July 12, 2024

Digital Health Market is Estimated To Witness High Growth Owing To Trends of Increasing Smartphone Penetration

The Digital Health Market is estimated to be valued at US$ 170.20 Bn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period from 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Digital health includes mobile health, health information technology, wearable devices, telehealth and telemedicine. Digital health encompasses the use of digital and online health technologies to monitor health, track fitness and provide healthcare services virtually. Digital health technologies help in early detection and prevention of diseases. Moreover, it improves healthcare quality with real-time data collection and monitoring.

Market key trends:

The increasing smartphone penetration across the globe is a major trend fueling the growth of the digital health market. Today, people are increasingly using smartphones as they act as mobile platforms for various digital health apps and services. Mobile apps and connectivity help collect, monitor and share health data conveniently. As per reports, over 60% of the global population is expected to own a smartphone by 2023. Higher smartphone penetration has made digital healthcare accessible anytime and anywhere which is supporting the digital health industry growth.

Porter’s Analysis

Threat of new entrants: New entrants face high entry barriers in the form of high capital requirements and the need to develop brand recognition in a market dominated by global giants.
Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of alternatives and price sensitivity. However, switching costs are relatively low.
Bargaining power of suppliers: Suppliers have low to moderate bargaining power since the digital health market has many component providers.
Threat of new substitutes: The threat of substitutes is moderate as healthcare providers are searching for advanced digital solutions to augment traditional offerings.
Competitive rivalry: Intense competition exists between industry players to gain market share.

SWOT Analysis

Strengths: Digital solutions offer improved access, lower costs, and personalized care. Growing smartphone and internet penetration boosts the market.
Weaknesses: High upfront investments and data privacy & security concerns limit full utilization of services. Rural areas lack connectivity and technological awareness.
Opportunities: Rising healthcare costs and supportive government programs & policies drive demand. Untapped growth potential exists in developing countries.
Threats: Stringent regulations and reimbursement issues pose challenges. Technical glitches can undermine user experience and adoption.

Key Takeaways

The Global Digital Health Market Growth is expected to witness high, exhibiting CAGR of 10.% over the forecast period, due to increasing prevalence of chronic diseases, growing geriatric population, rising need for cost-effective healthcare delivery, and penetration of smartphones and internet globally. North America dominates the digital health market currently due to the presence of advanced healthcare infrastructure, high smartphone & internet penetration, growing geriatric population, and supportive government programs & policies promoting digital health adoption in the region. The Asia Pacific region is expected to show the fastest growth over the forecast period owing to rising disposable incomes, growing medical tourism, increasing healthcare spending, and large population base affected by chronic diseases in counties such as India and China.

Key players operating in the digital health market are Allengers, DP, Ping An, Clover, Good Doctor, and Alibaba Health. These companies are investing heavily in developing innovative digital health solutions and services to gain a competitive edge in the evolving landscape. Strategic collaborations and acquisitions are playing a major role in shaping the competitive dynamics. Focus on remote patient monitoring, AI-enabled diagnostics, telehealth, and other advanced technologies augur well for sustained market growth over the coming years.

 

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it