US Digital Health Market 2024–2033

Reports Description

US Digital Health Market was valued at USD 93.8 Billion in 2024 and is expected to reach USD 297.8 Billion by 2033, at a CAGR of 19.3% during the forecast period 2024 – 2033.

Digital health refers to the use of digital technologies, such as mobile apps, wearable devices, telemedicine platforms, electronic health records (EHRs), and health information systems, to improve healthcare delivery, patient engagement, and health outcomes.

US Digital Health Market: Growth Factors

Enhancement in internet connectivity

Enhanced internet connectivity has become a pivotal driver in propelling the US digital health market forward. With the proliferation of high-speed internet access, coupled with advancements in mobile technology and the Internet of Things (IoT), healthcare services are increasingly being delivered remotely and digitally.

This connectivity revolutionizes patient care by enabling telemedicine consultations, remote monitoring of vital signs, and the exchange of electronic health records (EHRs) between healthcare providers in real time.

Patients in remote or underserved areas gain access to specialists and medical expertise they might not otherwise have, while those in urban centres benefit from the convenience of virtual appointments and continuous monitoring of chronic conditions.

Furthermore, enhanced connectivity fosters the development and adoption of wearable devices and health tracking apps, empowering individuals to take a proactive role in managing their health.

This digital transformation not only improves access to care and patient outcomes but also drives efficiencies within the healthcare system, reducing costs associated with unnecessary hospital visits and improving overall population health.

As internet connectivity continues to advance, the US digital health market is poised for further growth, offering unprecedented opportunities to revolutionize healthcare delivery and patient experiences.

Adoption of AI and ML

The adoption of Artificial Intelligence (AI) and Machine Learning (ML) is catalysing transformative shifts within the US digital health market. AI and ML technologies offer unprecedented opportunities to enhance healthcare delivery, improve patient outcomes, and streamline operational processes.

Through advanced analytics and predictive modelling, AI enables healthcare providers to harness vast amounts of data to gain actionable insights into patient health trends, disease patterns, and treatment efficacy. ML algorithms empower personalized medicine by analysing patient data to tailor treatment plans and predict individual health risks.

Moreover, AI-driven automation optimizes administrative tasks, reducing healthcare operational costs and improving efficiency. These technological advancements not only enhance the quality of care but also increase accessibility to healthcare services through telemedicine platforms and remote monitoring solutions, particularly critical in underserved rural areas.

Consequently, the integration of AI and ML in digital health solutions accelerates innovation, drives market growth, and fosters a more agile and adaptive healthcare ecosystem in the United States.

US Digital Health Market: Restraints

Data security concerns

Data security concerns pose significant challenges to the expansion of the US digital health market. With the increasing digitization of health records and the adoption of telemedicine and wearable health devices, the amount of sensitive personal health information being transmitted and stored electronically has surged. However, this proliferation of data also raises serious concerns about privacy and security.

Instances of data breaches, hacking, and unauthorized access to health information have raised alarms about the vulnerability of digital health systems. Patients and healthcare providers worry about the potential misuse or exploitation of their sensitive data, leading to the erosion of trust in digital health platforms.

Moreover, the regulatory landscape surrounding data security in healthcare, such as the Health Insurance Portability and Accountability Act (HIPAA), imposes stringent requirements on data handling and protection, adding complexity and costs to digital health ventures.

Compliance with these regulations is crucial but can be burdensome for smaller companies with limited resources, impeding innovation and market entry. Furthermore, the interconnected nature of digital health systems increases the risk of cascading security breaches that could compromise entire networks or ecosystems, further amplifying apprehensions.

As a result, addressing data security concerns is paramount for fostering trust, encouraging adoption, and driving sustainable growth in the US digital health market.

US Digital Health Market: Opportunities

Increase demand for remote patient monitoring services

Remote patient monitoring (RPM) services are instrumental in propelling the US digital health market forward by revolutionizing healthcare delivery. These services leverage digital technologies to remotely collect and transmit patient data, enabling healthcare providers to monitor patients’ health conditions outside of traditional clinical settings.

RPM enhances patient care by enabling continuous monitoring, early detection of health issues, and timely interventions, ultimately improving patient outcomes and reducing healthcare costs. With the increasing prevalence of chronic diseases and an aging population, RPM addresses the growing need for efficient and proactive healthcare management.

Furthermore, advancements in wearable devices, sensors, and telecommunication technologies have bolstered the effectiveness and accessibility of RPM, making it a cornerstone of modern healthcare delivery.

As a result, RPM services have become a key driver in the expansion of the US digital health market, fostering innovation, improving healthcare access, and transforming the way healthcare is delivered and experienced by patients and providers.

US Digital Health Market: Segmentation Analysis

The US Digital Health market is segmented by component, technology, and application.  Based on components, the market is classified into software, hardware and services. Software dominated the market in 2023 with a market share of 45.7% and is expected to keep its dominance during the forecast period 2024-2033.

Software plays a pivotal role in propelling the US digital health market forward by facilitating streamlined healthcare delivery, enhancing patient engagement, and optimizing clinical outcomes.

Through electronic health record (EHR) systems, software centralizes patient data, enabling healthcare providers to access comprehensive medical histories, make informed decisions, and coordinate care seamlessly across different settings.

Moreover, software solutions power telemedicine platforms, allowing patients to remotely consult with healthcare professionals, thereby increasing access to care, especially in underserved areas.

Patient engagement is further fostered by health apps and wearable devices that track health metrics, encourage healthy behaviours, and facilitate communication between patients and providers.

Artificial intelligence (AI) and machine learning algorithms integrated into healthcare software analyse vast amounts of data to identify patterns, predict outcomes, and personalize treatment plans, ultimately improving diagnostic accuracy and treatment efficacy.

Furthermore, software-driven remote patient monitoring tools empower individuals to actively participate in managing their health, leading to early detection of health issues and proactive interventions.

As the digital health landscape continues to evolve, software innovation will remain instrumental in driving efficiency, enhancing patient-centred care, and ultimately transforming the healthcare experience for both patients and providers in the United States.

Based on technology, the market is classified into mhealth apps, tele-healthcare, digital health systems and others. mHealth apps dominated the market in 2023 with a market share of 46.1% and is expected to keep its dominance during the forecast period 2024-2033.

mHealth apps play a pivotal role in propelling the US digital health market by offering a plethora of services and features that cater to various healthcare needs. These applications leverage the ubiquity of smartphones and tablets, empowering users to monitor their health, access medical information, and engage in remote consultations with healthcare professionals.

With features ranging from symptom tracking to medication reminders, mHealth apps enhance patient engagement and adherence to treatment plans, leading to better health outcomes. Moreover, they facilitate the collection of real-time health data, enabling personalized insights and interventions.

In recent years, the COVID-19 pandemic has accelerated the adoption of telehealth services, further fuelling the growth of mHealth apps as a convenient and accessible means of healthcare delivery.

Additionally, partnerships between app developers and healthcare providers, as well as integration with wearable devices and sensors, have expanded the scope and capabilities of these applications, making them indispensable tools in the digital health ecosystem.

As the demand for convenient and efficient healthcare solutions continues to rise, mHealth apps are poised to drive further innovation and transformation in the US healthcare landscape, bridging gaps in access, improving patient outcomes, and revolutionizing the delivery of healthcare services.

Based on technology, the market is classified into obesity, diabetes, cardiovascular diseases, respiratory diseases and others. Diabetes dominated the market in 2023 with a market share of 26.1% and is expected to keep its dominance during the forecast period 2024-2033.

Diabetes is a significant driver of growth in the US digital health market due to its prevalence and the complex management required. With over 34 million Americans diagnosed with diabetes and an additional 88 million with prediabetes, there’s a pressing need for innovative solutions to monitor and manage the condition effectively.

Digital health technologies offer personalized and convenient tools for individuals with diabetes to track their blood glucose levels, manage medications, monitor diet and exercise, and communicate with healthcare providers remotely.

These technologies include smartphone apps, wearable devices, continuous glucose monitors (CGMs), insulin pumps, and telemedicine platforms. By providing real-time data and actionable insights, digital health solutions empower patients to make informed decisions about their health and self-manage their condition more effectively.

Moreover, they facilitate remote monitoring by healthcare professionals, enabling timely interventions and personalized care plans. The increasing adoption of digital health tools for diabetes management not only improves patient outcomes but also helps reduce healthcare costs associated with diabetes-related complications and hospitalizations.

Report Scope

US Digital Health Market: Recent Developments

• In December 2023, Google, Inc. launched MedLM, a medical generative AI to promote digital technology in healthcare.

• In September 2023, Enovacom, acquired NEHS Digital and Xperis and strengthened its e-health portfolio.

• In March 2023, IBM collaborated with Cleveland Clinic and deployed an IBM-managed onsite quantum computer. It will enable Cleveland Clinic to accelerate biomedical discoveries.

• In August 2023, Siemens Healthineers, specializing in AI-powered applications and digital healthcare, announced a partnership with SSM Health for ten years to develop the diagnostic imaging and advanced software and technology of SSM Health.

List of the prominent players in the US Digital Health Market:

• Cerner Corp.
• McKesson Corp.
• Epic Systems Corp.
• NextGen Healthcare Inc
• Greenway Health LLC
• CureMD Healthcare
• HIMS
• Computer Programs and Systems Inc.
• Vocera Communications
• IBM Corp.
• Siemens Healthcare GmbH
• Cisco Systems Inc.
• Others

These key players are adopting various growth strategies such as merger & acquisitions, joint ventures, expansion, strategic alliances, new product launches, etc. to enhance their business operations and revenues.

The US Digital Health Market is segmented as follows:

By Component

• Software
• Hardware
• Services

By Technology

• Mhealth Apps
• Tele-Healthcare
• Digital Health System
• Others

By Application

• Obesity
• Diabetes
• Cardiovascular Diseases
• Respiratory Diseases
• Others