Digital health encompasses the use of information and communication technologies to deliver health services and manage health. It includes technologies like electronic health records (EHR), telehealth, mobile health applications, health analytics, and artificial intelligence among others. Telehealth technologies in particular have seen increased adoption during the COVID-19 pandemic as they enable remote delivery of care. Telehealth allows patients to connect with doctors and nurses virtually through video conferencing on computers or mobile apps. This eliminates the need for in-person visits and minimizes healthcare resources.
The global Digital Health Market is estimated to be valued at US$ 170.2 billion in 2023 and is expected to exhibit a CAGR of 4.0% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
During the pandemic, telehealth emerged as a viable method for delivering non-emergency care while avoiding exposure. Both patients and providers have recognized the convenience and value of virtual consultations. With social distancing likely to continue in the ‘next normal’, telehealth options are expected to remain popular. Another driver is the ability of digital health solutions to reduce healthcare costs through more efficient management of chronic diseases. Remote monitoring allows high-risk patients to be tracked from home, reducing need for expensive inpatient treatments and lowering readmission rates. By enabling preventive care and early disease detection, digital health can lower overall healthcare spending.
Segment Analysis
The digital health market can be segmented into hardware, software, and services. The software segment dominated the market in 2023, accounting for around 35% share. This is because software forms the core of digital health solutions and a variety of software such as patient engagement, clinical, and healthcare analytics software sees wide adoption. With growing investments into telehealth and remote patient monitoring, the services segment is expected to grow at the fastest pace during the forecast period.
PEST Analysis
Political: Governments across the globe are promoting digital health to enhance access to healthcare and reduce costs. Favorable regulations regarding telemedicine and remote care are being drafted.
Economic: Rising healthcare costs is driving the need for cost-effective digital health solutions such as telehealth and remote monitoring. This provides access to quality care at lower costs.
Social: Younger population and increasing internet penetration are raising acceptance for technologies in healthcare delivery. People are open to self-management of care with digital tools.
Technological: Artificial intelligence, cloud computing, and blockchain are enhancing digital health solutions. AI assists in automated diagnosis, drug discovery, and personalized care. Cloud allows seamless data sharing.
Key Takeaways
The Global Digital Health Market Size is expected to witness high growth over the forecast period. The North American region currently dominates the market attributed to advanced healthcare infrastructure and high technology adoption in the region. The global digital health market is estimated to be valued at US$ 170.2 Bn in 2023 and is expected to exhibit a CAGR of 4.0% over the forecast period 2023 to 2030.
Regional analysis: North America accounts for around 40% share of the global digital health market in 2024. This is due to the presence of advanced healthcare infrastructure and favorable regulations supporting digital health in the region. The Asia Pacific region is expected to witness the fastest growth during the forecast period owing to rising medical tourism, government initiatives for modernizing healthcare, and increasing investments by key players.
Key players: Key players operating in the digital health market are Teladoc Health, Epic Systems Corporation, Cerner Corporation, Qualcomm Technologies, Cisco Systems, McKesson Corporation, Philips Healthcare, and IBM Corporation.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it