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Europe Digital Health Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

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  • 111 Pages
  • June 2022
  • Region: Europe
  • Mordor Intelligence
  • ID: 5617072
The Europe digital health market is expected to register a CAGR of 18% during the forecast period of the study.

The emergence of COVID-19 had a profound impact on the adoption of digital healthcare services in the region as the lockdown restrictions and severity of infection encouraged healthcare providers and people to adopt digital health services. Further, to tap into growth opportunities with the growing demand for the digital health services such as telehealth and telecare, many established as well as new players launched these services in the European market or did a partnership or mergers and acquisitions to expand their service offerings which had its impact on the Europe digital health market. For instance, in January 2021, European telehealth company HealthHero acquired Ireland-based MyClinic.ie. The acquisition will allow the company to have a direct-to-consumer offering in Ireland for COVID-19 care and other services. Hence, these activities are expected to boost growth in the digital health market in Europe due to COVID-19.

The rising adoption of digital healthcare services such as telemedicine, remote monitoring, electronic health record systems, and others by the healthcare service providers is the major driving factor which is fueling growth in the Europe digital health market.

The major benefits that are offered by digital health services are that healthcare services can be delivered in the remotest part of the region or country with the lowest cost when compared with traditional medical services or consultations which is why digital health is gaining traction in the European Market. For instance, in October 2019, Philips and Spencer Health Solutions extended their partnership to Europe in order to take advantage of in-home medication adherence and a telehealth platform, and in the fourth quarter of 2019, the Spencer Smart Hub was launched in a number of European markets, including Austria, Belgium, Germany, Luxembourg, the Netherlands, and Switzerland.

In addition, the growing initiatives from respective governments in the region to promote digital health are also expected to have a significant impact on the growth of the studied market as these initiatives are expected to increase the adoption of digital health by the healthcare providers as well as citizens of the country. For example, in October 2021, French health minister Olivier Véran proposed a EUR 650 million investment plan to speed up the country's digital health agenda. The funding will be divided between five areas: research and development, testing of digital health services, digital training for healthcare professionals, scientific innovation, and large-scale deployment of digital health in France and internationally. Hence, these factors are expected to boost growth in the digital health market in Europe during the forecast period.

The other factors that are expected to have a significant impact on the growth of the Europe digital health market includes increasing healthcare expenditure, technological advancements in digital health systems and services and increasing demand for patient monitoring services. For instance, according to the data released by the Office of National Statistics of the United Kingdom, in June 2021, the healthcare spending in the United Kingdom in 2020 was expected to be GBP 269 billion and in nominal terms between 2019 and 2020, the total healthcare expenditure grew by 20% which was fastest year-on-year rate of growth so far in the healthcare expenditure.

However, factors such as data security concerns and high cost associated with the deployment and maintenance of digital health systems and services are expected to restrain the growth of the digital health market in Europe during the forecast period.

Key Market Trends

Telehealthcare Segment is Expected to Occupy a Significant Share in the Studied Market During Forecast Period

Telehealthcare is the delivery of personalized and tailored healthcare services via digital information and communication technology such as computers and mobile devices in cities as well as the remotest region through the internet where healthcare facilities are not available.

The telehealthcare segment is expected to grow significantly during the forecast period due to the wide adoption of telehealthcare services such as telemedicine and remote monitoring owing to various benefits offered such as making healthcare more accessible to persons who reside in remote or isolated places, making services more readily available or convenient for people with restricted mobility, time, or transportation alternatives, and provide support for self-management of health care, among others.

The telehealthcare segment is expected to grow owing to the factors such as growing investment in telemedicine and remote monitoring services and technologies along with growing demand for the telemedicine and growing geriatric population in the region. For instance, in May 2019, Telemedicine Web Services Inc. launched the Concierge telemedicine Systems (CTM) in the Europe. The Concierge Telemedicine System offers an ideal solution to extend health acre to work sites, nursing homes, schools, and pharmacies.

Further, telehealth helps in analysis of big data and can provide hospitals with detailed information on vital health statistics of patients remotely such as blood glucose levels, heart rates, and lab test results. Using machine learning and Artificial Intelligence, hospitals are now more capable of processing all this data to better inform their diagnoses and courses of treatment to their patients. for instance, in May 2021, CareNiva introduced its artificial Intelligence telehealth platform to improve and enhance patient care, and the CareNivaLabs app, which allows clinicians to gather crucial data points with the purpose of augmenting quality judgments made during patient visits, is available alongside the telehealth platform.

Thus, due to the aforementioned factors, the telehealthcare segment is expected to hold a significant market share in the studied market. during the forecast period of the study.

Germany is Expected to Hold a Significant Share in the Europe Digital Health Market During Forecast Period

Germany is one of the major economies in the European region with high healthcare expenditure and a technologically advanced healthcare system. The digital health market is expected to grow in Germany at a significant pace due to the increasing investment in digital health and government initiatives. For example, the Digital Healthcare Act (Digitale-Versorgung-Gesetz or DVG) was accepted by the German parliament (Bundestag) on November 7, 2019, and was later approved by the Federal Council (Bundesrat) and signed into law by the German President. This new law entitles all individuals covered by statutory health insurance in Germany to benefits for specific digital health apps, in addition to boosting the use of telehealth and assuring improved use of health data for research purposes (i.e., insurers will pay for their use). Further, in September 2020, the German federal government enacted the Hospital Future Act (KHZG) under which all the public hospitals in Germany can apply for government funding for projects to boost digital health, cybersecurity, and IT infrastructure and the public hostels will receive a share of EUR 4.3 billion for digital health innovation. Hence, initiatives like these are expected to aid the greater adoption of digital platforms by hospitals and other healthcare providers across the country which will boost digital health market in Germany.

Further, the launch of new products and services, new investment in digital health by government as well as private entities, mergers and acquisitions and other business expansion activities are further expected to fuel growth in the studied market in Germany. For example, ​in December 2020, German subsidiary of SHL Telemedicine Ltd, entered into a contract with BARMER health insurance company, to provide teletreatment services (doctor’s visits) in Germany to BARMER clients. Therefore, due to the above-mentioned factors, Germany is expected to hold a significant share in the Europe digital health market during the forecast period of the study.

Competitive Landscape

The Europe digital health market is dominated by a few large market players exist and these players are concentrating their efforts on technical advances, strategic partnerships, and mergers in order to gain a significant market share, which is likely to fuel market growth in Europe, and making the market competitive. Furthermore, new market entrants have the potential to disrupt the digital health market and move it forward. Some of the key players in the Europe digital health market are Allscripts Healthcare Solutions Inc., Koninklijke Philips NV, International business Machinery Corporation (IBM), Cerner Corporation, and AMD Global Telemedicine Inc., among others.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

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Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
4.1 Market Drivers
4.1.1 Rising Adoption of Digital Health Services and Government Initiatives
4.1.2 Technological Advancements in the Area of Digital Health
4.1.3 Increasing Demand of Remote Patient Monitoring
4.2 Market Restraints
4.2.1 Cybersecurity Concerns for Patient Data
4.2.2 High Deployment and Maintenance Expenditure
4.3 Porters Five Force Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5.1 By Component
5.1.1 Hardware
5.1.2 Software
5.1.3 Other Components
5.2 By Technology
5.2.1 Tele-healthcare
5.2.2 Mobile Health (mHealth) Wearables Apps
5.2.3 Health Analytics
5.2.4 Digital Health Systems E-Health Records E-Prescription
5.3 By Mode of Delivery
5.3.1 On-premise Delivery
5.3.2 Cloud-based Delivery
5.4 Geography
5.4.1 Germany
5.4.2 United Kingdom
5.4.3 France
5.4.4 Italy
5.4.5 Spain
5.4.6 Rest of Europe
6.1 Company Profiles
6.1.1 Allscripts Healthcare Solutions Inc.
6.1.2 International business Machinery Corporation (IBM)
6.1.3 AMD Global Telemedicine Inc.
6.1.4 Koninklijke Philips NV
6.1.5 Teladoc Health Inc. (InTouch Technologies Inc.)
6.1.6 Aerotel Medical Systems (1998) Ltd
6.1.7 Cerner Corporation
6.1.8 eClinicalWorks
6.1.9 McKesson Corporation
6.1.10 Cisco Systems

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Allscripts Healthcare Solutions Inc.
  • International business Machinery Corporation (IBM)
  • AMD Global Telemedicine Inc.
  • Koninklijke Philips NV
  • Teladoc Health Inc. (InTouch Technologies Inc.)
  • Aerotel Medical Systems (1998) Ltd
  • Cerner Corporation
  • eClinicalWorks
  • McKesson Corporation
  • Cisco Systems