Digital Health Market Assessment, Size, Value, Share, Growth, Trends, Consumer Analysis, Competition, Industry Analysis, Actionable Insights Report; By Component, By Technology, By Application, By End-User, By Region and Country; Outlook and Forecasts, 2024 – 2030

Report Summary

The Digital Health Market represents a transformative convergence of digital technologies and healthcare services. In 2023, the global digital health market size stood at USD 210 billion, with projections indicating substantial growth to approximately USD 500 billion by 2030. This anticipated growth trajectory implies a notable CAGR of 15% from 2024 to 2030. The digital health industry is experiencing explosive growth, fueled by technological advancements, increased smartphone and mobile tech adoption, a surge in demand for personalized healthcare solutions, escalating healthcare expenses, and a growing awareness of preventive care. This latest report provides a comprehensive overview of the digital health market, analyzing its current status, market size, technologies classification, growth potential, key trends, and future prospects.

What is Digital Health?

Digital health encompasses a wide array of digital and technological tools to address diverse health needs. This includes various computing platforms, software, devices, and sensors facilitating remote health tracking and monitoring. Beyond cost efficiency, digital health solutions actively prevent numerous ailments. Encompassing telehealth, health wearables, Electronic Health Records (EHR), AI-driven diagnostics, and more, digital health extends eHealth by engaging digital consumers through smart, connected devices. It involves the Internet of Things (IoT), advanced computing, big data analytics, AI including machine learning, and robotics. Examples such as wearable devices, mHealth, telehealth, EHR, healthcare IT, and telemedicine epitomize digital health solutions. Overall, it represents a spectrum of technologies and services utilizing digital platforms to enhance healthcare delivery, patient care, and overall health outcomes.

Digital Health Market Growth & Key Trends

The global rise in fast internet access, the increasing prevalence of chronic ailments, and the expanding digitalization in healthcare significantly enhance the prospects of the digital health market. Factors such as the growing adoption of smartphones and smart devices, the popularity of home healthcare solutions, advancements in healthcare IT infrastructure, cost containment imperatives, escalating chronic diseases, and a rapidly expanding geriatric population create promising opportunities for market growth. Furthermore, increasing disposable incomes, the integration of advanced technologies like AI, and growing R&D activities contribute to the market's momentum. Conversely, concerns about patient data security and the high setup costs of digital healthcare solutions impede the market's expansion.

Digital Health Market Trends

• Rise of Telehealth and Remote Monitoring
• Integration with Wearables and Sensors
• Integration with Emerging Technologies such as IoT, AR, VR, and XR
• AI-Powered Diagnostics and Treatment
• Digital Health Interventions for Managing Chronic Diseases
• Increasing Emphasis on Mental Health and Behavioral Health
• Digital Therapeutics and Software-based Interventions
• Focus on Data Privacy and Cybersecurity Threats
• Collaboration and Strategic Partnerships between Healthcare Providers, Technology Firms, and Research Institutions
• Economic Downturn and Reduced Healthcare Spending 

What are the Major Growth Drivers, Restraints, and Opportunities in Digital Health Market?

COVID-19 Pandemic Boosts Digital Health Industry Outlook

The COVID-19 pandemic significantly influenced the landscape of the digital health market. With widespread lockdowns and travel restrictions in response to the virus, people's mobility was limited. Healthcare facilities, overwhelmed by a surge in infected patients, faced disruptions in non-emergency services. Fear of virus exposure deterred many from seeking in-person consultations. This scenario propelled digital health technologies into the spotlight, particularly in disease surveillance, strategy development, and frontline care. Nations globally embraced telehealth, telemedicine, and remote monitoring platforms to facilitate virtual interactions between physicians and patients. The surge in popularity of digital health solutions allowed individuals to easily communicate with healthcare providers from the safety of their homes. These developments collectively reshaped the dynamics of the digital health marketplace. 

Rising Adoption of Smartphones, Tablets, and Mobile Platforms Propels Digital Health Market Growth

The prevalence of smartphones, tablet PCs, and Personal Digital Assistants (PDAs) has surged in recent years. These gadgets serve as the primary source of internet connectivity, notably in developed areas such as North America and Europe. Their adoption is also climbing in emerging regions, driven by affordable devices and expanding high-speed mobile networks. The widespread use of smartphones, tablets, and similar platforms serves as a major catalyst for the digital health market. These devices grant easy access to a myriad of health and wellness apps, telemedicine services, and wearable health technology. This convergence of technology empowers individuals to track their health, access remote medical consultations, and collect real-time health data, fostering a more proactive healthcare approach.

Digital Health Interventions for Chronic Disease Management Bolster the Digital Health Industry Outlook

Effectively managing chronic conditions poses a challenge within the current episodic care model, where patients receive brief office visits a few times a year. The solution lies in real-time, continuous monitoring and increased patient-provider interactions. Innovations like intelligent analytics, wearable sensors, remote patient monitoring (RPM), and patient-facing apps in digital health technologies offer promise. These tools empower primary care physicians to optimize outcomes, enhance quality, and reduce healthcare costs. Physicians are increasingly integrating emerging digital health technologies, particularly in chronic condition treatment and preventive care. This growing adoption has the potential to enhance chronic condition care management, preventions, and ultimately contribute to a reduction in the annual trillions spent on treating these conditions.

High Deployment Costs of Digital Health Solutions Impede Adoption Rates

The implementation of various digital health solutions poses a substantial challenge, particularly for small and medium-sized healthcare organizations, due to their notably high costs. This predicament is rooted in deploying multiple networks in healthcare facilities, limited wireless connectivity alternatives, and the necessity of robust security measures to avert data breaches. Ongoing support and maintenance services, encompassing software adjustments and upgrades to meet evolving user needs, contribute significantly to the overall cost of ownership. Moreover, post-sales custom interface development for device integration requires thorough verification and validation, further elevating the total cost of ownership for healthcare providers. These additional expenses often surpass the financial capacities of smaller hospitals and healthcare organizations.

Data Privacy and Cybersecurity Concerns Impacting Digital Health Solutions

The escalating dependence on digital health solutions raises significant apprehensions regarding data privacy and security. Upholding robust data protection measures and ethical data usage stands as an imperative priority. The swift integration of the internet and smart devices in healthcare amplifies cybersecurity challenges. Incidents of hacking and unauthorized access to sensitive information via connected smart devices have notably surged. Due to these concerns about healthcare data security, governments, healthcare entities, and experts hesitate to adopt digital health solutions on a broader, national scale. For instance, in 2022, Department of Health and Human Services (HSS) and Health Sector Cybersecurity Coordination Center (HC3) reports revealed 701 major breaches impacting nearly 59 million individuals. Furthermore, the lack of clarity and differing digital health regulations across countries and regions compounds these challenges, impeding market growth.

Digital Health Market Opportunities and Key Investment Pockets

• Expanding Applications in Chronic Disease Management
• AI-powered Drug Discovery and Development
• Growing Demand for Personalized Care
• Digital Health Solutions for Mental Health and Behavioral Health
• Expansion of Telehealth and Remote Monitoring
• Digital Therapeutics and Software-based Interventions
• Emerging Technologies like AR, VR, XR
• Untapped Potential in Developing Countries
• Favorable Government Initiatives Boosting Digital Health Ecosystem

What are the Digital Health Market Segmentations and Bifurcations? 

Digital Health Market Segmentation, By Component

• Hardware
• Software & Apps
• Services

In 2023, the services segment commanded over 40% share of revenue, holding the largest market share based on components. This growth is fueled by escalating demands for diverse services like training, staffing, installation, and maintenance. The continuous evolution of software solutions is driving increased needs for installation and training services. Key industry players offer a comprehensive array of pre-installation and post-installation services, either bundled or standalone, thereby propelling segmental expansion. 

Projections indicate that the software & apps segment is slated for the most rapid CAGR until 2030. This surge is primarily propelled by the rapid adoption of these solutions by patients, hospitals, healthcare providers, and insurance entities. Additionally, integrating deep learning, machine learning techniques, and AI functionalities enriches healthcare personalization, further fostering market growth. AI and machine learning are integrated into digital health platforms to facilitate remote patient analysis. Furthermore, AI-powered chatbots are deployed to disseminate the latest healthcare information.

Digital Health Market Segmentation, By Technology

• Tele-Healthcare
  • Telehealth
    • Video Consultation
    • LTC Monitoring
  • Telecare
    • Remote Medication Management     
    • Activity Monitoring
• mHealth
  • mHealth Apps
    • Fitness Apps
    • Medical Apps
  • mHealth Wearables
    • Glucose Meter
    • BP Monitor
    • Pulse Oximeter
    • Neurological Monitor
    • Sleep Apnea Monitor
    • Activity Trackers
    • Others
  • mHealth Services
    • Monitoring Services
    • Diagnosis Services
    • Healthcare Systems Strengthening Services
    • Others
• Digital Health Systems
  • E-Prescribing Systems
  • Electronic Health Records (EHR)
• Healthcare Analytics

In the digital health market, the tele-healthcare segment asserted its dominance, commanding a significant revenue share of approximately 40% based on technology, in 2023. The surge in demand for telehealth services stems from the increasing need for precise health and fitness monitoring, secure healthcare information storage, and real-time population management. The ongoing enhancement of telehealth hardware and software components is a substantial contributor to service growth. The market is further propelled by the prevailing trend of software upgrades that incorporate a broad spectrum of healthcare applications.

Furthermore, the creation of diverse platforms for monitoring, diagnosis, and disease prevention contributes significantly to market expansion. The increasing investment in digital infrastructure, especially in developing nations, amplifies the demand for telehealth platforms. Companies are innovating service delivery methods, positively impacting market growth. The rise of remote patient monitoring, driven by the prevalence of chronic conditions and technological advancements, is noteworthy. Anticipated growth in the global geriatric population during the forecast period is expected to further boost demand for remote patient monitoring services. Government support, policies promoting healthcare digitization, and escalating healthcare IT spending are pivotal factors propelling the telehealth segment. 

Digital Health Market Segmentation, By Application

• Behavioral Health
• Chronic Disease Management
• Health & Fitness
• Others

Based on application, the digital health market is segmented into behavioral health, chronic disease management, health & fitness, and others. The behavioral health segment focuses on utilizing digital tools and technologies to address prevention, diagnosis, and treatment of mental health conditions, substance abuse disorders, and emotional well-being. This application encompasses a spectrum of interventions, including telepsychiatry, virtual therapy sessions, cognitive behavioral therapy (CBT) applications, mindfulness and meditation platforms, and mood tracking tools. The chronic disease management segment is tailored for individuals grappling with long-term health conditions such as diabetes, heart disease, and respiratory illnesses. Digital health tools facilitate patient monitoring, medication adherence tracking, and remote connectivity with healthcare providers, thereby enhancing healthcare delivery and patient outcomes.

Health & fitness represents a rapidly expanding segment in the digital health market, comprising apps and devices designed to promote healthy lifestyles and physical activity. This application encompasses diverse functionalities, including activity tracking, exercise planning and coaching, nutritional guidance, sleep tracking, stress management, and goal setting. Leveraging wearable devices, mobile applications, and online platforms, health and fitness solutions empower users to adopt and maintain healthy behaviors, monitor progress, establish achievable goals, and receive personalized recommendations for optimizing health and fitness outcomes.

Digital Health Market Segmentation, By End-User

• Healthcare Providers (Professionals, Hospitals, Institutions)
• Healthcare Payers
• Patients & Consumers
• Others

In terms of end-users, the digital health market is categorized into healthcare providers, healthcare payers, patients & consumers, and others. Notably, the different healthcare providers took precedence, occupying a dominant position within the market. However, the patients & consumers segment is anticipated to witness the most rapid growth. This heightened growth is ascribed to a rising awareness of self-health management and the widespread availability and accessibility of smartphones and mHealth devices. These technological advancements make health tracking and monitoring more convenient, contributing significantly to the accelerated growth of patients & consumers segment. 

Report Scope

What are the Regional and Country Trends in Digital Health Market? 

Global Dietary Supplements Market - Regional Analysis 

• North America
• Europe
• Asia Pacific
• Middle East & Africa
• Latin America

In 2023, North America took the lead in the global digital health market. As an early adopter of advanced technologies, it secured around 40% share of the worldwide digital health market, outranking Europe and APAC. The region embraces diverse technologies such as mobile apps, smart wearables, and crucial eHealth services like EHR & telemedicine services, crucial for remote access to critical healthcare information. Various factors drive this region's growth, including the rapid surge in smartphone adoption, advancements in network coverage, an upsurge in chronic diseases, a growing aging population, escalating healthcare costs, a shortage of primary caregivers, and a heightened need for better prevention & management of chronic conditions.

Asia Pacific is poised for the fastest growth during the forecast period. Increased adoption of eHealth platforms and amplified healthcare spending in the region will propel service growth. Rising demand for remote patient monitoring and telehealth services due to increased government healthcare spending will further boost industry growth. The increasing involvement of key market players in Asia Pacific is spurring the adoption of digital apps and platforms in the region.  

Digital Health Market - Competition Dynamics

The global digital health market is marked by fierce competition, featuring a diverse landscape of established players and innovative startups striving for market share. Venture capitalists and private equity firms are increasingly investing in digital health startups, underscoring a growing confidence in the digital health market. The industry is witnessing strategic partnerships, mergers, and acquisitions, signaling consolidation and collaboration.

Some of the key players in the digital health market include Abbott, AdvancedMD, AirStrip Technologies, Allscripts, Amwell, Apple, Athenahealth, Cerner Corporation, Change Healthcare, Cisco Systems, Computer Programs and Systems Inc., Dexcom, Doctor on Demand, eClinicalWorks, Epic Systems Corporation, GE Healthcare, Google, HiMS, iHealth Lab, Koninklijke Philips, McKesson Corporation, Medtronic, MQure, NextGen Healthcare, Omada Health, Omron, QSI Management, ResMed, Samsung, Siemens Healthineers, Teladoc Health, Telefónica, Vocera Communications, Vodafone Group, and Others. These companies are actively involved in developing innovative technologies and solutions, expanding their global reach, and forming strategic partnerships to gain a competitive edge.

Digital Health Market Developments

• In December 2023, Microsoft and the Institute for Biotechnology and Medicine Industry (IBMI) formally solidified a transformative digital health partnership. This strategic alliance aims to advance digital health solutions, expedite product development, and implement robust global market entry strategies.

• In November 2023, AstraZeneca unveiled plans for the establishment of Evinova, a new AI-centric digital health solutions company.

• In November 2023, Amazon introduced a dedicated healthcare platform exclusively for its Prime members. This platform offers around-the-clock access to telehealth visits for minor needs, alongside in-person and remote primary care services via One Medical.

• In July 2023, Peterson Center on Healthcare introduced the Peterson Health Technology Institute (PHTI), a nonprofit organization focused on independently evaluating cutting-edge healthcare technologies. The institute aims to enhance health outcomes and reduce costs.

• In May 2023, Medtronic expanded its capabilities in treating patients with diabetes by acquiring EOFlow Co. Ltd. 

• In March 2023, GE HealthCare forged a multi-year partnership with Advantus Health Partners to extend Healthcare Technology Management Services, thereby enhancing access to healthcare services.