Investments in Digital Healthcare: Which Segments Investors May Invest in 2023?

By Rahul Gotadki , 30 January, 2023

Digital healthcare is a broad discipline, an amalgamation of technology and healthcare. It deals with the healthcare field. The concerned area provides digital information that incorporates hardware, software, and services. It includes mobile health apps, electronic medical reports, electronic health records, wearable devices, telemedicine, and telehealth.

Technology is crucial in everything from doorstep delivery to healthcare services. Digital healthcare technology has even pervaded many telehealth services like wearable watches to various healthcare companies in recent years.

Thus, investment in the digital healthcare industry has risen in the past decade because consumers saw technology as an essential aspect of optimizing things in digital health. On the other hand, some analysts also predicted that investors could be cautious with their money in 2023.

As per the reports, investors in the digital health industry funded a total of  44 billion USD in the year 2021. According to the data by Rock Health, in 2022, funds invested in the digital health industry went to USD 12.6 billion in the first three quarters, and expected funding in 2023 is to be like 2022.

Now the question arises, where would the dollars be invested in 2023 by the investors?

Alternative care comes to the mind of investors if we talk about investing in digital health. Alternative care includes care outside the hospital premises, like- home care for patients, if they ask. In 2023, Chris Moniz (a market manager at Silicon Valley Bank’s Healthtech and Devices segment) says most investment growth can be seen in two parts of alternative care – women’s health and mental health solutions.

Again, another party says start-up companies focused on research and dealing with pharma may see more investments. The global market size of pharmaceutical products is estimated to cross USD 1 trillion in 2023. The leader of EY Americas’ health technology segment, Kaushik Bhaumik, also added that the digital health industry would see a “shakeout” in robotic process automation in 2023.

When the digital health investors still believe valuations may drop in 2023 for the digital health sector, but again most of them still believe that there are chances of overall investment to level up in 2023.