The rise of telehealth is anticipated to openup the new avenue for Digital Health Market
The Digital Health Market is estimated to be valued at US$ 170.20 Bn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The digital health market includes a wide range of health-related products and services, such as mobile health, health information technology, wearable devices, telehealth and telemedicine, and personalized medicine. Digital health encompasses technology and services aimed at improving healthcare delivery through use of digital communication and analytics. Digital health products and services help healthcare providers improve their clinical workflow, enhance patient experience, and reduce healthcare costs through more efficient delivery and follow-up.
Market Dynamics:
Rise in penetration of smartphones and internet has allowed wide access to digital healthcare tools and services. Growing smartphone and internet penetration in developing regions is driving adoption of telehealth, e-prescriptions, and other digital healthcare solutions. According to GSMA, over 6 billion people worldwide own a mobile phone, with over 5 billion unique mobile subscribers globally in 2020. Mobile broadband penetration has also increased significantly over the past decade and stood at around 76% globally in 2020.
Another key factor fueling the market growth is increasing healthcare spending worldwide. Rising healthcare costs have compelled governments and payers to shift focus on digital technologies that offer cost-effective care delivery and hospital readmission prevention capabilities. Digital health tools help reduce expenses related to hospital readmissions and outpatient visits over long term.
Segment Analysis
The digital health market is segmented into hardware, software, and services. Among these, the services sub-segment dominates the market. The services segment includes consulting, implementation, and post-sales and maintenance services for digital health systems. This segment is dominating as consulting, implementation and maintenance services play a crucial role in the deployment, use, and integration of digital health tools and systems.
PEST Analysis
Political: Regulations supporting telehealth and remote patient monitoring are enabling digital health market growth. Economic: Rising healthcare costs and emphasis on affordable care are boosting demand for cost-effective digital health solutions. Social: Growing internet and smartphone penetration are increasing access to digital health services. Technological: Advancements in areas such as AI, blockchain, and cloud computing are augmenting digital health capabilities.
Key Takeaways
The Global Digital Health Market Growth is expected to witness high growth, exhibiting CAGR of 10.% over the forecast period, due to increasing internet penetration, smartphone penetration, consumer spending, and healthcare spending. The market size for digital health is projected to reach US$ 170.20 Bn in 2023.
Regional analysis shows North America dominates the digital health market currently due to supportive regulations and higher technology adoption rates. Asia Pacific is expected to exhibit the fastest growth over the forecast period, owing to large patient pools, rising medical tourism, and government initiatives to modernize healthcare through digital technologies in countries like India and China.
Key players operating in the digital health market are DP, population, internet penetration, smartphone penetration, consumer spending, and healthcare spending. These players are focusing on partnerships, mergers, and acquisitions to expand their service offerings and geographic reach. For example, in 2023, DP collaborated with population to launch a new AI-powered lung cancer screening tool.