The global digital health market is expected to grow at a compound annual growth rate (CAGR) of 30% during the forecast period of 2022 and 2030. The term digital health refers to the use of information technology and electronic communications in various health care processes for improving people's overall health and well-being. The healthcare industry has seen a revolutionary transformation thanks to the quick uptake of cutting-edge technologies like artificial intelligence, mHealth applications, edible sensors, and wearable technology. Growing smartphone adoption, better Internet connectivity, improved healthcare IT infrastructure, rising healthcare spending, an increase in the prevalence of chronic diseases, rising demand for remote patient monitoring services, and easier access to virtual healthcare will all contribute to market growth.
The ongoing Covid-19 pandemic highlighted the drawbacks in the current overburdened healthcare setup and highlighted the possibilities of digital health solutions, which in turn sped up their acceptance and led to a spectacular growth trajectory. Numerous aspects of healthcare, including mHealth, telecare, patient management, sophisticated diagnostics, digital integration of health systems, and improving cybersecurity standards, all played a part in the sharp increase in market growth. In addition, the COVID-19 pandemic has forced governments all around the world to implement strict social distance standards and lockdowns. In this scenario, telemedicine and other digital health technologies give care professionals tremendous chances to treat patients while adhering to lockdown procedures.
Pre-covid the market was growing at a CAGR of 19%. However, post-Covid 19 the market is expected to grow at a CAGR of 30% during the forecast period 2022 to 2030. Venture capital funding in the field of digital health, which includes both corporate venture capital and private equity, had already reached $14.8 billion in 2020, up from $8.9 billion in 2019, a rise of 66 percent overall. This is an impressive amount of funding activity in the field of digital health in just one year. The influence of the COVID 19 pandemic, which has mainstreamed consumer-based digital health technology in a year, is the driving force behind this.
Smartphones are now more than just communication and entertainment tools; they are now fitness and health trackers. 97% of Americans owned cell phones in 2021, according to a Pew Research Center survey. Market participants are creating cutting-edge mobile applications to monitor daily activities including fitness, exercise, nutrition, and well-being, providing consumers with high-quality healthcare and comfort. The market for telehealth and teleconsultation services is being driven by the fast-increasing incidence rate of chronic diseases like Alzheimer's, diabetes, cardiovascular diseases, and cancer that require long-term care and patient monitoring services. Telemedicine and telehealth services are being quickly embraced by the medical community and are being acknowledged by both public and private players.
Additionally, numerous nations, including the United States, Canada, India, the United Arab Emirates, Russia, Germany, and many other Asian and European nations, have approved and regulated telemedicine. Telecare services help to address the accessibility and engagement gaps between patients and healthcare providers. Telehealth services do away with the necessity for in-person consultations, which also lessens the difficulties of making appointments and travelling to the hospital, thus cutting down on care expenditures and unrequired spending.
Strict data security is necessary for the implementation of digital health solutions including electronic health records, e-prescriptions, and medical apps. A breach in data security can cause significant loss of sensitive information, including medical records, which frequently contain social security numbers, insurance IDs, addresses, and personal health information. This can have a negative impact on the operations' reputation and outcomes. Uncoordinated individual attempts to gain unauthorized access to information technology systems targeted at doctors, hospitals, its clients, and third-party service providers are examples of common cyber security concerns.
Businesses are creating chatbot services to provide first consultations or respond to simple medical questions. Positive government measures, an increase in technical partnerships among market participants, and the limitations brought on by the Covid-19 pandemic all encourage the developing trend of digitalization in healthcare. In long-term care services and institutions, telecare and other digital health solutions for remote patient monitoring are commonly used. According to estimates from NHS England, in 2018 people in need of long-term care made up 64% of outpatient appointments, 70% of inpatient bed days, and all appointments with general practitioners.
The new digital health model will be essential in helping emerging nations overcome many of the problems that currently hamper the delivery of healthcare, such as improving access, cost, quality, and safety. The provision of healthcare services has been severely hampered in many developing nations, especially in rural areas, by a severe lack of infrastructure and resources. Digitization of health services, if done in a novel way, can help to increase access and quality of care while reducing costs. In favour of conventional digital healthcare models, which they have embraced or are in the process of implementing, the majority of wealthy nations have abandoned paper-based healthcare solutions.
The tele-healthcare category dominated the market in 2021, accounting for a revenue share of 38% and a CAGR of 25% during the forecast period of 2022-2030. This growth rate is due to factors such as improving internet connectivity, rising smartphone usage, increased technological readiness, a growing shortage of healthcare professionals, rising medical costs, widespread availability of telehealth applications, and rising patient and physician adoption of these technologies. Rapid technology advancements and the ongoing evolution of telehealth applications are further fostering the segment's growth. The COVID-19 pandemic and the incorporation of cutting-edge IoT technologies and improving connectivity are also contributing to the rising demand for virtual healthcare consultations, which is further bolstering the segment's rapid expansion. For instance, according to a report from the Centers for Disease Control and Prevention (CDC), telehealth visits in the United States increased by 154% in March 2020 compared to March 2019.
Based on segmentation by component, services will contribute 65% of market revenue in 2021. This is primarily due to the large increase in software upgrades as well as the quick improvements in different software and hardware. These services include installation, upgrade, and training & integration. Additionally, many businesses are concentrating on services-based tasks including training and integration, installation, and upgrade, which have accelerated market expansion during the study period. The need for services in the next few years will be driven by rising investments in digital healthcare infrastructure, particularly in developing nations. Additionally, as more businesses focus heavily on procuring post-installation services like staffing, optimization, training, and many other services, the demand for platforms like Electronic Health Records (EHR) is expanding, which further fuels the demand for services.
In addition, the software sector, which contributed almost 20% to market value, is anticipated to rise rapidly in the years to come. The market has experienced tremendous growth, mostly as a result of rising demand for healthcare software, fitness apps, and different healthcare analytics platforms. As it increased the demand for analytics platforms to track and monitor the overall number of cases around the world, the COVID-19 outbreak was projected to have a beneficial effect on the digital health business. Additionally, the government's implementation of the lockdown mechanism to manage the Corona cases has considerably increased demand for personal healthcare solutions and fitness apps, which further supports the segment's growth. The software segment is projected to grow at a CAGR of 20% from 2022 to 2030.
With a revenue share of over 37 % in 2021, North America dominated the digital health market. The region's increase is primarily attributable to the region's expanding chronic disease prevalence and senior population. According to the World Population Ageing study from the United Nations, which was published in 2015, the proportion of people over 60 is predicted to be around 28% by the year 2050. In 2021, Europe will contribute about 27% of global revenue. However, the region with the largest increase during the anticipated period is the Asia Pacific, which can be attributed to rising expenditures on healthcare infrastructure and software to raise public awareness. By 2030, it is anticipated that the Asia Pacific digital health market would account for over US$420 billion in terms of revenue.
The market participants were compelled to adopt creative product development strategies and concentrate on their collaboration and partnership strategies in order to increase their market share and product portfolios as a result of the growing trend of the digitization of healthcare systems. In order to meet the rising demand and broaden their commercial horizons, market participants were compelled to alter their product innovation strategies, investment strategies, mergers and acquisitions plans, and partnership plans. Innovative digital health solutions are provided by leading industry participants Cerner Corporation, Allscripts, Apple Inc., Qualcomm Technologies Inc., Samsung Electronics Co. Ltd, McKesson Corporation, IBM Corporation, Epic Systems Corporation, Airstrip Technologies, and AT&T. Key players are developing novel product development strategies and devising collaboration and partnership plans to broaden their product portfolios and serve several regional markets as a result of the increasing demand. Market expansion is being driven by the creation of startups and increasing recognition from government officials and venture capitalists.
This study report represents an analysis of each segment from 2020 to 2030 considering 2021 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments is estimated for the forecast period of 2022 to 2030.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations, and other key market insights.
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Digital health market are as follows:
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Covid-19 Led to Significant Transformation of Digital Health Market
The ongoing Covid-19 pandemic highlighted the drawbacks in the current overburdened healthcare setup and highlighted the possibilities of digital health solutions, which in turn sped up their acceptance and led to a spectacular growth trajectory. Numerous aspects of healthcare, including mHealth, telecare, patient management, sophisticated diagnostics, digital integration of health systems, and improving cybersecurity standards, all played a part in the sharp increase in market growth. In addition, the COVID-19 pandemic has forced governments all around the world to implement strict social distance standards and lockdowns. In this scenario, telemedicine and other digital health technologies give care professionals tremendous chances to treat patients while adhering to lockdown procedures.
Pre-covid the market was growing at a CAGR of 19%. However, post-Covid 19 the market is expected to grow at a CAGR of 30% during the forecast period 2022 to 2030. Venture capital funding in the field of digital health, which includes both corporate venture capital and private equity, had already reached $14.8 billion in 2020, up from $8.9 billion in 2019, a rise of 66 percent overall. This is an impressive amount of funding activity in the field of digital health in just one year. The influence of the COVID 19 pandemic, which has mainstreamed consumer-based digital health technology in a year, is the driving force behind this.
Increased Market Penetration of Cellphones and Accessibility to Digital Health Apps Serve as Key Market Boosters
Smartphones are now more than just communication and entertainment tools; they are now fitness and health trackers. 97% of Americans owned cell phones in 2021, according to a Pew Research Center survey. Market participants are creating cutting-edge mobile applications to monitor daily activities including fitness, exercise, nutrition, and well-being, providing consumers with high-quality healthcare and comfort. The market for telehealth and teleconsultation services is being driven by the fast-increasing incidence rate of chronic diseases like Alzheimer's, diabetes, cardiovascular diseases, and cancer that require long-term care and patient monitoring services. Telemedicine and telehealth services are being quickly embraced by the medical community and are being acknowledged by both public and private players.
Additionally, numerous nations, including the United States, Canada, India, the United Arab Emirates, Russia, Germany, and many other Asian and European nations, have approved and regulated telemedicine. Telecare services help to address the accessibility and engagement gaps between patients and healthcare providers. Telehealth services do away with the necessity for in-person consultations, which also lessens the difficulties of making appointments and travelling to the hospital, thus cutting down on care expenditures and unrequired spending.
Data Privacy is a Key Concern
Strict data security is necessary for the implementation of digital health solutions including electronic health records, e-prescriptions, and medical apps. A breach in data security can cause significant loss of sensitive information, including medical records, which frequently contain social security numbers, insurance IDs, addresses, and personal health information. This can have a negative impact on the operations' reputation and outcomes. Uncoordinated individual attempts to gain unauthorized access to information technology systems targeted at doctors, hospitals, its clients, and third-party service providers are examples of common cyber security concerns.
Emerging Economies Promise Significant Market Potential
Businesses are creating chatbot services to provide first consultations or respond to simple medical questions. Positive government measures, an increase in technical partnerships among market participants, and the limitations brought on by the Covid-19 pandemic all encourage the developing trend of digitalization in healthcare. In long-term care services and institutions, telecare and other digital health solutions for remote patient monitoring are commonly used. According to estimates from NHS England, in 2018 people in need of long-term care made up 64% of outpatient appointments, 70% of inpatient bed days, and all appointments with general practitioners.
The new digital health model will be essential in helping emerging nations overcome many of the problems that currently hamper the delivery of healthcare, such as improving access, cost, quality, and safety. The provision of healthcare services has been severely hampered in many developing nations, especially in rural areas, by a severe lack of infrastructure and resources. Digitization of health services, if done in a novel way, can help to increase access and quality of care while reducing costs. In favour of conventional digital healthcare models, which they have embraced or are in the process of implementing, the majority of wealthy nations have abandoned paper-based healthcare solutions.
Technology Market: Tele-Health Leads in Terms of Revenues
The tele-healthcare category dominated the market in 2021, accounting for a revenue share of 38% and a CAGR of 25% during the forecast period of 2022-2030. This growth rate is due to factors such as improving internet connectivity, rising smartphone usage, increased technological readiness, a growing shortage of healthcare professionals, rising medical costs, widespread availability of telehealth applications, and rising patient and physician adoption of these technologies. Rapid technology advancements and the ongoing evolution of telehealth applications are further fostering the segment's growth. The COVID-19 pandemic and the incorporation of cutting-edge IoT technologies and improving connectivity are also contributing to the rising demand for virtual healthcare consultations, which is further bolstering the segment's rapid expansion. For instance, according to a report from the Centers for Disease Control and Prevention (CDC), telehealth visits in the United States increased by 154% in March 2020 compared to March 2019.
Component Market: Services Dominates in Terms of Revenues, Software to Grow at Fastest Pace
Based on segmentation by component, services will contribute 65% of market revenue in 2021. This is primarily due to the large increase in software upgrades as well as the quick improvements in different software and hardware. These services include installation, upgrade, and training & integration. Additionally, many businesses are concentrating on services-based tasks including training and integration, installation, and upgrade, which have accelerated market expansion during the study period. The need for services in the next few years will be driven by rising investments in digital healthcare infrastructure, particularly in developing nations. Additionally, as more businesses focus heavily on procuring post-installation services like staffing, optimization, training, and many other services, the demand for platforms like Electronic Health Records (EHR) is expanding, which further fuels the demand for services.
In addition, the software sector, which contributed almost 20% to market value, is anticipated to rise rapidly in the years to come. The market has experienced tremendous growth, mostly as a result of rising demand for healthcare software, fitness apps, and different healthcare analytics platforms. As it increased the demand for analytics platforms to track and monitor the overall number of cases around the world, the COVID-19 outbreak was projected to have a beneficial effect on the digital health business. Additionally, the government's implementation of the lockdown mechanism to manage the Corona cases has considerably increased demand for personal healthcare solutions and fitness apps, which further supports the segment's growth. The software segment is projected to grow at a CAGR of 20% from 2022 to 2030.
North America Remains a Global Leader
With a revenue share of over 37 % in 2021, North America dominated the digital health market. The region's increase is primarily attributable to the region's expanding chronic disease prevalence and senior population. According to the World Population Ageing study from the United Nations, which was published in 2015, the proportion of people over 60 is predicted to be around 28% by the year 2050. In 2021, Europe will contribute about 27% of global revenue. However, the region with the largest increase during the anticipated period is the Asia Pacific, which can be attributed to rising expenditures on healthcare infrastructure and software to raise public awareness. By 2030, it is anticipated that the Asia Pacific digital health market would account for over US$420 billion in terms of revenue.
Innovation to Remain as the Game Changer
The market participants were compelled to adopt creative product development strategies and concentrate on their collaboration and partnership strategies in order to increase their market share and product portfolios as a result of the growing trend of the digitization of healthcare systems. In order to meet the rising demand and broaden their commercial horizons, market participants were compelled to alter their product innovation strategies, investment strategies, mergers and acquisitions plans, and partnership plans. Innovative digital health solutions are provided by leading industry participants Cerner Corporation, Allscripts, Apple Inc., Qualcomm Technologies Inc., Samsung Electronics Co. Ltd, McKesson Corporation, IBM Corporation, Epic Systems Corporation, Airstrip Technologies, and AT&T. Key players are developing novel product development strategies and devising collaboration and partnership plans to broaden their product portfolios and serve several regional markets as a result of the increasing demand. Market expansion is being driven by the creation of startups and increasing recognition from government officials and venture capitalists.
Historical & Forecast Period
This study report represents an analysis of each segment from 2020 to 2030 considering 2021 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments is estimated for the forecast period of 2022 to 2030.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations, and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Digital health market are as follows:
- Research and development budgets of manufacturers and government spending
- Revenues of key companies in the market segment
- Number of end users and consumption volume, price and value.
- Geographical revenues generate by countries considered in the report
- Micro and macro environment factors that are currently influencing the Digital health market and their expected impact during the forecast period.
Key questions answered in this report
- What are the key micro and macro-environmental factors that are impacting the growth of Digital health market?
- What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
- Estimated forecast and market projections up to 2030.
- Which segment accounts for the fastest CAGR during the forecast period?
- Which market segment holds a larger market share and why?
- Are low and middle-income economies investing in the Digital health market?
- Which is the largest regional market for Digital health market?
- What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
- Which are the key trends driving global Digital health market growth?
- Who are the key competitors and what are their key strategies to enhance their market presence in the Digital health market worldwide?
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Table of Contents
1. Preface
2. Executive Summary
3. Digital Health Market: Business Outlook & Market Dynamics
4. Digital Health Market: By Technology, 2020-2030, USD (Million)
5. Digital Health Market: By Component, 2020-2030, USD (Million)
6. Digital Health Market: By End User, 2020-2030, USD (Million)
7. North America Digital Health Market, 2020-2030, USD (Million)
8. UK and European Union Digital Health Market, 2020-2030, USD (Million)
9. Asia Digital Health Market, 2020-2030, USD (Million)
10. Latin America Digital Health Market, 2020-2030, USD (Million)
11. Middle East and Africa Digital Health Market, 2020-2030, USD (Million)
12. Company Profiles
Companies Mentioned
- Cerner Corporation
- Allscripts
- Apple Inc.
- Qualcomm Technologies Inc.
- Samsung Electronics Co. Ltd
- McKesson Corporation
- IBM Corporation
- Epic Systems Corporation
- Airstrip Technologies
- AT&T.
