The global digital health market size was valued at USD 96.5 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 15.1% from 2021 to 2028. Increasing cases of obesity, high prevalence of chronic diseases, such as diabetes, Cardiovascular Disorders (CVDs), growing need for remote patient monitoring services, and increasing patient engagement & connectivity owing to high adoption of digital health technology are the major factors promoting the market growth. According to research data published in NCBI in 2018, 95.0% of the U.S. adult population possessed a mobile phone, with 64.0% of them owning smartphones. As per the report published by the GSM Association, Mobile Economy 2018, the number of people connected to mobile services surpassed 5 billion in 2017 and the number of unique mobile subscribers is anticipated to reach 5.9 billion by 2025.
In addition, a growing trend of preventive healthcare coupled with rising funding for various mHealth startups is further propelling the market growth. A rise in the number of patients suffering from conditions requiring Long-term Care (LTC) including Alzheimer’s disease, cancer, diabetes, and CVDs is also driving the market growth. Chronic or long-term conditions are a major economic burden on hospitals and clinics, which, in turn, is expected to drive the demand for tele-healthcare services for remote monitoring and physician consultation of LTC patients.
According to the Pharmaceutical Services Negotiating Committee, in 2018, over 26 million people in England had at least one long-term condition. According to the data published by NHS England, in 2018, long-term conditions accounted for 64% of all hospital outpatient appointments, 50% of all General Practitioner (GP) appointments, and 70% of inpatient bed days. Moreover, the growing demand for specialty health consulting, especially in remote areas, is boosting the adoption of digital health. The adoption of various software, such as Electronic Health Records (EHRs)/Electronic Medical Records (EMRs), has significantly increased owing to the assistance provided to healthcare systems.
The application scope of the software is rapidly increasing in medical devices, clinical decision support, health IT systems, mHealth apps, fitness trackers, telehealth systems, and wearable devices, which, in turn, is propelling the market growth. The current Covid-19 pandemic has significantly increased the demand for digital health among consumers as well as physicians and practitioners and is offering numerous opportunities, considering social distancing, as the only existing solution to minimize exposure. According to the study conducted by SSCG Media Group, in March 2020, 53% of the healthcare practitioners were using telemedicine owing to the restrictions imposed on account of the pandemic.
The rising adoption of telehealth services during the pandemic is increasing the safety of both healthcare providers and patients, as it eliminates in-person appointments and further increases the provider capacity. According to the guidelines published by the CDC in July 2020, it recommended the implementation of telehealth services for high-quality patient care, as well as for prevention and control of infections during the pandemic. All these factors contributed to the digital health market growth.
Furthermore, rising investments, mergers & acquisitions, joint ventures, product launches, partnerships, collaborations, and government initiatives are driving the market growth. In February 2018, Allscripts acquired Practice Fusion. The acquisition helped the company expand its customer base to about 30,000 ambulatory practices that currently use Practice Fusion’s cloud-based EHR system. This also helped the company in expanding and developing its big data & analytics capabilities.
The mHealth technology segment accounted for the largest market share of over 47% in 2020 and is anticipated to register a lucrative CAGR during the forecast period. Growing penetration of smartphones & internet connectivity, availability of several mHealth apps, and rising adoption of these technologies by physicians and patients are the key factors driving the segment. Rapid technological advancements and the development of new products is further propelling the segment growth. The healthcare analytics segment is expected to register the fastest CAGR from 2021 to 2028. Increasing pressure from governing bodies to reduce the treatment costs and other associated expenditures that originate from hospital workflow inefficiencies and medical product flaws is boosting the usage of big data in the healthcare sector, thereby fueling the adoption of healthcare analytics software and solutions.
Other factors, such as increasing demand for smartwatches, growing demand to track services and systems across diverse industry verticals, technological advancements in IoT technology to deliver better connectivity, coverage, and real-time monitoring is bolstering the segment growth. For instance, SafeBeing is an AI-powered, real-time remote monitoring wearable solution that supports caregivers to reduce hospitalizations, detect changes in activity patterns, and improve on quality metrics.
The services segment accounted for the largest revenue share of 47.19% in 2020. The segment includes various activities, such as training & integration, installation, and up-gradation. The rise in demand for software platforms, such as EHRs, and the growing trend of software up-gradation for the inclusion of an array of healthcare applications are driving the segment as companies are focusing on delivering post-installation services including training, staffing, optimization, clinical and other services. Moreover, the rise in the number of investments in digital infrastructure, majorly in developing countries, is driving the adoption of digital health services for implementing successful digital platforms.
However, the software component segment is expected to register the fastest CAGR over the forecast period. The increasing demand for reducing the medical costs and growing need for accurate & timely information procurement are among the key factors responsible for the segment growth. In addition, consumer shift towards value-based care in developed economies, rise in demand for efficient management of organizational workflows in healthcare organizations, and various initiatives by private & public companies to develop healthcare IT infrastructure will boost the adoption of digital health software solutions.
North America accounted for the largest market share of 38.77% in 2020 and will expand further at a steady CAGR over the forecast period. Rising healthcare costs, advancements in coverage networks, increasing adoption of smartphones, and a surge in demand for tele-healthcare services are driving the market growth in the region. According to the report published by Mckinsey in May 2020, the Covid-19 pandemic instigated a significant increase in the adoption and usage of telehealth in the U.S. Adoption of tele-health services by consumers has skyrocketed in the country, from 11.0% in 2019 to 46.0% in 2020 to replace the canceled healthcare visits.
Asia Pacific is anticipated to be the fastest-growing regional market over the forecast period. Rising smartphone penetration, increasing adoption of smart wearable devices, and a surge in demand for EMRs and EHRs are contributing to the growth of the regional market. Moreover, countries, such as Malaysia and Japan, have already established a national warehouse that enables data sharing between public hospitals. In addition, the rising demand for remote patient monitoring and related services owing to increasing government spending on healthcare is anticipated to propel market growth.
Mergers & acquisitions and strategic alliances with other industry participants and increasing R&D in the area of mHealth technologies are some of the initiatives being undertaken by key companies to increase their market share. For instance, in June 2018, Medidata, a cloud storage and data analytics company, acquired Shyft Analytics for USD 195.0 million. The acquisition helped the company in jointly developing data platforms that can be used in processes ranging from the beginning of the drug development phase to its commercialization. Some of the key companies in the global digital health market are:
Epic Systems Corporation
QSI Management, LLC
Samsung Electronics Co., Ltd.
Qualcomm Technologies, Inc.
Computer Programs and Systems, Inc.
CISCO Systems, Inc.
Market size value in 2021
USD 110.2 billion
Revenue forecast in 2028
USD 295.4 billion
CAGR of 15.1% from 2021 to 2028
Base year for estimation
2016 - 2019
2021 - 2028
Revenue in USD million/billion and CAGR from 2021 to 2028
Revenue, company ranking, competitive landscape, growth factors, and trends
Technology, component, region
North America; Europe; Asia Pacific; Latin America; Middle East & Africa
U.S.; Canada; U.K.; Germany; Spain; France; Italy; Russia; China; Japan; India; South Korea; Singapore; Australia; Brazil; Mexico; Argentina; South Africa: Saudi Arabia; UAE
Key companies profiled
Cerner Corporation; Allscripts; Apple, Inc.; Telefónica S.A.; Mckesson Corporation; Epic Systems Corporation; QSI Management, LLC. AT&T; Vodafone Group; AirStrip Technologies; Google, Inc.; Samsung Electronics Co., Ltd.; HiMS; Orange; Qualcomm Technologies, Inc.; Softserve; MQure; Computer Programs and Systems, Inc.; Vocera Communications; IBM Corporation; CISCO Systems, Inc.
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This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2028. For the purpose of this study, Grand View Research, Inc. has segmented the global digital health market report on the basis of technology, component, and region:
Technology Outlook (Revenue, USD Million, 2016 - 2028)
Remote medication Management
Sleep Apnea Monitors
mHealth Services Market, By Type
Independent Aging Solutions
Chronic Disease Management & Post-acute Care Services
Healthcare Systems Strengthening Services
mHealth Services Market, By Participants
Digital Health Systems
Component Outlook (Revenue, USD Million, 2016 - 2028)
Regional Outlook (Revenue, USD Million, 2016 - 2028)
Middle East & Africa
b. The global digital health market size was estimated at USD 96.5 billion in 2020 and is expected to reach USD 110.2 billion in 2021.
b. The global digital health market is expected to grow at a compound annual growth rate of 15.1% from 2021 to 2028 to reach USD 295.4 billion by 2028.
b. mHealth dominated the digital health market with a share of 56.7% in 2019. This is attributable to high internet usage, increased penetration of smartphones, and availability of a large number of mHealth apps in the market.
b. Some key players operating in the digital health market include Apple Inc.; AirStrip Technologies; Allscripts; Google Inc.; Orange; Qualcomm Technologies Inc.; Mqure; Samsung Electronics Co. Ltd.; Telefonica S.A.; Vodafone Group; Cerner Corporation; and McKesson Corporation.
b. Key factors that are driving the market growth include increasing adoption of digital healthcare, favorable initiatives, and technological advancements for developing innovative digital solutions.
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High incidence and infectious nature of COVID-19 virus have infected a large number of frontline healthcare providers resulting in a significant shortage of doctors and nurses. Furthermore, due to infrastructural challenges, such as the limited number of beds in quarantine facilities, a large number of patients with mild symptoms are home quarantined. To monitor this large patient population with limited healthcare staff, many hospitals are adopting digital health solutions, which is quite evident in recent market movements. We are closely analyzing the impact of this pandemic on the digital health market. Get your copy now to gain deeper insights on the same.