Evolution of Digital Healthcare

Published On: October 2022

Digitization in healthcare Article Brief:

Digitization in healthcare alters how we prevent, treat, and manage health conditions. The development of new drugs and a new class of therapies, such as digital therapeutics (DTx), which are software-based solutions, enhance the treatment of specific diseases. Digital healthcare focuses on the delivery of care by prioritizing prevention over cure. The increasing number of emerging digital health companies and the influx of capital from private and public investors drive the digital healthcare market.   The digital healthcare market size was estimated at USD 167 billion in 2021 and is anticipated to Register a CAGR of 23.7% from 2022 to 2030 to reach USD 1.3 trillion.

The digital healthcare market trends can be attributed to the frequent use of big data in healthcare, the use of EHR and EMR systems, and regulatory requirements. Additionally, the industry is expanding because of a rising trend in preventative healthcare and increased investment in various mHealth companies.   Digital healthcare is developing globally due to IT technology development and the emergence of remote patient monitoring (RPM) solutions. RPM has become a valuable tool for enhancing clinical assessment and decision-making while lowering the likelihood of hospitalization. With the prevalence of cancer, diabetes, and cardiovascular diseases rising, RPM service use is also anticipated to increase. This is one of the significant contributors to the digital healthcare market share.

Additionally, as the aging population grows, more of them are choosing independent, healthy lifestyles, which will probably increase the adoption of RPM solutions.   One contributor to digital transformation in healthcare is the fact that users of mobile applications can access medical information, make appointments, track consultations, store their medical information, and follow and order prescriptions for themselves. For instance, digital market players have introduced mobile applications like AssistRx, Practo, and Wareed in various regions. Furthermore, the growing use of big data in healthcare boosts the market growth.   

The digital healthcare market segment is divided into technology, application, delivery mode, components, and end users. These are the factors affecting the market. Throughout 2022–2030, the digital healthcare market share from services is expected to expand at a rate of more than 12%. Furthermore, there is an optimistic digital healthcare market forecast for industry growth in the services sector due to the rise in awareness of the advantages of digital health-related services. The rising delivery of digital healthcare services from vendors and the increasing frequency of chronic diseases are two major market drivers.

Additionally, there is an optimistic healthcare market forecast for industry growth in the services sector due to the increasing awareness of the advantages of digital health-related services among the population.   Given the massive spending on healthcare and the rapid adoption of healthcare information technology, the American digital healthcare market is projected to be the largest soon. The US spends money on healthcare, and as a result, there is a growing desire to reduce these high costs, driving the growth of the digital healthcare market.

Due to intense pressure to reduce healthcare costs and the rapid advancement of technology, Europe has been the second most significant gainer in the global market for digital healthcare. The players' ongoing attempts to enhance their current range of solutions and services can also positively affect the European digital healthcare market. Due to the rapidly improving healthcare infrastructure and the growing number of healthcare IT vendors, Asia-Pacific is expected to experience a brisk growth rate in the following years.  

Innovative digital health solutions are provided by leading digital healthcare companies like Cerner Corporation, Allscripts, Apple Inc., Qualcomm Technologies Inc., Samsung Electronics Co. Ltd, McKesson Corporation, IBM Corporation, Epic Systems Corporation, Airstrip Technologies, and AT&T.

Key digital healthcare companies are developing novel product development strategies and devising collaboration, and partnership plans to broaden their product portfolios and serve several regional markets as a result of the increasing demand.