Digital Health Market by Revenue Model (Subscription, Pay per service, Free apps), Technology (Wearables, mHealth, Telehealthcare, RPM, LTC monitoring, Population Health management, DTx), EHR, Healthcare Analytics, ePrescribing & Region - Global Forecast to 2028
The global digital health market in terms of revenue was estimated to be worth $180.2 billion in 2023 and is poised to reach $549.7 billion by 2028, growing at a CAGR of 25.0% from 2023 to 2028. The new research study consists of an industry trend analysis of the market. The new research study consists of industry trends, pricing analysis, patent analysis, conference and webinar materials, key stakeholders, and buying behaviour in the market. Increasing penetration of smartphones, tablets, and other mobile platforms, Supportive initiatives and increasing strategic alliances, Rising geriatric population and chronic diseases and Rising focus on patient centric healthcare solutions are some of the key factors driving the growth of this market.
However, High cost of deployment of digital health solutions for small and medium-sized hospitals in emerging countrie; and Interoperability issues in the digital health market are some of the factors expected to restrain the growth of this market in the coming years
Global Digital Health Market Trend
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Digital Health Market Dynamics
Driver: Increasing penetration of smartphones, tablets, and other mobile platforms
The adoption of smartphones, tablet PCs, and Personal Digital Assistants (PDAs) has increased significantly in the past few years. These devices are the primary internet connectivity source in developed regions, such as North America and Europe. The adoption of these devices is also on the rise in emerging regions due to the introduction of low-cost devices and the continued expansion of high-speed mobile networks. The high penetration of smartphones, tablets, and other mobile platforms has become a significant driver for the digital health market. With the widespread availability of these devices, individuals now have convenient access to a plethora of health and wellness apps, telemedicine services, and wearable health tech. This technological convergence empowers people to monitor their health, access medical consultations remotely, and gather real-time health data, ultimately fostering a more proactive approach to healthcare.
Restraint: High cost of deployment of digital health solutions
The cost of various digital health solutions is considerably high, making it difficult for especially for small and medium-sized healthcare organizations to implement them. The primary reasons for this situation stem from challenges associated with deploying multiple networks within healthcare facilities, limited wireless connectivity alternatives, and the necessity of implementing additional security measures to prevent data breaches. Furthermore, ongoing support and maintenance services, such as software adjustments and upgrades to accommodate evolving user needs, contribute significantly to the overall cost of ownership. Additionally, post-sales custom interface development for device integration demands further verification and validation to ensure the accuracy and comprehensiveness of solutions, further inflating the total cost of ownership for healthcare providers. These supplementary expenses are often beyond the means of smaller hospitals and healthcare organizations.
Challenge: Privacy and security concerns
Privacy and security concerns are paramount in the digital health market and exert a substantial impact. The crux of the issue lies in the extensive data collection inherent to digital health products, encompassing personal health information (PHI) which includes individually identifiable information related to an individual's health status, created, collected, transmitted, or maintained by HIPAA-covered entities for healthcare provision, payment, or operational purposes. Medical information is highly sought after on the black market. Criminals exploit this valuable commodity to submit fraudulent insurance claims and illicitly acquire medical equipment, resulting in a worrisome increase in compromised healthcare records.
Opportunity: Increasing advancements and adoption in digital health
The advancement of technology in healthcare has catalyzed a transformative shift in the digital health market. These innovations are revolutionizing healthcare by saving time, improving accuracy, and integrating technologies in novel ways. The Internet of Medical Things (IoMT) has emerged as a key development, facilitating telemedicine, smart sensors, and enhanced patient-doctor communication. The COVID-19 pandemic has accelerated the adoption of telehealth services, emphasizing the role of technology in virtual healthcare.
Digital Health Market Ecosystem Map
Tele-healthcare segment accounted for the largest share of the global digital health industry
Based on technology, the digital health market is segmented into mHealth, Tele-healthcare, Digital Therapeutics and Health Management Solutions. Telehealthcare segment accounted for the largest share of the market in 2022. Some of the key factors responsible for the large share of this segment include increased demand for telehealth during the COVID-19 pandemic, improved consumer and provider attitudes towards virtual care, growing need for remote care, government support and policies, and investment and innovation. Additionally, telehealth also offers a cost-effective, quick, and accurate way to access healthcare services, making it an essential modality for future care needs.
Software segment expected to hold the largest share of digital health industry in 2022
Based on offering, the Digital Health market is segmented into software, hardware and services. The software segment expected to account for the largest market share of the global Digital Health market in 2022. Software is the most dominant segment in digital health due to its flexibility, cost-effectiveness, ease of use, and innovation, allowing for easy updates, lower costs, and improved healthcare delivery.
The patients & consumers segment of the digital health industry is expected to grow at the highest CAGR during the forecast period
On the basis of end-user, the Digital Health market is segmented into healthcare providers, payers, Patients & Consumers. The patients & consumers segment is expected to be the fastest-growing end user segment in this market. The high growth of this segment is attributed to increasing awareness of self-health management, proliferation of smartphones and mHealth devices that has made health tracking and monitoring more accessible and convenient.
North America accounted for the largest share of the global Digital Health Industry in 2022.
The Digital Health market is segmented into four key regions—North America, Europe, APAC, and the Rest of the World (RoW). North America, being the early adopter of advanced technologies, has captured the largest share of the Digital Health market in 2022, followed by Europe and APAC. It is also projected to register the highest CAGR. North America is the fastest-growing regional segment for digital health due to its technological development, expansion in the healthcare industry, favorable regulatory environment, and the presence of key players and innovation hubs.
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Prominent players in the digital health market include Koninklijke Philips N.V. (Netherlands), Medtronic (Ireland), GE HealthCare (US), Abbott (US), OMRON Corporation (Japan), Fitbit, Inc. (A Google Company) (US), Johnson & Johnson Private Limited (US), Siemens Healthineers AG (Germany), Masimo (US), Apple, Inc. (US), Merative (US), AT &T, Inc. (US), Veradigm LLC (US), Noom, Inc. (US), Teladoc Health, Inc. (US), Omada Health Inc. (US), Dexcom, Inc. (US), Biotricity (US), iHealth Labs Inc (US), my mhealth Limited (UK), athenahealth (US), eClinicalWorks (US), AirStrip Technologies, Inc (US), AdvancedMD, Inc. (US), and Qardio, Inc. (US).
Scope of the Digital Health Industry
|
Report Metric |
Details |
|
Market Revenue in 2023 |
$180.2 billion |
|
Projected Revenue by 2028 |
$549.7 billion |
|
Revenue Rate |
Poised to Grow at a CAGR of 25.0% |
|
Market Driver |
Increasing penetration of smartphones, tablets, and other mobile platforms |
|
Market Opportunity |
Increasing advancements and adoption in digital health |
The study categorizes the digital health market to forecast revenue and analyze trends in each of the following submarkets:
By Offering
-
Software
- Subscription Based
- Annual Licensing
-
Services
- Subscription Based
- Pay-Per-Service (Value-based)
-
Application (Apps)
- Subscription based
- One-time Purchase
- Value-Based
- Hardware
By Technology
- mHealth
-
mHealth Devices
- Vital Signs Monitors
- Peakflow Meters
- Fetal Monitors
- Sleep Apnea Monitors
- Neurological Monitors
- Others
-
mHealth Apps
- Fitness Apps
- Medical Apps
- Telehealth
-
Telecare
- Activity Monitoring
- Remote Medication Management
-
Telehealth
- LTC Monitoring
- Video Consultation
- Digital Therapeutics
- Preventive Therapeutics
- Treatment Therapeutics
- Healthcare Management Systems
- EHR
- Healthcare Anlaytics
- E-prescribing
By Application
- Chronic Disease Management
- Behavioural Health
- Health & Fitness
- Other Applications
By End User
- Provider
- Hospitals & Clinics
- Long term care facilities & Assisted Living
- Payers
- Public
- Private
- Patients & Consumers
By Region
-
North America
- US
- Canada
-
Europe
- Germany
- France
- UK
- Rest of Europe
-
Asia Pacific
- Japan
- China
- India
- Rest of Asia Pacific
- Latin America
- MEA
Recent Developments of Digital Health Industry
- In May 2023 Medtronic (Ireland) acquired EOFlow Co. Ltd. (South Korea) to expand its ability to treat patients with diabetes.
- In March 2023, GE HealthCare (US) partnered with Advantus Health Partners (US) to sign a multi-year contract to expand access to Healthcare Technology Management Services.
- In April 2023, Abbott (US) acquired Cardiovascular Systems, Inc. (CSI) (US) to gain a complementary treatment option for vascular illness. The highly advanced atherectomy technology from CSI prepares vessels for angioplasty or stenting to restore blood flow.
Frequently Asked Questions (FAQ):
What is the projected market revenue value of the global digital health market?
The global digital health market boasts a total revenue value of $549.7 billion by 2028.
What is the estimated growth rate (CAGR) of the global digital health market?
The global digital health market has an estimated compound annual growth rate (CAGR) of 25.0% and a revenue size in the region of $180.2 billion in 2023.
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This market research study involved the extensive use of secondary sources, directories, and databases to identify and collect information useful for this technical, market-oriented, and financial study of the Digital Health market. In-depth interviews were conducted with various primary respondents, including key industry participants, subject-matter experts (SMEs), C-level executives of key market players, and industry consultants, among other experts, to obtain and verify critical qualitative and quantitative information and to assess market prospects. The size of the Digital Health market was estimated through various secondary research approaches and triangulated with inputs from primary research to arrive at the final market size.
Secondary Research
The secondary sources referred to for this research study include publications from government sources, such as WHO, AAAI, EurAI, GCAAI. Secondary sources also include corporate and regulatory filings (such as annual reports, SEC filings, investor presentations, and financial statements); business magazines and research journals; press releases; and trade, business, and professional associations. Secondary data was collected and analyzed to arrive at the overall size of the global Digital Health market, which was validated through primary research.
Primary Research
Extensive primary research was conducted after acquiring basic knowledge about the global Digital Health market scenario through secondary research. Several primary interviews were conducted with market experts from both the demand side (Healthcare Providers – Doctors, Clinicians, ) and supply-side (such as C-level and D-level executives, technology experts, product managers, marketing and sales managers, distributors, and channel partners, among others) across five major regions—North America, Europe, the Asia Pacific, Latin America, Middle East and the Africa. Approximately 70% and 30% of primary interviews were conducted with supply-side and demand-side participants, respectively. This primary data was collected through questionnaires, e-mails, online surveys, personal interviews, and telephonic interviews.
Note 1: Tiers are defined based on the total revenues of companies. As of 2021, Tier 1 = >USD 1 billion, Tier 2 = USD 500 million to USD 1 billion, and Tier 3 = <USD 500 million.
To know about the assumptions considered for the study, download the pdf brochure
Both top-down and bottom-up approaches were used to estimate and validate the total size of the global Digital Health market. These methods were also used extensively to estimate the size of various subsegments in the market. The research methodology used to estimate the market size includes the following:
- The key players in the industry and markets have been identified through extensive secondary research.
- The revenue generated from the sale of Digital Health products by leading players has been determined through primary and secondary research.
- All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources.
Global digital health market size: top down approach
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Global digital health market size: bottom up approach
Data Triangulation
After arriving at the overall market size, from the market size estimation process explained above, the Digital Health market was split into segments and subsegments. To complete the overall market engineering process and to arrive at the exact statistics for all segments and subsegments, the data triangulation and market breakdown procedures were employed, wherever applicable. The data was triangulated by studying various factors and trends from both the demand and supply sides in the remote patient monitoring market
Market Definition
The digital health market refers to the use of digital technologies, information, and communication systems to improve and enhance healthcare delivery, patient care, and overall health outcomes. It encompasses a wide range of products and services that leverage technology to address various healthcare needs and challenges.
Key Stakeholders:
- Healthcare providers
- Patients
- Wireless device manufacturers
- Healthcare technology suppliers
- Health IT Companies
- Pharmaceutical Companies
- Telecommunication Companies
- Application developers and app stores
- Medical Device Manufacturers
- Government and Regulatory Bodies
- Healthcare Payers
- Internet identity management, privacy, and security companies
- Sensor, presence, location, and detection solution providers
- Data management and predictive analysis companies
- Health Data Analytics Providers
- Research institutions
Report Objectives
- To define, describe, and forecast the global Digital Health market based on offering, application, technology, end user, and region
- To provide detailed information regarding the major factors (such as drivers, restraints, opportunities, and challenges) influencing the market growth
- To strategically analyze micromarkets with respect to individual growth trends, prospects, and contributions to the overall Digital Health market
- To analyze opportunities in the market for stakeholders and provide details of the competitive landscape for market leaders
- To strategically analyze the market structure and profile the key players of the Digital Health market and comprehensively analyze their core competencies
- To forecast the size of the market segments with respect to four regions, namely, North America, Europe, Asia Pacific, and the Rest of the World (Latin America and the Middle East & Africa)
- To track and analyze competitive developments such as product launches, acquisitions, partnerships, agreements, and collaborations in the Digital Health market during the forecast period
Available Customizations:
With the given market data, MarketsandMarkets offers customizations as per the company’s specific needs. The following customization options are available for the report:
Company information
- Detailed analysis and profiling of additional market players (up to 10)
Growth opportunities and latent adjacency in Digital Health Market