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Digital Health Market to Generate Revenue Worth $223.7 Billion by 2023

Published Date:   September 2018

The global digital health market was valued at $73.1 billion in 2017, and it is further expected to generate $223.7 billion revenue by 2023, witnessing a CAGR of 21.1% during the forecast period (2018–2023). The mHealth technology has been observed to lead the market, mainly due to the quick adoption of mHealth solutions, worldwide.

Acquisitions are Gaining Momentum in Digital Health Market

The rising number of company acquisitions is a key factor trending in the digital health market. Due to the increasing competition, giant players are acquiring small and mid-sized firms to capture a larger share in the market and expand their geographical footprint. For instance, in January 2018, Allscripts Healthcare LLC acquired Practice Fusion Inc., a provider of cloud-based electronic health record (EHR) solutions, for $100 million in cash, subject to adjustments in working capital and net debt. The acquisition was aimed at expanding Allscripts’ big data insights and analytics, data sharing technologies, and clinical trial solutions, to enable life science organizations to introduce new therapies.

Increasing Number of Smartphone and Tablets is Sparking Market Growth

The number of apps for smartphones and tablet devices has increased exponentially over the last few years, and the statistics from a European Union (EU) press release, published in December 2016, indicate that these gadgets were the most commonly used tools for internet access, being utilized by more than three-fourths of the total number of internet users. With the advent of advanced telecommunication technologies over a period of time, many people have adopted the latest mobile applications, which help them in monitoring their health status. According to a survey conducted by the Stanford University, along with Cornell University and Google Inc., physical activity-related apps and medical apps accounted for 44% and 23% of the total apps downloaded in 2015, respectively, in the U.S. The key objective of using these health apps is to improve physical fitness and lose weight. Due to the innovative and advanced features of mHealth and physical fitness apps, smartphone and tablet users are frequently using them for regularly tracking their health and fitness. Thus, this increasing penetration of mobile phones and tablets among the people acts as a driver for the growth of the digital health market.

Segmentation Analysis of Digital Health Market

Digital Health Market

  • The mHealth technology has been projected to be the fastest-growing category, registering a CAGR of 33.5%, during the forecast period. This can be attributed to the higher demand for mHealth solutions, in comparison to telemedicine, EHR, and healthcare analytics technologies, globally .
  • Hospitals were the largest end user in the digital health market, in 2017, mainly due to the high adoption rate of various digital health solutions in a large number of hospitals, for providing effective care to an expansive patient base.

Geographical Analysis of Digital Health Market

North America and Europe were the major revenue contributors to the digital health market, accounting for an over 70.0% combined share, in 2017. The factors driving the North American market include the increasing government support to enhance the healthcare delivery systems in the region, surging awareness about various digital health technologies, through various workshops and conferences, in the U.S., and growing geriatric population.

The APAC region is expected to witness the fastest progress in the global digital health market, primarily driven by the increasing investments in the healthcare IT sector, rising number of cases of chronic diseases, and growing geriatric population.

  • In 2017, Japan held the largest share in the APAC market, on account of the bettering healthcare facilities and improving reimbursement policies in the country.
  • Brazil has been observed to be the fastest-growing digital health market in the LATAM region during the forecast period. The market growth in the country is attributable to the implementation of regulations regarding the usage of digital health solutions in healthcare facilities by the Government of Brazil.
  • Saudi Arabia contributed the largest revenue to the MEA digital health market during the historical period (2013–2017), owing to the improving healthcare facilities and favorable reimbursement policies in the country.

Competitive Landscape of Digital Health Market

The digital health market is consolidated in nature due to the presence of numerous big players, including eClinicalWorks LLC, Qualcomm Incorporated, Epic Systems Corporation, McKesson Corporation, athenahealth Inc., Cerner Corporation, Allscripts Healthcare Solutions Inc., General Electric Company, Koninklijke Philips N.V., Cisco Systems Inc., and AT&T Inc. Almost all the companies focus on proving EHR solutions, except Epic Systems Corporation, which provides telemedicine and mHealth solutions, such as Epic Canto, Epic Haiku, and Epic Limerick. The company also offers dedicated referral services, such as telecardiology, teleradiology, teledermatology, and ongoing patient care.

Browse report overview with 337 tables and 67 figures spread through 292 pages and detailed TOC on "Digital Health Market by Technology (mHealth [Connected Devices, mHealth Apps, Services], EHR [Web/Cloud-based, On-Premise], Telemedicine [Teleconsulting, Telemonitoring, Tele-education, Teletraining], Healthcare Analytics [Descriptive, Predictive, Prescriptive]), by End User (Hospitals, Clinics, Individuals), by Geography (U.S., Canada, Germany, U.K., France, Italy, Spain, Russia, Poland, Japan, China, India, Australia, South Korea, Brazil, Mexico, Saudi Arabia, South Africa, U.A.E.) – Global Market Size, Share, Development, Growth and Demand Forecast to 2023" at:https://www.psmarketresearch.com/market-analysis/digital-health-market

In recent years, these digital health market players have taken several strategic measures, including product approvals and launches, to gain a significant market share. For instance, in April 2018, Koninklijke Philips N.V. and Digital China Health Technologies Corporation introduced SHINEFLY, a teleradiology application and services platform, which offers customizable, scalable cloud-based solutions for image management, to store, view, retrieve, and analyze medical images, remotely. The platform includes advanced clinical applications for neurology, cardiology, and oncology.

Similarly, in February 2018, GE Healthcare launched the LOGIQ E10 high-end radiology ultrasound system, which is fully-digital and integrated with cloud connectivity, artificial intelligence technology, and advanced algorithms, to obtain and reconstruct data faster, thereby enabling confident diagnosis with concise workflow and comprehensive tools.

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