Digital Health Market Forecast 2025-2031: Key Trends, Growth Drivers & Major Players

The digital health market size was valued at US$ 389.18 billion in 2024 and is projected to reach US$ 1921.38 billion by 2031. The market is expected to register a CAGR of 25.7% during 2025–2031.

Digital Health Market Analysis

Increasing healthcare expenses and the demand for more effective care delivery has encouraged governments and healthcare providers to implement digital solutions. Rising use of smartphones and growing penetration of internet has brought digital health products within reach of the people across the globe. Growing aging population and the rising incidence of chronic conditions is driving the need for advance monitoring and management, which as a result promotes the support of the digital health technologies. Government policies and initiatives hasten the uptake of digital health solutions. Nevertheless, there remain challenges, which include data security and privacy issues, the cost of implementation being very high, and regulatory hurdles. The interoperability need across various digital health systems and technology-related disparities in accessing healthcare threaten to present strong barriers to broader uptake.

Digital Health Market Overview

Digital health refers to the integration of digital technologies into healthcare practice to improve the quality, efficiency, and accessibility of medical care. This includes both hardware (tools) and software such as electronic health records (EHRs), telemedicine systems, mobile health applications (mHealth), wearable technology, and digital therapeutics. The technologies simplify real-time monitoring, personalized treatment plans, remote consultations, and data-based decision-making. The outcome of digital health is enhanced patient outcomes, lowered healthcare costs, improved patient engagement, and better access to care, especially in underserved areas. Applications range from chronic disease management to mental health assistance, preventive medicine, and administrative effectiveness. Digital health solutions are divided into telehealth, mHealth, digital therapeutics, and healthcare analytics.

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Digital Health Market: Strategic Insights

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Digital Health Market Drivers and Opportunities

Market Drivers:

• Rising Prevalence of Chronic Diseases and Ageing Populations:

  As diabetes, cardiovascular conditions, respiratory diseases, and cancer are gradually becoming the common chronic conditions, healthcare systems worldwide are under tremendous pressure to provide more effective and efficient healthcare support. Ageing populations worsen this pressure as people from this agr group require additional attention and continuous management. According to  a report published in October 2024, by theWorld Health Organization (WHO), the global population aged 60 and above is projected to grow from 1 billion in 2020 to 1.4 billion in 2030 and 2.1 billion in 2050. Furthermore, the people aged 80 and above are also projected to triple to 426 million. This ageing phenomenon is propelling the need for digital healthcare solutions for older people, spurring fast expansion in the digital health market.

• Favorable Government Initiatives to Advance the Healthcare Sector:

  Lots of Government  initiavites and investments has taken place in past few years to support digitalization in the heathcare space. Some of the healthcare programs such as Ayushman Bharat Digital Mission (India), Global Initiative on Digital Health (GIDH), European Health Data Space (EHDS), and eHealth Action Plan are examples for such government initiaves. The Ayushman Bharat Digital Mission seeks to develop an integrated digital health infrastructure that offers a distinctive health ID to all the citizens which amalgamates their medical history and facilitates access to healthcare services within the nation. The Access to Prescription Digital Therapeutics Act (PDT Act), which was initially started in 2022, was launched in Congress again on May 8, 2025, with the aim of promoting the patient access to software-based therapeutic interventions. This step marks the validation of digital therapeutics as a valid treatment modality and fit together with the growth of the digital health market. These efforts also tackle long-standing ploblem such as disparate healthcare data, lack of access in rural areas, and inefficiencies in health service delivery. Such initiatives by the governments has improved the quality and continuity of care, minimizing administrative costs, and giving patients improved control of their health information.

• Rising Adoption of Telehealth:

  With more accessible smartphones and rising mobile internet penetration—even rural and low-income communities—the individuals who had no or restricted access to healthcare facilities can now access healthcare facilities through digital channels. Telemedicine sites, health-tracking apps, and online consultation software can now be directly accessed from smartphones without the need to physically go to clinics or hospitals. Such ease of access is instrumental in regions where healthcare infrastructure is poor or where patients need to cover extensive distances to access medical centers. The convenience of on-demand consultations, minimized travel, and lower healthcare costs have encouraged more individuals to embrace telehealth solutions, and industry players have responded by boosting their offerings to serve increased demand.

Market Opportunities:

• AI-Powered Diagnostics & Personalized Care:

  AI diagnostics and individualized care are essentially revolutionizing the delivery of healthcare. At the heart of it, AI's power to process large amounts of intricate medical information enhances diagnostic accuracy, minimizing human error and speeding up disease identification. This I improve in diagnostic capacity opens up great possibilities for the digital health industry as the healthcare sector increasingly embraces AI-facilitated tools to improve clinical decision-making.

• Focus on Mental and Women's Health:

  Traditionally, women's health and mental health have been marginalized within mainstream healthcare due to social stigma, resource shortages, or inadequate prioritization. Yet as greater awareness for the value of mental wellbeing and gender-focused health topics is changing the way people access care, more accessible, individualized, and technology-based options are gaining favor. Digital health platforms—from apps supporting mental health, teletherapy treatment, and online communities of support to wearable technology tracking hormonal cycles or pregnancy wellness—are well-positioned to meet these needs. Such technologies offer discreet, accessible, and low-cost solutions for consumers who may otherwise be hindered by geographic distance, social stigma, or limited provider capacity.

• Shift Toward Patient-Centric Healthcare:

  The patient-centered healthcare is what the global trend is moving towards, changing the delivery of medical services to put the individual at the center of healthcare choices and management. This is a paradigm shift sparked by an empowerment that actively involves patients to take an active role in their health, resulting in improved outcomes, satisfaction, and cost-effectiveness. Digital health technologies facilitate this shift, including wearable technology, mobile health applications, telemedicine solutions, and remote monitoring devices. These technologies provide patients with real-time access to their health information, tailored insights, and direct communication with healthcare providers, enabling them to self-manage chronic conditions, take medication, make lifestyle changes, and receive preventive care.

Digital Health Market Report Segmentation Analysis

The digital health market is divided into different segments to give a clearer view of how it works, its growth potential, and the latest trends. Below is the standard segmentation approach used in industry reports:

By Offering:

• Services:

  Digital health services encompass remote medical care, telemedicine, virtual consultations, remote patient monitoring, and mobile health support through digital platforms. Major benefits of these services are improved access to healthcare, minimum healthcare expenditure, and increased patient engagement. These services are majorly used for chronic disease management, mental health counseling, and follow-up visits.

• Software:

  The software segment includes the platforms, apps, and systems such as mobile health applications, Electronic Health Records (EHRs), AI-based diagnostic programs, and clinical decision support systems. These software integration improve data accuracy, automate workflows, and enable real-time communication between patients and healthcare providers. They track health data, track patient records, and provide personalized care. Increasing dependence on data-driven healthcare and the requirement for interoperability between systems are boosting demand for such software.

• Hardware:

  Digital health equipment includes smartwatches, wearable fitness trackers, telemedicine kits, portable diagnostic devices, and other related remote monitoring devices. These devices gather real-time physiological data, allowing for proactive and personalized care. Hardware is applied in hospital and home environments to monitor vital signs, control chronic illnesses, and rehabilitate patients.

By Type:

• mHealth:

  mHealth applies smartphones and tablets in providing healthcare services and information with convenience, affordability, and access in real time for consumers. Consumers use mobile applications to monitor health data, monitor chronic ailments, book appointments, or take medication reminders; this enhances patient participation and treatment plan compliance while reducing clinical visits.

• Telehealthcare:

  Telehealthcare allows for distance clinical services through video calls, telephone, and messaging systems, delivering timely health care without the need for face-to-face visits; it benefits customers with better access to specialists, less traveling, and reduced waiting time, important for elderly individuals, individuals with disabilities, or those living in rural areas. Patients can see doctors, get diagnosed, and treat chronic diseases at home.

• Healthcare Analytics:

  Healthcare analytics converts disparate health data into meaningful insights, equipping providers and patients with evidence-based decision-support tools. Customers are benefited in the form of more tailored care, earlier disease detection, and better treatment outcomes. These analytics offer several insights such as health risks forecasts, recovery progress monitoring, and maximize utilization of resources, leading to greater efficiency and quality of care.

• Digital Health Systems:

  Digital health systems is combination of different platforms such as hospital information systems, EHRs, and patient portals along with other components that allows efficient care delivery and coordination. Such integrated systems provide centralized, access to personal health records, test results, and prescriptions to the customers,, making it easier to engage and make informed decisions.

Telehealthcare

• Telehealth
• Telecare

mHealth

• Apps
• Wearables

Application

• Chronic Disease Management
• Behavioral Health
• Health & Fitness
• Others

End Users

• Hospitals & Clinics
• Patients & Consumers
• Others

By Geography

• North America
• Europe
• Asia Pacific
• South & Central America
• Middle East & Africa

The North America digital health market is the largest in the world due to a booming aging population and increased cases of chronic conditions like diabetes and heart disease. This population trend requires more accessible and ongoing health monitoring, and hence telehealth, wearable technology, and remote patient monitoring are essential. Furthermore, smartphone penetration and better network connectivity globally are some more significant factors driving the growth of mobile health applications.

Digital Health Market Regional Insights

The regional trends and factors influencing the Digital Health Market throughout the forecast period have been thoroughly explained by the analysts at The Insight Partners. This section also discusses Digital Health Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Digital Health Market Report Scope

Digital Health Market Players Density: Understanding Its Impact on Business Dynamics

The Digital Health Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Asia Pacific has highest growth rate in the digital health sector, fueled by rapid urbanization, intensifying middle class, growing smartphone and internet penetration. Growing economies like China and India are seeing an increase in chronic disease coupled with a lack of healthcare professionals, and so digital health is a critical enabler for enhancing access and affordability. Government spending on healthcare infrastructure and digital programs, including India's National Digital Health Mission, also spur adoption.

The digital health market growth differs in each region owing to digital transformation, technological advancements, and industrial expansion. Below is a summary of market share and trends by region:

1. North America

• Market Share:

  The region captures a major market share of the global digital health market

• Key Drivers:

• Growing ageing population with chronic diseases
• Focus on reducing hospital visits and improving efficiency
• Riisng penetration of smartphone and internet

• Trends:

  Supportive policies and investments in digital health innovation and infrastructure.

2. Europe

• Market Share:

  Substantial share

• Key Drivers:

• Increasing prevalence of chronic conditions
• Strict data privacy regulations
• Focus on modernizing healthcare systems

• Trends:

  Leveraging telemedicine and EHRs

3. Asia Pacific

• Market Share:

  Fastest-growing region with a intensifying market share every year

• Key Drivers:

• Rapid urbanization & healthcare access gaps
• High mobile penetration supports the adoption of mobile health apps and teleconsultations.
• Growing middle-class population & health awareness

• Trends:

  APAC countries are investing heavily in digital infrastructure and smart hospital projects.

4. South and Central America

• Market Share:

  Growing market with steady progress

• Key Drivers:

• Healthcare access disparities
• Chronic disease growth
• Rising smartphone and internet usage

• Trends:

  Favorable government initiatives improving healthcare delivery through digital innovation.

5. Middle East and Africa

• Market Share:

  small market share but growing at a decent pace

• Key Drivers:

• Limited healthcare infrastructure
• Demand for remote diagnostics, telemedicine, and disease management tools
• Focus on smart health cities and electronic medical records drives adoption

• Trends:

  Young, tech-savvy populations facilitate mobile health solution uptake.

Digital Health Market Players Density: Understanding Its Impact on Business Dynamics

High Market Density and Competition

There is strong competition in the Digital Health Market due to the presence of several global and established players including Medtronic Plc, Koninklijke Philips NV, Abbott Laboratories, OMRON Corp, Johnson & Johnson, Siemens Healthineers AG, AT&T Inc., GE HealthCare Technologies Inc, Telefonica SA, and Cisco Systems Inc.

This high level of competition urges companies to stand out by offering:

• Advanced AI-driven diagnostic and predictive analytics solutions
• Interoperability across multiple healthcare platforms (telemedicine, EHR, and mobile health applications)
• Compliance-centric features addressing regulations such as the Health Insurance Portability and Accountability Act (HIPAA), General Data Protection Regulation (GDPR), and Food and Drug Administration (FDA) guidelines
• Real-time patient monitoring and remote care capabilities powered by IoT and wearable technology
• Personalized treatment plans using big data and machine learning models

Opportunities and Strategic Moves

• Strategic partnerships with healthcare providers, technology firms, and regulatory bodies are expanding solution offerings and ensuring compliance with health data privacy standards.
• Adoption of AI-powered telehealth platforms and remote patient monitoring (RPM) solutions is accelerating, driven by the demand for accessible, scalable, and personalized healthcare services.
• Growing focus on the emerging economies (Asia Pacific, Latin America, and Africa) offers growth potential with rising healthcare digitization, increased smartphone penetration, and growing chronic disease prevalence.
• R&D investments in the field of Artifial intelligence, big data analytics, and wearable technologies enable enhanced predictive diagnostics, personalized treatment plans, and improved patient engagement.
• Integration with EHR, Health Information Exchanges (HIE), and clinical decision support systems (CDSS) improves interoperability, clinical workflow efficiency, and outcome tracking.

Major Companies operating in the digital health market are:

1. Koninklijke Philips NV (Netherlands)
2. Medtronic Plc (Ireland)
3. GE HealthCare Technologies Inc (US)
4. Abbott Laboratories (US)
5. OMRON Corp (US)
6. Johnson & Johnson (US)
7. Siemens Healthineers AG (Germany)
8. AT&T Inc. (US)
9. Telefonica SA (Spain)
10. Cisco Systems Inc (US)

Disclaimer: The companies listed above are not ranked in any particular order.

Other companies analyzed during the course of research:

1. Google LLC
2. Masimo
3. Apple Inc
4. IBM Corp
5. Veradigm LLC
6. Noom, Inc.
7. Teladoc Health, Inc.
8. Omada Health Inc.
9. Dexcom, Inc.
10. athenahealth, Inc.

Digital Health Market News and Recent Developments

• Philips Announced and Expanded Its Partnership with Medtronic

  In July 2025, Philips announced an expanded partnership with Medtronic to advance patient monitoring technologies. Building on a collaboration started in 1992, this multi-year agreement will see Philips' patient monitoring systems incorporate Medtronic's Nellcor pulse oximetry, BIS brain monitoring, and Microstream capnography. The goal is to provide a validated and cybersecure monitoring solution that simplifies procurement and ensures high quality for clinicians, enabling them to focus more on patient care.

• GE HealthCare Showcased Enterprise Imaging Solutions

  At SIIM 2025

  In May 2025, GE HealthCare showcased its latest enterprise imaging solutions at SIIM 2025, this included the Genesis cloud-enabled portfolio, True PACS, Centricity PACS integrated with Pace and Balance, and Datalogue. These solutions are designed to improve workflow efficiency for radiologists, reducing the burnout, and centralize patient data.

• Medtronic Expanded AiBLE Spine Surgery Ecosystem with New Technology Integration

  In September 2024, Medtronic expanded its AiBLE spine surgery ecosystem with new technologies and Siemens Healthineers. This new technology and data integration will help the company in enhancement of spine surgical procedures.

Digital Health Market Report Coverage and Deliverables

The " Digital Health Market Size and Forecast (2021–2031)" report provides a detailed analysis of the market covering below areas:

• Digital health market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Digital health market trends, as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST and SWOT analysis
• Digital health market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the digital health market
• Detailed company profiles