Digital Health Market Size, Share & Trends Analysis Report By Technology (Healthcare Analytics, mHealth, Tele-healthcare, Digital Health Systems), By Component (Software, Hardware, Services), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global digital health market size was valued at USD 211.0 billion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 18.6% from 2023 to 2030. Increasing penetration of smartphones, improved internet connectivity with the introduction of 4G/5G, advancement in healthcare IT infrastructure, rising need to curb healthcare costs, rising prevalence of chronic diseases, and the increase in accessibility of virtual care are some of the major factors to fuel the market growth. Furthermore, key players focus on introducing advanced applications to improve user experience. For instance, in July 2021, Teladoc Health collaborated with Microsoft to integrate its Solo platform with the Microsoft Teams environment to improve clinician and patient access across the virtual healthcare space.

Government initiatives to spread digitalization across the healthcare sector throughout the globe are further driving the market. For instance, during the 2022 budget session, the Government of India introduced a digital health ecosystem under Ayushman Bharat Digital Health Mission (ABDM). Similarly, in October 2021, France government announced that they will invest over USD 650 million to expand their digital health infrastructure on a national level. 

Several developed countries and emerging economies have a shortage of trained medical professionals. As per the projection of WHO, there will be a shortage of about 15 million healthcare workers by 2030. There is an increasing demand for healthcare professionals in various regions due to the rise in the aging population and the prevalence of chronic diseases. According to United Nation estimates, there were over 703 million individuals aged 65 and above in 2019, and this number is estimated to reach 1.5 billion by 2050 globally. Telehealth/telemedicine services help doctors to reach more patients. It enhances access to healthcare, improves the use of the time of patients & doctors, and helps reduce healthcare costs. People living in remote areas have to travel for hours to gain access to treatment, but now the population can fulfill their healthcare needs through telehealth, thereby aiding the market growth.

The Internet of Things (IoT) has been one of the popular digital platforms in healthcare for 5 to 6 years. Currently, with efficient data backup through integrated analytics, strong mobile connectivity, and advanced wearable devices, IoT has evolved and reached a point where it is drastically transforming the healthcare sector by facilitating various activities, such as efficient tracking of staff, patients, & inventories; optimizing drug prescription; ensuring availability of critical medical equipment: and addressing chronic diseases. To enable uninterrupted personalized digital experience, the evolution and implementation of big data play a major role by helping a service provider optimize resources & time, to provide better healthcare services.

The rapid adoption rate of the internet and smart devices in the healthcare sector is increasing issues related to cybersecurity. There has been a significant rise in the incidents of hacking and tapping of confidential information through connected & smart devices. Owing to data security concerns related to healthcare information, governments of various countries, healthcare organizations, and experts are hesitating to adopt digital health solutions on a larger and national scale. For instance, as per the statistics of the Data Protection Report, 2021, there was a rise of about 73% in healthcare cybercrimes & data breaches in 2020 leading to exposing 12 billion units of healthcare information Moreover, digital health regulations are unclear and vary across countries & regions. These reasons are hindering market growth.

The pandemic has created multiple challenges for global healthcare services. However, this situation has provided a much-needed boost to digital health technologies in the field of disease surveillance, new strategy development, and frontline care services. Multiple countries have adopted telehealth, telemedicine services, and remote monitoring platforms to enable physical interactions among physicians and the patient population. Therefore, the industry is expected to experience a boost in terms of market revenue in 2020-2021 and would follow an upward projected technology life cycle trajectory (sale versus time curve) till the forecasted period. For instance, MyDoc, a telehealth platform headquartered in Singapore, witnessed a 160% growth in daily active users in 2020.

Technology Insights

By technology, the telehealthcare segment dominated the market with a revenue share of 41.5%. Telehealth services are witnessing a surge in demand owing to the growing need to accurately monitor health & fitness, securely store healthcare information, and real-time population management. Upgradation of telehealth hardware and software components is contributing to the growth of the services. The growing trend of software upgradation for the inclusion of wide healthcare applications also contributes towards the growth of the market. The development of a range of platforms for monitoring, diagnosis, and wellness & prevention of diseases is also a key factor boosting the market.

Moreover, growing investments in digital infrastructure particularly in developing countries drive the demand for the market in order to implement successful telehealth platforms. Companies are also introducing newer ways to provide services to their clients which in turn positively impact market growth. For instance, in February 2022, GlobalMed introduced Transportable Audiology Backpack to facilitate remote telehealth audiology examinations for extended patient care.

The segment is also expected to show the fastest CAGR of 23.5% over the forecast period. Remote patient monitoring is gaining popularity owing to the increasing prevalence of chronic conditions, such as diabetes and cardiovascular diseases, and rapid advancements in technology. The geriatric population is also estimated to grow globally during the forecast period, which in turn is anticipated to boost the demand for remote patient monitoring services. Moreover, many platforms are offering remote patient monitoring features, which in turn are supporting segment growth. Government support and policies promoting healthcare digitization, along with growing healthcare IT spending are major factors driving the telehealth segment.

Component Insights

By component, the service segment accounted for the largest revenue share of 45.4% in 2022. The growth of the segment can be attributed to the growing demand for different services such as training, staffing, installation, maintenance, and others. Continuous advancement in software solutions is leading to rising requirements for installation and training services. Key players provide a wide range of pre-installation and post-installation services either in packages or as standalone, thereby boosting segmental growth. 

However, the software segment is projected to grow with the fastest CAGR of 19.9% in the forecast period. The major factor that attributes to the segment growth is the rapid adoption of these software solutions by patients, hospitals, healthcare providers, and insurance payers. Furthermore, the incorporation of deep learning and machine learning techniques & AI functionality enhances the personalization levels of healthcare which is further boosting the market growth. AI and machine learning are incorporated into digital health for assisting the conclusive disposition of patients through remote analysis. Moreover, an AI chatbox is deployed to provide the latest healthcare information.

Regional Insights 

North America dominated the market in 2022 with a revenue share of 44.3%. North America is one of the very first regions to adopt smart healthcare solutions, including various technologies such as mobile apps, smart wearables, and eHealth services, like EHR & telemedicine services, for remote access to information on serious & chronic healthcare conditions. Factors such as rapid growth in the adoption of smartphones, advancements in coverage networks, rise in the prevalence of chronic diseases, increase in geriatric population, rise in costs of health care, acute shortage of primary caregivers, and increase in need for improved prevention & management of chronic conditions are responsible the growth of the industry. 

Asia Pacific is estimated to witness the fastest growth rate during the forecast period. The rising adoption of eHealth platforms and increased healthcare spending in the region is expected to drive the growth of these services. Rising demand for remote patient monitoring and other telehealth services owing to an increase in government spending on healthcare is expected to propel the industry growth in the Asia Pacific. According to The World Bank estimates, in 2019, China’s healthcare spending was recorded at 5.4% of its GDP, while India’s healthcare spending was recorded at 3.1% of its GDP and Japan's was at 10.7. The growing involvement of key market players in Asia Pacific has boosted the adoption of digital apps and platforms in the region. 

Key Companies & Market Share Insights 

The market is highly competitive, with key players launching new platforms. Several new players are entering the market to cater to the growing digitalization in the healthcare sector. Various companies around the globe are investing in telehealth technology to assist healthcare professionals and increase their share in the rapidly growing market. These factors are expected to result in high industry rivalry. For instance, in April 2021, American Well launched its next-generation, innovative Converge telehealth platform. This latest platform provides deeper connectivity for healthcare stakeholders and addresses the increasing medical assistance needs. Some of the key players in the global digital health market include:

• Cerner Corporation (Oracle)

• 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

Global Digital Health Market Segmentation

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

  • North America

    • 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