Digital health market to top $230bn by 2023
October 15, 2019
The healthcare industry's steady shift towards improved patient outcomes, cost containment and value-based care is expected to drive the global digital health market from an estimated $147bn in 2019 to $234.5bn in 2023, according to market watcher Frost & Sullivan.
As digital health grows, the need for cyber security will accelerate as well. Regulators in various countries will impose hefty fines and penalties on those healthcare providers that do not adequately protect patient data from the constant threats to patient privacy and data security.
Femtech and digital therapeutics will also grow as opportunities in both medical-grade and mass-market products offer new ways to manage health.
"We have defined digital health as the application of data to the delivery of healthcare, using computational and telecommunications technologies to support business process workflow, clinical workflow and patient data management," said Victor Camlek, Frost & Sullivan’s transformational health research manager. "This definition spells out the opportunities for growth that will influence established organisations to transform their business models and entice new entrants to change the way healthcare is delivered. All healthcare stakeholders, patients, payers, providers and pharma will benefit, as will technology-based companies that increase their efforts to address new opportunities across the global healthcare market."
The analysis presents a comprehensive view of the most significant areas of change that will drive growth and innovation across the global digital health landscape. It identifies major data points within digital health and the impact of future milestones predicted for 2020. It covers artificial intelligence (AI), cyber security, digital therapeutics, big data, IT-enabled employee health and wellness management, remote patient monitoring, telehealth, femtech and data analytics.
"The rise in the senior population in countries, such as the USA, China, Japan, India and the UAE, is generating huge demand for digital health applications such as telemedicine, chatbots, mhealth and AI," said Camlek. "This, coupled with anticipated shortages of physicians and medical staff, will compel all industry participants to embrace digitalisation as the foundation of the next generation of patient access, clinical decision support, workflow management and population health management."
To gain a competitive edge, organisations will look to tap growth opportunities by:
- Ensuring the presence of an experienced IT organisation that can manage a mix of internal and cloud-based infrastructure, platforms and services.
- Developing an ecosystem of companies that contribute to a superior value proposition for all stakeholders.
- Allocating significant resources to cyber security.
- Offering data cleansing to leverage big data analytics stimulated by the anticipated growth in patient-generated health data from remote patient monitoring.
- Providing a combination of devices, platforms, data management and services, including data from a mix of mass-market and medical-grade wearables.