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The global digital health market size was valued at USD 548.08 billion in 2021. The market is projected to grow from USD 742.72 billion in 2022 to USD 4,547.70 billion by 2029, exhibiting a CAGR of 29.5% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with digital health experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a higher growth of 81.2% in 2020 compared to 2019.
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. In 2019, the American Medical Association reported that healthcare companies invested billions of dollars in new digital health entrepreneurship.
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 to manage the clinical workflow. In addition, the advances in telecommunications, with the nationwide introduction of 3G, 4G, and 5G networks began to release higher bandwidth supporting the adoption of digital solutions in the healthcare industry globally.
How has the COVID-19 Pandemic Impacted the Adoption of Digital Health Solutions?
COVID-19 had positively impacted the market’s growth during the forecast period. Factors responsible for the growth of the market include 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.
The restrictions on travel and free movement, the limitation of medical services for emergencies, and rising cases of COVID-19 infections have contributed to the surge in teleconsultation platforms. According to the MDLive, in early April, the volume of teleconsultations increased by 50.0% between the start of March 2020 and the week of 6 April 2020.
The market players witnessed significant growth in revenue generated during 2020. For instance, Garmin registered a growth of 25.8% in revenues generated from its fitness segment in 2020. In 2021, the company reported an increase of 16.4% in revenue generated from its fitness segment.
However, the increasing demand for digital solutions during the COVID-19 pandemic, the benefits of using teleconsultations, mHealth applications, and others support the adoption of these technologies in the global market. Thus, the increased demand for teleconsultations, telemedicine, and mHealth during 2021 helped companies generate more revenues.
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Technological Developments in Telecommunication have augmented 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 the market growth. For instance, in March 2020, Google Cloud disclosed a collaboration agreement with AT&T to develop 5G edge-computing solutions. The introduction of such faster network capabilities enabled the telehealth industry to provide a better experience for their patients and thereby boost product demand.
In addition, advancements in mobile technology and telecommunications resulted in the development of easily accessible applications, which can be used by patients. For instance, in January 2020, the UAE Ministry of Health and Prevention announced a collaboration with the leading telecom operator, Emirates Integrated Telecommunications Company PJSC (du), for the development of telemedicine mobile applications. Such partnerships with telecom service providers are expected to strengthen the healthcare infrastructure and favor telehealth adoption.
Additionally, telepresence robots are designed to autonomously move around rooms by being remote-controlled using a software interface connecting the user to the robot through a Wi-Fi connection.
Thus, the technological development in the telecommunication sector is creating lucrative growth opportunities for the market during the forecast period.
Initiatives Taken by Governments of Various Countries to Promote the Digital Health
In developing & developed countries, the adoption of digital tools is increasing due to the growing use of smartphones, tablets, and other mobile platforms. Additionally, governments of various countries are taking initiatives to promote digital solutions for the management of 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 instance, the government of India launched Arogya Setu mobile application in response to COVID-19. The application was developed for self-assessment, syndrome mapping, contact tracking, and education regarding the infection. The major market players also focus 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 the government of countries are supporting the adoption of digital tools in developed and developing countries.
Increasing Penetration of Smartphones, Tablets, and Other Mobile Platforms to Accelerate Market Growth
Globally, the penetration of smartphones, tablets, and other mobile platforms is rapidly growing due to several factors, such as the penetration of the internet along with the high bandwidth of the internet in developed countries. For instance, according to Bankmycell, in 2022, the number of smartphone users in the world is estimated at 6.64 billion, which is approximately 83.72% of the world’s population owning a smartphone.
Nowadays, people are becoming more health conscious and majorly focusing on physical activities, mental health, and other factors. Due to these factors, the emphasis on healthcare monitoring and diagnosis has rapidly increased in developing countries. According to the Business Standards, consumers are willing to spend more money on fitness activities, classes, and a healthy diet. Approximately 40% of the people from India showed a willingness to pay a premium for products promoting health and wellness.
Also, due to the increasing penetration of smartphones and tablets, people are shifting towards wearables and other healthcare applications. Thus, companies are focusing on developing a number of health applications to meet the demand. For instance, according to mobihealthnews, more than 90,000 digital apps for healthcare were introduced in 2020, with an average of 250 per day. The report also found that more than 350,000 digital apps for healthcare are available for consumers.
Thus, the growing internet penetration along with the increasing number of health-conscious people globally is supporting the adoption of mobile health applications. Therefore, new mobile applications and devices are projected to support market growth.
Privacy Concerns Regarding Patient Data to Limit its Adoption
With the increasing adoption of these systems in developed as well as developing countries, privacy issues are one of the major challenges for these systems globally. This health data is generated in large amounts and stored in diverse formats at different health information systems. Thus, keeping this data safe from cybercrimes is a major concern for all healthcare providers. According to the Health Sector Cybersecurity Coordination center, around 239.4 million attempted cyber-attacks on healthcare systems in 2020. The U.S. is one of the most targeted countries in the world for cyber-attacks.
A major challenge in health data privacy is to share health data among medical practitioners while protecting personally identifiable information. Nowadays, hacking PHI by cybercriminals is observed as a growing trend. Hackers’ goal is to take advantage of the patients' personal information. In 2020, According to the HIPAA Journal, the majority of healthcare data breaches were reported.
Thus, the increasing incidences of data breaches related to the patient’s personal health records are creating privacy-related concerns among healthcare providers and patients, limiting the market's growth.
mHealth Segment to Experience Dynamic Growth during the Forecast Period Owing to Rising Focus on Fitness and Wellbeing
On the basis of product type, the market is segmented into mHealth, healthcare analytics, digital health systems, and telehealthcare.
The mHealth segment led the market share because of the increasing focus of people on wellbeing and fitness, which is driving the demand for these apps. Additionally, the increasing focus on early diagnosis and routine monitoring led to the growing adoption of health monitoring applications. For instance, in April 2021, Fitbit Inc. launched Fitbit Luxe, a fitness and wellness tracker designed for stress management and sleep tracking for mental and physical wellness.
The telehealthcare segment is expected to grow significantly during the forecast period due to the benefits of telemedicine, such as reduced waiting time, which led to faster diagnosis of diseases. Additionally, increasing penetration and adoption of teleconsultations during the COVID-19 pandemic also supported the market growth during the period.
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Services Segment to Hold Largest Market Share Attributable to Low Teleconsultation Charges
On the basis of components, the market is segmented into services, software, and hardware.
The services segment dominated the market in 2021 due to the comparatively low cost of teleconsultation services. Furthermore, with the expansion of companies providing teleconsultation services is supporting the growth of the services segment. For instance, in September 2020, Sesame, Inc. expanded its services of a Direct-to-Patient Platform into New York City and Houston to make healthcare more accessible, affordable, and transparent for the patients.
The software segment is projected to grow with the highest CAGR during the forecast period due to factors such as increasing initiatives for the development of innovative technologies to enhance digital health. In addition, the increasing number of new product launches in the market is supporting the growth of this segment. For instance, in March 2019, IQVIA launched the E360 Genomics platform that advances real-world research, protects genomic data privacy, and provides an efficient way to conduct genomic research with genomic and clinical databases.
Business to Business Segment to Dominate Owing to Increasing Demand for the Service
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 with a significant share owing to the growing collaborations of the 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 to fuel Takeda’s cloud-driven business transformation by modernizing platforms, accelerating data services, establishing an internal engine for innovation to help the patient.
The growth of the business to consumer segment is due to the increasing launch of various technologies such as mHealth apps and software due to the high demand from the consumers is supporting the growth of this segment.
North America Digital Health Market Size, 2021 (USD billion)
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The market in North America was valued at USD 231.45 billion in 2021. The region dominated due to the factors such as adequate reimbursement policies in the U.S., high per capita expenditure on advanced technologies, and rising demand for these technologies in the region. For instance, in August 2020, Fitbit Inc., launched Fitbit Sense, an advanced health smartwatch to help manage stress, along with advanced heart rate tracking technology, a new ECG app, and an on-wrist skin temperature sensor it tracks key trends in one’s health and wellbeing, like heart rate variability (HRV), breathing rate, and SpO2 with the new Health Metrics dashboard.
The Europe digital health market share was 30.6% in 2021. The growth is primarily driven by the various telemedicine initiatives and solutions available in the region. This along with the growth of digital technologies, mainly wearables and mobile applications in Europe is supporting the growth of this region. For instance, according to an article published by Healthcare Digital Magazine in January 2021, U.K.'s National Health Service (NHS) website is attracting around 360 billion visits a year. The NHS app was used by 1,951,640 people in December 2020 an increase of 912% compared to 2019. Moreover, the number of e-prescription requests made via the app increased by 25% in 2020 as compared to 2019.
Asia Pacific is projected to grow at a significant rate 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 for healthcare in the region. For instance, Made in China 2025 emphasizes hi-tech dominance to propel its biomedical and medical device manufacturing industries. The plan focuses on improving the production of high-end medical devices, including wearables and telemedicine
The market in Latin America is growing due to the increasing adoption of digital technologies by the various healthcare facilities during the COVID-19 pandemic. Furthermore, the launch of telemedicine apps and services in the region is supporting the market's growth.
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The Middle East and Africa market will continue to expand at a considerable CAGR during the forecast period attributable to the strategic initiatives taken by the governments of the various countries.
What Strategies are Adopted by the Leading Market Players?
The market is fragmented, with a large number of players holding a major share of the market. Industry leader cerner, Apple, Epic, Huawei, Cisco, and Philips Healthcare holds a dominating place with a strong portfolio of these technologies. Additionally, increasing product launches by these companies supports the company's growth. In August 2021, the company introduced two new HealthSuite solutions to provide cost-effective, cloud-based solutions to patients.
The other market 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 mark a strong global presence. The increasing product approvals for these services and strategic decisions taken by these players are supporting the growth of these companies.
An Infographic Representation of Digital Health Market
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The global digital health market report provides a detailed market analysis. It focuses on key aspects such as leading companies, product types, components, and end users. Besides this, it offers insights into the digital health market trends, the impact of COVID-19, and other key insights. In addition to the factors mentioned above, the report encompasses several factors that have contributed to the growth of the market over recent years.
Value (USD billion)
Product Type; Component; End User; and Region
By Product Type
By End User
Fortune Business Insights says that the global market stood at USD 548.08 billion in 2021 and is projected to reach USD 4,547.70 billion by 2029.
In 2021, the market value stood at USD 548.08 billion.
The market will exhibit steady growth at a CAGR of 29.5% during the forecast period (2022-2029).
By product type, the mHealth segment will lead the market.
Increasing penetration of smartphones, tablets and other mobile platforms, initiative taken by governments of various countries to promote the this technology, technological advancement in the market leading to increasing adoption of digital tools are the key drivers of the market.
cerner, Apple, Epic, Huawei, Cisco, and Philips Healthcare are the major players in the market.
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