The advent of digitization is likely to transform the healthcare sector. Factors such as government support and increasing investment in research and development are expected to boost the digital health market. In the last couple of years, the healthcare industry has stood witness to several developments. For instance, the advent of remote monitoring in response to the rising incidence of chronic ailments is a major innovation witnessed in the industry. Such innovations are identified as chief drivers of the digital health market.
Novel Technologies Developed by Leading Organizations to Give Impetus to Growth
In 2018, Amazon made headlines post its announcement of partnering with JP Morgan and Berkshire Hathaway to develop a novel technology aimed at improving care options for their employees. Towards the end of 2018, Amazon was again in the news on account of advancements it made in the software to digitize patient records, in turn improving treatment offered and reducing overall cost. With this development, it came at par with United Healthcare’s Optum and IBM, besides Google and Apple’s efforts towards mobilizing, simplifying, and analyzing healthcare records. Healthcare sector, especially in developing and underdeveloped nations has historically dawdled to fully adopt the potential of digitization. Considering this, the aforementioned developments proved to be important milestone for the overall sector.
According to Acumen Research and Consulting, the global digital health market size was valued at USD 95.7 billion in 2018 and expected to reach around USD 511 billion by 2026, expanding at a CAGR of 27.7% from 2019 to 2026.
Efforts by International Organization to Encourage Uptake of Digital Health
The concept of digital health is likely to become more widespread in the coming years, backed by the support of government and international organizations. For instance, the U.S. Food and Drug Administration, following several researches, is looking to embrace mobile trial platforms, digital therapeutics, and give a nod to increasingly use real word evidences. These are crucial achievements furthering clinical development worldwide. Progresses made in the last couple of years will continue to drive investment towards the cause, especially with the Commissioner of FDA issuing a statement encouraging initiatives to boost innovations in digital health.
In the coming years, the demand for digital health is expected to rise at an impressive pace, considering the persistent growth exhibited by telemedicine. Telemedicine, which encompasses nearly 80 specialties like dermatology, neurology, paediatrics, and others, is likely to get optimized to offer improved patient care and encourage increased adoption. These developments will enable employers save considerably. It is due to the same reason that a significant number of health plans now offered includes telemedicine. Furthermore, researchers predict the number to rise further in the coming years.
Among common men, digital health will gain traction in response to the rising penetration of smart phones and mobile apps offering smart health options. Furthermore, the rising adoption of healthcare IT solutions by leading healthcare providers will fuel the demand for digital health in the coming years. On the flipside, digital health is often associated with certain prohibitive costs. This, coupled with data security threats related to these technologically advanced solutions may hinder the uptake of digital health to an extent.
Nonetheless, the ability of these systems to exchange health information over electronic mediums will boost the market in the coming years. Furthermore, digital health will promote precise and timely diagnosis of patients; it will reduce the chances of medical error, and offer safer patient care. Spurred by these factors, the demand for digital health will rise significantly in the near future.