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The global digital health market is estimated to grow by USD 563.39 billion with a CAGR (Compound Annual Growth Rate) of 25.8% from 2022 to 2027. The growing adoption of data analytics in the healthcare sector is a major driver in the market. Data analytics is revolutionizing healthcare by enhancing efficiency, boosting revenue, and cutting costs. It streamlines patient understanding and health data tracking, aiding in personalized healthcare delivery. Digital health has the potential to revolutionize healthcare delivery by enabling remote patient monitoring, personalized medicine, and data-driven decision making. Cloud-based analytics, including smartphones, tablets, applications, and social media tracking, enable hospitals to optimize services and treatments. This trend, fueled by growing data utilization, is a key driver propelling the market forward.
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Technavio has segmented the market into Application (wireless, mobile, EHR, and telehealth), Component (software, services, and hardware), and Geography (North America, Europe, Asia, and Rest of World (ROW). The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
The market share growth by the wireless health segment will be significant during the forecast period. Wireless health involves the use of wireless technologies in traditional medical activities such as the diagnosis and treatment of diseases. Some of the major wireless technologies used for digital health are 4G, Bluetooth low energy (BLE), and BodyLAN. BodyLAN is a wireless communication system that operates in proximity to the body. This system operates with low power and has a higher speed of data transmission.
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The wireless health segment showed a gradual increase in market share with USD 43.32 billion in 2017 and continued to grow by 2021. Wireless radio-frequency identification (RFID) technology is another popular wireless technology used in the healthcare industry. This technology allows hospitals to track the real-time location of critical equipment, such as infusion pumps and specialty beds, and it can update the real-time status of the equipment (whether it is being used or not). Hugs Infant Protection is a hospital-wide infant security system developed by STANLEY Healthcare. The system uses the existing Wi-Fi network in a hospital to locate an infant anywhere within Wi-Fi coverage.
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North America is projected to contribute 43% by 2027. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
North America is the largest revenue contributor to the market. The US is the major factor that drives the market in the region. Better infrastructure and the awareness of technological advances in the healthcare industry are driving the growth of the market in the region.
The market, propelled by innovations like mHealth, telehealth, digital therapeutics, telemedicine, healthcare technology, and digitalization, addresses global health challenges, especially chronic diseases. Emerging countries benefit from accessible healthcare solutions aided by technologies like machine learning and 5G networks. Organizations like the World Bank support initiatives to enhance healthcare equity. Innovations like artificial intelligence and wearables devices are revolutionizing how healthcare is delivered, enabling remote monitoring and personalized care. With the rise of digital platforms and apps, patient data have access to virtual consultations, electronic records, and tailored wellness and fitness programs. Moreover, emerging technologies such as virtual reality and analytics are enhancing diagnostics and treatment outcomes. This convergence of healthcare and technology is reshaping the industry, offering unprecedented opportunities to improve patient outcomes and streamline healthcare delivery. Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.
The global digital health market is poised for significant growth in the forecast period, driven by technological innovations and a surge in M&A activities. Strategic mergers and acquisitions among industry players are fostering the development of advanced products and bolstering profit margins for service providers. These investments take various forms, including capital outflows for new service offerings and acquisitions of complementary service providers. Notable acquisitions include Teladoc's acquisition of California-based InTouch Health in January 2020, aimed at expanding Teladoc's partner network and solidifying its position in the global digital healthcare market. Similarly, in July 2019, Koninklijke Philips NV acquired Medumo, a startup focused on patient tracking and triaging, with the shared goal of enhancing patient navigation. The convergence of telemedicine, healthcare technology, and digitalization is driving transformative changes across the industry, fostering innovation in remote monitoring, artificial intelligence, wearables, and other digital health solutions.
The incorporation of AI in digital health is poised to propel market expansion. AI enhances the intelligence of medical equipment, expediting result dissemination. Healthcare professionals benefit from AI-driven diagnostic charts and insightful analyses, augmenting efficiency. AI serves as a clinical decision-support tool, collaborating with human counterparts to enhance care provision. In radiology, AI streamlines workflows, meeting rising diagnostic imaging demands while averting errors. Notably, AI integration is integral to the R&D efforts of digital health entities like Siemens, laying the groundwork for comprehensive medical image comprehension. The surge in health data utilization and associated analytics further propels market growth.
The threat of open-source service providers is a major challenge to global digital health industry growth. The market is flooded with the presence of open-source vendors that provide a wide range of digital health solutions. A combination of multiple products from several open-source vendors can offer almost all the functionalities provided by proprietary on-premises and cloud-based digital health solution providers. Open-source software provides features such as unconstrained innovations, better credibility, and decentralized control. This has a negative impact on the market share of the proprietary players in the digital health markets.
NHS England is a non-departmental public body of the Department of Health in the UK. The organization uses open-source IT solutions in healthcare to make healthcare services accessible to all. Since the source code of the software is freely available and can be downloaded from GitHub, the software can be altered to suit the local needs of an organization. Healthcare professionals can bridge the gap between the staff and the technology by including more input on software improvements and uses. Leeds Teaching Hospitals, one of the hospital trusts in the UK, is using open-source software to develop EHRs.
Our market analysis of the life cycle of the market indicates a movement from the innovator’s stage to the laggard’s stage. The report illustrates the lifecycle of the market, focusing on the adoption rates of the major countries, including the US, China, the UK, Germany, and France. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2022 to 2027.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Airstrip - The company offers digital health such as Airstrip One.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market vendors, including :
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market is witnessing significant growth, driven by industry trend, pricing, and patent analyses. Key stakeholders analyze buying behavior, particularly among the geriatric population facing chronic diseases, fostering demand for patient-centric healthcare solutions on mobile platforms. Despite high deployment costs, small hospitals in emerging countries are adopting digital health solutions, facing interoperability and privacy challenges. Tele-healthcare, mHealth, and digital therapeutics sectors are burgeoning, supported by government policies and investments in AI, machine learning, and IoT technologies like 5G networks. Major players include January AI, and Fitbit, and collaborations with entities like the World Bank and Google propel market expansion.
In the digital health market, patients and consumers are at the forefront of a revolution driven by technological advancements and government initiatives. With the increasing penetration of digital health solutions, individuals have access to a wide array of mobile applications designed to improve healthcare outcomes. The prevalence of these apps is particularly evident in countries like the Netherlands, where government initiatives support their development and adoption. Advancements in telemedicine, remote monitoring, and personalized healthcare reflect a patient-centric approach that prioritizes convenience and accessibility. As digital health continues to penetrate healthcare systems worldwide, its prevalence highlights the growing importance of leveraging technology to enhance patient care and well-being.
Our market report forecasts revenue growth at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Digital Health Market Scope |
|
Report Coverage |
Details |
Page number |
170 |
Base year |
2022 |
Historical year |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 25.8% |
Market growth 2023-2027 |
USD 563.59 billion |
Market structure |
Fragmented |
YoY growth (%) |
25.04 |
Regional analysis |
North America, Europe, Asia, and the Rest of the World (ROW) |
Performing market contribution |
North America at 43% |
Key consumer countries |
US, China, UK, Germany, and France |
Competitive landscape |
Leading companies, Competitive Strategies, Consumer engagement scope |
Key companies profiled |
3M Co., Agfa Gevaert NV, AirStrip Technologies Inc., Allscripts Healthcare Solutions Inc., Alphabet Inc., Apple Inc., Cisco Systems Inc., Computer Programs and Systems Inc., Epic Systems Corp., Honeywell International Inc., International Business Machines Corp., Koninklijke Philips NV, McKesson Corp., Oracle Corp., Qualcomm Inc., Samsung Electronics Co. Ltd., Siemens AG, Telefonica SA, UnitedHealth Group Inc., and General Electric Co. |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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