The global digital health market size was estimated at USD 332.53 billion in 2022 and it is anticipated to attain around USD 1,694.21 billion by 2032, growing at a CAGR 19.4% during the forecast period 2023 to 2032.
Increasing penetration of smartphones along with numerous smartphone applications related to health and fitness across the globe expected to be a key factor that drives the digital health market growth. Rapid investment in the healthcare IT infrastructure particularly in the developing and developed nations estimated to be conducive to the market growth. For instance, in April 2020, the Asian Infrastructure Investment Bank (AIIB) awarded its first health infrastructure investment in order to recover the crisis of USD 5 Billion because of COVID-19.This expected to provide aid to the private and public entities that are suffering from the pandemic situation.
Apart from this, the outbreak of COVID-19 has imposed stringent social distancing norms and lockdowns by the governments across the globe. In this situation, digital health technologies for example telehealth provide enormous opportunities for the care service providers to treat patient by following the lockdown measures. This in turn further expected to drive the product adoption along with this also favors the market growth positively in the upcoming years.
Digital health is described as the integration of information technology and electronic communications used for different healthcare processes for overall people’s health and their wellbeing. The revolutionary development in the healthcare industry with the rapid adoption of emerging technologies such as wearable devices, mHealth Apps, ingestible sensors and artificial intelligence among others have added boost to the market growth.
Digital health incorporates digital transformation in the healthcare field wherein software, hardware and services are keenly involved. Under this boarder concept of digital health different technologies are employed such as mobile health (mHealth) apps, wearable devices, electronic health records (EHRs), electronic medical records (EMRs), telemedicine, telehealth along with personalized medicine among others. The need for medical transformation was especially due to the growing aged population, child illness and their mortality, high cost and poverty related issues along with racial discrimination associated to health care access had necessitated the technological advancements. Moreover, epidemics and pandemics have created high level importance to the digital health which still continues to evolve thereby fueling the market growth in the forecast period.
Factors that drive the global digital health market are the growing demand for mobile health apps, increasing demand for remote patient monitoring services, rising adoption of smartphones and tablets have further augmented the market growth. However, security concerns such as cyber-attacks and financial constraint tomaintain digital health related services are the prime factors restraining the market growth to certain extent. Nevertheless, COVID 19 pandemic has added fuel to the ongoing developments in digital health with the transformation in healthcare through online symptom checkers, patient facing tools, remote patient monitoring tools, telehealth and patient portals among others.Consequently, such novel developments in the field of digital health are projected to create lucrative opportunities in the market.
Furthermore, venture capital funding in digital health consisting of both corporate venture capital and private equity had already reached to $14.8 billion in 2020 as compared to $8.9 billion in 2019, showing a total rise of 66%, which is a remarkable funding activity in digital health in a year time. This is primarily driven by the impact of COVID 19 pandemic that has mainstreamed the consumer based digital health technologies in a year time.
The different components of digital health are:
1.1.1 Big data
Large and/or complex data sets that typical data processing models can't handle. Patterns, trends, and relationships related to health in relation to human behavior and interactions can be revealed through computer analysis and predictive analytics. Data acquisition, analysis, curation, sharing, storage, transport, visualization, updating, and information privacy are all issues that Big Data presents.
1.1.2 Cloud computing
Outsourcing IT activities to one or more third parties with large pools of resources to satisfy the needs of the organization quickly and efficiently. Instead of owning and administering their own IT software, hardware, and general infrastructure, cloud computing users are charged for their use of third-party infrastructure.
1.1.3 Connected health
A model of health and care delivery in which the equipment, services, and interventions employed are tailored to the patient's unique needs, and their health data is used to inform and share care most proactively and efficiently possible.
1.1.4 eHealth
When it was first coined, the term "eHealth" referred to the use of electronic processes and information technology (ICT) throughout the entire range of functions influencing health and care. Currently, eHealth refers to the discipline of medical informatics, which uses the internet and related technologies to organize and distribute health services and information.
1.1.5 ePatients
Patients who are completely engaged in their health and care are referred to as ePatients. They know everything there is to know about their health and health care. They may be involved in their health and care, as well as the health and care of people they care for. In contrast to eHealth, the letter ‘e' can stand for electronic, equipped, empowered, engaged, equal, and other words.
1.1.6 Gamification
The application of game design features and principles to non-game situations. User engagement, simplicity of use, productivity, recruiting, and assessment all benefit from it. Its primary usage in health and wellbeing has been to motivate consumers to exercise more and adopt lifestyle changes that will improve their overall health. The use of gamification in health and fitness apps has become commonplace.
Scope of the Digital Health Market Report
| Report Highlights | Details |
| Market Size in 2032 | USD 1,694.21 Billion |
| Growth Rate | CAGR of 19.4% From 2023 to 2032 |
| Largest Market | North America |
| Fastest Growing Market | Asia Pacific |
| Base Year | 2022 |
| Segments Covered |
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| Regional Scope |
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| Companies Mentioned | BioTelemetry Inc, eClinicalWorks, Allscripts Healthcare Solutions Inc, iHealth Lab Inc, AT & T, Honeywell International Inc, Athenahealth Inc., Cisco Systems, McKesson Corporation, Koninklijke Philips N.V., AdvancedMD Inc. |
Market Drivers
Rising demand for mobile health apps
The potential of mobile apps is being used to improve patient treatment in a variety of ways, including diagnosing illness, employing wearables, and ingestible sensors.We have become increasingly reliant on our smart devices now that we have entered the digital world. We continue to rely on smartphones to manage our calendars, coordinate our work and business operations, keep informed and connected through social media, and arrange doctor visits and healthcare check-ups. Healthcare app development has become both a need and a luxury.
The healthcare industry has seen significant changes as a result of technology advancements and meddling. We can see how mobile app development has aided in the evolution of the healthcare sector in recent years. The COVID-19 pandemic is still ongoing, and healthcare mobile apps have paved the path for great growth during this time of crisis, transforming people's perceptions of the health industry worldwide.
Market Opportunities
Increasing penetration of digital health in emerging economies
The healthcare ecosystem is witnessing a paradigm shift in the way the services are being delivered and consumed. This is fueled by the urgent need for a healthcare delivery model that is inclusive, high-quality, cost-effective, and decentralized. While these demands contribute to the creation of lofty goals for our society and government, the enterprising side of society is hard at work developing solutions and models to assist us to get there. The digital health model is one such alternative. From birth to death, from well to sick, digital health will dramatically improve the continuum of care by providing solutions that help individuals from birth to end of life.Digital health will aid in the achievement of several goals, including moving healthcare delivery from curative to preventive, increasing accessibility, lowering costs, improving quality, and increasing resource efficiency.
The healthcare sector is moving from a provider-driven to a consumer-driven business as a result of increased earnings, lifestyle changes, and shifting consumer behavior toward wellness. Additionally, efforts are being undertaken to transition healthcare to a consumption-based model due to rising healthcare prices and inadequate healthcare infrastructure. Healthcare is moving toward a proactive “Predict and Prevent Model” that targets the underlying causes of health problems and focuses on preventing future problems through major lifestyle changes, behavioral adjustments, or preventative interventions.The underlying need to provide patients with empowerment, convenience, and a better experience drives these innovations, and their growth is propelled by technology and entrepreneurship.
In emerging nations, the new digital health model will be critical in overcoming many of the issues that currently impede healthcare delivery, such as enhancing access, affordability, quality, and safety. A severe lack of resources and infrastructure has impeded the delivery of healthcare services in many developing countries, particularly in rural areas.
If done in a new way, digitization of health services can help to improve the quality of and access to care while lowering costs. The majority of developed countries have moved away from paper-based healthcare solutions in favor of ‘traditional' digital healthcare models, which they have accepted or are in the process of adopting.
Digital technologies are assisting in the development of novel diagnostic and treatment alternatives, as well as improving process efficiency and lowering costs. Technology developments are also bridging the gap between developed and developing economies, as well as participants throughout the healthcare value chain. This is also shown by the fact that digital health firms in the United States alone raised over USD 4.5 billion in funding over the last year. There were also 302 finance deals in the segment, with an average size of USD 14.8 million.However, as the convergence of healthcare and technology continues, regulatory frameworks are still evolving, and as a result, businesses are rapidly being stuck in a maze of unique legal challenges enforced by unfamiliar authorities, such as patient privacy, consumer protection, fraud, and patient safety.
In recent years, advancements in health technology have increased by leaps and bounds. In the digital space, a plethora of gadgets and technologies have arisen, hastening the rate of expansion in consumer and institutional healthcare delivery.
Component Insights
Based on component, services captured the major market revenue accounting 64.58% market share in 2022. This is mainly attributed to the significant rise in the software upgradation along with rapid advancements in various software and hardware. These services include training & integration, installation, and upgradation. Furthermore, the numerous companies are focusing on services based activities such as training & integration, installation, and up-gradation that have augmented the market growth in the study period. Increasing investment on digital healthcare infrastructure predominantly in the developing countries drives the demand for services during the upcoming years. Moreover, increasing demand for platforms such as Electronic Health Records (EHR) that further propels the demand for service as moat of the companies are prominently focusing on acquiring post-installation services such as staffing, optimization, training, and many other services.
Software - Besides this, software segment accounted for nearly 18.71% of the total market value and expected to show robust growth over the forthcoming years. The significant growth of the segment is majorly because of increasing demand for healthcare software, fitness apps, and various healthcare analytics platform. The outbreak of COVID-19 anticipated to have a positive impact on the digital health market as it boosted the need for analytics platform to track and monitor the total number of cases across the globe. In addition to this, lockdown measure adopted by the government to control the corona cases has significantly triggered the demand for personal healthcare solutions and fitness apps that further provides impetus to the growth of the segment.
Digital health has emerged as a significant and promising field for the advancement of healthcare systems. Implementation of advanced technology is currently being used to create a speedier, more efficient, and cost-effective healthcare practice. As a result, an increasing number of businesses are building digital health and wellness software to improve workflow and provide the best possible user experience for contractors and their clients.
The widespread use of smartphones and tablets is the most important factor impacting the worldwide mobile health market. Up to 40% of persons in the United States are already aware of digital health software or have used it at least once, and more than 70% of them are willing to utilize it. These figures will only rise in the future as a result of previous pandemic-related incidents. Wellness living software, health-tracking technologies, wellness coaching applications, and other innovations are projected to improve present healthcare services and boost our society's immune system.
Technology Insights
In 2022, telehealthcare held the leading market position and accounted for a revenue share of more than 47.35%, owing to the digital transformation in the healthcare sector along with the favorable government support to integrate novel technologies. The prominent growth of the segment is majorly due to the rising penetration of internet and smartphones across the globe along with the availability of large number of health related apps in the market. Furthermore, increasing prevalence of chronic diseases along with the advancements in wearable devices significantly triggers the market growth for mHealth. Telehealthcare is expected to witness the fastest growth at a CAGR of 23.3% between 2023 and 2032.
On the other side, health analytics expected to be the fastest growing segment over the forecast timeframe because of increasing advancements in the analytics platforms such as big data and other analytics software. The healthcare analytics has gained significant importance over the past few years owing to the need for monitoring and tracking the most prevalent diseases across the globe such as cancer and diabetes. Apart from this, the outbreak of COVID-19 has significantly triggered the need for analytics platform to track the disease and take preventive measures accordingly.
Digital Health Systems - A new healthcare system organization is desperately needed over the world. The desire for change was dormant, but the need for it became apparent with the COVID-19 issue. Digital solutions are reshaping eHealth, providing value to outdated healthcare systems from the twentieth century. The evolution of eHealth in Portugal is an excellent example of how change may occur both during and after a crisis. Digital healthcare, on the other hand, is both novel and necessary. Its shape and form must be defined, and its citizen core must be revitalized. COVID-19 will be able to exit the crisis and enter the new era with courageous leadership.
A new healthcare system built on a fully digital landscape can benefit citizens in a variety of ways. Several studies have demonstrated the value of digital tools in surveillance, screening programs, awareness campaigns, social media-based behavioral disease therapies, and digital health literacy. There is no shortage of scientific evidence that digital healthcare solutions can help patients. However, the majority of applications have centered on restoring health, with far fewer focusing on prevention or eradication of specific risk factors. Digital tools are utilized in a DHS to decrease the demand for healthcare. Education, the workplace, and play can all benefit from better societal design. Digital-born solutions can lay the groundwork for a healthier society by combining medical and behavioral knowledge with design, engineering, and law.
Regional Insights
North America dominated the digital health market with a revenue share of around 26.68% in 2022. The growth of the region is mainly due to increasing number of geriatric population along with rising prevalence of chronic diseases across the region. As per the United Nations World Population Ageing report published in 2015, total population with age more than 60 years expected to reach around 28% by the end of 2050. Europe accounted the revenue share of around 26.33% in 2020.
However, the Asia Pacific exhibits the fastest growth over the forecast timeframe owing to increasing spending on healthcare infrastructure and software to promote awareness among the public. The Asia Pacific digital health market is expected to generate revenues worth US$ 421.10 billion by 2030. Due to the growing penetration of smartphones, increasing government spending on the up gradation of healthcare industry and growing awareness regarding digital health is stimulating the market growth.
Key Companies & Market Share Insights
The global digital health market seeks intense competition among the market participants owing to the strategic initiatives adopted by them to gain maximum market share on the global scale. Further, product innovation and regional expansion are the prime motive of these market players for cementing their foothold in the market.
Some of the prominent players in the digital health market include:
Segments Covered in the Report
This research study comprises complete assessment of the market by means of far-reaching qualitative and quantitative perceptions, and predictions regarding the market. This report delivers classification of marketplace into impending and niche sectors. Further, this research study calculates market size and its development drift at global, regional, and country from 2017 to 2030. This report contains market breakdown and its revenue estimation by classifying it on the basis of component, technology, and region:
By Component
By Technology
By Geography
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