Digital Health Market Size, Share & COVID-19 Impact Analysis, By Product Type (mHealth {Apps [Disease and Treatment Management Apps, Wellness Management, and Others], Wearables [Body & Temperature Monitors, Sleep Trackers, Fitness Trackers, Glucose Monitors & Others]}, Healthcare Analytics {Population Health Management, Clinical Management, & Others}, Digital Health Systems {EMR/HER, e-Prescribing Systems, and Others}, and Telehealthcare {Telehealth & Telecare}), By Component (Services, Software, and Hardware), By End-User (B2B and B2C), and Regional Forecast, 2023-2030

The digital health market size was valued at USD 375.99 billion in 2022 and is projected to grow USD 452.79 billion in 2023 to USD 1,965.30 billion by 2030, exhibiting a CAGR of 23.3% during 2023-2030. North America dominated the global market with a share of 40.79% in 2022.

Digital health is an emerging field of study, which includes the use of digital technologies in healthcare. The U.S. Food and Drug Administration (FDA) considers a broad scope of technologies as digital health, including mobile health, telehealth, wearable devices, telemedicine, health information technologies, and personalized medicines. According to a World Bank report published in August 2023, evidence-based digital investments can help governments save up to 15.0% of health system costs across the globe.

Moreover, artificial intelligence and machine learning have a broad number of applications in the healthcare industry, such as image analysis, patient monitoring, and medical device automation, to support healthcare staff in managing the clinical workflow. In addition, the advances in telecommunications, with the introduction of 3G, 4G, and 5G networks, have begun to release high bandwidth, supporting the adoption of digital solutions in the healthcare industry globally and proliferating market growth.

Key Takeaways:

• North America holds the largest market share, contributing USD 153.38 billion in 2022.


• By Component, the services segment dominated the market with 54.4% share in 2022.

COVID-19 IMPACT

How has the COVID-19 Pandemic Impacted the Adoption of Digital Health Solutions? 

The COVID-19 pandemic had a positive impact on the market. This can be attributed to an increase in the adoption of digital technologies for the diagnosis and treatment of various diseases, an increase in the volume of teleconsultations, and others during the period.         

• For instance, according to an article published by NCBI in May 2021, for the year 2020, a total of 19.0 million teleconsultations were performed in the U.S., which accounted for one-quarter of all consultations done that year.

Moreover, restrictions on travel and free movement, limitations on medical services for emergencies, and increased cases of COVID-19 infections led to the surge in teleconsultation platforms. According to data published by Centers for Disease Control and Prevention in October 2020, the volume of teleconsultations in the U.S. increased by 50% between the start of March 2020 and the second week of April 2020 as compared to same period in 2019.

Furthermore, market players witnessed significant growth in revenue in 2020. For instance, Garmin registered a growth of 25.8% in revenues from its fitness segment in 2020. Moreover, in 2021, the company reported an increase of 16.4% in revenue generated from its fitness segment.

The increased demand for digital solutions during the COVID-19 pandemic, the benefits of using teleconsultations and mHealth applications, and others support the adoption of healthcare technologies in the global market. Thus, the increased demand for teleconsultations, telemedicine, and mHealth in 2021 helped companies generate more revenues.

How Digitalization and Teleconsultation Solutions Will Transform the Healthcare Sector?

• Technological Developments in Telecommunication to Augment the Demand for Digital Solutions in Healthcare

Advancements in the telecommunication sector, such as the introduction of the Internet of Things (IoT), 5G, network infrastructure, and artificial intelligence, provide various opportunities for market growth. For instance, in May 2023, a health tech company, January AI, introduced a new generative Artificial Intelligence (AI)-enabled app to estimate and predict the glucose response of individuals to more than 32 million food items. The introduction of such faster network capabilities has enabled the telehealth industry to provide a better experience to their patients and thereby boost product demand.

In addition, advancements in mobile technology and telecommunications have resulted in the development of easily accessible applications that can be used by patients. For instance, according to an article published by TM Forum in June 2021, Telco Systems, a pioneer in telecommunications, is now launching new telehealth partnerships and services globally as the healthcare sector ramps up digital transformation and the provision of remote care. Such partnerships with telecom service providers are expected to strengthen the healthcare infrastructure and favor the adoption of telehealth.

Moreover, telepresence robots are designed to autonomously move around rooms, being remote-controlled using a software interface connecting the user to the robot through a Wi-Fi connection. Thus, technological development in the telecommunication sector is expected to create lucrative opportunities for the market growth during the forecast period.

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What are the Prominent Factors Driving Market Growth?

• Initiatives Taken by Governments of Various Countries to Promote Digital Health to Propel Market Growth

In both developing and developed countries, the adoption of digital tools is on the rise due to the widespread use of smartphones, tablets, and other mobile platforms. Additionally, various nations' governments are initiating efforts to promote digital solutions for managing different diseases. For instance, in April 2020, The Federal Communications Commission (FCC) developed and approved a USD 200 million program to fund telehealth services and devices for medical providers.

During the COVID-19 pandemic, governments of various countries launched mobile applications to manage the influence of the virus. For example, the government of India introduced the Arogya Setu mobile application in response to COVID-19. The application was developed for self-assessment, syndrome mapping, contact tracking, and educating the public regarding the infection.

Major market players are also focusing on R&D to develop and introduce new and advanced solutions. In March 2022, Google announced the launch of its new AI initiative for healthcare. Thus, the various initiatives taken by governments around the world are supporting the adoption of digital tools in both developed and developing countries.

• Increasing Penetration of Smartphones, Tablets, and Other Mobile Platforms to Accelerate Digital Health Market Growth

The penetration of smartphones, tablets, and other mobile platforms is rapidly growing across the globe. This can be attributed to the widespread availability of the internet, accompanied by high internet bandwidth in developed countries. For instance, according to the International Telecommunication Union (ITU), there are more than 8.58 billion mobile subscription users worldwide in 2022, exceeding the global population of 7.95 billion. Furthermore, data from the Pew Research Center in April 2021 revealed that approximately 85% of the American population owns a smartphone, a significant increase from 35% in its first study conducted in 2011.

Due to the increasing penetration of smartphones and tablets, people are transitioning toward wearables and other healthcare applications. Consequently, companies are focusing on developing a multitude of health applications to meet this demand. For instance, according to the IQVIA Institute for Human Data Science's 2021 trends report, more than 90,000 digital health apps were released globally in 2020.

In recent times, individuals are becoming more health-conscious, primarily focusing on physical activities, mental health, and other aspects of their well-being. These factors have rapidly elevated the emphasis on healthcare monitoring and diagnosis in developing countries. According to cohort study results published by BioMed Central Ltd., two out of three Americans are willing to adopt health insurance wellness programs based on wearable devices, especially if they offer benefits related to health promotion and disease prevention, particularly with financial incentives.

Hence, the increasing internet penetration, coupled with the rising number of health-conscious individuals globally, is supporting the adoption of mobile health applications. Therefore, the growing development of new mobile applications and devices, as well as their increasing adoption among the population, are key elements projected to bolster market growth.

What are the Restraining Factors Limiting the Adoption of These Solutions? 

• Privacy Concerns Regarding Patient Data May Hamper Market Growth

With the increasing adoption of these solutions in developed and developing countries, privacy issues have emerged as a major global challenge. Health data is being generated in large amounts and stored in diverse formats within different health information systems. Thus, safeguarding this data from cybercrimes has become a significant concern for healthcare providers worldwide. According to the Healthcare Cyber Attack Statistics 2022 report, healthcare data breaches in 2021 affected over 40.0 million patient records in the U.S. Moreover, the U.S. stands as one of the most targeted countries globally for cyber-attacks.

A significant challenge in health data privacy is finding ways to share health data among medical practitioners while protecting personally identifiable information. Additionally, hacking Personally Identifiable Health Information (PHI) by cybercriminals has become a growing trend. The hackers' objective is to exploit patients' personal information. According to statistics from the HIPAA Journal published in 2020, a majority of healthcare data breaches reported globally occurred in the year 2020.

Consequently, the increasing incidences of data breaches related to patients' personal health records are raising privacy concerns among healthcare providers and patients, which in turn hampers market growth.

SEGMENTATION

By Product Type Analysis

mHealth Segment to Dominate Owing to Rising Focus on Fitness and Well-being

On the basis of product type, the digital health market is segmented into mHealth, healthcare analytics, digital health systems, and telehealthcare. The mHealth segment accounted for the largest market share in 2022. The increasing focus of people on well-being and fitness is driving the demand for mobile apps, consequently propelling the growth of this segment. Additionally, the growing emphasis on early diagnosis and routine monitoring has further fueled the adoption of health monitoring applications, thereby fostering growth within this segment. For example, in April 2021, Fitbit Inc. launched Fitbit Luxe, a fitness and wellness tracker designed for stress management and sleep tracking, aimed at promoting mental and physical wellness.

The telehealthcare segment is anticipated to experience significant growth during the forecast period, primarily due to the advantages of telemedicine, such as reduced waiting time, leading to faster disease diagnosis. Furthermore, the increased penetration and adoption of teleconsultations during the COVID-19 pandemic have also bolstered the growth of this segment during that period.

By Component Analysis

Services Segment to Hold Largest Market Share Attributed to Low Teleconsultation Charges

On the basis of component, the market is segmented into services, software, and hardware. The services segment dominated the market in 2022 due to the comparatively low cost of teleconsultation services. The expansion of companies providing teleconsultation services further supports the growth of this segment. For instance, in September 2020, Sesame, Inc. expanded its Direct-to-Patient Platform services into New York City and Houston, aiming to make healthcare more accessible, affordable, and transparent for patients.

The software segment is poised to experience the highest CAGR during the forecast period, owing to the increasing initiatives for the development of innovative technologies to enhance the solution. Additionally, the growing number of new product launches in the market is supporting the growth of this segment.

• In June 2022, Bajaj Allianz launched a health insurance industry-first ‘Global Health Care’ plan in collaboration with Allianz Partners to provide health insurance coverage anywhere across the globe.

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By End-User Analysis

Business to Business Segment to Dominate Owing to Increasing Strategic Collaborations

On the basis of end-user, the market is segmented into business to business and business to consumer. The business-to-business segment dominated the market in 2022, holding a significant share owing to the growing collaborations between market players to integrate various digital technologies for better solutions. For instance, in October 2020, Takeda Pharmaceutical Company Limited, Accenture, and Amazon Web Services (AWS) entered into a five-year strategic agreement to accelerate Takeda’s digital transformation and fuel its cloud-driven business transformation by modernizing platforms, accelerating data services, and establishing an internal engine for innovation to benefit patients.

On the other hand, the business-to-consumer segment is expected to grow at a higher CAGR during the forecast period. The growth of this segment can be attributed to the increasing launch of various technologies, such as mHealth apps and software, due to the high demand from global consumers.

DIGITAL HEALTH MARKET REGIONAL INSIGHTS

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What are the Factors Responsible for the Dominance of North America in the Global Market? 

North America was valued at USD 153.38 billion in 2022. This dominance can be credited to factors such as adequate reimbursement policies in the U.S., high per capita expenditure on advanced technologies, and a rising demand for healthcare technologies in the region. For instance, in August 2020, Fitbit Inc. launched Fitbit Sense, an advanced health smartwatch designed to help manage stress. It incorporates advanced heart rate tracking technology, a new ECG app, and an on-wrist skin temperature sensor. The smartwatch tracks key trends in one’s health and well-being, such as Heart Rate Variability (HRV), breathing rate, and SpO2, and presents them through the new Health Metrics dashboard.

Europe accounted for a significant share in 2022. The growth is primarily driven by the availability of various telemedicine initiatives and solutions in the region. This growth, coupled with the proliferation of digital technologies, mainly wearables and mobile applications in Europe, is supporting the region's overall market growth. For instance, according to an article published by Healthcare Digital Magazine in January 2021, the U.K.'s National Health Service (NHS) website attracts around 360 billion visits a year. The NHS app was used by 1,951,640 people in December 2020, reflecting an increase of 912.0% compared to 2019. Moreover, the number of e-prescription requests made via the app increased by 25.0% in 2020 compared to 2019.

Asia Pacific is slated to grow at the highest CAGR during the forecast period, owing to technological and medical transformation and changing regulatory policies in the region. Additionally, initiatives taken by the governments of developing countries are promoting digital solutions in healthcare in the region. According to the Ministry of Health and Family Welfare, in July 2022, the National Health Authority (NHA) announced the expansion of the digital health ecosystem being built under its flagship scheme, Ayushman Bharat Digital Mission (ABDM), with the successful integration of 52 digital health applications in India.

Latin America is growing due to the increased adoption of digital technologies by various healthcare facilities during the COVID-19 pandemic. Furthermore, the launch of telemedicine apps and services in the region is supporting market growth.

The Middle East & Africa market is expected to continue to expand at a considerable CAGR during the forecast period, attributed to the strategic initiatives taken by the governments of various countries for new technological reforms in the healthcare industry.

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KEY INDUSTRY PLAYERS

What Strategies Are Adopted by the Leading Market Players? 

The market is fragmented, with a large number of players holding a significant digital health market share in 2022. Moreover, industry leaders, including Cerner Corporation, Apple, Epic Systems Corporation, Huawei, Cisco, and Philips Healthcare, hold a dominating position with a strong portfolio of digital-health technologies. The increasing number of product launches by these companies supports their growth. In August 2021, Koninklijke Philips N.V. introduced two new HealthSuite solutions to provide cost-effective, cloud-based solutions to patients.

Furthermore, industry players such as Doctor on Demand, AthenaHealth, MIDITECH, American Well, MDLIVE, Boston Scientific Corporation, Babylon Health, Teladoc, Polycom, Allscripts, Zoom, Headspace, Livongo Health, Doctolib, Kry, Cure.fit, Noom, and others have a strong global presence. The increasing product approvals for the services and strategic decisions formulated by these players are supporting the growth of these companies.

• In January 2023, Teladoc unveiled a new app integrating services for primary care and mental health.

LIST OF KEY COMPANIES PROFILED IN DIGITAL HEALTH MARKET:

• General Electric Company (U.S.)


• Koninklijke Philips N.V. (Netherlands)


• Allscripts Healthcare, LLC (U.S.)


• Cerner Corporation (U.S.)


• Epic Systems Corporation (U.S.)


• McKesson Corporation (U.S.)


• Medical Information Technology, Inc. (U.S.)s


• Siemens Healthcare GmbH (Germany)


• Boston Scientific Corporation (U.S.)


• FUJIFILM Holdings Corporation (Japan)


• Medtronic (Ireland)


• IBM (U.S.)


• Validic (U.S.)

What are the Key Industry Developments in this Market?

• July 2023 - The Peterson Center on Healthcare announced the launch of the Peterson Health Technology Institute (PHTI), a nonprofit organization that provides independent evaluations of innovative healthcare technologies to improve health and lower costs.


• May 2022 - The Organization for the Review of Care and Health Applications (ORCHA) announced its involvement with a new U.S. framework for assessing health technologies, including mobile apps and web-based tools used by healthcare providers and consumers, led by the American College of Physicians (ACP) and the American Telemedicine Association (ATA) in collaboration with ORCHA.


• May 2022 - FUJIFILM Holdings Corporation collaborated with the National Rural Health Association (NRHA) to provide rural areas with products and services, including digital radiography and in-vitro diagnostics solutions.


• March 2022 - MEDITECH collaborated with Google Health to provide easy and quick access to patient information.


• March 2022 - Validic announced the availability of its remote patient monitoring (RPM) platform, Validic Impact, on the Epic Systems 'App Orchard' platform. The App Orchard is a platform where developers can launch their apps for the Epic Systems community members.

REPORT COVERAGE

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The market research report provides a detailed analysis of the market. It focuses on key aspects such as leading companies, product types, components, and end-users. Moreover, it offers insights into the digital health market trends, impact of COVID-19, and other aspects. In addition to the factors mentioned above, the report encompasses several factors that have contributed to the growth of the market over recent years.

Report Scope & Segmentation