GVR Report cover U.S. Digital Health Market Size, Share & Trends Report

U.S. Digital Health Market Size, Share & Trends Analysis Report By Technology (mHealth, Healthcare Analytics, Tele-healthcare), By Component (Software, Services, Hardware), And Segment Forecasts, 2021 - 2028

  • Published Date: Dec, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-4-68039-823-5
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2019
  • Number of Pages: 171

Report Overview

The U.S. digital health market size was valued at USD 33.3 billion in 2020 and is projected to grow at a compound annual growth rate (CAGR) of 12.7% from 2021 to 2028. The evolving smartphone industry supported by improving internet connectivity has enabled the delivery of healthcare services to take the digital route. The growing adoption rates of smartphones in the U.S. have driven innovators to invest and capitalize on growth opportunities existing in the digital health industry. For instance, several apps, such as Amwell, AssistRx, Doctors on Demand, Garmin Connect, and GoogleFit, have been launched in the U.S. over the last decade. It will help patients see a doctor in minutes, track their fitness & health, and store their healthcare information throughout the treatment process.

U.S. digital health market size, by technology, 2018 - 2028 (USD Million)

The demand for telehealth and telemedicine witnessed a significant rise in demand over the past year and was adopted readily by the healthcare fraternity. Innovators are constantly developing various cloud-based and web-hosted platforms to seamlessly deliver virtual care applications to patients and enhance care access to patients in remote locations. Video consultations are increasing as they eliminate the need for in-person visits and commuting to the healthcare facility, thereby reducing the costs of availing healthcare. The pandemic enforced travel restrictions and lockdowns, which contributed to the increased adoption of telehealth services. For instance, according to the CivicScience survey, the adoption rate of telemedicine in the U.S. in February 2020 was 11%, which increased to 28% in April 2020, 32% in June 2020, and 35% in July 2020 because of the COVID-19 pandemic.

It is indicative of the pandemic boosting the market growth. Technology giants in the U.S., such as Google, Apple, and IBM, are developing solutions to improve the virtual care experience through numerous subscription plans with enhanced data security features. Moreover, the COVID-19 pandemic has raised awareness about health & wellbeing and increased the adoption of fitness apps & other digital technologies. For instance, according to the data published by Sensor Tower, health and fitness apps installations increased from 332 million in 2019 to 405 million in 2020 in the U.S. Government support and initiatives encouraging app developers and healthcare providers to create better digital health solutions are expected to drive the market growth. For instance, in September 2021, the U.S. Department of Health and Human Services’ Office of the National Coordinator for Health Information Technology invested USD 73 million to strengthen public health IT & COVID-19 data collection and increase the presence of underrepresented communities in the health IT workforce.

The growing smartphone penetration and rising mobile subscription plans in the U.S. are bolstering the market growth. As per eMarketer estimates, the smartphone penetration in the U.S. was 76% in 2016 and has risen to 88% in 2021. The increasing adoption of smartphones is driving the adoption of various mHealth applications and services in the country. As per eMarketer estimates in 2020, 87.4 million consumers use health and fitness apps in the country. In addition, the availability of free or low-cost mHealth apps is driving the adoption rates. Although 90% of mHealth applications are available for free, as per a study conducted by Infosys, it has been stated 70% of the consumers are willing to pay for mHealth applications.

COVID19 U.S. Digital Health Market Impact: 9.3% Growth in Revenue Size from 2019 to 2020

Pandemic Impact

Post COVID Outlook

The market increased by 9.3% from 2019 to 2020

The market is estimated to witness a y-o-y growth of approximately 11.5% to 15.6% in the next 5 years

Healthcare facilities rapidly began adopting digital health solutions, such as telehealth and remote patient monitoring, to safeguard the healthcare professionals and patients from the risk of infection by eliminating the need for in-person consultations

The healthcare fraternity began devising innovative strategies in disease surveillance and frontline care services unearthing the potential of digital health technologies

Key market players witnessed a surge in adoption rates and revenue earnings. For instance, American Well recorded a 1,000% rise in patient visits in virtual cares settings and Teladoc Health witnessed an increase in patient visit volume from 4.1 million in 2019 to 10.6 million in 2020 due to the ongoing pandemic

Market players are focusing on their strategies, which include mergers & acquisitions, technological collaborations, and partnerships, to expand their business footprint. In addition, government authorities provided funding of USD 200 million under the Coronavirus Aid, Relief, and Economic Security (CARES) Act to enhance virtual care services to patients

 

Healthcare providers are readily adopting mHealth applications and services to improve patient engagement and enhance the quality of care. As per Boston Technology, 80% of physicians use health-based applications. Physicians are prescribing mHealth applications to the patient to self-manage chronic conditions, such as diabetes. For example, Glooko, Inc., a U.S.-based mHealth application provider offers features, such as calories and glucose monitoring.

The COVID-19 pandemic burdened the U.S. healthcare industry and healthcare delivery system, creating multiple challenges for healthcare services. The rapidly growing incidence rate of COVID-19 infection, reducing in-person consultations, and and lockdowns & travel restrictions imposed by the government authorities provided the much-needed boost to the adoption of digital health and virtual care solutions. Outpatient hospital care and primary care are two promising areas that can be delivered digitally in this scenario, which has boosted the adoption of digital health solutions. The U.S. has adopted digital services, telehealth, and remote monitoring platforms to enable interaction among physician & patient populations. Nationwide lockdown and social distancing norms led to a transition to virtual fitness from traditional fitness studios and gyms. This, in turn, increased the demand for health and fitness apps in the country. For instance, Headspace, a mental health app, witnessed a 90% week-over-week increase in time spent on mobile devices in the first week of March 2020 in the U.S.

The U.S. FDA is undertaking various initiatives, such as awareness programs and R&D funding, to further develop the existing healthcare IT infrastructure. For instance, in September 2020, the U.S. FDA launched the Digital Health Center of Excellence for the advancement of various digital technologies, such as mobile health devices, wearables, and Software as a Medical Device. The growing trend of preventive healthcare, increasing geriatric population, and rising incidence of chronic diseases have driven the initiatives undertaken by the government authorities. The pandemic unearthed the potential of virtual care and digital health solutions, thereby attracting investments from market players. According to a report published by Rock Health, a full-service seed fund, digital health investments increased by 72% in 2020 from 2018. In addition, the number of initial public offerings and mergers & acquisitions in the digital healthcare sector increased rapidly in 2020 as compared to 2019. For instance, there were 113 mergers and acquisitions in 2019, which increased to 145 in 2020. One of the major mergers in the telehealth industry was the merger of Livongo Health and Teladoc in 2020 worth USD 18.5 billion.

Key market players began strategizing their merger & acquisition, product development, and collaboration strategies to expand their product offerings. For instance, in March 2020, NextGen Healthcare launched the NextGen Patient Experience Platform. This platform includes integrated virtual visit capability; patient portal with an attractive, easy-to-use interface designed to operate on any device; rules-based patient self-scheduling; patient intake & customizable intake forms; mobile-optimized check-in & patient payments; secure patient & health team messaging; patient satisfaction & survey tools; personalized outreach & patient education; and online patient payment processing. The platform was developed to modernize and improve the efficiency of routine interactions between providers & patients; it is extremely well-suited to assist healthcare practices in dealing with the rapidly developing COVID-19 virus outbreak.

Component Insights

In 2020, the services segment accounted for the largest market share of 37.5% owing to factors, such as rapid advancements in hardware & software and an increase in the number of software upgrades. The development of a range of platforms for monitoring, diagnosis, and wellness & prevention of diseases is also a key factor driving the segment. The growing trend of updating software for the inclusion of a wide range of healthcare applications is also contributing to the growth of the market. Services, such as installation and education & training, are all dependent on the development of these digital health platforms. The growing demand for software platforms, such as EHR, is driving the demand for digital health services, as companies in the country are highly focusing on providing post-installation services like optimization, staffing, training, clinical, and other services. Moreover, growing investments in digital infrastructure, especially in the U.S., are driving the market. Companies in the market are also introducing innovative ways to offer services to their clients, which, in turn, is positively impacting the market growth.

U.S. digital health market share, by component, 2020 (%)

On the other hand, the software segment is anticipated to record the fastest CAGR during the forecast period. Growing demand for patient safety, reducing healthcare costs, enhancing patient care quality, and efficient hospital workflow is driving the demand for EHR software in the market. In addition, a rise in the adoption of healthcare analytics platforms for reducing costs is anticipated to boost the software market in the next few years. The rising need for efficient management of organizational workflows in healthcare organizations, shift to value-based care in developed economies, and an increasing number of initiatives being undertaken by private & public players to develop healthcare IT infrastructure are among the key factors boosting the segment growth. Major software providers include IBM Corp., Cerner Corp., and McKesson Corp.

Technology Insights

In 2020, the mHealth segment dominated the market and accounted for the largest revenue share of 47.4% owing to factors, such as increased penetration of smartphones, high internet usage, and availability of a large number of mHealth apps in the market. In addition, recent advancements in wearable technologies and the increasing prevalence of chronic diseases, such as diabetes &Cardiovascular Diseases (CVDs), are significantly contributing to the growth of mHealth market. Launch of new products, increasing startup funding, and growing R&D investments, especially in wearable devices, are also among the key factors impelling the market growth. The growing trend of preventive healthcare and rising funding for mHealth startups are also expected to boost market growth. Government initiatives, such as awareness programs and R&D funding for healthcare IT, are anticipated to boost the mHealth market. The COVID-19 pandemic has increased the adoption of mobile healthcare technologies by patients, payers, and providers. Many patients adopted the mHealth platform to maintain health and wellness during the pandemic. Some of the major companies in this market are AT&T, Samsung Electronics Co., and Vodafone Group.

On the other hand, the healthcare analytics segment is anticipated to register the fastest CAGR over the forecast years owing to the rising healthcare costs, increasing workflow inefficiencies, and growing data siloes, which is boosting the use of healthcare analytics in the market. Developing as well as developed regions are striving to achieve high care delivery standards, which are both cost-effective & quality-oriented and help contain medical errors. With the help of healthcare analytics, providers are now able to identify clinically essential outcomes in relation to costs through data mining of electronic patient records to identify inherent medical inaccuracies in the system to offer cost-effective treatments to patients with limited wastage of resources. Many predictive analytics algorithms have been developed to manage the COVID-19 pandemic. For instance, in 2021, researchers in the American Chemical Society developed blood tests using predictive analytics to determine the severity of COVID-19 symptoms. Thus, the growing adoption of predictive analytics for surveillance and determining the severity of infectious & chronic diseases is estimated to drive segment growth in the near future. IBM Corp., Allscripts, Cerner Corp., and McKesson Corp. are some of the major players in the healthcare analytics market.

Key Companies & Market Share Insights

Market players are focusing on partnerships, product developments, technological collaborations, and mergers &acquisitions to gain a higher industry share. For instance, in October 2021, Vodafone partnered with Deloitte to launch Vodafone Centre for Health to offer a virtual center for digital technology and simplify access to connected healthcare for patients & healthcare professionals. In January 2021, Allscripts and the U.S. Orthopedic Alliance (USOA) entered a strategic technology partnership to drive and support USOA’s relationship with orthopedic providers across the country. This partnership would enhance orthopedic practices and its engagement with EHR implementation & value-based care analytics, as well as transform clinical protocols. Key players operating in the U.S. digital health market are:

  • Apple Inc.

  • Google Inc.

  • Greenway Health

  • American Well

  • Teladoc Health

  • McKesson Corp.

  • Cerner Corp.

  • Vodafone Group

  • AT&T

  • NextGen Healthcare

  • Allscripts

  • CureMD Healthcare

  • IBM Corp.

U.S. Digital Health Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 37.1 billion

Revenue forecast in 2028

USD 86.4 billion

Growth rate

CAGR of 12.7% from 2021 to 2028

Base year for estimation

2020

Historical data

2014 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD million and CAGR from 2021 to 2028

Report coverage

Revenue, company ranking, competitive landscape, growth factors, and trends

Segments covered

Technology, component

Country scope

U.S.

Key companies profiled

Apple Inc; AT&T; Airstrip Technologies; Allscripts; Google Inc; Orange; Qualcomm Technologies, Inc; Softserve; MQure; Samsung Electronics Co. Ltd.; Telefonica S.A.; Vodafone Group; Cerner Corp.; McKesson Corp.; Epic Systems Corp.; NextGen Healthcare, Inc; Greenway Health LLC; CureMD Healthcare; HIMS; Computer Programs and Systems, Inc; Vocera Communications; IBM Corp.; Siemens Healthcare GmbH; Cisco Systems, Inc.

Customization scope

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Segments Covered in the Report

This report forecasts revenue growth at country level and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2028. For the purpose of this study, Grand View Research, Inc. has segmented the U.S. digital health market report on the basis of technology and component:

  • Technology Outlook (Revenue, USD Million, 2014 - 2028)

    • Tele-healthcare

      • Telecare

        • Activity Monitoring

        • Remote Medication Monitoring

      • Telehealth

        • LTC Monitoring

        • Video Consultation

    • mHealth

      • Wearables

        • BP Monitors

        • Glucose Meter

        • Pulse Oximeter

        • Sleep Apnea Monitor

        • Neurological Monitors

        • Activity Trackers/Actigraphs

      • mHealth Apps

        • Medical Apps

        • Fitness Apps

      • Services

        • Types of Services

          • Monitoring Services

            • Independent Aging Solutions

            • Chronic Disease Management and Post-Acute Services

          • Diagnosis Services

          • Healthcare Systems Strengthening Services

          • Others

        • Types of Participants

          • Mobile Operators

          • Device Vendors

          • Content Players

          • Healthcare Providers

    • Healthcare Analytics

    • Digital Health Systems

      • Electronic Health Records (EHR)

      • E-Prescription

  • Component Outlook (Revenue, USD Million, 2014 - 2028)

    • Hardware

    • Software

    • Services

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