Digital Healthcare Market to Top $7.3B by 2029

The global digital healthcare market was valued at $3.44 billion in 2020 and is expected to surpass $7.3 billion in value by the end of 2028 and exhibit a compound annual growth rate (CAGR) of 13.7 percent, according to Coherent Market Insights data. The software segment was valued $1.82 billion in 2020 and is expected to witness a CAGR of 12.2 percent over the forecast period.
 
Initiatives to support digitalization in prescription transmission is expected to propel growth of the global digital healthcare market over the forecast period. In October 2019, DocMorris NV partnered with The General Practitioners’ Association AG to support pilot project for digital prescription transmission.
 
The emergence of new market players in digital healthcare market develops flourishing opportunities for the market growth over the forecast period. On June 3, 2021, Lupin, incorporated a new entity referred as Lupin Digital Health Limited for providing digital therapeutics platform in India.
 
The launch of new products is expected to propel the growth of digital healthcare market over the forecast period. In December 2020, Sensyne Health plc, a British Clinical AI technology company, launched GDm-Health, a remote monitoring solution for diabetes in pregnancy, in the United States. The solution will be offered by Cognizant to the U.S. health systems and health plans through its sales force.
 
In addition, the rapid adoption of digital health technologies during the COVID-19 pandemic is further boosting the market growth. For instance, a report published in June 2021 by Healthcare Information and Management Systems Society Inc. (HIMSS) concluded that 47 percent of U.S. healthcare patients considered in the study would prefer telehealth to in-person visits for receiving a personalized healthcare supporting experience powered by integration of new technologies such as artificial intelligence. 
Moreover, the robust funding initiatives will further improve the development of new digital healthcare solutions, which in turn, will propel the market growth. In June 2021, Esplanade HealthTech Ventures Esplanade announced an oversubscribed inaugural venture fund for roughly 13 companies such as BrainBox AI, Lumen, and Cleerly, for accelerating the development of advanced technology driven products and solutions.
 
Low adoption of the Internet in emerging regions is expected to hinder growth of the market. According to Pew Research Center (October 2019), Sub-Saharan Africa has a lower level of internet use than any other geographic region, ranging from a high of 59 percent in South Africa to a low of 25 percent in Tanzania.
 
The emergence of COVID-19 has led to adoption of mHealth to coordinate the vaccination drive. In August 2021, Samsung, in partnership with the Commons Project Foundation, a healthcare non-profit organization, announced that Samsung Pay can now store digital versions of users’ COVID-19 vaccination cards.
 
Government initiatives to enhance cyber and data security are boosting growth of the global digital healthcare market. In February 2020, the Singapore government announced to invest $719 million to enhance cyber and data security systems.
 
The market is witnessing increasing adoption of digital pathology imaging solutions. In April 2020, Sectra, a medical imaging IT and cybersecurity company, collaborated with the Hospital for Special Surgery, an academic medical center focused on musculoskeletal health, to integrate U.S. Food and Drug Administration-approved digital pathology imaging solution with laboratory information system for integrated diagnostics capabilities between radiology and pathology.
 
The market is also witnessing increasing adoption of digital eye care. For instance, in November 2019, Life Extension developed Gummy Science Digital Eye Support, a new, science-based supplement for eye health.
 
Major players operating in the global digital healthcare market include IBM Corporation, CGI Group Inc., Accenture PLC, Deloitte LLP, AT&T Inc., PWC LLP, GE Healthcare Limited, and Syntel Inc.
 
Global Digital Healthcare Market: Key Developments
December 2019: GE Healthcare signed a multi-year agreement with Affidea B.V., a provider of medical services, to deploy imaging and digital technologies across the Affidea network, which includes provision of 60 new MRIs, 50 ultrasound devices, 40 CT scanners and 30 X-rays machines in the next three years.
 
December 2019: Accenture acquired Apis Group, a privately held Australian consultancy with deep industry expertise providing strategic advisory, digital design and delivery services to government organizations.