How are Technology & Rising Healthcare Costs Driving Digital Health Market Growth?

MARKET OVERVIEW

The global digital health market was valued at USD 493 Billion in 2024 and is projected to reach USD 1,913.2 Billion by 2033, growing at a CAGR of 16.3% during 2025-2033. North America dominates with over 38.6% market share in 2024, supported by robust healthcare infrastructure and rapid tech innovation. 

STUDY ASSUMPTION YEARS

• Base Year: 2024
• Historical Year/Period: 2019-2024
• Forecast Year/Period: 2025-2033

DIGITAL HEALTH MARKET KEY TAKEAWAYS

• Current Market Size: USD 493 Billion in 2024
• CAGR: 16.3% (2025-2033)
• Forecast Period: 2025-2033
• North America holds the largest market share of over 38.6% in 2024, driven by technological advancement and healthcare infrastructure.
• Telehealth is the largest segment with about 43.7% market share in 2024.
• The largest component segment is healthcare services, which includes activities such as consulting and maintenance.
• Asia Pacific is the fastest-growing region, driven by smartphone and 5G adoption.
• The rise of chronic diseases around the world is driving demand.

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MARKET GROWTH FACTORS

The digital health market grows because chronic diseases increase like cardiovascular diseases, diabetes, and respiratory diseases. Per the World Health Organization, chronic diseases kill 42 million people per year, accounting for 74% of all annual global deaths. As a result of this threat, the market demand for other digital health solutions such as mobile apps, remote monitoring and wearables is also increasing.

Technologies used to create digital health include artificial intelligence (AI), the Internet of Things (IoT), and cloud computing. AI may help clinicians with personalized medicine and predictive analytics, and cloud computing may help decrease healthcare costs and reduce errors in diagnosing patients. Digital health companies also partner with each other to innovate in disease areas like Veradigm and HealthVerify's work in diabetes and cardiovascular disease.

Rising healthcare expenditure in developing countries supports this market. For instance, in India, healthcare expenditure is estimated to be INR 540,246 crores (USD 63.46 Billion). Digital health technologies can improve the strength of a health system by improving patient engagement, and reducing unnecessary office visits via telemedicine.

MARKET SEGMENTATION

Analysis by Type:

• Telehealth: Dominates with 43.7% market share in 2024, driven by accessibility and versatility for remote care.
• Medical Wearables
• EMR/EHR Systems
• Medical Apps
• Healthcare Analytics
• Others

Analysis by Component:

• Software
• Hardware
• Service: Leads the market in 2024 due to comprehensive offerings like training, implementation, consulting, and maintenance tailored for healthcare providers.

REGIONAL INSIGHTS

In 2024, North America had the largest share of over 38.6% due to the presence of an advanced healthcare infrastructure, high spending on R&D, and increased adoption of portable health devices. The North America portable medical device market is anticipated to grow at a meaningful CAGR of 7.98% during the forecast period of 2024-2032.

RECENT DEVELOPMENTS & NEWS

• In September 2024, WHO invested to implement digital health approaches like telemedicine and chatbots for managing non-communicable diseases in more than two million patients at USD 0.24 per patient year.
• April 2024: WHO introduced S.A.R.A.H., an AI digital health promoter, having empathetic capabilities that are deeper.
• May 2023: Medtronic plc acquires South Korea's EOFlow Co. Ltd. in order to expand diabetes treatment options.
• In March 2024, the Mayo Clinic started its Solutions Studio program. It is designed to aid hospitals in adopting digital health products such as AI validation tools.
• In June 2023, Eko Health announced the CORE 500™, a combination digital stethoscope, artificial intelligence heart disease detection and ECG-audio device.

KEY PLAYERS

• American Well Corporation (Amwell)
• Apple Inc.
• GE HealthCare
• Johnson & Johnson (J&J)
• Koninklijke Philips N.V.
• Medtronic plc
• Noom, Inc.
• Omron Corporation
• Samsung Group
• Siemens Healthineers AG (Siemens AG)
• Teladoc Health, Inc.
• Veradigm LLC

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