The digital health market – in terms of revenue – was estimated to be worth US$180.2 billion in 2023 and is expected to reach $549.7 billion by 2028, growing at a compound annual growth rate (CAGR) of 25 per cent from 2023 to 2028, according to a new report by MarketsandMarkets.
The growth of this market is driven by the expansion of telemedicine and telehealth services, enhanced patient engagement and empowerment, and increased investment in health tech startups.
However, variability in healthcare infrastructure and digital literacy, reimbursement and payment issues are some of the factors challenging the growth of the market.
Based on technology, the digital health market is segmented into telehealthcare, mHealth, health management solutions and digital therapeutics. The telehealthcare segment accounted for the largest share of the global market in 2022. Factors such as increased demand for remote healthcare services, especially due to the Covid-19 pandemic, accelerated telehealthcare adoption.
Based on end user, the digital health market is segmented into providers, payers, and patients and consumers, with the latter expected to have the highest growth rate. This is attributed to increasing awareness of self-health management, and proliferation of smartphones and wearable devices that have made health tracking and monitoring more accessible and convenient.
In terms of location, the Asia Pacific region is expected to grow at the highest CAGR during the forecast period. The highest growth rate can be attributed to large population, increasing healthcare expenditure, mobile technology proliferation and rising chronic diseases. Governments in the region are implementing initiatives to promote digital health solutions, such as funding for research and development, and regulatory frameworks to ensure patient safety and privacy.