U.S. Digital Health Market Size, Share & COVID-19 Impact Analysis, By Product Type (mHealth [Apps {Disease and Treatment Management Apps, Wellness Management, and Others}, and Wearables {Body & Temperature Monitors, Sleep Trackers, Fitness Trackers, Glucose Monitors, BP Monitors, Cardiac Monitors, and Others}], Healthcare Analytics, Digital Health Systems, and Telehealthcare), By Component (Services, Software, and Hardware), By End-user (Business to Business and Business to Consumer), and Country Forecast, 2023-2030

The U.S. digital health market size was worth USD 133.41 billion in 2022 and is projected to grow at a CAGR of 20.1% during the forecast period. 

Digital health incorporates digital transformation in the healthcare sector with advanced software and services, such as mobile health applications, wearable devices, telemedicine, and telehealth. The prevalence of chronic diseases, such as diabetes and cancer, is increasing across the country. Thus, owing to high disease prevalence, the use of digital health tools, such as smartwatches and fitness bands, is increasing among the population for improving health outcomes and disease prevention.

• According to the ValuePenguin survey results of more than 1,500 consumers in the U.S. published in April 2022, about 92.0% of consumers use smartwatches to maintain health and fitness.

Thus, the rising adoption of digital tools among the population for health monitoring and the increasing focus on introducing digital devices by key players across the country is anticipated to propel the growth of the U.S. digital health market during the forecast period.

The COVID-19 pandemic positively impacted the U.S. digital health market growth in 2020. Factors responsible for the market growth include the adoption of digital technology for diagnosis and treatment of various diseases among healthcare providers and an increase in the number of teleconsultations during the pandemic, further bolstered by the changes in reimbursement policies in the U.S.

LATEST TRENDS

Rise in Adoption of Digital Healthcare Solutions among the U.S. Population 

There is a considerable increase in consumer preference toward wearable fitness technologies nationwide. Moreover, health settings focusing on adopting health solutions to optimize patient diagnosis and treatment have augmented the U.S. market growth.

• In May 2022, as per the Organization for the Review of Care and Health Applications (ORCHA) estimates, more than 86.0 million Americans are currently using a health or fitness application.

DRIVING FACTORS

Rising Technological Advancements in Telehealth to Boost Market Development

New technology advancements in telehealth platforms, such as Artificial Intelligence (AI), machine learning, and the Internet of Things, have enabled patients to track, monitor, and manage essential parameters, such as blood pressure and glucose monitoring. The rising launch of technologically advanced solutions with telehealth by key players will increase the presence of these services across the country.

• In March 2022, Cognizant announced its collaboration with Microsoft to deliver a new digital health solution leveraged with Microsoft Cloud to enhance telehealth services for improved medical care.

Thus, the rising launch of advanced solutions for health safety by leading players and increasing penetration of telehealth and telemedicine across the country is fueling the growth of the U.S. market.

RESTRAINING FACTORS

Cybersecurity Risks Associated with Patient Data Can Hamper Market Growth Prospects

Health settings, such as community & private hospitals and clinics, are experiencing cybersecurity risks, such as patient data breaches and data privacy across health software, including EHR/EMR.

• According to the article published by Maryville University in 2021, the cybersecurity firm Emsisoft reported that the U.S. had more than 560 cyberattacks against healthcare facilities in 2020.

Thus, the rising incidence of patient data piracy and limited awareness among health systems related to cybersecurity will hamper market growth.

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Around 37% of adults in the U.S. used telemedicine platforms/services in 2021. The usage was higher in women (around 42%) as compared to men (around 32%).

SEGMENTATION

By Product Type Analysis

Based on product type, the market is segmented into mHealth, healthcare analytics, digital health systems, and telehealthcare.

The mHealth segment held a larger share in 2022 owing to the rising presence of health applications and advanced devices for the management of chronic health conditions among patients. Moreover, the rising use of these applications for regular health monitoring among the population further augments the segment growth.

• As per Insider Intelligence Inc. statistics in August 2021, over 350,000 digital health applications are currently available to consumers. In 2021, 47.0% of all the apps focused on managing specific health conditions, such as chronic diseases and mental health, compared to 28% in 2015.

By Component Analysis

On the basis of component, the market is segmented into services, software, and hardware.

The services segment held a dominant share of the market owing to the rising focus of industry players to introduce telehealth services at an economic cost for patients suffering from chronic disorders across the country. Moreover, rising investments in the R&D of new value-added services to manage the rising disease prevalence further boost the segment growth.

• In March 2022, OncoHealth announced a new telehealth service for cancer patients. Iris by OncoHealth combines mobile technology with specially trained oncology professionals to deliver personalized telehealth support to cancer patients.

By End-user Analysis

The market is segmented into business to business and business to consumer, based on end-user.

The business to business segment held a significant share.  The growing strategic initiatives, such as collaborations and acquisitions by key players across the healthcare industry to introduce digital technologies with better health solutions for various disorders, drove the segment growth.

• In November 2022, Teva Pharmaceutical Industries Ltd. announced a new collaboration with HealthSnap, Inc., a leading full-service virtual care management platform for chronic disease management.

KEY INDUSTRY PLAYERS

Presence of Strong Service Portfolio to Augment Company’s Market Share

The U.S. digital health market is segregated across several industry players across variable service segments. The major Industry players, such as Oracle, Apple Inc., Epic Systems Corporation, Cisco Systems, Inc., and Koninklijke Philips N.V., hold a dominant share with a strong portfolio of digital health technologies across the country and the rising focus on service launches by these players supports the company's growth in the market.

• In May 2023, Apple announced a new launch into the health and wellness market with a new AI-powered health coaching service named Quartz. The upcoming Apple Watch and iPhone models will feature this AI-powered healthcare app.

The other market players present in the market, such as Teladoc Health, Inc., Boston Scientific Corporation, AthenaHealth, Babylon Healthcare Services Ltd, IBM, and others, mark a strong U.S. presence. The rising emphasis of these players on strategic initiatives to offer technologically advanced solutions across the country will further boost their U.S. digital health market share.

LIST OF KEY COMPANIES PROFILED:

• GE HealthCare (U.S.)


• Koninklijke Philips N.V. (Netherlands)


• Allscripts Healthcare, LLC (U.S.)


• Oracle (U.S.)


• Epic Systems Corporation (U.S.)


• McKesson Corporation (U.S.)


• Medical Information Technology, Inc. (U.S.)


• Siemens Healthcare GmbH (Germany)


• Boston Scientific Corporation (U.S.)


• FUJIFILM Holdings Corporation (Japan)


• Medtronic (Ireland)


• IBM (U.S.)


• Validic (U.S.)

KEY INDUSTRY DEVELOPMENTS: 

• April 2023 – A new collaboration ‘Digital Health Action Alliance’ (DHAA), was launched by Mercer and the World Economic Forum (WEF) to research new technologies that can help reduce premature deaths due to non-communicable diseases (NCDs), particularly cardiovascular disease.


• April 2023 – Digital.Health, a new platform and resource for health and medicine, announced its launch, including a searchable database of digital health-related companies, solutions, and resources.


• March 2022 – GE HealthCare announced the introduction of the Edison Health Platform integrated artificial intelligence engine to enable hospitals and healthcare systems to effectively deploy the clinical, workflow, analytics, and AI tools, which would support improving care delivery, promoting high-efficiency operations, and increasing revenue growth.


• January 2021 – The American Telemedicine Association and the Digital Medicine Society (DiMe) launched a new virtual healthcare initiative, ‘Impact,’ to cultivate an ecosystem of organizations that view virtual care as their primary mission.

REPORT COVERAGE

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The market research report provides a detailed analysis of the market. It focuses on key aspects such as an overview of the technological advancements and new product launches across varied market segments. Besides this, it offers insights into the market trends, the impact of COVID-19, and other key insights. In addition to the factors mentioned above, the report encompasses several factors that have contributed to the growth of the market over recent years.

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