Digital Health Market

Digital Health Market Size (2022 to 2027)

The global digital health market is predicted to grow at a remarkable CAGR of 19.04% from 2022 to 2027. This market is expected to be USD 116.24 billion in 2022 and worth USD 278.3 billion by 2027. Technological advancements in the Healthcare industry are primarily hiking the growth rate of the global digital health market. People are adopting new technology like never before, which has led many businesses to become more popular and new businesses being invented. People can monitor their Health at home without going outside and maintain it with various health monitoring and fitness apps.

Digital Health is the convergence of digital technology and healthcare to enhance the efficiency of healthcare delivery. Digital Health interconnects the health system to improve computation technologies, smart devices, analysis techniques, and communication, which help healthcare professionals and patients. This technology includes software and hardware solutions and services such as Telemedicine, web-based analysis, mobile applications, and remote monitoring sensors.

COVID-19 impact on the global digital health market:

COVID-19 has boosted the digital health market around the world. The lockdown ensured that people remained at home during the pandemic; thus, people could not visit gyms, do physical exercise, or do yoga. On the other hand, the lockdown launched new apps or made the old apps famous and associated with the fitness market. Smartphones ensure that this growth rises at a reasonable rate, and people have started to exercise at home to avoid being exposed to viruses. Many gym chains also introduced apps to provide services to existing and new customers. The instructors have also started taking online classes privately now. Many apps also offer diet charts and apps that provide real-time data of COVID positive cases near the person to take proper precautions.

The situations caused by the COVID-19 outbreak positively influenced online pharmacies and markets related to healthcare IT. Many countries have opted for the lockdown to restrict the Coronavirus spread in their countries globally. In addition, the impact of Covid-19 has doubled the increase of online consultations, and video calls with doctors, easing the regulations associated with remote consultation and favoring the global digital health market.

MARKET DRIVERS:

YOY rise in the usage of smartphones and the internet, rising standards of healthcare IT infrastructure across the world, and growing focus on fitness are majorly driving the global digital health market growth.

The rising elderly population and awareness of the benefits of digital health systems are further propelling the growth of the digital health market tremendously. Patients with chronic diseases need healthcare services continuously, which can be provided by digital healthcare very quickly. Digital Health can help to compensate for the shortage of healthcare professionals worldwide. According to the WHO, the healthcare professional's deficit can rise to 9.9 million by 2030.

The government and regulatory bodies worldwide are funding the development of digital health services, which is estimated to favor market growth.

The growing usage of virtual reality devices in pain management and the increasing adoption of artificial intelligence and machine learning in healthcare also contribute to the demand for the digital health market. Big data in healthcare stores patient information and analyses the data, lowering medication errors next time. In addition, the data collected by the hospital can be used in the research of medical devices and predict disease in a patient with a previous medical history. These factors are projected to escalate the growth of the digital health market.

Furthermore, the increase in smartphones and smart devices has led to the introduction of apps that can help us monitor our body vitals, like blood pressure and heart rate and the number of calories burned during the day. Other types of apps allow us to do physical exercise and yoga correctly. The easy user interface is the prominent feature of these apps, contributing a lot to the market growth. The recent outbreak of COVID-19 further actively drives the growth of the global digital health market. Recently, increased adoption of remote monitoring has been noticed in hospitals worldwide, as most chronic patients need continuous monitoring. They are most likely to get infected by the coronavirus. 

MARKET RESTRAINTS:

Healthcare is not yet fully digitalized; only 7% of healthcare globally is digitalized, which is a major restraining factor for growth in the global digital health market. Furthermore, rising concerns about privacy and increasing data threats are hampering the market's growth rate. In addition, the cost of installation and software is costly, and the services related to technology are expensive. 

One of the significant challenges to the market players is introducing more apps that can be operated on basic smartphones and not on expensive and more advanced smartphones to increase their accessibility. In addition, a lot of the population is still below the poverty line, and they do not have access to smart devices, thus limiting the reach of the digital health market.

REPORT COVERAGE:

This market research report on the global digital health market has been segmented and sub-segmented into the following categories.

Digital health Market - By technology:

• Tele-Healthcare
  • Telecare
    • Activity Monitoring
    • Remote Medication Management
  • Telehealth
    • LTC Monitoring
    • Video Consultation
• mHealth
  • Wearables
    • BP Monitor
    • Glucose Meter
    • Pulse Oximeter
    • Sleep Apnea Monitors
    • Neurological Monitors
    • Others
  • Apps
    • Medical Apps
    • Fitness Apps
• Health Analytics
• Digital Health Systems
  • Electronic Health Records
  • E-Prescribing Systems

Based on technology, the health analytics segment had the most significant market share in the global market in 2020. The rise in the infection rate is a substantial factor for the segment's growth in the forecast period. These health analytics also help analyze the patient's data to be used again if the patient needs it. In addition, the demand for health analytics is increasing due to COVID-19. Health analytics is also used to track the spared of the coronavirus through various applications.

The digital health system had the second-largest market share in 2020. Growing demand for Telemedicine and the rise in in-home care settings are majorly fuelling the growth of this segment. In addition, there is a demand for paperless patient records, such as electronic health records (EHRs).

The Telehealthcare segment is estimated to progress at a promising CAGR during the forecast period. The digital health boom has helped us actively monitor our and other people's Health to take timely action in an emergency. The vitals then allow the physicians to provide medication to the patients without being physically present with the doctor. In telehealth, there is LTC monitoring and video consultation. The patients are now consulting with their physicians on online video calls rather than being physically present to avoid the virus. As a result, it is expected to grow reasonably and currently has the second-largest market share among other segments.

The mHealth segment is subdivided into wearables and apps. The penetration of wearable devices in the market has boosted the digital health market worldwide. These wearable devices include glucometers, BP monitors, Pulse Oximeters, Sleep Apnea Monitors (PSG), Neurological Monitors, and Activity trackers. Wearable devices have become popular due to increasing awareness among people about their Health. Many companies have improved technology to make these devices smaller and have multiple functions. The big tech giants have also introduced their products, making the competition more tuff and thus benefiting the customers. 

Digital health market - By Component:

• Hardware
• Software
• Service

Based on the Component, the software segment dominated the global digital health market with a market share of 40% in 2020 and is predicted to continue its dominance throughout the forecast period. Rising requirement levels of EHRs, fitness, and medical apps support this segment's growth. In addition, the continuous development in the IT sector propels the market growth in the segment. As a result, many old tech companies are in this market, and new ones have also entered it, or they can outsource their software developments to other big players.

The hardware segment accounted for 29.4 billion in 2020 and was estimated to showcase a promising CAGR during the forecast period. We can see significant tech companies entering the hardware business, like wearable devices, to capture the untapped market. There is also the emergence of new players providing effective and cheap hardware devices.

The services segment is expected to witness a healthy rate during the forecast period due to the growth in hardware and software and constant up-gradation growth. The service segment has many sub-segments diet-related, consultation-related, Health monitoring-related, and exercises. In addition, the increase in population, along with the health-conscious population, has fuelled the growth of this market.

Digital Health Market - By Region:

• North America
• Europe
• the Asia Pacific
• Latin America
• The Middle East and Africa

Regionally, the global digital health market was dominated by North America in 2020. It is majorly attributed to the rapid adoption of smartphones, advancements in coverage networks, a rise in the prevalence of chronic diseases, and an increase in the geriatric population. Artificial intelligence (AI) and the IT industry are well-developed in this region and introduce innovative healthcare solutions. The governments of this region are taking initiatives to promote the digitalization of healthcare. The US FDA is also regulating and promoting digital Health to improve the healthcare facility provided to the patient. There is a rise in smartphone use, especially healthcare apps in this region, which is predicted to propel the market growth in this region.

The European digital health market accounted for an outstanding global market share in 2020 and is expected to grow at a healthy CAGR during the forecast period due to modern healthcare services advancements. Government initiatives have also helped the market grow at a faster pace. In addition, the European Commission is working to provide citizens with the benefits of Digital Health. Digital healthcare Europe is an initiative that promotes innovation in digital Health.

The Asia Pacific market is estimated to grow at a prominent CAGR from 2021 to 2026. The growth is attributed to the high population in countries like India and China. The region is still very new to the technology in terms of reach but can become number one in the long term. There is a rise in the adoption rate of digital Health in the region. The governments in the area are adopting digital Health in the system. Countries like India, China, and Japan have a modern infrastructure for digitalization.

KEY MARKET PLAYERS:

A few of the notable companies dominating the global digital health market profiled in this report are Apple Inc., AirStrip Technologies, Google Inc., Orange, Allscripts Healthcare, LLC, Mckesson Corporation, Athenahealth Inc., At&T Inc., Biotelemetry, Inc., Cerner Corporation, Cisco Systems, Inc., Koninklijke Philips Nv, Eclinicalworks, Ihealth Lab, Inc. and General Electric Company.

RECENT MARKET DEVELOPMENTS:

• In June 2020, Happify Health and AHA partner collaborated and released the heart health-focused digital mental health program. The partnership between this digital Health and cardiovascular health organization targets to lessen stress and encourage healthy benefits for employees with high blood pressure and high cholesterol.
• In June 2020, Athenahealth launched a new EHR-embedded telehealth tool to enable professionals to conduct virtual visits without downloading separate software or using another third-party app.
• In April 2020, Google Inc. announced the accessibility of technology to make it more comfortable for patients to access their health information through third-party apps. Google Healthcare API will need them to make it more convenient for patients to see and use their digital health data.
• In February 2020, Allscripts Inc. collaborated with Manorama Info solutions to develop a coupled healthcare management system and health information exchange platform.
• In November 2019, Apple launched its new research app, claiming advanced science by collecting information from iPhone and Apple watch wearers.
• In October 2019, Google Cloud partnered with Suki's digital clinical assistant technology for its artificial intelligence, machine learning, and clouded computing healthcare products. Based on the partnership, Suki will perform administrative tasks for physicians like clinical documentation or information retrieval from an EHR based on the customers'/patients' voice commands.
• In October 2019, Allscripts Healthcare solutions announced that North well Health had enlarged its engagement with the comprehensive Allscripts sunrise inpatient platform.
• In October 2019, OnMed made a strategic alliance with Athena health Inc. to intensify digital security in Telemedicine.
• In May 2017, Partners Healthcare and GE Healthcare partnered to launch a 10year association to incorporate Artificial Intelligence in every patient journey. It will develop within a short period, validate and integrate strategically.