Digital health encompasses technology enabled healthcare tools and services that utilize digital means for better health outcomes. Some key digital health tools include EHRs, mHealth, telehealth, and healthcare analytics. EHRs or electronic health records help digitize patient health records and clinical workflow. Telehealth has gained immense prominence amidst the Covid-19 pandemic, enabling remote consultation between patients and doctors. Rising internet penetration, need for affordable and accessible care especially in rural regions has boosted telehealth adoption. Healthcare analytical tools leverage AI, predictive analytics for advanced diagnostics, precision medicine and population health management.
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 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics
The growing prominence of telehealth usage is expected to drive market growth over the forecast period. Telehealth proved to be a boon during the pandemic enabling remote care without risk of exposure. It has addressed the barriers of access, cost and wait times for quality care. Governments globally are promoting telehealth policies to enhance access in underserved regions. Another major driver is the increased adoption of digital driven preventive healthcare. Wearable fitness devices, digital therapeutics and health apps promote proactive health monitoring. They empower individuals to take ownership of health through lifestyle management tools. This is expected to reduce medical costs associated with chronic diseases treatment in the long run.
Segment Analysis
The digital health market is segmented into hardware, software and services. The software segment dominated the market in 2022 accounting for around 40% share. Growing adoption of various healthcare applications and software by patients and healthcare providers is driving the software segment. Software solutions help improve healthcare infrastructure, reduce costs and enhance quality of care.
PEST Analysis
Political: Government initiatives to develop digital healthcare infrastructure and promote telemedicine and remote patient monitoring will aid growth. Favorable regulations regarding technologies like AI, cloud and big data analytics are being introduced.
Economic: Rising healthcare costs, need for affordable care and growing burden of chronic diseases are compelling countries to invest in digital healthcare solutions. This provides opportunities for cost savings and improved access.
Social: Changing consumer preference towards self monitoring and wellness solutions is a major factor. Growing internet and smartphone penetration enable access to telehealth and e-pharmacy applications.
Technological: Advancements in areas such as AI, cloud computing, IoT and blockchain are enabling new applications. 5G rollout will further support technologies like telehealth, remote surgery and AR/VR based medical training. Wider connectivity and easy access to healthcare using digital mediums is improving outcomes.
Key Takeaways
The Global Digital Health Market Growth is expected to witness high during the forecast period of 2023 to 2030.
Regional analysis: Asia Pacific is projected to be the fastest growing region in the digital health industry. Increasing internet penetration, rising medical costs and focus on developing healthcare infrastructure are driving investments in digital healthcare solutions across major Asian countries like China, India and Japan.
Key players operating in the digital health market are Johnson & Johnson Services, Inc., Athenahealth, Philips Healthcare, Cisco Systems, Cerner Corporation, McKesson Corporation, iHealth Lab Inc., AT&T, Qualcomm Technologies Inc. The major players are focusing on new technologies, collaborations and mergers & acquisitions to strengthen their product portfolios and market position.
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1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it