DIGITAL HEALTHCARE MARKET ANALYSIS

Digital Healthcare Market Size and Trends

Global digital healthcare market is estimated to be valued at USD 220.10 Bn in 2024 and is expected to reach USD 836.10 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 21% from 2024 to 2031. Rising chronic diseases, growing geriatric population, and increasing preference for online consultations and e-pharmacies are factors that can drive the digital healthcare market growth.

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Global digital healthcare market is expected to witness steady growth due to rising investment in telemedicine and remote patient monitoring technologies. There is growing demand for self-care and personalized medicine solutions along with emergence of digital therapeutics and artificial intelligence driven tools for disease prediction and management. Furthermore, integration of digital health solutions across care settings along with government support through favorable regulations can drive the market growth during the forecast period.

Aging Population and Need for Remote Patient Monitoring

An increasing number of patients are receiving long-term care diagnoses due to chronic diseases and other problems brought on by an aging global population. The increased monitoring requirements of an ageing population cannot be met by traditional in-office doctor visits. Digital healthcare solutions empower patients to be more proactive in managing their wellness from the comfort of their home. Remote patient monitoring devices, apps, and telehealth services allow serious medical conditions to be managed virtually on an ongoing basis between patient and provider check-ins. Vital signs such as blood pressure, blood glucose, heart rate, oxygen levels, and others can automatically be digitally transmitted to healthcare professionals for review. This alleviates strain on medical clinics and hospitals by reducing unnecessary in-person visits. For instance, in December 2023, AJ Hospital and Research Centre  implemented Dozee's state-of-the-art AI-powered contactless remote patient monitoring (RPM) and early warning system (EWS) on 50 beds within its private ward.

Market Concentration and Competitive Landscape

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Launch of new products

Rising launch of innovative new digital healthcare products can drive the market growth. Technology companies and startups are introducing novel solutions that are transforming how healthcare services are delivered and received. For example, remote patient monitoring platforms enabled by devices like glucose monitors, blood pressure cuffs and scales can seamlessly connect to apps or portals. This allows chronic condition patients to stay in their homes while doctors can closely track their vitals and intervene remotely if needed. As a result, healthcare is becoming more accessible, affordable and patient-centric. For instance, on March 14, 2024, Mayo Clinic launched a digital health product pipeline with the goal of easing the challenges faced by digital health companies in selling to hospitals. It aims to simplify the process for hospitals to discover and incorporate beneficial tools into their systems

Key Takeaways from Analyst:

Global digital healthcare market growth is driven by factors like rising geriatric population, increasing prevalence of chronic diseases, and growing need for cost-effective healthcare solutions. Greater patient awareness, improving telecommunication infrastructure, and government initiatives to promote digital health can drive the market growth.

However, data privacy and security concerns pose challenges for adoption of digital healthcare technologies. Maintaining privacy and protecting sensitive patient information on virtual platforms can hamper the market growth. High upfront costs of equipment and platforms as well as lack of infrastructure in rural areas can also limit widespread access to digital healthcare in some regions.

Key market players are focusing on areas like remote patient monitoring devices and services, mHealth technologies, EHR and clinical information systems, and telehealth and telemedicine. North America currently dominates the market, owing to well-established healthcare IT infrastructure and favorable reimbursement policies for telemedicine. However, Asia Pacific is expected to showcase highest growth over the forecast period due to growing healthcare expenditures and rising medical tourism in countries such as India and China.

Market Challenges: Data security and privacy concern

Data security and privacy concerns can hamper the digital healthcare market growth. Patients are increasingly wary of sharing their personal medical information online due to fear of data breach and leak of sensitive health records. This reluctance to adopt digital healthcare solutions can hamper the market growth. There have been several incidents reported in the past few years which have eroded public trust and highlighted the risks. For instance, according to a report published by U.S. Department of Health and Human Services in 2021, healthcare data breaches had increased by 68% from previous year. Over 37 million patient records were exposed in data breaches in 2021. Such large-scale breaches have worried patients about potential misuse of their medical records and insurance details if shared digitally. This fear has prevented faster adoption of telehealth consultations and online prescription services.

Market Opportunities: Growing telehealth and telemedicine market

Growing telehealth and telemedicine market can offer growth opportunities for the digital healthcare sector. With global healthcare infrastructure being challenged by the ongoing COVID-19 pandemic, telehealth has provided an innovative solution for physical distancing and virtual care. Healthcare providers have adopted telehealth at an unprecedented rate to evaluate and treat patients remotely, reducing the need for in-person visits and preserving critical medical supplies. According to the data from the U.S. Department of Health and Human Services, telehealth use had increased by 154% between 2019 to 2020 (HHS.gov report on telehealth access during Covid-19, 2021). As physical distancing continues in many parts of the world, telehealth allows providers to care for large numbers of patients from the safety of their own homes and offices. Patients have also appreciated the convenience of virtual visits that eliminate travel time and costs associated with physical visits.

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By Technology: Convenience tele-health segment growth

In terms of technology Healthcare Analytics, segment is estimated to contribute the highest market share of 60.0 % in 2024 it utilizes data, statistical analysis, and predictive models to enhance medical, financial, and operational aspects of healthcare. Factors driving its prominence include the digitization of healthcare data, aging populations, and patient demands for personalized care. It aids in evidence-based decision-making, cost reduction, and improved outcomes. mHealth, involving mobile technologies for health monitoring, and Tele-health, enabling remote clinical services, are rapidly growing segments. The COVID-19 pandemic has accelerated their adoption due to social distancing measures and increased demand for virtual care. These technologies are reshaping healthcare delivery and will continue to do so, alongside analytics and connectivity advancements.

By Component: Software drives value in digital healthcare systems

In terms of component, software segment is estimated to contribute the highest market share of t 45.12% in 2024, owing to its critical role in enabling digital healthcare solutions. A wide range of healthcare software including electronic health records, telemedicine portals, remote patient monitoring systems, and clinical decision support are indispensable tools that improve the overall efficiency and outcomes of healthcare delivery. Software allows seamless data collection, storage, and sharing between providers, payers, and patients. Advanced analytical capabilities in software help providers make more informed care decisions. Customizable software solutions also offer flexibility to users. Meanwhile, innovations in AI and machine learning are further enhancing the capabilities of healthcare software. 

By End User: Hospitals lead digital healthcare adoption

In terms of end user, hospital & clinics segment is estimated to contribute the highest market share of 40.12% in 2024 due to their large patient volumes and leadership role in coordinating care. Hospitals are among the early adopters of digital healthcare systems as these solutions help enhance various aspects of their complex operations. Electronic health records, remote monitoring, telehealth and predictive analytics boost clinical efficiency and workflow inside hospitals. Meanwhile, digital connectivity with external providers and payers facilitates collaborative care management. Significant investments by hospitals have spurred innovations across diverse healthcare IT categories including cloud infrastructure, mobile apps, and automation. This positions hospitals at the forefront of gradually establishing integrated digital ecosystems. Their growing needs also encourage the proliferation of interoperable solutions across care settings.

Regional Insights

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North America has established itself as the dominant region in the global digital healthcare market it has share of 40.2 % in 2024 With the U.S. being home to leading technology companies and startups, the region has a strong industry presence and high adoption rates of digital health solutions among both healthcare providers and consumers. Telehealth and remote patient monitoring services first gained popularity in the U.S., allowing North American consumers early access to virtual care options. Several virtual care platforms and connected healthcare devices were first launched and made commercially available in this region. Significant public and private sector investments in telemedicine, AI-powered diagnosis, and digital therapeutics have further helped North America to maintain its superior position.

Asia Pacific has emerged as the fastest growing regional market for digital healthcare. Countries like India, China, Japan and South Korea are swiftly expanding their digital healthcare infrastructure and rapidly increasing investments in this sector. The presence of large patient pools and rising healthcare expenditures in these nations can offer growth opportunities. Digital health also offers solutions to meet the healthcare needs of vast rural populations with limited access to traditional healthcare facilities. Local governments are putting policies in place to promote digital healthcare adoption and development.

Market Report Scope

Digital Healthcare Industry News

• On January 4, 2024, Eli Lilly and Company, a pharmaceutical company, introduced LillyDirect, a novel digital healthcare solution for patients in the U.S. dealing with obesity, migraine, and diabetes. This initiative aims to streamline the patient experience by offering disease management resources, personalized support, and direct home delivery of select Lilly medications through third-party pharmacy dispensing services.
• In March 2023, BlueRock Therapeutics LP, a subsidiary of Bayer AG, a pharmaceutical and biotechnology company, announced a partnership with Emerald Innovations and Rune Labs, health analytics company focusing on leveraging contactless and invisible wearable digital health technology, to enhance monitoring for Parkinson's disease
• In March 2023, Google, a multinational technology company, launched Open Health Stack, an open-source initiative allowing developers to create health-related applications, emphasizing AI collaborations aimed at cancer screening
• In March 2023, Nabla Technologies, a IT consulting and service company, introduced Copilot, a digital assistant tool in the form of a Chrome extension utilizing GPT-3. It is designed to help doctors translate patient conversations into actionable insights.
• In March 2022, Samsung, a multinational electronics and information technology company, showcased its latest advancements, including a smart healthcare TV and sophisticated digital health solutions for healthcare facilities, during the Healthcare Information and Management Systems Society (HIMSS) Global Conference in Florida. Samsung partnered with ShareSafe to develop a secure casting solution from mobile devices to Samsung Smart Healthcare TVs.

*Definition: Digital Healthcare market involves medical services and technologies related to digital healthcare procedures. It includes services provided by hospitals, surgeons, nephrologists, and other healthcare professionals to transplant kidneys from living or deceased donors to patients with kidney failure. The market also involves immunosuppressant drugs, medical devices, and other products used for long-term care of transplant recipients to help prevent organ rejection.

Market Segmentation

• Technology Insights (Revenue, USD BN, 2019 - 2031)
  • Healthcare Analytics
  • mHealth
  • Tele-health
  • Others
•  Component Insights (Revenue, USD BN, 2019 - 2031)
  • Software
  • Hardware
  • Services
•  End User Insights (Revenue, USD BN, 2019 - 2031)
  • Hospital & Clinics
  • Patients
  • Providers
  • Payers
  • Others
• Regional Insights (Revenue, USD BN, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
  • Telefónica S.A.
  • Epic Systems Corporation
  • QSI Management, LLC
  • AT&T
  • AirStrip Technologies
  • Google, Inc.
  • Hims & Hers Health, Inc.
  • Orange
  • Softserve
  • Computer Programs and Systems, Inc.
  • Vocera Communications
  • IBM Corporation
  • CISCO Systems, Inc.
  • Apple Inc.
  • Oracle Cerner
  • Veradigm
  • Mckesson Corporation
  • Hims & Hers Health, Inc.
  • Vodafone Group
  • Qualcomm Technologies, Inc.
  • Samsung Electronics Co., Ltd.
  • General Electric Company