Digital Health Market

Market Overview

The global digital health market size was valued at USD 174.38 billion in 2021 and is envisioned to reach USD 651.92 billion by 2030 growing at a CAGR of 17.92% during the forecast period (2022-2030). 

Digital health is the healthcare sector technology that enables universal healthcare access, improves healthcare quality, and enhances consumers' physical and emotional well-being. Digital health is the interaction between technology and the healthcare system. It incorporates software, hardware, and services to implement a digital health transition in the healthcare sector. It offers numerous opportunities to expedite the process of achieving the sustainable development goal of health and wellbeing.

Mobile health, health information technology, wearable devices, personalized medicine, telehealth, and telemedicine are all included in digital health. This system utilizes computing platforms, software, connectivity, and sensors for various healthcare and related applications. Providing high-quality medical care to the individual gives an accurate diagnosis and treatment for the disease. The increase in internet users and the desire for remote monitoring of patients and services are the primary factors driving the global digital health market share. In addition, the increase in the prevalence of hypertension contributes significantly to the market's growth because digital health devices, such as blood pressure monitors, are used to monitor vital signs for early diagnosis and appropriate treatment of patients.

The global market is also being primarily driven by an alarming rise in the prevalence of diseases like cancer, diabetes, cardiovascular disease, and hypertension, a rise in government initiatives for digital health, a surge in demand for mHealth, advancements in healthcare technology, and an increase in smartphone adoption. MyMedicNow, a healthcare technology company, introduced a new mobile healthcare app to bridge the gap between physicians and patients in May 2020. This application enables the patient to quickly and efficiently search for a medical condition and related healthcare providers. Thus, the rise in demand for mobile healthcare applications and the prevalence of diabetes and cancer are anticipated to expand the digital healthcare market.

Market Dynamics

Global Digital Health Market Driving Factors

The Growing Incidence of Chronic Disease to Favor Market Growth

The access to various digital healthcare technology for wireless monitoring and treatment of patients with various chronic illnesses, like asthma, cancer, blood pressure, heart rate, diabetes, respiratory infections, and chronic obstructive pulmonary diseases, is one of the most critical factors driving the market growth. Chronic conditions, like cardiovascular disease, are the foremost causes of death and disability on a global scale. According to the World Health Organization (WHO), cardiovascular diseases, cancer, respiratory diseases, and diabetes will cause around 17.9 million, 9.3 million, 4.1 million, and 1.5 million deaths in 2021. Observations indicate that 77% of chronic disease deaths occur in low- and middle-income countries.

Chronic care management records for 75% of the world's healthcare expenditures, creating a financial burden for patients' caregivers. Chronic diseases can be managed and prevented from becoming severe with digital healthcare technologies, like wearable devices, health information technology (IT), mobile health (mHealth), personalized medicine, telehealth, and telemedicine. Using blood-glucose level monitors and blood-pressure monitors, a patient can continually check his or her blood glucose level and blood pressure.

In addition, an increase in sedentary lifestyle factors, like tobacco use, unhealthy diet, physical inactivity, and harmful alcohol consumption, raises the prevalence of chronic disease in the population. Nearly 7.2 million, 1.6 million, and 4.1 million deaths yearly are attributed to tobacco consumption, physical inactivity, and excessive sodium/salt intake. Consequently, the rise in the prevalence of chronic diseases and the rise in lifestyle disorders are the primary factors driving the escalation in demand for digital health services.

Global Digital Health Market Restraining Factors

Concerns Regarding Regulatory Compliance to Restrict Market Growth

Numerous key market participants provide digital health applications. However, the key players must ensure that the new solution complies with the region's predefined mandatory regulations before launching any healthcare applications. In some instances, the applications must also pass a certification procedure that enables them to manage specific data, such as patient-generated health data. In addition, the certification process is essential because it allows the application to provide certain features, such as the ability to connect to intelligent wearable or healthcare devices. As a result, digital health applications are subject to a rigorous certification and testing procedure, resulting in delayed approvals and impeding digital health market growth.

Global Digital Health Market Opportunities

Increased Adoption of Digital Health Technologies to Boost Market Opportunities

Digital health incorporates telehealth & telemedicine, health data & technology, precision medicine, and capabilities for actively and remotely monitoring physiological parameters. In 2021, Amazon Care introduced telehealth services in 80 U.S. states, providing individuals and families with access to high-quality medical treatment and guidance. As per data reported by the New England Journal of Medicine (NEJM) Catalyst, non-profit health plans launched telehealth in 2021 to increase patient accessibility and affordability. Additionally, Verizon introduced BlueJHeans Telehealth to improve the healthcare system. BlueJheans is a video-conferencing application that allows patients to complete pre-visit questionnaires in advance. Thus, the growth of digital health adoption is anticipated to present an opportunity to expand the digital health market share.

Regional Analysis

The region-wise segmentation of the global market for digital health includes North America, Europe, Asia-Pacific, and LAMEA.

North America and The Asia Pacific Will Dominate the Regional Market

North America will command the market with the largest share during the forecast period and grow at a CAGR of 15.82%. The expansion of the market in the region is driven by an increase in smartphone usage, a massive rise in demand for telehealth services, and the easy accessibility of health information. Adults in the United States own 97% of cell phones and 85% of smartphones, according to data from the Pew Research Center published in April 2021. The demand for digital health devices and services for earlier detection, as well as monitoring & management of symptoms, is bolstered by the continued development of healthcare technology and the rise in the prevalence of chronic diseases, which drive the digital health market's expansion.

An increase in technological development, expansion in the healthcare industry, a rise in healthcare costs, and a rise in the older population are the driving forces behind the digital health market's growth. North America is the leading manufacturing hub for digital health devices and services, like variable devices, mHealth, telehealth, and telemedicine, which drives the regional digital health market's expansion. In 2019, the U.S. Census Bureau reported that more than 54 million Americans are over 65 years old. Due to aging, the elderly population is more susceptible to chronic diseases such as diabetes and hypertension, which increases the demand for digital health and drives digital health market growth. In addition, the development of the market is fueled by the rising cost of healthcare systems and the rising demand for affordable digital health devices and services.

Asia Pacific will grow at the highest CAGR of 21.12% and reach USD 2,06,696 million. China and India have many chronically ill patients, making them highly lucrative investment markets. In addition, the increase in healthcare expenditures for treating chronic and other diseases is one of the most critical factors driving the market growth. For example, digital health devices and services can reduce the patient's hospital expenses and the complexity of hospital services. In addition, the tools provide self-care, mobility, and versatility in their application. Consequently, these advantages increase demand for digital health technology and services, like wearable devices, mHealth, telehealth, and telemedicine. In addition, a rise in internet usage and connectivity contributes to digital health market demand.

The market in Asia-Pacific is experiencing significant growth due to a rise in population, an increase in the prevalence of chronic diseases, and a rise in awareness regarding the use of digital health devices and services, which are the key factors that drive the digital health market's expansion. Asia-Pacific countries have enormous populations. As a result, the region has the potential to provide a large patient base for diseases like diabetes, cancer, and hypertension, which is anticipated to stimulate the expansion of the Asia-Pacific market.

Segmental Analysis

The global market for digital health is classified based on product & service, component, end-user, and region.

Based on products & services, the segments include mHealth and eHealth.

eHealth Products & Services Segment to Hold a Prime Share Due to Increases Patient Satisfaction. The eHealth segment will likely hold the largest share during the forecast period and grow at a CAGR of 14.92%. eHealth is classified as using information and communications technologies in the healthcare industry, even if patients and healthcare providers do not have close communication but instead interact via electronic devices such as smartphones. It provides numerous services, including monitoring vital signs, electronic prescribing, telepathology, physical and psychological diagnosis, and treatment. In addition, the healthcare information system improves medical facilities, reduces healthcare costs, reduces medical errors, increases patient satisfaction, and optimizes reimbursement for inpatient healthcare providers.

The growth of the eHealth market is driven by an increase in demand for software, a rise in the use of communication and information technology, healthcare, and the development of healthcare IT. In addition, the growing need to handle compliance requirements through e-health solutions, the availability of infrastructure for the implementation of e-health, and the storage of data securely and adequately all contribute to the expansion of the market.

mHealth is "the utilization of mobile and wireless technologies to facilitate the attainment of health goals." It is also known as mobile health, the exercise of medicine and public health assisted by devices like tablets, mobile phones, and personal digital assistants. It collects and analyzes patient data via electronic means to provide improved treatment outcomes. It offered the patient a tremendous advantage during the pandemic by promoting awareness, promoting a healthy lifestyle, and directing the patient toward the most effective treatment. In addition, mHealth technologies improve the effectiveness, velocity, and connectivity of integrated clinical and public health sectors. 

Based on components, the segments include Software, Hardware, and Services.

The service segment will most likely hold the largest share during the forecast period and grow at a CAGR of 19.12%. Implementation, training & integration, and updates are some of the activities included in the services. Digital health services offer digital care programs that improve the effectiveness of healthcare delivery and the monitoring of patients on time. These technologies have various applications, ranging from general health to medical devices. Digital health services are utilized for improved management and tracking of health and wellness-related activities by patients and healthcare professionals. The digital health market's growth is primarily driven by the increasing demand for software platforms and the trend of upgrading software in the healthcare industry.

The software component will hold the second-largest share. Software is the collection of instructions, data, or programs that computers use to perform a specific task. Healthcare software was developed for simulation and medical training, database storage, research, and equipment planning. Due to its use in hospitals' body scanners, medical imaging software is emerging. In addition, the healthcare research software is intended to assist scientists and researchers with medical research, drug invention & analysis. The increasing demand for accurate and timely data retrieval is the primary factor driving market expansion.

Based on end-user, the segments are Healthcare Providers, Payers, Healthcare Consumers, and Others.

Healthcare Provider Segment to Continue Dominance Due to Increased Demand for Precise Figures. The healthcare provider segment will grow at a CAGR of 18.92% and hold the largest share during the forecast period. A healthcare provider is a person or organization that provides diagnosis, treatment, and services like surgery, therapy, and medical devices to consumers or patients. They routinely receive payment from health insurance providers for their services. Hospitals and ambulatory care facilities are examples of healthcare providers. Increased demand for precise figures to ensure patient safety by improving clinical outcomes drives market expansion. In addition, the digital health market growth is fueled by the development of healthcare reforms and efforts to curb rising healthcare costs.

The healthcare consumer segment will hold the second-largest share. A healthcare consumer is an individual who utilizes health-related services. They are the parties involved in patient-driven care and a system centered on the patient. Healthcare consumers play a crucial role in decision-making, ultimately influencing the services available to individuals and societies. Digital health for consumers is rapidly becoming an integral component of healthcare. The key factors driving the digital health market growth are the increase in demand for digital health technology, the prevalence of chronic diseases, and the aging population.

Recent Developments

• In 2022, Allscripts Healthcare Solution, Inc announced the relaunch of its application store as the Allscripts App Expo. The clients can now have an engaging way to identify all applications built and certified through the Allscripts Developer Program.