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.
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Technology Insights
In 2023, the telehealthcare segment dominated the market, capturing the largest revenue share at 43.2%, and is projected to have the highest Compound Annual Growth Rate (CAGR) during the forecast period.
Key drivers for this growth include:
- Advancements in internet connectivity
- Increasing smartphone penetration
- Growing readiness for advanced technology
- Shortage of healthcare providers
- Rising medical costs
- Ease of access to telehealth applications
- Growing acceptance of telehealth solutions among both patients and physicians
Continued innovation and rapid technological advancements in telehealth applications further propel the growth of this segment.
Government support through policies that encourage healthcare digitization, along with increased healthcare IT spending, are additional factors fueling this growth.
The mHealth segment held the second-largest revenue share in the global market in 2023.
Key factors driving growth in this segment include:
- Expanding smartphone and internet penetration
- Increased adoption of mHealth technologies by physicians and patients
- A growing emphasis on preventive healthcare
- Rising funding for mHealth startups
According to Uswitch Limited, the UK recorded approximately 71.8 million mobile connections at the start of 2022, exceeding the country's population by 4.2 million. This figure marks a 3.8% rise from 2021, translating to roughly 2.6 million new mobile connections.
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