an impassioned plea to citizens, urging everyone to download the government-endorsed coronavirus app, COVID Alert SA.

Developed by the Department of Health, the COVID Alert SA app was built using Apple and Google’s API-based contact tracing system.

The app is described as a tool that lets people know if they have been exposed to the coronavirus.

Using Bluetooth contact-tracing technology, it exchanges a random code with other users of the app.

This happens when their smartphones are within two metres of each other for more than 15 minutes. The identity and location of the device users is not required for the exchange to happen, in order to protect their privacy, according to its creators.

In April, the rival tech giants announced a joint venture to enable the use of advanced Bluetooth technology to help governments and health agencies reduce the spread of the deadly virus, with user privacy and security central to the design.

Free Market Insights points out that contact tracing apps are being used to leverage the widespread global penetration of smartphone devices in controlling infectious disease outbreaks.

Also, the study has projected substantial scope of increasing applications in disease control even after the conclusion of the ongoing COVID-19 pandemic.

The coronavirus outbreak, which emerged out of China in late 2019, has been the primary driver for the development, deployment and adoption of contact tracing applications.

Free Market Insights observes that favourable government initiatives towards social distancing and patient tracking also positively influenced the industry, adding that innovations in terms of GPS, Bluetooth and ultrasonic technologies is improving growth prospects for the industry.

It notes that app developers are pushing for the development of decentralised data collection approaches via device-based databases to keep up with strong demand for data privacy standards.

According to the market research firm, contact tracing apps initially found use during the Ebola outbreak in the Congo.

The application was developed by Global Outbreak Alert and Response Network in collaboration with the World Health Organisation.

It points out that the industry witnessed an upsurge in the development of contact tracing apps after the advent of the coronavirus pandemic in China, owing to greater financial feasibility in the scope of adoption during the crisis period.

Growing efforts by public health agencies towards community engagement will positively influence the industry, says the firm, adding that contact tracing applications can either be run on centralised or decentralised platforms, for smartphones using iOS or Android operating systems.

These programs make use of Bluetooth or GPS technologies to track potential patients, and their proximity to other users. However, developers are still challenged by issues of misinformation, cyber security and data privacy, says Free Market Insights.

“Functional advantages of contact tracing applications include superior data quality, easier tracking and monitoring of larger numbers of people in a time-effective manner, the ability of real-time analysis, and the significant improvements to management and coordination of manual contact tracing teams,” says the firm.

However, it says, demand for these applications has been limited to countries with high rates of smartphone penetration.

In addition, it notes, ethical problems in terms of transparency, privacy and accountability have restrained adoption during this period. Developer costs for user support, training, software and hardware are also limiting factors.

Nonetheless, the report says prospects for contact tracing applications remain positive for the post-pandemic era, owing to potential for use in controlling other infectious disease outbreaks worldwide, albeit at a smaller scale.

In its report, Free Market Insights analysts also analysed the various strategies employed by major companies operating in the contact tracing applications market.

It says market leaders have been observed focusing on strategic collaborations within the industry towards application development efforts for multiplatform compatibility features.

In addition, it says, developers are pushing for contracts to push their offerings through government channels to expand regional footprint and user base.

Some of the participants operating in the contact tracing applications market include IBM, Google, Oracle, Microsoft, Apple, T-Systems, SAP, Salesforce, Siemens and ServiceNow.