Digital Health Industry
The global digital health market was valued at USD 240.9 billion in 2023, with projections showing a compound annual growth rate (CAGR) of 21.9% from 2024 to 2030. This market growth is fueled by several factors, including a robust domestic market for telehealthcare platform developers, mobile health (mHealth) app providers, wearable device manufacturers, and electronic prescription systems. These technological advancements and services are gaining momentum, addressing the increasing demand for efficient, accessible, and cost-effective healthcare solutions.
Additionally, the healthcare industry presents significant growth opportunities for the IT sector, primarily due to supportive government initiatives across various regions. This supportive environment, combined with the growing trend of preventive healthcare and the rise in funding for mHealth startups, further strengthens the market. The surge in these startups is driven by increasing public awareness of health management and the desire for more proactive healthcare measures.
Moreover, the rising incidence of chronic conditions such as diabetes, heart disease, and cancer has heightened the demand for remote monitoring and management solutions. Digital health tools are becoming essential for patients to track their health, adhere to prescribed treatment plans, and communicate effectively with healthcare providers, improving overall patient outcomes.
The landscape of venture funding for digital health startups has seen fluctuations, with periods of both growth and decline. For instance, in March 2023, Mantra Health raised USD 5 million in Series A extension funding, while Aidoc secured USD 20 million in a Series B funding round in September 2020. These examples reflect a steady increase in capital flowing into the digital health sector. This trend not only highlights financial opportunities but also indicates growing confidence in digital health solutions. Physicians with investment expertise or involvement in company operations are actively supporting digital health startups, further contributing to the sector's dynamism and vitality.
Gather more insights about the market drivers, restrains and growth of the Digital Health Market
Component Insights
Services Segment Leading the Market (2023)
- The services segment led the market in 2023 with the largest revenue share.
- This growth is due to the increasing demand for services such as installation, staffing, training, and maintenance.
- Market players are offering these services either as standalone or in package deals.
- The rising need for advanced software solutions, such as Electronic Medical Records (EMRs) and Electronic Health Records (EHR), is driving segment growth.
- Upgradation and training to operate these systems are in high demand.
- According to a 2021 HealthIT.gov report, 88% of U.S. office-based doctors use EHRs, and 78% of them utilize certified EHRs.
- Key market players offer a broad range of pre- and post-installation services, including project planning, staffing, implementation, training, resource allocation, and optimization.
Software Segment Growth Projections (2024-2030)
- The software segment is expected to register the fastest CAGR of 23.2% from 2024 to 2030.
- This growth is driven by the rapid adoption of software systems among patients, healthcare providers, facilities, and insurance payers.
- Rising healthcare costs and the increasing trend of healthcare digitalization are major contributors to this growth.
- Consumer demand for personalized medicine and the shift toward value-based care are also boosting the software segment.
- In emerging economies, healthcare facilities are quickly adopting advanced software platforms to streamline workflows and improve clinical, operational, and financial outcomes.
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