February 21, 2024

Global Digital Health Is Estimated To Witness High Growth Owing To Increased Consumer Spending

The global digital health market is estimated to be valued at US$ 170.20 Bn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Digital health involves the use of information technology in healthcare to deliver clinical care, education, communication, and healthcare management. It includes products such as wearable devices, connected medical devices, health apps, and electronic health records. These digital health solutions are used by healthcare providers and consumers for various purposes such as maintaining health records, remote patient monitoring, medical education, diagnosis and treatment.

Market Dynamics:

The global digital health market is projected to experience significant growth over the forecast period, owing to increased consumer spending on digital health solutions and rising healthcare expenditure. According to the American Hospital Association, national healthcare spending is projected to reach $6.2 trillion by 2028, growing at an average annual rate of 5.5% over the forecast period. This increased healthcare spending is expected to propel the demand for digital health solutions that can improve efficiency and lower costs. Furthermore, high adoption of smartphones and development of advanced healthcare applications is also fueling market growth. As per Statista, smartphone penetration is estimated to reach around 70% of the global population by 2025. Advanced smartphone-based digital health applications are being widely adopted for remote monitoring, disease management and doctor consultations. Increasing digitization of healthcare also supports the digital health market growth. However, data privacy and security concerns, lack of reimbursement and resistance to change may hamper market expansion over the forecast period.

SWOT Analysis

Strength: Explain in three sentence explanation: The digital health market has strong growth prospects owing to rising investment in telehealth and telemedicine. Increased smartphone and internet penetration has enabled improved access to healthcare services. Digital health solutions help provide cost-effective and personalized care to patients.

Weakness: Explain two weakness in three sentence long explanation: Lack of reimbursements and data privacy laws in some regions pose challenges. Rural and elderly population face difficulties in adopting digital health solutions due to lack of digital skills and infrastructure. High costs associated with development and implementation of advanced digital health technologies restrict their widespread adoption.

Opportunity: Explain two opportunity in three sentence long explanation: Untapped growth opportunities exist in developing countries with large patient pools and increasing focus on remote patient monitoring and chronic disease management. Integration of cutting-edge technologies such as AI, cloud computing, and blockchain provides scope for innovative product development. Favorable government policies and regulations boost investments in digital healthcare infrastructure and services.

Threats: Explain two threats two sentence explanation: Security and privacy breaches pose serious threats. Lack of standards and interoperability issues challenge data integration.

Key Takeaways

The Global Digital Health Market Size  is expected to witness high growth, exhibiting CAGR of 10% over the forecast period, due to increasing internet and smartphone penetration. Advanced technologies enable improved access to healthcare from remote locations.

Regional analysis: North America dominates the global digital health market, accounting for around 40% share, due to advanced telehealth programs, favorable regulations, and significant investments by public and private organizations in the region. Asia Pacific exhibits the fastest growth, driven by rising medical expenditures, large patient pools, and focus of global market players on expanding presence in emerging countries.

Key players operating in the digital health market are DP, population, internet penetration, smartphone penetration, consumer spending, and healthcare spending. These companies have adopted strategies like partnerships, new product launches, and mergers and acquisitions to strengthen their market position.

 

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it