Global Digital Health Market By Technology (Tele-healthcare, mHealth, Healthcare Analytics, and Digital Health Systems), By Component (Software, Hardware, and Services), By End User (Healthcare Providers, Payers, Healthcare Consumers, and Other End-Users), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

The global Digital Health Market Size is expected to be worth around USD 1,190.4 Billion by 2032 from USD 264.1 Billion in 2022, growing at a CAGR of 16.7% during the forecast period from 2023 to 2032.

The market is expected to expand due to the increasing penetration of smartphones and improved internet connectivity (with 4G/5G), advances in healthcare IT infrastructure, rising healthcare costs, rising prevalence of chronic diseases, and greater accessibility to virtual care.

Key players also invest in developing advanced applications that enhance user experience; Teladoc Health recently joined Microsoft Teams in July 2021 to integrate its Solo platform into the Microsoft Teams environment; this partnership will give clinicians and patients better access to virtual healthcare options.

The market is being propelled forward by government initiatives to encourage digitalization in healthcare worldwide. India, for instance, established a digital ecosystem under their Ayushman Bharat Digital Health Mission (ABDM) during the 2022 budget session; similarly, France announced in October 2021 that they would invest more than US$ 650 million to improve their national digital health infrastructure.

Many developing and emerging nations face a shortage of qualified medical professionals. According to WHO projections, there will be an estimated 15 million healthcare workers shortage by 2030. With the rise in chronic diseases and an aging population, there is a rising need for healthcare professionals. United Nations estimates that there were more than 703 million seniors worldwide in 2019, expected to grow to 1.5 billion by 2050.

Telehealth/telemedicine services enable doctors to reach more patients while improving healthcare access and reducing provider costs. Remote residents no longer need to travel long distances for treatment; now, they can utilize telehealth technology and contribute towards expanding the market.

The Internet of Things (IoT) has become an indispensable digital platform in healthcare, offering efficient data backup and analytics, reliable mobile connectivity, and advanced wearable devices with big data processing powering a personalized digital experience.

Key Takeaways

• Market Size: The global Digital Health Market Size is expected to be worth around USD 1,190.4 Billion by 2032 from USD 308.2 Billion in 2023.
• Market Growth: The market growing at a CAGR of 16.7% during the forecast period from 2023 to 2032.
• Technology Analysis: The telehealthcare market was the most dominant by technology, with a 42.5% revenue share.
• Component Analysis: The service segment held the highest revenue share by component at 44.5%.
• End-Use Analysis: The healthcare providers segment dominated the market in 2022.
• Regional Analysis: North America accounted for the highest market share in 2022, with a 45.3%
• Investment Opportunities: Venture capital investment in digital health startups is on the rise, indicating strong market confidence and innovation potential within the sector.
• Consumer Demand: There is a growing demand for patient-centered care, prompting healthcare providers to adopt digital solutions that enhance patient engagement and accessibility.

Technology Analysis

Based on technology, the global digital health market is differentiated into four main types: Telehealthcare, mHealth, Healthcare Analytics, and Digital Health Systems. Among these types, the telehealthcare market was the most dominant by technology, with a 42.5% revenue share. Telehealth services are undergoing a surge in demand because of the need to monitor and store health data securely, manage the population, and provide real-time monitoring.

In addition, they are growing because of increasing demands for software advancements that include wide-ranging healthcare applications; additionally, multiple platforms that can monitor diseases are emerging as another driving factor within this area.

Similarly, investments in digital infrastructure, especially in developing countries, are prompted by the rising demand for telehealth platforms. Companies offering new services to clients have also contributed to this growth, such as GlobalMed’s introduction of its Transportable Audiology Backpack in February 2022, which allows remote audiology examinations and extended patient care.

Similarly, investments in digital infrastructure, especially in developing countries, are prompted by the rising demand for telehealth platforms. Companies offering new services to clients have also contributed to this growth, such as GlobalMed’s introduction of its Transportable Audiology Backpack in February 2022, which allows remote audiology examinations and extended patient care.

This segment is forecast to grow at the fastest compound annual growth rate (CAGR) of 22.5% during the forecast period, driven by increasing chronic conditions like diabetes and heart disease, as well as technological progress. Globally, geriatric populations will grow over the forecast period, further fueling demand for remote monitoring services. In addition, many platforms provide these capabilities now, further fueling growth within this segment. Similarly, government support and policies encouraging healthcare digitization have further fueled its expansion within telehealth services.

Component Analysis

Based on components digital health market is divided into Software, Hardware, and Services. Among these, the service segment held the highest revenue share by component at 44.5%. This growth can mainly be attributed to rising demand for training, staffing, maintenance, and more due to advances in software solutions that have enabled an uptick in training and installation requirements. In addition, key players offer a wide selection of pre-installation, post-installation, and standalone solutions, which could further fuel segmental development.

The fastest projected CAGR for the software segment will be 17.9% over the forecast period. This growth can be attributed to its increasing adoption among hospitals, patients, healthcare providers, and insurance payers. Also, deep learning, machine learning techniques, and AI functionality have become integral parts of digital health solutions, aiding final patient disposition through remote analysis and AI chatbox functionality that provide up-to-date healthcare information.

End-User Analysis

Based on end-users global digital health market is divided into Healthcare Providers, Payers, and Healthcare Consumers. In 2022, the healthcare providers segment dominated the market. This trend is predicted to persist over the forecast period due to increased chronic diseases, increased demand for mHealth apps, and new technologies in this industry. In addition, payers also stand to benefit significantly due to rising healthcare costs and an uptick in IT solutions sales.

Key Market Segments

By Technology

• Tele-healthcare
  • Tele-care
  • Telehealth
• mHealth
  • Wearables
  • mHealth Apps
  • Services
• Healthcare Analytics
• Digital Health Systems

By Component

• Software
• Hardware
• Services

By End-User

• Healthcare Providers
• Payers
• Healthcare Consumers
• Other End-Users

Drivers

The growing use of tablets and smartphones, both in developing and developed countries, is producing the adoption of digital tools. Different governments are also taking steps to promote electronic medical records as a way of managing various diseases. For example, in April 2020, the Federal Communications Commission (FCC) authorized a program of USD 200 million to finance telehealth services for medical providers. In addition, to combat COVID-19’s effects, various governments launched mobile apps to manage patient needs during this pandemic. For example, in response to COVID-19, India’s government launched the Arogya Setu app on mobile.

This application helps users self-assess, map syndromes, track contacts, and educate about infection. Major market players have invested heavily in R&D to create and execute better solutions; Google even reported an AI initiative for healthcare in March 2022. In addition, each country has taken various actions to facilitate digital technology adoption within developing and developed nations correspondingly.

This application helps users self-assess, map syndromes, track contacts, and educate about disease. Major market players have invested heavily in R&D to create and execute better. The global adoption of smartphones and tablets is increasing due to several factors, including the increasing internet penetration rate and the high bandwidth available in developed countries. According to Bankmycell, 6.64 billion smartphone users will be connected to the internet by 2022.

Eighty-three percent of the world’s population is now aware of their health, emphasizing physical activity, mental well-being, and other elements. This has resulted in an exponential rise in healthcare monitoring and diagnosis services in developing countries. Business Standards has reported that consumers in India are more willing to invest in exercise classes and healthy eating practices.

Around 40% of Indians said they would pay more for products that promote well-being. In addition, people are increasingly turning towards wearables and other health applications thanks to the growing use of tablets and smartphones. Companies are now working hard to create various health apps in response to this demand; according to mobihealthnews, in 2020, there were more than 90,000. On average, 250 digital apps are downloaded daily worldwide.

A recent report states that more than 350,000 healthcare-focused apps are currently available. With the increasing internet penetration and global health consciousness among people, mobile app adoption for healthcare is expected to grow substantially over the coming years due to new devices and apps. Google even reported an AI initiative for healthcare in March 2022. Each country has taken various actions to facilitate digital technology adoption both within developing and developed nations correspondingly.

Restraints

Systems such as these are becoming increasingly prevalent worldwide, both in developed and developing countries alike. However, privacy issues remain a significant challenge for them globally. Health data is stored in numerous formats across various health information systems. Therefore, healthcare providers must guarantee the security of their data from cybercrimes.

According to estimates by the Health Sector Cybersecurity Coordination Center, 239.4 million attempts were made to hack into healthcare systems by 2020; thus, cyber-attacks remain a significant concern in America today. In addition, the privacy of health data is a serious issue. It’s difficult to share data between medical professionals while protecting personally identifiable information, making it vulnerable. As a result, hacking personal information by cybercriminals has become increasingly prevalent, with hackers seeking access to patients’ details.

HIPAA Journal reports that healthcare data breaches increased dramatically in 2020. These breaches, which often involve patients’ health records, have created privacy concerns for both healthcare providers and patients alike, thus slowing the growth of this market.

Opportunity

Healthcare is facing a fundamental shift in how services are delivered and consumed. This shift is driven by the urgent need to create an equitable healthcare delivery system that ensures high quality, cost efficiency, decentralized accessibility, and affordability for everyone. These demands on society and government must be met; however, entrepreneurial minds are working hard to develop solutions and models that will get us there – one such option being digital health models. Digital health can enhance all aspects of healthcare delivery from birth through death, providing solutions that support individuals throughout their lifespans.

Due to rising healthcare costs and inadequate infrastructure, healthcare is transitioning into a consumer-driven model. As a result, a proactive Predict and Prevent Model has emerged, which seeks to identify and address the root causes of problems while emphasizing preventative measures that can be taken to avoid them in the future. These innovations are driven by technology and entrepreneurship.

The new digital health model in emerging countries promises to help solve several obstacles that impede healthcare delivery, such as access, affordability, quality, safety, and accessibility. However, many developing nations have experienced considerable difficulties providing healthcare services – particularly in rural areas – due to a lack of infrastructure.

If done innovatively, digitizing healthcare services can improve access and quality while cutting costs. As a result, most developed countries have transitioned away from paper-based systems in favor of digital, traditional healthcare models.

Digital technology has created novel diagnostic and treatment options, increased process efficiency, and cut costs. Furthermore, these advances are helping to bridge the gap between developed and developing economies as well as those involved in healthcare value chain activities.

For example, US digital health companies raised over USD 4.5 billion in funding last year alone – equivalent to 302 finance deals at an average value of 14.8 million USD.

Healthcare technology has seen remarkable advances, with an explosion of digital devices and technologies entering the digital space. This has driven up growth rates in institutional and consumer healthcare delivery systems.

Regional Analysis

North America Led the Market in 2022 With a 45.3% Revenue Share 2022

North America accounted for the highest market share in 2022, with a 45.3% revenue share. It was also the first region to implement smart healthcare solutions such as wearables and mobile apps due to factors such as rapidly adopting smartphones, improvements in coverage networks, rising prevalence of chronic diseases among the geriatric population, rising costs of healthcare services, acute shortages of primary caregivers and an increasing need for better prevention and management of chronic conditions. With these factors combined, North America became increasingly dominant within this space.

Asia Pacific is expected to experience the fastest growth rate over the forecast period, driven by increased adoption of eHealth platforms and rising healthcare spending. This government commitment could result in an uptick in remote patient monitoring services and other telehealth offerings. According to World Bank figures, China’s 2019 healthcare spending was 5.4%, India’s 3.1%, and Japan’s 10.7%, respectively. Market leaders have become increasingly involved with Asia Pacific’s rapid adoption of digital platforms and apps.

Key Regions

North America

• The US
• Canada
• Mexico

Eastern Europe

• Russia
• Poland
• The Czech Republic
• Greece
• Rest of Eastern Europe

Western Europe

• Germany
• France
• The UK
• Spain
• Italy
• Portugal
• Ireland
• Austria
• Switzerland
• Benelux
• Nordic
• Rest of Western Europe

APAC

• China
• Japan
• South Korea
• India
• Australia & New Zealand
• Indonesia
• Malaysia
• Philippines
• Singapore
• Thailand
• Vietnam
• Rest of APAC

 Latin America

• Brazil
• Colombia
• Chile
• Argentina
• Costa Rica
• Rest of Latin America

Middle East & Africa

• Algeria
• Egypt
• Israel
• Kuwait
• Nigeria
• Saudi Arabia
• South Africa
• Turkey
• United Arab Emirates
• Rest of MEA

Key Players Analysis

Competition in the healthcare market is fierce, and many key players are launching new platforms to meet the rising digitalization of this sector. Telehealth technology is being utilized by numerous companies worldwide to assist healthcare professionals and grow their market share – leading to intense competition within this space. American Well, for instance, launched Converge, their cutting-edge telehealth platform, in April 2021, offering greater connectivity to stakeholders while meeting growing medical assistance requirements.

Market Key Players

The digital health market is fragmented, with several local and regional players’ presence. As a result, market players are subject to intense competition from top players, particularly those with strong brand recognition and high distribution networks. As a result, companies have gained various expansion strategies, such as partnerships and product launches, to stay on top of the market.

• BioTelemetry Inc
• eClinicalWorks
• Allscripts Healthcare Solutions Inc
• iHealth Lab Inc
• AT & T
• Honeywell International Inc
• Athenahealth Inc.
• Cisco Systems
• McKesson Corporation
• Koninklijke Philips N.V.
• AdvancedMD Inc.
• Cerner Corporation
• Other Key Players

Recent Development

• In March 2022, MEDITECH and Google Health joined forces to make patient data accessibility effortless and fast.
• In March 2022, Validic announced the availability of its remote patient monitoring platform (RPM), Validic Impact, on Epic Systems’ App Orchard. Through App Orchard, Epic System community members can launch their apps directly onto the platform.
• In May 2022, FUJIFILM Holdings Corporation and National Rural Health Association joined forces to offer rural areas access to digital radiography and in vitro diagnostics solutions.
• In November 2021, Amazon Web Services, Inc. and Gilead Sciences, Inc. joined forces to develop and deliver groundbreaking medicines for patients using AWS analytics, machine learning, and other related technologies.
• In December 2021, Microsoft and CVS Health joined forces to offer innovative solutions for customers that promote better health, promote digital transformation, and offer new options to shoppers.

Report Scope