Digital Health Market Size, Share, Growth, Report 2024-2033

Digital Health Market Size and Growth 2024 to 2033

The global digital health market size was valued at USD 254.24 billion in 2023 and is expected to surpass around USD 1,578.28 billion by 2033, growing at a compound annual growth rate (CAGR) of 22.03% from 2024 to 2033.

The rapid proliferation of the Internet and fast Internet connections, mobile devices and networks, social networks, etc. have been essential enablers for the rise of digital health. Data transmission and information sharing in real-time are of great benefit to both doctors and patients. Digital health has a broad spectrum and includes using wearable devices, m-health, telemedicine, health information technology, and telehealth. Digital health tools can help patients track their health, adhere to treatment plans, and communicate more effectively with healthcare providers. Government initiatives for energy efficiency and regulatory support towards green building practices remain other key factors encouraging growth in the digital health market.

Report Highlights

• North America region capturing an impressive 40.10% of the total revenue share in 2023.
• Asia-Pacific has generated revenue share of around 34.70% in 2023.
• By component, the services segment has captured revenue share of 44% in 2023.
• By technology, the tele-healthcare segment has accounted revenue share of 42.70% in 2023.
• By application, the diabetes segment has held largest revenue share in 2023.
• By end-use, the patient segment has accounted largest revenue share in 2023.

Digital Health Market Growth Factors

The increasing use of internet usage and fast internet connections, mobile devices and networks, social networking, etc. were essential preconditions for the rise of digital health. Data transfer and information exchange in real-time is a great benefit for both physicians and patients. Still, many patients don’t trust the exchange of health data due to concerns about cyber-security.

Growing use of Cloud-Based Patient Records

• The traditional method of storing patient records is not used anymore, everything has gone digital. Cloud-based technology is used for storing patient records by healthcare professionals to keep data more secure and improve accessibility.
• The digitization of patient records not only continues to improve healthcare processes and workflows but also paves the way for greater patient engagement and personalization. Using the cloud for storing patient records facilitates collaboration between care teams and improves data security and regulatory compliance, enabling the adoption of advanced analytics and telemedicine technologies to improve patient outcomes and optimize healthcare delivery.

Growing Demand for Curbing Healthcare Costs

• Digital health technology has the capability of revolutionizing healthcare delivery and at the same time reducing costs. Telemedicine, healthcare apps, EHRs, and RPM are some of the technologies that are used in digitalizing healthcare and in turn, reduce healthcare costs and improve access to care.
• Digital therapeutics are technology-based solutions that have a clinical effect on diseases comparable to that of a drug. They can also be deployed in real-time and at scale, which is critical for chronic disease intervention.

Growth in Telehealth and Virtual Care

• Home care is critical when it comes to patient outcomes, thereby ensuring that patients receive uninterrupted personalized care for any form of chronic conditions and during recovery from hospitalization. Telehealth is essential due to the growing changes in age demographics.
• Digital health has emerged as a key trend in facilitating coordination, and providing patients with real-time access to healthcare professionals and services without leaving their homes. With the increasing proportion of the aging population, more illnesses and chronic conditions are expected to occur that would require medical intervention, which would in turn lead to boosting demand for digital health.

Rising Government Initiatives

• The government has been constantly taking initiatives to digitize healthcare, which is driving market growth. The digital revolution continues to change the face of healthcare systems across the globe.
• The Global Initiative on Digital Health (GIDH) is a WHO-managed network of organizations, institutions and technical government agencies that are actively engaged in national digital health transformation. Its objectives include assessing and prioritizing the need for sustainable digital health transformation and aligning digital health resources with unfunded priorities.
• According to the World Health Organization (WHO) and ITU (International Telecommunication Union), an additional investment of $0.24 per patient per year in digital health interventions can help save more than two million lives from non-communicable diseases over the next decade.

Digital Health Market Trends

• Increasingly adopted by the healthcare industry: Digital transformation in healthcare allows the integration of digital technologies, data analytics, and innovative processes to improve the delivery of healthcare services. Patients can also be provided with a wider range and more exclusive healthcare options, thereby leading to a new era of healthcare that has a patient-centered culture. Digital health can play a role in healthcare innovations by facilitating patient participation in the healthcare process. Digital transformation is shaping personal and institutional healthcare. Digital transformation is an ongoing process that can create opportunities in the healthcare sector, provided the necessary infrastructure and training are in place. Digital transformation in healthcare is rapidly spreading and consolidating.
• Smart Insulation Technologies: The incorporation of smart technologies into the systems of insulation is fast becoming one of the trends in today's date. The smart insulation material will be able to adapt intelligently to changes in the surroundings offering better energy efficiency, thus increasing its demand. Advanced materials, can interact with the building systems to offer advantages regarding temperature regulation, energy saving, and others.
• Growing Use of Digital Health Apps: Digital health apps are growing at a rapid pace, largely due to the pandemic-related acceleration of digitalization across healthcare and wellness. In 2020, more than 90,000 new digital health apps were introduced to consumers. Digital health apps are available to consumers focused on managing specific diseases and health conditions. Digital health apps are putting more information than ever before directly into the hands of healthcare consumers.
• Integration of VR and AR: Virtual reality (VR) and augmented reality (AR) are expected to grow by 30.7% annually between 2017 and 2025. In the healthcare industry, virtual reality helps doctors-in-training practice and plan surgeries, helping surgeons get more comfortable with performing procedures before they have to. VR is also helping support mental health and chronic pain management.
• Health and Safety Concerns: Health and safety concerns will have increased prominence among digital health market participants, with an emphasis on the quality of indoor air. From this point of view, insulation materials should provide a healthy indoor environment by limiting pollutants, allergens, and mold growth. This feature provides the backbone for research and the use of insulation materials that are nontoxic and hypoallergenic.

Report Scope

Digital Health Market Dynamics

Drivers

Increasing Smartphone Penetration

• Digitization in healthcare is revolutionizing through the means of mobile apps, which is transforming the entire healthcare industry. Smartphones have become a valuable part of medicine in recent years. Various studies on smartphones for digital healthcare are published in journals such as AMA Journal of Ethics, NPJ Digital Medicine, and BMC Medical Informatics stating that the future of the healthcare industry relies on smartphones as they can be easily used in telemedicine, clinical monitoring, and as diagnostic tools.
• Doctors and patients use smartphones to receive high-quality medical services instantly and conveniently from a distance. In hospitals, smartphones serve as portable databases, supporting measurement tools, and workflow regulators. Many doctors also actively use their tablets and smartphones to test various clinical software released on the market and select those they can recommend to their patients.

Growing Demand for Personalized Healthcare

• Due to the increasing demand for personalized healthcare solutions, digital health technologies are being used that can provide patients with treatment plans and individualized care. Personalized healthcare is a process of providing care that involves creating treatment plans, especially for each patient, taking into account their characteristics such as environmental influences, lifestyle, and genetics.
• Digital health can enable personalized healthcare by giving healthcare providers access to patient information and providing them with devices to collect this data and find individualized treatment options.

Restraints

Stringent Regulatory Compliance

• Regulatory policies contain laws and guidelines that are to be adhered to compulsorily by healthcare organizations and providers. Any violation of the regulations can lead to fines or penalties, hence are to be followed strictly. When it comes to incorporating technology in healthcare the significance of data security cannot be overstated, especially the sensitive information that forms the backbone of patient care. Approvals from the U.S. FDA and its European counterparts usually indicate that a product has been tested thoroughly and is safe and effective for its intended use.

Limited Access to Technology

• Availability and affordability are the issues that can cause restrictions on access to smartphones and other devices. Also, an inadequate internet connection may lead to more difficulty in accessing digital health technologies.
• Remote or rural locations are expected to have inadequate internet and proper infrastructure, thus making it challenging for patients and medical professionals to exchange health information and use telemedicine services. Therefore, such factors make it harder to use digital health apps, which are likely to impede market expansion.

Opportunities

Growing Adoption of Digital Health

• Digital adoption spiked as providers had to pivot to virtual care. Access to mobile devices such as smartphones and tablet computers has become increasingly widespread. With the growing interest and availability of mobile applications (apps) for people living with dementia, it is desirable to have a broader insight into how technology adoption may be further improved.
• Digital health applications (apps) are among the most discussed and researched topics within healthcare innovation as they have the potential to revolutionize clinical practice.

Advancements in the Telecommunication Sector

• The growth in the telecommunications sector, such as the introduction of 5G, the Internet of Things (IoT), network infrastructure, and artificial intelligence, offer numerous opportunities for market growth. The introduction of such faster networks has enabled the healthcare industry to provide a better experience to its patients, thereby driving demand for digital health.
• The ongoing advancements in mobile technology and telecommunications have further led to the development of various applications that are made easily accessible to patients. In addition, increasing partnerships with various telecom service providers are also expected to strengthen the healthcare infrastructure thereby promoting the adoption of digital health.

Challenges

Privacy Concerns

• Privacy is a big issue with anything digital, but it is even more so in the healthcare industry because it involves highly sensitive patient data. There are concerns about inappropriate information sharing by individual organizations and concerns about the systemic flow of information throughout healthcare and related industries.
• Inappropriate information sharing by organizations can come from either authorized users who intentionally or inadvertently access or distribute information in violation of company policies, or from outsiders who break into an organization's computer system. In several other industries and governments, concerns about technical attacks by outsiders are growing.

Challenges in EHR Implementation

• Although EHR systems offer significant benefits regarding data sharing and information exchange, it’s highly important to know the challenges that are related to the implementation of the EHR. Some of the issues associated with HER implementation include data migration and proper staff training. Managing these challenges is essential for ensuring smooth transitions and completely realizing the benefits of EHR systems in enhancing billing practices and information exchange.

Digital Health Market Segmental Analysis

Technology Analysis

Digital Health Systems: The digital health system segment has generated revenue share of 17.80% in 2023. Digital solutions are reshaping eHealth and enriching outdated 20th-century healthcare systems. A new healthcare system built on a fully digital landscape can benefit citizens in a variety of ways. Several studies have demonstrated the value of digital tools in the areas of surveillance, screening programs, awareness campaigns, social media-based therapies for behavioral health conditions, and digital health literacy.

Telehealthcare: The telehealthcare segment has captured revenue share of 42.70% in 2023. Patients' growing inclination toward technology-driven approaches that provide health management tools and enable easy access to services in remote locations. In September 2022, RxDefine, a leading engagement platform committed to educating and empowering healthcare consumers, launched RxTelehealth, a telehealth solution for life sciences brands as part of its mission to ethically empower patients to make their healthcare decisions. The benefits of telemedicine, such as reduced wait times, lead to faster disease diagnosis. In addition, teleconsultations have increased in adoption and usage during the COVID-19 pandemic.

mHealth: The mHealth segment has garnered revenue share of 30.30% in 2023. The growing requirement of mobile apps is driven by people's attention related to their health and well-being. The popularity of healthcare apps has also increased because of the rising focus on daily monitoring and early diagnosis. For instance, Fitbit Luxe was introduced by Fitbit Inc. in April 2021 intending to enhance both physical and mental well-being. Fitbit Luxe is a fitness and wellness tracker app for stress management and sleep monitoring.

Healthcare Analytics: The healthcare analytics segment has held revenue share of 9.20% in 2023. Healthcare analytics uses statistical analysis, data, and prediction models, for enhancing the operational, financial, and medical factors of the healthcare industry. The primary factors impacting the significance of healthcare analytics are the aging population, digitization of data, and patient requirements for personalized treatment. The outcome of healthcare analytics leads to reduced expenses, improved outcomes, and evidence-based.

Component Analysis

Software: The software segment has captured share of 19% in 2023. The growing efforts to create novel technology that will improve the software industry. This area is expanding thanks in part to the increasing number of new product launches that are occurring in the market. For example, in June 2022, Bajaj Allianz and Allianz Partners introduced the first-ever "Global Health Care" health insurance plan, which offers coverage for medical expenses anywhere in the world.

Hardware: The hardware segment has accounted share of 30% in 2023. The physical parts of the computer, or delivery systems, that store and process the written instructions given by the software, are referred to as hardware. In this fast-paced, technologically advanced world, digital health platforms are essential. A wide range of ideas from the intersection of technology and innovation in the healthcare system are included in the broad, multidisciplinary concept known as digital healthcare.

Services: The services segment has accounted share of 44% in 2023. Teleconsultation services are quite inexpensive in the services market. The development of businesses offering teleconsultation services contributes to the segment's growth. For example, Sesame, Inc. aims to improve patient accessibility, affordability, and transparency by bringing its Direct-to-Patient Platform services to New York City and Houston in September 2020.

Application Analysis

Chronic Diseases Management: Digital health allows patients with chronic illnesses the capability to continuously measure and monitor their health status, communicate with doctors remotely, and access vital information around the clock. Cost-effective solutions for improved healthcare quality, accessibility, affordability, and availability are also made possible by digital health. It also provides a flexible way to educate and improve skills. The availability of consumer-facing health technologies for chronic disease management is increasing rapidly, but most are limited by low adoption rates. Improving adoption requires a better understanding of a target audience's past technology exposure.

Health & Fitness: Digital fitness companies around the world are growing by offering on-demand content services and subscriptions to reach consumers who no longer have access to fitness centers. Wearable fitness technology, streaming content platforms, and new forms of "fit tech" are capitalizing on consumers' changing exercise preferences.

Cardiology: The rise in remote cardiac monitoring solutions, including wearable devices and connected health platforms. For instance, in August 2023, NXGN Management, LLC and Luma Health (US) expanded their alliance to provide ambulatory organizations across the country with artificial intelligence (AI) enhanced patient communication solutions, beginning with intake and self-scheduling.

Others: The others segment includes mental health and obesity. Online technology is used for addressing mental health issues which is known as digital mental health. Personalization of treatment options, boosting patient engagement, and increasing accessibility are some of the few advantages obtained by integrating digital technologies and psychotherapy. Obesity is a complex, multifactorial, chronic condition that increases the risk of a variety of diseases, including type 2 diabetes mellitus, cardiovascular disease, and certain cancers. The prevalence of obesity continues to rise and places a huge economic burden on the healthcare system. Existing technologies such as telemedicine, mobile health apps, and wearable devices offer new opportunities to improve access to obesity care and increase the quality, efficiency, and cost-effectiveness of weight management interventions and long-term patient care.

End-Users Analysis

Business-to-Business: The expanding partnerships amongst industry participants to combine different digital technologies for improved outcomes. For example, in October 2020, Takeda Pharmaceutical Company Limited, Accenture, and Amazon Web Services (AWS) signed a five-year strategic agreement to drive Takeda's cloud-driven business transformation and accelerate Takeda's digital transformation through platform modernization, data services acceleration, and the creation of an internal innovation engine for the benefit of patients.

Business-to-Consumer: Due to the strong demand from customers throughout the world, more and more technologies, including mHealth apps and software, are being released, which has contributed to the segment's growth. Decisions made by healthcare consumers have a significant impact on the services that are eventually made available to people and society. Digital health for consumers is quickly evolving into a crucial part of medical care. The rising aging population, cases of chronic diseases, and demand for digital health technologies are likely to drive the growth of the digital health market.

Digital Health Market Regional Analysis

What factors are fueling North America's dominance in the digital health market?

The North America digital health market size was valued at USD 101.75  billion in 2023 and is expected to reach around USD 631.89 billion by 2033. North America market is driven by robust technological infrastructure and a well-established regulatory framework. The U.S. and Canada are key markets where retrofitting existing buildings to improve energy efficiency is a significant growth driver. The region's cold climate also fuels the demand for high-performance insulation, particularly in residential and commercial buildings.

Europe Digital Health Market Growth

The Europe digital health market was valued at USD 44.49 billion in 2023 and is anticipated to hit around USD 276.20 billion by 2033. Europe has strong data protection regulations, such as GDPR, and rising technological advancements in telehealth solutions that drive the region's market growth. The growth of Europe's digital health market 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.

Why is Asia-Pacific drive significantly in digital health market?

The Asia-Pacific digital health market size was estimated at USD 88.22 billion in 2023 and is projected to garner around USD 547.66 billion by 2033. The large and diverse population providing a significant market for digital health, and the rising prevalence of chronic diseases are key drivers of the digital health market in the Asia-Pacific region. Emerging economies like China, India, and Southeast Asian countries are experiencing a technological boom, leading to increased demand for digital health. The region’s diverse climate conditions, ranging from tropical to cold, require a variety of insulation solutions to ensure energy efficiency in buildings. Government initiatives to promote green buildings also support market growth.

LAMEA Digital Health Market is Expanding

The LAMEA digital health market size was accounted for USD 19.58 billion in 2023 and is predicted to surpass around USD 121.53 billion by 2033. The LAMEA market is expanding due to the growing incidence of chronic disease, and increasing mobile penetration offers a platform for mHealth applications. Digital health is revolutionizing healthcare in MEA, facilitated by improving internet connectivity and government initiatives. Telemedicine, wearable devices, mHealth apps, and Artificial Intelligence (AI) are key trends transforming healthcare access, costs, & outcomes. Despite challenges including infrastructure, affordability, and data privacy, digital health’s potential to improve MEA healthcare is substantial.

Digital Health Market Top Companies

• Apple Inc.
• Telefónica S.A.
• Google, Inc.
• Oracle (Cerner Corporation)
• Epic Systems Corporation
• QSI Management, LLC
• AdvancedMD Inc.
• AT&T
• AirStrip Technologies
• Orange
• Softserve
• Computer Programs and Systems, Inc.
• Allscripts Healthcare Solutions Inc. 
• Vocera Communications
• IBM Corporation
• CISCO Systems, Inc.
• Veradigm
• Hims & Hers Health, Inc.
• Qualcomm Technologies, Inc.
• Samsung Electronics Co., Ltd.

The emerging players include Apple, Inc., Google, Inc., and Qualcomm Technologies, Inc., which have a presence in more than 30 countries and headquarters, manufacturing plants, distribution centers, and offices. In March 2023, Apple Inc. announced plans to upgrade the AirPods by 2025 to add ambient light sensors with health monitoring features such as motion detectors, temperature monitors, blood oxygen levels, and sweat and heart rate measurements. With their innovative approaches and strategic initiatives, these key players are highlighting their leadership and influence in the evolving digital health market.

CEO Statements

Arun Gupta, Chairman and CEO of Big Health:

"Seamless, patient-centered integration between digital and physical modalities is not only critical but, in my view, inevitable. Digital therapeutics are not here to replace physical healthcare modalities; however, they’re effective, they scale efficiently, and can be delivered conveniently. For these reasons, the best-of-both-worlds integration of digital and physical is undoubtedly going to play an important role in enabling a newly evolved mental healthcare ecosystem to take a big bite out of the unacceptable care gap that now exists."

Gianrico Farrugia, President and CEO of Mayo Clinic:

"For emerging technologies like AI to have maximum impact on healthcare, we need to fundamentally rethink how we innovate. We all know the challenges facing the healthcare industry, ranging from patients seeking care in ever-higher numbers to uneven access and quality care. But it has been very difficult to successfully address those challenges relying on legacy models."

Recent Developments

Key players in the digital health industry are pivotal in delivering a variety of innovative construction solutions, such as prefabrication techniques, sustainable materials, and advanced digital technologies. Some notable developments in the market include:

• In July 2024, Koninklijke Philips N.V. launched a new integrated telehealth platform that combines advanced AI-driven healthcare analytics with real-time telemedicine capabilities. This platform provides a comprehensive suite of tools for remote patient monitoring, virtual consultations, and predictive analytics. The platform is designed to enhance patient engagement and streamline care delivery.
• In June 2024, Epic Systems Corporation introduced a groundbreaking update to its digital health record system, featuring enhanced interoperability and advanced data analytics capabilities. The new software version supports seamless integration with external health systems and provides actionable insights through machine learning algorithms.
• In May 2024, Cisco Systems unveiled a new hardware solution for tele-healthcare that integrates high-definition video conferencing with secure, cloud-based data storage. The solution includes advanced encryption and privacy controls to ensure secure patient interactions and data management.
  In April 2023, Microsoft collaborated with Epic Systems Corporation to integrate AI into EHR, enabling healthcare practitioners to improve their productivity and patient communication with AI-enabled solutions.

These advancements mark a notable expansion in the digital health market, driven by strategic acquisitions and innovative projects. The focus is on boosting sustainability, enhancing construction efficiency, and broadening product offerings to meet diverse building needs.

Market Segmentation

By Technology

• Digital Health Systems
  • EHR
  • E-prescribing Systems
• Tele-healthcare
  • Tele-care
    • Activity Monitoring
    • Remote Medication Management
  • Tele-health
    • LTC Monitoring
    • Video Consultation
• mHealth
  • Wearables & Connected Medical Devices
    • Vital Sign Monitoring Devices
      • Heart Rate Monitors
      • Activity Monitors
      • Electrocardiographs
      • Pulse Oximeters
      • Spirometers
      • Blood Pressure Monitors
      • Others
    • Sleep Monitoring Devices
      • Sleep trackers
      • Wrist Actigraphs
      • Polysomnographs
      • Others
    • Electrocardiographs Fetal & Obstetric Devices
    • Neuromonitoring Devices
      • Electroencephalographs
      • Electromyographs
      • Others
  • mHealth Apps
    • Medical Apps
      • Women's Health
        • Fitness & Nutrition
        • Menstrual Health
        • Pregnancy Tracking & Postpartum Care
        • Menopause
        • Disease Management
        • Others
      • Chronic Disease Management Apps
        • Diabetes Management Apps
        • Blood Pressure & ECG Monitoring Apps
        • Mental Health Management Apps
        • Cancer Management Apps
        • Obesity Management Apps
        • Other Chronic Disease Management Apps
      • Personal Health Record Apps
      • Medication Management Apps
        • Diagnostic Apps
        • Remote Monitoring Apps
        • Others (Pill Reminder, Medical Reference, Professional Networking, Healthcare Education)
    • Fitness Apps
  • Services
    • Monitoring Services
      • Independent Aging Solutions
      • Chronic Disease Management & Post-Acute Care Services
    • Diagnosis Services
    • Healthcare Systems Strengthening Services
    • Others
• Healthcare Analytics
  • Population Health Management
  • Clinical ManagementOthers

By Component

• Software
  • Subscription Based
  • Annual Licensing
• Hardware
• Services
  • Subscription Based
  • Pay-Per-Service (Value-based)
• Application (Apps)
  • Subscription based
  • One-time Purchase
  • Value-Based

By Application 

• Chronic Diseases
• Health & Fitness
• Cardiology
• Others

By End-Users

• Business-to-Business 
• Business-to-Consumer

By Region

• North America
• Europe
• APAC
• LAMEA