Digital Hospital Market Report 2025

The digital hospital market size has grown rapidly in recent years. It will grow from $74.33 billion in 2024 to $85.33 billion in 2025 at a compound annual growth rate (CAGR) of 14.8%. Growth in the historic period was driven by increasing adoption of electronic health records, rising demand for telemedicine services, higher healthcare IT investments, growing need for operational efficiency in hospitals, and increasing patient awareness of digital healthcare.

The digital hospital market size is expected to see rapid growth in the next few years. It will grow to $146.41 billion in 2029 at a compound annual growth rate (CAGR) of 14.5% Growth in the forecast period is expected to result from greater integration of artificial intelligence (AI) and the Internet of Things (IoT) in hospitals, rising demand for remote patient monitoring, increasing government initiatives for smart hospitals, higher adoption of cloud-based healthcare solutions, and stronger focus on patient-centric care. Primary trends anticipated for the forecast period include advancements in AI-driven clinical decision support, enhanced telehealth and virtual care platforms, development of wearable health monitoring devices, innovations in healthcare data analytics, and progress in robotic-assisted surgeries.

The growing adoption of telemedicine is expected to significantly boost the expansion of the digital hospital market in the future. Telemedicine allows patients to receive medical care and advice from healthcare providers through phone calls, video chats, or the internet, eliminating the need to visit a clinic or hospital in person. The surge in telemedicine is largely due to the increasing demand for remote healthcare, enabling patients to consult with doctors from home, saving time and reducing travel requirements. Digital hospitals support telemedicine by offering advanced digital systems, electronic health records, and interconnected devices that allow healthcare providers to remotely monitor, diagnose, and treat patients effectively. For example, a World Health Organization (WHO) survey in June 2025 revealed that 78% of European member states (40 out of 51) had integrated telehealth into their national health agendas by 2022. As telemedicine continues to expand, it is propelling the growth of the digital hospital market.

Leading companies in the digital hospital market are increasingly adopting advanced strategies such as virtual hospital-at-home programs to improve patient care, optimize hospital resources, and enable remote monitoring. Virtual hospital-at-home initiatives leverage digital tools, telemedicine, and connected medical devices to provide hospital-level care to patients in their own homes. For instance, in September 2024, OSF HealthCare, a US-based healthcare provider, launched the OSF OnCall Digital Hospital, which offers hospital-level care through advanced digital technologies and remote support. This innovative model improves the patient experience by providing 24/7 access to healthcare professionals, utilizing connected devices to monitor patient health at home, reducing the strain on hospital capacity, and ensuring quicker recoveries with fewer complications, all while allowing patients to remain in a familiar and comfortable environment.

In June 2022, Oracle Corporation, a US-based technology giant, acquired Cerner for an undisclosed amount. This acquisition aimed to fast-track the digital transformation of hospitals by combining Cerner’s electronic health records with Oracle’s cloud infrastructure, artificial intelligence (AI), and data analytics capabilities. The goal was to enhance clinical efficiency, patient care, and hospital management. Cerner, a leading provider of healthcare IT solutions, develops software designed to support digital hospitals.

Major players in the digital hospital market are Microsoft Corporation, Oracle Corporation, Schneider Electric SE, Honeywell International Inc., SAP SE, Medtronic Public Limited Company, Siemens Healthineers AG, Fujifilm Holdings Corporation, Stryker Corporation, Koninklijke Philips N.V., GE HealthCare Technologies Inc., Becton Dickinson and Company, Wipro Limited, Zimmer Biomet Holdings Inc., EPIC Systems Inc., Teladoc Health Inc., eClinicalWorks LLC, Medical Information Technology Inc, Napier Healthcare Solutions India Pvt., and Oneview Healthcare PLC.

North America was the largest region in the digital hospital market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in digital hospital report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the digital hospital market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sudden escalation of U.S. tariffs and the consequent trade frictions in spring 2025 are severely impacting the healthcare sector, particularly in the supply of critical medical devices, diagnostic equipment, and pharmaceuticals. Hospitals and healthcare providers are facing higher costs for imported surgical instruments, imaging equipment, and consumables such as syringes and catheters, many of which have limited domestic alternatives. These increased costs are straining healthcare budgets, leading some providers to delay equipment upgrades or pass on expenses to patients. Additionally, tariffs on raw materials and components are disrupting the production of essential drugs and devices, causing supply chain bottlenecks. In response, the industry is diversifying sourcing strategies, boosting local manufacturing where possible, and advocating for tariff exemptions on life-saving medical products.

A digital hospital is a modern healthcare facility built on advanced digital infrastructure that creates a fully connected and integrated environment. It leverages technology-driven systems to support efficient operations, real-time information flow, and improved coordination across all functions. Digital hospitals enable streamlined management, enhanced connectivity, and a cohesive approach to healthcare delivery by embedding digital frameworks into their foundation.

The primary components of digital hospitals include hardware, software, and services. Hardware consists of the physical components of a computer or electronic system, such as processors, memory, and input/output devices. Deployment modes include cloud-based and on-premises solutions. Applications cover clinical operations, financial management, operational analytics, and patient experience management. Primary end users include hospitals, clinics, and healthcare providers.

The digital hospital market research report is one of a series of new reports that provides digital hospital market statistics, including the digital hospital industry global market size, regional shares, competitors with the digital hospital market share, detailed digital hospital market segments, market trends, and opportunities, and any further data you may need to thrive in the digital hospital industry. This digital hospital market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The digital hospital market consists of revenues earned by entities by providing services such as digital infrastructure development, interoperability services, cybersecurity services, and workflow optimization. The market value includes the value of related goods sold by the service provider or included within the service offering. The digital hospital market also includes sales of patient monitoring devices, medical imaging equipment, wearable health trackers, and smart display panels. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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