Digital Health In Neurology Market Size, Share & Trends Analysis Report By Component (Hardware, Software, Services), By End-use (Patients, Providers, Payers, Others), By Region, And Segment Forecasts, 2024 - 2030

Market Size & Trends

The global digital health in neurology market size was valued at USD 32.3 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 22.5% from 2024 to 2030. Increasing smartphone penetration, advancing healthcare IT infrastructure, improved internet connectivity, increasing prevalence of chronic diseases, rising healthcare expenditure, growing demand for remote patient monitoring services, and increasing accessibility of virtual care are driving the adoption of digital health technologies in neurology.

The global healthcare sector has faced numerous challenges during the pandemic. However, this circumstance drove the advancement of digital health technologies, particularly in disease management, formulating new technologies, and delivering frontline care services. Many nations have adopted remote monitoring platforms, telemedicine, and telehealth services to facilitate interactions between physicians and the patient population. Hence, the digital health industry experienced a significant boost in terms of revenue and is expected to grow lucratively in upcoming years, thereby maintaining exponential growth during the forecast period.

Government initiatives promoting global digitalization in the healthcare sector are significantly driving the market’s growth. For instance, in January 2024, the European Commission granted an EU-funded collaborative research infrastructure (RI) to EBRAINS, with approximately USD 41.0 million until 2026. The grant will help EBRAIN develop tools and services, such as digital twin approaches to serve communities in brain medicine, neuroscience, and brain-inspired technologies.

The Internet of Things (IoT) has been a commonly adopted digital healthcare platform. With advanced wearable devices, strong mobile connectivity, and efficient data backup through integrated analytics, IoT has evolved and reached a point where it is altering the healthcare industry by facilitating various activities, such as efficient tracking of patients, staff, & inventories, addressing chronic conditions, optimizing drug prescription, and ensuring availability of necessary medical equipment. For instance, in November 2023, Phantom Neuro, a neurotechnology company, introduced a solution that integrated their communication-based medical technologies with IoT WiFi.

Furthermore, smartphones have evolved from entertainment & communication devices to fitness and health-tracking devices. Health-related mobile smartphone applications have led to easy management of daily activities by making it convenient to track overall health. Some companies are developing applications to track sleep patterns. For instance, in March 2023, Apollo Neuroscience launched Apollo Labs, an AI-powered responsive wearable device to respond to stress and sleep, helping the user maintain mental and physical health.

The burden of neurological conditions is rising globally, with neurological disorders representing one of the recurring causes of disability worldwide. According to Alzheimer’s Association annual report, published in 2023, the prevalence of Alzheimer’s and other dementias in the U.S. is 6.7 million (in population aged 65 years and above). In addition, the prevalence of Alzheimer’s increases with increase in age:

• Total: 6.7 million

• Age Group (65-74 years): 1.79 million (26.7%)

• Age Group (75-84 years): 2.54 million (37.9%)

• Age Group (85+ years): 2.37 million (35.4%)

Similarly, according to World Health Organization estimates, there are approximately 55 million individuals across the globe suffering from dementia. The consequences are many individuals suffering from the conditions and substantial healthcare costs. According to an article by the World Federation of Neurology published in October 2023, approximately 40% of the global population is affected by some neurological disorder and is anticipated to double by 2050. Hence, several companies and research institutes are investing in clinical trials, including the application of digital technologies in the neurology domain.

Market Concentration & Characteristics

The market growth stage is high, and pace of the market growth is accelerating. The global digital health in the neurology market is characterized by a high degree of innovation, with the latest technologies and approaches being designed and introduced regularly. Market players focus on devising easy-to-use telehealth devices, significantly reducing patient and care providers' learning and adoption restraints. For instance, in August 2023, ActuatedMedical introduced SonoShield Defender to increase the lifetime of brain implants in individuals with neurological conditions. Moreover, due to the widespread availability of smartphones and tablets, individuals are able to easily access different telemedicine services, wearable health tech, and health & wellness apps. This technology integration allows individuals to monitor and track their health and receive medical consultations virtually.

Key strategies implemented by players in the digital health in neurology market are new product launches, mergers and acquisitions, expansion, partnerships, and other strategies. Market players are devising their merger & acquisition strategies to expand their business footprint & enhance/increase product portfolio. For instance, in February 2024, Aptar Digital Health and Biogen Inc entered an enterprise agreement, wherein, the two entities would develop advanced digital health solutions for neurological disorders and rare diseases.

The impact of regulations in the digital health in the neurology market is high. The structured regulatory framework positively influences market growth, access, and adherence. For instance, in the U.S., the Food and Drug Administration (FDA) develops guidelines for digital health in different domains. The Therapeutic Goods Administration (TGA) regulates digital health technologies in different healthcare domains in Australia. Health Canada overlooks the regulatory framework for different digital health technologies in Canada. For instance, in December 2023, the Office of National Coordinator for Health Information Technology (ONC) issed the HTI-1 Final Rule, which set new risk management and transparency expectations for AI/ML technologies.

Several market players are adopting geographical expansion strategies to strengthen their positions in the market. For instance, in December 2023, AbbVie Inc. acquired Cerevel Therapeutics, resulting in strengthening the neurological portfolio of AbbVie Inc. by including of neuroscience pipeline to advance Parkinson's disease (PD), schizophrenia, and mood disorders treatments.

Component Insights

The services segment accounted for the largest market revenue share in 2023. This growth can be attributed to the growing demand for installation, maintenance, training, and other services. Market players offer these services in packages or as standalone services. For instance, McKesson Corporation offers Intrafusion full-service infusion management, comprising outpatient infusion management services to streamline operations in the neurology department. Furthermore, the growing demand for advanced software solutions and platforms such as Electronic Medical Records (EMRs) & Electronic Health Records (EHRs) and the increasing need for upgradation & training required to run these software solutions contribute to the growth of the services segment. Key players provide a wide array of pre- & post-installation services, project planning, training, implementation, and resource allocation & optimization.

The software segment is expected to register the fastest CAGR of 23.9% over the forecast period, owing to the rapid adoption of software systems amongst patients, providers, insurance payers, and healthcare facilities. Increasing healthcare expenditures and the rising trend of healthcare digitalization are contributing to the growth of the software segment. Market players are introducing software solutions to diagnose various neurodegenerative diseases. For instance, in December 2023, Quibim launched QP-Brain, an AI-based software for detecting neurodegenerative diseases in the initial phase. Moreover, in November 2023, Pixyl announced that it received the FDA clearance for Pixyl.Neuro, an AI-based software to analyze brain MRI scans, further increased the detection rate to around 28%.

End-use Insights

The patient segment dominated the end-use segment with the largest market share in 2023 and is anticipated to witness the fastest growth at a CAGR of 23.7% over the forecast period. The growth is attributed to the rising shift towards patient-centered care and the growing demand of individuals to manage their health. Furthermore, companies are transforming the healthcare industry by introducing virtual consultations and patient-care devices to regain movement or monitor & track several health parameters. For instance, in April 2023, Reach Neuro, Inc. announced that it received a clearance from the U.S. FDA for its Avantis platform. The solution helps regain arm, shoulder, and hand movement by sending small electrical signals to the spinal cord in patients impaired due to chronic stroke.

The provider segment accounted for a significant market share in the end-use segment, driven by the increased adoption of innovative technologies such as digital therapeutics and telemedicine. Healthcare providers are widely & readily utilizing digital solutions to offer personalized treatment plans, remote consultations, and evidence-based therapies beyond traditional care. Integrating digital tools enables providers to provide more personalized and accessible care, contributing to improved patient outcomes.

Regional Insights

North America dominated the market in 2023 with a revenue share of 38.2%, owing to growing healthcare IT expenditure, availability of adequate digital infrastructure, technological advancements, the emergence of startups, favorable government initiatives, growing smartphone penetration, readiness in adopting advanced technological solutions, constant improvements in internet connectivity, and rise in funding & investments. For instance, the American Academy of Neurology organizes annual meetings for neuroscience professionals and neurologists to educate about neurology and announce the latest scientific discoveries. In addition, factors such as advancements in coverage networks, growing penetration of smartphones, increasing geriatric population, and a significant surge in the prevalence of neurodegenerative diseases are responsible for the industry's growth.

U.S. Digital Health in Neurology Market Trends

The digital health in neurology market in the U.S. held the largest share in 2023. The growth is attributed to the increasing prevalence of neurodegenerative diseases, such as Parkinson’s Disease, Alzheimer’s, Huntington’s Disease, and others. Furthermore, several market players undertake initiatives to promote applications of digital technology in the neurology sector. For instance, in February 2024, Linus Health published a study highlighting the positive results of Linus Health Digital Clock and Recall to detect early-staged Alzheimer.

Canada digital health in neurology market is driven by the presence of key players and several organizations, including the Canadian Neurological Sciences Federation. These organizations are highly active in developing digital health solutions in neuroscience. For instance, in September 2023, Innodem Neurosciences partnered with Novartis Pharmaceuticals Canada to develop Eye Tracking Neurological Assessment (ETNA) technology. The software is used to monitor multiple sclerosis, a chronic nervous disorder, by tracking the eye-movements.

Europe Digital Health In Neurology Market Trends

Digital health in neurology market in Europe is expected to grow significantly over the forecast period. The growth is attributed to the rapid adoption of digital health in European countries, the presence of well-established market players, and increasing government initiatives to promote digital health in neurology. For instance, in February 2023, the Human Brain Project (HBP) researchers developed multiple advanced brain modeling methods to identify the starting point of epileptic seizure in the brain easily. This project was funded by the EU through its HBP SGA3 project.

The UK digital health in neurology market is driven by the presence of numerous market players, continuous R&D in the neurology field, and product launches. For instance, in December 2023, Quibim received approval for its AI-based neurological disorder quantification software in the UK. The software identifies neurodegenerative diseases at an early stage.

Digital health in neurology market in France sees players investing in advanced technology to develop the neuroscience field.For instance, in January 2023, NETRI partnered with Axol Bioscience Ltd and launched human induced pluripotent stem cells (hiPSC) & reagents and neuro-organs-on-chip devices to facilitate the pharmaceutical industry access to organs on chip.

Asia Pacific Digital Health In Neurology Market Trends

Asia Pacific digital health in neurology market is estimated to witness the fastest growth rate during the forecast period. Increasing adoption of eHealth platforms and healthcare expenditure in the region is expected to drive the regional market's growth.Moreover, the rising burden of neurological diseases, increasing demand for remote patient monitoring, and other technological advancements in the field owing to increased government spending on healthcare are expected to drive industry growth in the Asia Pacific region. The growing involvement of key market players and emergence of niche entrepreneurial ventures in the Asia Pacific has boosted the adoption of digital apps and platforms in the region. Some examples of startups present in the Asia Pacific market in the neurology health sector are Wysa, CureApp, Mobio Interactive, Tuhoon, UrbanYogi, and Revery.

Digital health in neurology market in China is experiencing exponential growth. The growth is attributed to the increasing technological advancements, growing business initiatives by the market players, and rising prevalence of neurological disorders. For instance, in February 2023, NERVTEX, a China-based company specializing in digital therapeutics for neurological disorders, received approval for Movement Dysfunction Assessment Software (MoDAS), an AI-based software for movement disorder analysis.

India’s digital health in the neurology market is driven by increasing collaborations between market players, research institutes, and universities. For instance, in January 2024, Siemens Healthineers partnered with the Indian Institute of Science (IISc) to advance the application of AI in precision medicine. They established the Siemens Healthineers-CDS (Computational Data Sciences) Collaborative Laboratory to design AI-based open-source tools to automate pathological findings segmentations in neuroimaging data, specifically diagnosing neurological disorders and examining their clinical effect at a population level.

Digital health in neurology market in Japan is expected to grow significantly, owing to the players using various advanced methods to study neurological disorders. The companies invest in various technologies, such as digital twins, to study mental disorders. For instance, in September 2023, Japan's National Center for Neurology and Psychiatry partnered with NTT Corporation and developed a brain digital twin technology to diagnose and prevent mental illness.

Key Digital Health In Neurology Company Insights

The players in the digital health in neurology market actively participate in mergers, partnerships and collaborations to develop new digital health solutions in the neurology domain. Some of the key players in the digital health in neurology market include AdvancedMD, Teladoc, Blackrock Neurotech, and Proteus Digital Health. Whereas, Aural Analytics, AppliedVR, and BehaVR are some of the emerging market players operating in the digital health in neurology market.

Recent Developments

• In February 2024, Aptar collaborated with Biogen to design digital health solutions to enhance patient care for neurological and other rare diseases.

• In October 2023, The Alzheimer's Drug Discovery Foundation's (ADDF) Diagnostic Accelerator (DxA) launched SpeechDx, a longitudinal study to create the largest repository of voice and speech data to help speed up the diagnosis, detection, and monitoring of Alzheimer's disease.

• In August 2023, Aspen Neuroscience partnered with Emerald Innovations and Rune Labs to integrate digital health (DHT) methods in the company's Trial-Ready Screening Cohort Study launched in 2022. The study is developing a cell therapy to cure Parkinson's disease.

• In June 2023, BrainTale raised approximately USD 4.8 million to accelerate the development of a technological solution to diagnose, monitor, and treat several neurological disorders.

• In April 2023, Genentech and Roche collaborated with several other partners, including the Institute for Health Metrics and Evaluation (IHME), the University of Washington, and the Cleveland Clinic, to integrate digital analysis and telehealth initiatives to enhance brain health outcomes.

• In April 2023, Cumulus Neuroscience, a digital health firm specializing in neurological patient care and clinical trials, expanded its presence in Boston by opening a new office and expanding partnerships with other biopharma innovators. 

Digital Health In Neurology Market Report Scope

Global Digital Health In Neurology Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of industry trends in each of the segments from 2018 to 2030. For this study, Grand View Research, Inc. has segmented the digital health in neurology market report based on component, end-use, and region:

• Component Outlook (Revenue, USD Million, 2018 - 2030)

  • Software

  • Hardware

  • Services

• End Use Outlook (Revenue, USD Million, 2018 - 2030)

  • Patients

  • Providers

  • Payers

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

    • Sweden

    • Denmark

    • Norway

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • South Korea

    • Singapore

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • MEA

    • South Africa

    • Saudi Arabia

    • UAE

    • Kuwait