Digital Health Market Size, Share & Trends Analysis Report By Technology (Healthcare Analytics, mHealth), By Component (Software, Services), By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global digital health market size was valued at USD 175.6 billion in 2021 is projected to grow at a compound annual growth rate (CAGR) of 27.7% from 2022 to 2030. Increasing smartphone penetration, improving internet connectivity, advancing healthcare IT infrastructure, growing healthcare expenditure, rising prevalence of chronic diseases, increasing demand for remote patient monitoring services, and increasing accessibility of virtual care are driving market growth.    

Smartphones have broadened their scope from devices of communication & entertainment to devices monitoring health & fitness. As per a Pew Research Center in 2021, 97.0% of U.S. citizens own smartphones. Market players are developing innovative mobile applications to track daily activities such as fitness, exercise, nutrition, and well-being, thereby delivering quality healthcare and comfort to users.

Furthermore, mobile applications allow users to gain information about medical inquiries, schedule appointments, track consultations, store their healthcare information, and track & order their medical prescriptions. For example, across different parts of the world, players have launched mobile applications such as AssistRx, Practo, and Wareed. Technology giants Apple, IBM, and Google are focusing on improving the mobile health experience by offering numerous subscription plans and enhancing data security features, which is expected to contribute to the digital health market growth

The rapidly rising incidence rate of chronic diseases such as Alzheimer’s, diabetes, cardiovascular diseases, and cancer requiring long-term care and patient monitoring services is driving the telehealth and teleconsultation services market. Telemedicine and telehealth services are being rapidly adopted by the healthcare fraternity and receiving recognition from both government bodies and private players.      

COVID19 digital health market impact: an increase of 19.1% market growth between 2019 and 2020

Moreover, telemedicine has been legalized and regulated in several countries such as the U.S., Canada, India, UAE, Russia, Germany, and many other Asian and European countries. Tele-care services bridge the gap between healthcare providers & patients and enhance accessibility and drive patient engagement. Telehealth services eliminate the need for in-person consultation and thereby, reduce the hassles of scheduling appointments and commuting to the healthcare facility, eventually reducing the care expenses and unnecessary costs.

In addition, companies are developing chatbot services for initial consultations or answering basic medical inquiries. The growing trend of digitalization in healthcare is being supported through favorable government initiatives, a rising number of technological collaborations amongst market players, and the shortcomings brought upon by the Covid-19 pandemic. Digital health solutions covering remote patient monitoring solutions and telecare are widely being adopted in long-term care services and facilities. As per NHS England data estimates in 2018, 64% of outpatient appointments, 70% of inpatient bed days, and all general practitioner appointments are for patients requiring long-term care.

Furthermore, approximately 26 million England citizens suffer from some kind of long-term ailment as per 2018 estimates of the Pharmaceutical Services Negotiating Committee.  Moreover, to expand care accessibility to remote locations, countries are rapidly adopting digital health. In addition, healthcare systems are adopting advanced software solutions such as electronic medical records (EMRs) to eliminate growing patient-related patient information data siloes.

The ongoing Covid-19 pandemic unearthed the shortfalls of the existing overburdened healthcare systems and exposed the potential of digital health solutions, thereby boosting the adoption of these solutions wherein it has witnessed a dramatic growth trajectory. Several healthcare functions such as mHealth, telecare, patient management, advanced diagnostics, digital integration of health systems, and advancing cybersecurity protocols contributed to the surge in market growth The growing trend of digitalization of healthcare systems drove market participants to devise innovative product development strategies and focus on their collaboration & partnership strategies to expand their business footprint and product portfolios.

The application scope of digital health solutions is witnessing a dramatic surge in adoption in clinical decision support, telehealth, mHealth, fitness applications & platforms, healthcare IT systems, and wearables & activity trackers which is driving the market growth. Furthermore, the ongoing Covid-19 pandemic has positively impacted the market by identifying multiple opportunities. For instance, healthcare professionals and patients readily began adopting telehealth solutions to avoid in-person consultations.

The significant growth rate witnessed by the market drove market players to revise their product innovation strategies, investment strategies, mergers & acquisitions, and partnerships to cater to the growing demand and expand their business geographies. The growing trend of personalized medication and value-based care coupled is driving the market growth. Moreover, the emergence of digital health solutions specialized startups and ventures are boosting the growth and are receiving recognition from government authorities and private investors.

Technology Insights

In 2021, the tele-healthcare segment accounted for a market revenue share of 37.6% and dominated the market. The market is expected to grow lucratively over the forthcoming years. This growth rate is attributable to the advancing internet connectivity, growing smartphone penetration, advanced technology readiness, growing shortage of healthcare providers, increasing medical expenses, wide availability of tele health applications, and rising adoption of these technologies by patients & physicians.

Constant evolution of telehealth applications and rapid technological innovations is further boosting the segment growth. Moreover, growing demand for virtual healthcare consultation due to the increasing COVID-19 pandemic and the integration of advanced IoT technology and advancing connectivity is further supporting to the high growth rate of the segment. For instance, as per the center for disease control and prevention (CDC) report, there is a 154% increase in telehealth visits in March 2020 than March 2019 in the U.S.

Component Insights

In 2021, the services segment dominated the market and accounted for the market revenue share of 45.6% attributable to the growing demand for various services such as installation, staffing, training, maintenance, and other such services. Market players are either providing these services as standalone or in packages. The growing demand for advanced software solutions and platforms such as electronic medical records and the growing need for upgradation and training required to run these software solutions is contributing to the growth of the services segment.

Key players provide a wide array of pre-installation and post-installation services covering project planning, staffing, implementation, training, and resource allocation & optimization. Furthermore, with advancements in healthcare IT infrastructure and the adoption of digital health solutions in emerging economies is expected to boost the growth of the services segment to successfully implement these systems.

On the other hand, software segment is anticipated to register the fastest growth rate in coming years owing to the rapid adoption of software systems amongst patients, healthcare facilities, providers, and insurance payers. The growing healthcare expenses and growing trend of healthcare digitalization is contributing to the growth of the software segment.      

The growing consumer demand for personalized medicine and transition to value based care is driving the growth of the solutions segment. In emerging economies, healthcare facilities are readily adopting these advanced software solutions and platforms to streamline their organizational workflows and enhance their clinical, operational, & financial outcomes.

Regional Insights    

North America dominated and accounted for market revenue of 45.9% in 2021. The growth is attributed to the growing healthcare IT expenditure to advance infrastructure, technological literacy, readiness to adopt advanced technological solutions, favorable government initiatives, the emergence of startups, lucrative funding options growing smartphone penetration, and advancements in internet connectivity.

Moreover, globalization, changing lifestyles, growing geriatric population, rising incidence rate of chronic disorders, and growing demand for value-based care is driving the market growth in North America.   

On the other hand, Asia Pacific is anticipated to record the fastest growth in upcoming years owing to the advancements in IT infrastructure and emergence of entrepreneurship ventures which is significantly contributing to the development of the market. Rising smartphone penetration, growing usage of activity trackers & wearables, and growing demand for healthcare analytics is driving the Asia Pacific market growth. 

Favorable changes to data privacy and cyber security protocols are supporting the development and growth of the market. Increasing government spending and government support in areas of remote patient monitoring to ensure affordable and accessible healthcare services to communities in developing countries is boosting the market growth.          

Key Companies & Market Share Insights

Key players operating in the market are Cerner Corporation, Allscripts, Apple Inc, Qualcomm Technologies Inc., Samsung Electronics Co Ltd, McKesson Corporation, IBM Corporation, Epic Systems Corporation, Airstrip Technologies, and AT&T offering innovative digital health solutions. The growing demand is driving key players to focus on their innovative product development strategies and devise collaboration & partnership strategies to expand their product portfolios and serve multiple regional markets. The emergence of startups and growing recognition from government authorities and venture capitalists is driving market growth. Some of the key companies in the global digital health market are:

• 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.

 Digital Health Market Report Scope

Segments Covered in the Report 

This report forecasts revenue growth at global, regional, and country level and provides an analysis of industry trends in each of the segments from 2016 to 2030. For this study, Grand View Research, Inc. has segmented the digital health market report based on technology, component, and region:

• Technology Outlook (Revenue, USD Million, 2016 - 2030)

  • Tele-healthcare

    • Tele-care

      • Activity Monitoring

      • Remote Medication Management

    • Telehealth

      • LTC Monitoring

      • Video Consultation

  • mHealth

    • Wearables

      • BP Monitors

      • Glucose Meters

      • Pulse Oximeters

      • Sleep Apnea Monitors

      • Neurological Monitors

      • Activity Trackers/ Actigraphs

    • mHealth Apps

      • Medical Apps

      • Fitness Apps

    • Services

      • mHealth Service, By Type

        • Monitoring Services

          • Independent Aging Solutions

          • Chronic Disease Management & Post-Acute Care Services

        • Diagnosis Services

        • Healthcare Systems Strengthening Services

        • Others

      • mHealth Services, By Participants

        • Mobile Operators

        • Device Vendors

        • Content Players

        • Healthcare Providers

  • Healthcare Analytics

  • Digital Health Systems

    • EHR

    • E-Prescribing Systems

• Component Outlook (Revenue, USD Million, 2016 - 2030)

  • Software

  • Hardware

  • Services

• Regional Outlook (Revenue, USD Million, 2016 - 2030)

  • NorthAmerica

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Spain

    • Russia

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • Singapore

    • South Korea

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • MEA

    • South Africa

    • Saudi Arabia

    • UAE