Digital Health Market Size, Share, Growth by 2030

The worldwide digital health sector is projected to grow from US$ 306,443.04 billion in 2022 to an impressive US$ 1,909,524.56 billion by 2030, reflecting a compound annual growth rate (CAGR) of 25.7% during this period.

Several key factors are propelling this market expansion, including enhanced internet connectivity and the widespread adoption of smart devices, increased governmental regulatory support, and advancements in healthcare IT infrastructure. Nonetheless, concerns regarding data security and privacy breaches pose challenges to market growth.

Market Drivers of the Digital Health Sector

Government initiatives and regulatory support play a pivotal role in the evolution and enhancement of digital health. These initiatives encompass a range of policies, regulations, funding strategies, and strategic plans aimed at fostering the adoption, integration, and efficacy of digital health solutions. For example, the United States Agency for International Development (USAID) aims to leverage digital technologies to provide individuals with access to essential information and services, promoting healthier and more prosperous lives. The agency has established a specific policy framework, "Vision for Action in Digital Health," which guides its investments in digital technologies that bolster health programs in partner nations. In a similar vein, the Indian government launched the Ayushman Bharat Digital Health Mission (ABDM) in 2022 to develop a comprehensive digital health ecosystem. Additionally, in October 2021, the French government allocated over US $650 million to enhance its national digital health infrastructure.

Furthermore, the World Health Organization (WHO) characterizes Digital Health as "the application of Information and Communication Technologies (ICT) to Health" in its National Strategy for e-Health or Digital Health Toolkit. According to WHO data from 2020, over 75% of eligible healthcare providers and 90% of eligible hospitals received funding to participate in a government program that encourages hospitals to allow patients to access, download, and share their health information. In May 2020, the US federal government proposed the Federal Health IT Strategic Plan 2020-2025, which mandates the use of Electronic Health Records (EHR) by healthcare providers. Thus, the increasing governmental regulatory support and policy initiatives are significant drivers of the digital health market's growth.

Trends in the Digital Health Sector

Digital health technologies (DHTs) have transformed clinical trials by enabling the collection of real-world data outside traditional clinical environments and adopting more patient-centric methodologies. DHTs encompass various forms, including software, hardware, and telemedicine platforms. Recent technological innovations such as wearables, mobile applications, and virtual platforms have revolutionized clinical trials, facilitating remote patient monitoring, real-time data analysis, and enhanced patient engagement. In neurology trials, DHTs have demonstrated their ability to yield superior data from real-world settings. The evolution of DHTs is beginning to reshape clinical trial designs and promote more patient-centered research, leading to data-driven decisions in practical scenarios. For instance, a study published in May 2023 by npj Digital Medicine examined the use of DHTs in clinical trials registered on ClinicalTrials.gov for four chronic neurological disorders: epilepsy, multiple sclerosis, Alzheimer?s disease, and Parkinson?s disease. The findings revealed that the utilization of DHTs in clinical trials surged from 0.7% in 2010 to 11.4% in 2020.

Consequently, the rise of virtual clinical trials and remote research methodologies in healthcare is expected to significantly enhance the growth of the digital health market.

Digital Health Market: Segmental Overview

The digital health market is categorized by offerings into software, services, and hardware. The services segment dominated the market in 2022 and is projected to experience the highest CAGR from 2022 to 2030.

In terms of technology, the digital health market is divided into mHealth, tele-healthcare, digital health systems, and others. The mHealth segment was the largest market segment in 2022, while the tele-healthcare segment is anticipated to exhibit the fastest growth from 2022 to 2030.

By application, the digital health market is segmented into chronic disease management, behavioral health, health and fitness, and others. The chronic disease management segment held the largest market share in 2022.

Regarding end-users, the digital health market is divided into hospitals & clinics, patients & consumers, and others. The hospitals & clinics segment accounted for the largest share in 2022.

Digital Health Market: Geographical Overview

The Asia Pacific region is expected to witness the highest CAGR from 2022 to 2030, primarily due to advancements in technology and healthcare services, along with evolving regulatory policies in the area. Additionally, governments in countries such as Japan, China, and India are implementing initiatives to promote digital healthcare solutions, which is likely to drive the growth of the digital health market in this region.

In 2022, North America held the largest share of the global digital health market. The North American digital health market is segmented into the US, Canada, and Mexico. The transformation of digital healthcare and the growing adoption of smart healthcare solutions, including various technologies such as mobile applications, smart wearables, and eHealth services like EHR and telemedicine, which facilitate remote patient monitoring, are the primary factors driving the market in this region.