Digital health refers to the use of digital technologies by various health organizations to maintain patient health records electronically and provide healthcare services remotely. Digital health platforms such as telemedicine and mHealth apps allow patients to communicate remotely with doctors, nurses, and other healthcare providers. The COVID-19 pandemic has highlighted the advantages of telemedicine which include enabling social distancing, facilitating treatment of infectious diseases without physical contact, and widening access to healthcare, especially in underserved areas.
The Global Digital Health Market Size is estimated to be valued at US$ 196.08 Mn in 2023 and is expected to exhibit a CAGR of 4.0% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
Telemedicine advancements present a key growth opportunity for the digital health market. Several governments are making investments and reforms to expand telemedicine services for both chronic and acute care. For instance, in 2021, the Indian government launched the National Telemedicine Service which aims to set up 1,500 telemedicine hubs in district hospitals across India. This would widen access to quality and affordable healthcare in rural India. Similarly, in the US, the rise of telehealth during COVID-19 has led Medicare to propose expansion of telemedicine coverage even post-pandemic. Increased adoption of telemedicine is expected to drive the demand for digital health solutions like remote patient monitoring platforms and online consultation software, thereby fueling the market growth over the forecast period.
Porter's Analysis
Threat of new entrants: The digital health market requires huge capital investments for R&D of new digital healthcare solutions and services. Established players are continuously investing in advanced technologies which acts as a barrier for new players.
Bargaining power of buyers: Buyers have medium bargaining power as there are numerous players offering various digital health solutions and services. However, switching costs for buyers are low.
Bargaining power of suppliers: Suppliers have low bargaining power as there are numerous technology vendors, device manufacturers, and raw material suppliers in the market.
Threat of new substitutes: Potential substitutes could be traditional healthcare services but digital health offers advantages like remote monitoring, reduced cost of treatment and increased accessibility which limits threat of substitutes.
Competitive rivalry: High as major players are focusing on product innovation, mergers and acquisitions to gain higher market share.
SWOT Analysis
Strengths: Digital technologies enable improved access, quality and lower costs of healthcare. It offers real-time remote monitoring and management of chronic conditions.
Weaknesses: High investment required for development and deployment of digital health solutions. Data privacy and security concerns remain a challenge. Lack of standardization limits interoperability.
Opportunities: Growing geriatric population and rising prevalence of chronic diseases will drive demand. Increased adoption of telehealth and remote patient monitoring post-Covid pandemic.
Threats: Resistance to change and digital literacy issues in some regions. Stringent regulations around data privacy and security. Reimbursement issues remain a concern.
Key Takeaways
The global digital health market is expected to witness high growth at a CAGR of 4.0% during the forecast period of 2024-2031. The market size is projected to reach US$ 196.08 Mn in 2024.
Regional analysis: North America dominates the global digital health market currently due to rapid technological advancements and increasing investments by market players in the region. Asia Pacific is expected to witness fastest growth over the forecast period supported by growing healthcare expenditure, rising medical tourism and government initiatives for digitization of healthcare in countries like India and China.
Key players: Key players operating in the digital health market are Johnson & Johnson Services, Inc., Teleflex Incorporated, Cooper Surgical, Inc., Genicon, Medtronic, B. Braun SE, Applied Medical Resources Corporation, LaproSurge, Purple Surgical, CONMED, Hangzhou Boer Medical Instruments Co., Ltd., Duomed, Changzhou Cheayoo Medical Devices Co., Ltd., and Tianjin Zhichao Medical Technology Co., Ltd. Johnson & Johnson Services and Medtronic dominate the market currently.
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