Digital Health Market

Digital Health Market size reached USD 174.7 billion in 2023 and is estimated to reach USD 945.2 billion in 2031 and the market is estimated to grow at a very high CAGR of 23.5% from 2024-2031.

Major Digital Health Market Drivers

Digital health allows the healthcare providers to access health records and develop a diagnosis history, which minimizes the need for duplicate tests and make efficient decisions, which stands to be one of the major factors fuelling the digital health market. Increasing allowances for digital health is also projected to boost the market growth. In accordance with the Mercom Capital Group, Digital health companies raised an allowance of USD 14.8 billion in venture capital (VC) funding during 2020. The allowance was distributed across 40 different digital health categories. Other pivotal factors such as development in healthcare IT infrastructure, increasing expenditure on healthcare, and rising availability of virtual care are projected to bolster the digital health market share.

Further, increasing adoption of cloud-based storage systems by professionals, is another factor proliferating the market growth. Additionally, increasing government support and the enforcement of favorable policies to encourage the adoption of digital health solutions are propelling the market growth. For instance, governments of different countries have encouraged the integration of electronic intensive care units (e-ICU), which helps with remote patient monitoring via two-way cameras, high-speed internet and electronic devices. Other factors, including accelerating geriatric population, increasing healthcare expenditure levels and strategic government programs and increasing research and development funding for healthcare IT, will expand the market growth.

The increasing adoption of digital health solutions across telehealth, clinical decision support, mHealth, and healthcare platforms has strengthened the market size. Moreover, with the sudden outburst of coronavirus, the market is forecast to witness enormous growth opportunities, because of the increasing adoption of telehealth solution by healthcare professionals to avoid in-person contact.

Technology segment Analysis

mHealth segment is predicted to lead the digital health market, because of the ongoing advancements in technology, growing awareness about the health of technologies, and increasing adoption of mHealth technologies across physicians and patients. The strategic initiatives enforced by the government is driving the segment’s growth. As per the Mercom Capital Group, mHealth Apps emphasized on wellness, fitness, and care & communication raised a funding of USD 1.4 billion in 2020, a 17% rise in funding, as compared to USD 1.2 billion in 2019. Moreover, the emerging trend of preventive healthcare, increasing funding for mHealth startups, accelerating penetration of smartphones, and internet, and increasing availability of mHealth applications, are other factors propelling the market growth.

On the other hand, as per the digital health market analysis, tele-healthcare segment is estimated to hold a larger share over the forecast period, owing to the improvement in internet connectivity, rising smartphone penetration, lack of healthcare providers, increasing availability of tele health applications, and growing adoption of tele-health solutions by patients & physicians.

Component Segment Analysis

Service component is expected to hold a larger CAGR in the Digital Health market over the forecast period, owing to the increasing investment in digital infrastructure across developing nations and growing adoption of wearable devices. The increasing demand for latest software solutions and platforms including electronic medical records and the emerging need for upgradation and training required to operate these software solutions has driven the segment growth.

Software segment is expected to hold a higher share in coming years because of the growing adoption of software systems healthcare facilities, amongst patients, providers, and insurance payers. The increasing healthcare expenditure and increasing trend of healthcare digitalization is contributing to the growth.

Regional – Segment Analysis:

North America is expected to hold a larger share during the forecast period, because of the increasing globalization, accelerating ageing population, and increasing demand for value-based care. Increasing incidences of chronic diseases including diabetes, and cardiovascular diseases, accelerating number of smartphone users, and innovations in network coverage are projected to boost the market growth. Moreover, the strategic government support and collaboration has encouraged application developer and healthcare vendor to encourage innovations in digital health and develop better digital health solutions, will bolster the market size. Besides this, a significant surge in IT expenditure to advance infrastructure, inclination towards the adoption of advanced technological solutions, strategic government initiatives, and lucrative investment are driving the regional growth.

Asia Pacific is expected to hold a larger share owing to the growing demand for healthcare analytics and advancements in IT infrastructure. Accelerating smartphone penetration and rising demand of activity trackers & wearables, are projected to expand the market. Strategic government support in areas of remote patient supervision to provide cost-effective and accessible services to communities will further strengthen the regional growth.

Top Market Players

Various notable players in the Digital Health market include AT&T Inc., Apple Inc., AirStrip Technologies LP, Alcatel-Lucent Corporation, Cisco Systems, Inc.Cerner Corporation, Symantec Corporation, Aruba Networks, Inc., Qualcomm Technologies, Inc., Samsung Electronics Co., Ltd., NextGen Healthcare, Inc. (QSI Management, LLC), IBM Corporation, Google LLC,  among others.

Key Developments:

• • In 2022, Blessing Health System selected Biofourmis to introduce its own home hospital services. Under Rural Home Hospital project, the company will be helping the health system to provide end to end home hospital solution for participation.
  • In 2021, Philips acquired BioTelemetry, provider of remote cardiac diagnostic & monitoring. The company planned to expand its product portfolio in the market.
  • In 2020, AT&T announced a partnership with LifedMedID and Elo Self-Service Solutions. The partnership aimed to streamline patient registrations and check-in-solution. This strategic alliance extends AT&T’s edge-to-edge digital healthcare solutions to enhance the patient outcome, thereby strengthening its market presence.
  • In Nov 2019, Google acquired Fitbit, a wearable company for USD 2.1 billion. With this acquisition, Google aimed to enhance their position in the wearables market with its Wear OS platform.
    In May 2019, Apple acquired Asthma-Monitoring Startup Tueo Health to monitor asthma symptoms in sleeping children. With this acquisition, Apple will expand its healthcare tech footprint.
  • In 2018, Commonwealth Medical Association introduced the Commonwealth Center for Digital Health to encourage the digital health in commonwealth nations.
  • In 2018, Hifinite entered into a strategic collaboration with Indie Health to launch the prosed plan to introduce a hiCare 3.0 telehealth and remote monitoring platform at Connected Healthcare Conference.

Segments covered in the Report:

The Global Digital Health Market has been segmented on the basis of offering, technology, application, end user and regions. Based on the offering, the market is segmented into software, services, application (apps), and hardware. The software segment is further segmented into subscription-based and annual licensing. the services segment is further segmented into subscription-based and pay-per-service (value-based). The application (apps) segment is further segmented into subscription-based, one-time purchase, and value-based. Based on the technology, the market is segmented into mhealth, mhealth devices (vital signs monitors, peakflow meters, fetal monitors, sleep apnea monitors, neurological monitors, others), mhealth apps (fitness apps, medical apps), telecare (activity monitoring, remote medication management), telehealth (ltc monitoring, video consultation), digital therapeutics, preventive therapeutics, treatment therapeutics, healthcare management systems, ehr, healthcare analytics, and e-prescribing. Based on the application, the market is segmented into chronic disease management, behavioural health, health & fitness, and other applications. Based on the end user, the market is segmented into provider, hospitals & clinics, long-term care facilities & assisted living, payers, public, private, and patients & consumers.

Market Segmentation

Global Digital Health Market by Offering

• • Software
    • Subscription Based
    • Annual Licensing
  • Services
    • Subscription Based
    • Pay-Per-Service (Value-based)
  • Application (Apps)
    • Subscription based
    • One-time Purchase
    • Value-Based
  • Hardware

Global Digital Health Market by Technology

• • mHealth
  • mHealth Devices
    • Vital Signs Monitors
    • Peakflow Meters
    • Fetal Monitors
    • Sleep Apnea Monitors
    • Neurological Monitors
    • Others
  • mHealth Apps
    • Fitness Apps
    • Medical Apps
  • Telecare
    • Activity Monitoring
    • Remote Medication Management
  • Telehealth
    • LTC Monitoring
    • Video Consultation
  • Digital Therapeutics
  • Preventive Therapeutics
  • Treatment Therapeutics
  • Healthcare Management Systems
  • EHR
  • Healthcare Analytics
  • E-prescribing

Global Digital Health Market by Application

• • Chronic Disease Management
  • Behavioural Health
  • Health & Fitness
  • Other Applications

Global Digital Health Market by End User

• • Provider
  • Hospitals & Clinics
  • Long term care facilities & Assisted Living
  • Payers
  • Public
  • Private
  • Patients & Consumers

Global Digital Health Market by Region

• • North America Digital Health Market (Option 1: As a part of the free 25% customization)

    • By Offering
    • By Technology
    • By Application
    • By End User
    • US Market All-Up
    • Canada Market All-Up

  • Europe Digital Health Market (Option 2: As a part of the free 25% customization)

    • By Offering
    • By Technology
    • By Application
    • By End User
    • UK Market All-Up
    • Germany Market All-Up
    • France Market All-Up
    • Spain Market All-Up
    • Rest of Europe Market All-Up

  • Asia-Pacific Digital Health Market (Option 3: As a part of the free 25% customization)

    • By Offering
    • By Technology
    • By Application
    • By End User
    • China Market All-Up
    • India Market All-Up
    • Japan Market All-Up
    • Rest of APAC Market All-Up

  • RoW Digital Health Market (Option 4: As a part of the free 25% customization)

    • By Offering
    • By Technology
    • By Application
    • By End User
    • Brazil Market All-Up
    • South Africa Market All-Up
    • Saudi Arabia Market All-Up
    • UAE Market All-Up
    • Rest of world (remaining countries of the LAMEA region) Market All-Up

Major Players Operating the Digital Health (Option 5: As a part of the Free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • AT&T Inc.
  • Apple Inc.
  • AirStrip Technologies LP
  • Alcatel-Lucent Corporation
  • Cerner Corporation
  • Symantec Corporation
  • Aruba Networks, Inc.
  • Cisco Systems, Inc.
  • Qualcomm Technologies, Inc.
  • Samsung Electronics Co., Ltd.
  • NextGen Healthcare, Inc. (QSI Management, LLC)
  • IBM Corporation
  • Google LLC