The global digital transformation in healthcare market is estimated at USD 65.2 billion in 2023. The market is projected to reach USD 253.6 billion by 2033, exhibiting a CAGR of 14.5% from 2023 to 2033.
With the growing implementation of digital health platforms such as telehealth, mobile health, and other wireless technologies across medical facilities and nursing homes that offer patients with real-time medical treatment, digital health has become a popular term.
The beneficial effect of digital technology on multiple verticals including public, retail, banking, financial services, and insurance (BFSI), and production is phenomenal, but it has grown into a game-changer technology in the medical field as end users' reliance on digital health platforms grows.
| Attributes | Details |
|---|---|
| Digital Transformation in Healthcare Market Value (2022) | USD 817.6 million |
| Digital Transformation in Healthcare Market Value (2023) | USD 65.2 billion |
| Digital Transformation in Healthcare Market Expected Value (2033) | USD 253.6 billion |
| Digital Transformation in Healthcare Market Projected CAGR (2023 to 2033) | 14.5% |
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The digital transformation in healthcare market grew at a CAGR of 21.4% between 2018 and 2022. The market is expected to be driven by an increase in the adoption of cutting-edge and sophisticated technologies throughout multiple sectors in the healthcare industry in forthcoming years.
Government agencies' introduction of healthcare smartphone applications and incentive initiatives has played a critical role in the medical industry. With this scenario expected to continue in the years ahead, the digital transformation in the healthcare market is expected to accelerate.
Furthermore, digital healthcare is viewed as an emerging technology in advanced economies including Germany, the United States, China, and others. Overall, the global market for digital transformation in healthcare is expected to perform even better in the coming decades, increasing at an impressive CAGR of 14.5% through 2033.
The rising adoption of connected health techniques, as well as the integration of digital media, health technology, and mobile phones, are among the key variables propelling the digital transformation of the healthcare market.
Multiple digital healthcare service providers are presently concentrating on providing technology-enabled care approaches to enable easy access to information and records and boost the quality and outcomes of medical and social services. Furthermore, as healthcare technology advances and smart devices and wearables become more widely available, the use of connected health solutions grows.
The expanding need for remote surveillance to check patients' health status and a growing requirement for digital messages to alert patients to stick to their long-term course of treatment are bolstering the demand for connected health and boosting the growth of digital transformation in the healthcare market.
Principal Consultant
Rising per capita healthcare spending is driving up demand for greater healthcare services. Multiple government and healthcare organizations, including hospitals, clinics, and pharmaceutical firms, are raising their investments in IT infrastructure to better satisfy the needs of their customers. This, in turn, is anticipated to stimulate future demand for digital healthcare services and solutions.
Governments in countries such as Canada and the United States are emphasizing the implementation of digital initiatives to encourage innovation and digitization in the medical field. This is primarily intended to encourage hospitals and clinics to adopt improved diagnostic tools and digital healthcare services in order to better serve patients. These aspects are projected to almost certainly increase demand for digital healthcare solutions in the coming years.
The processing and analysis of data is an enormous obstacle in the healthcare sector. Part of the issue stems from the massive amount of data collected by hospitals, clinics, and health specialists.
A significant challenge is gathering and synchronizing data. With the development of telemedicine, doctor visits are taking positions across multiple channels, making it more difficult for health professionals to update patients' health records.
In addition, cybersecurity is a challenge in every sector, including healthcare. Organizations must be extremely cautious against cyber threats, which can be extremely expensive. According to an IBM study, healthcare companies had the highest costs associated with data theft, which were three times greater than those in other verticals.
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The market is expected to grow at a nearly 9% CAGR through 2033. According to the report, the United States was predicted to account for a market share of 21.2% in 2022. The American Medical Association (AMA), for instance, is attempting to speed up its digital journey in order to guarantee that members receive appropriate support in their own efforts to adopt the technology.
The United States is regarded as an appealing market for digital healthcare software and services, as multiple firms providing the solutions have established a presence in the nation in order to capture an extensive number of customers, permitting them to attain economies of scale.
The number of individuals aged 65 and up in the United States is projected to approximately double over the next three decades, which is propelling expansion in the digital transformation of the medical sector in this region, based on the National Institute on Aging.
The digital transformation of healthcare in the United Kingdom is the most rapidly expanding market in the European Union. Based on NHS Digital data, the use of digital healthcare services as researched by the United Kingdom's National Health Service (NHS) increased dramatically in 2020.
As a consequence of social distancing and the requirement to access medical services remotely, NHS Digital's tech services have witnessed unprecedented levels of utilization by both patients and frontline staff since the beginning of the coronavirus outbreak.
Healthcare and life sciences are two of the most significant sectors in the United Kingdom that use big data. A number of high-profile government programs have been launched in the United Kingdom to stimulate the market for digital health systems. The digital transformation of healthcare in the United Kingdom is anticipated to expand at a CAGR of 16.1% over the forecast period.
The Chinese healthcare sector is currently the world's second-largest, trailing only the United States. Traditionally, the healthcare sector in China has been influenced by connections between patients and medical professionals, as well as a 'face-to-face' business culture. However, the nation is now a digital leader, widely implementing new technology ranging from mobile devices to inventive digital applications and tools. Many markets, including health care, have been transformed as a result of this.
Fighting the pandemic has forced China to reconsider its healthcare priorities, putting critical medical facilities, digital services, and public health promotion significantly higher on the list than they would have been had the infectious outbreak not occurred.
Key health sectors including telemedicine and electronic healthcare, healthcare equipment, and the pharmaceutical sector are experiencing technological shifts in China. As a result, the Chinese medical sector is projected to expand at a rapid pace over the projected time frame. The digital transformation of the healthcare market in China is anticipated to expand at a CAGR of 15.5% over the forecast period.
Digitizing patient records and moving from paper-based to Electronic Medical Records (EMRs) is now standard practice. Hospitals are moving from unconnected, relatively immobile, or room-bound equipment toward medical sensors, BioMed devices, medical wearables, and even surgery robots.
With the expansion of the medical devices and applications market comes new opportunities for automation, data collection, and analysis. Connected devices are intended to ease the burden on hospital staff and help them in reporting key patient observations. These technological advancements will help providers to efficiently increase the quality of care delivered to every patient. In 2022, the hospitals & clinics segment was expected to account for 39.7% of the market.
In recent years, the market has benefited from new development activities, product approvals, product launches, partnerships, and acquisitions. Furthermore, owing to increasing digitalization, there has been a substantial rise in demand for electronic health records, which is fueling market growth.
A value-based model drives the centralization of health information management, which aims to streamline operations, standardize processes, reduce costs, and improve the quality of care, resulting in patient satisfaction. Furthermore, the growing emphasis on the incorporation of healthcare information technology (IT) and digital health solutions is projected to drive the software segment's growth in the coming decades. In 2022, the software segment was expected to account for 72% of the market.
The digital transformation in healthcare market indicates a fragmented competition landscape, with major companies concentrating on forming partnerships and collaborations with local and regional producers and retailers in order to expand their global footprint. For instance,
| Report Attribute | Details |
|---|---|
| Growth Rate | CAGR of 14.5% from 2023 to 2033 |
| Market Value in 2023 | USD 65.2 billion |
| Market Value in 2033 | USD 253.6 billion |
| Base Year for Estimation | 2022 |
| Historical Data | 2018 to 2022 |
| Forecast Period | 2023 to 2033 |
| Quantitative Units | Revenue in USD billion and CAGR from 2023 to 2033 |
| Report Coverage | Revenue Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends and Pricing Analysis |
| Key Regions Covered | North America; Latin America; Europe; East Asia; South Asia; Oceania; Middle East & Africa |
| Key Countries Covered | United States, Canada, Brazil, Mexico, Germany, United Kingdom, France, Spain, Italy, India, Malaysia, Singapore, Thailand, China, Japan, South Korea, Australia, New Zealand, GCC Countries, South Africa, Israel, |
| Key Segments Covered | Solution, Organization Size, Technology, End User, Region |
| Key Companies Profiled |
IBM Corporation; CGI Group Inc.; Accenture PLC; Deloitte LLP; HCL Technologies; AT&T Inc.; PWC LLP; GE Healthcare Limited; Atos Syntel; Medtronic Plc.; Dell Inc.; Cisco Systems Inc. |
| Customization & Pricing | Available upon Request |
Through 2033, the market is projected to develop at a CAGR of 14.5%.
In 2023, the market is expected to attain USD 65.2 billion.
The market is projected to rise to USD 253.6 billion by 2033.
Between 2018 and 2022, sales surged at a 21.4% CAGR.
Through 2033, the market is projected to flourish at a 9% CAGR.
The China market is expected to strengthen at a CAGR of 15.5%.
1. Executive Summary | Digital Transformation in Healthcare Market 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Solution 5.1. Software 5.2. Service 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Organization Size 6.1. Small and Medium Size Enterprises 6.2. Large Enterprises 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Technology 7.1. Artificial Intelligence 7.2. Cloud Computing 7.3. Big Data & Analytics 7.4. Internet of Things 7.5. Cybersecurity 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By End User 8.1. Hospitals & Clinics 8.2. Pharma Companies 8.3. Life Science & Biotech Companies 8.4. Healthcare Insurance Providers 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 9.1. North America 9.2. Latin America 9.3. Europe 9.4. South Asia 9.5. East Asia 9.6. Oceania 9.7. MEA 10. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. South Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Oceania Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 16. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 17. Key Countries Market Analysis 18. Market Structure Analysis 19. Competition Analysis 19.1. 19.1.1. IBM Corporation 19.2. 19.1.2. CGI Group Inc. 19.3. 19.1.3. Accenture PLC 19.4. 19.1.4. Deloitte LLP 19.5. 19.1.5. HCL Technologies 19.6. 19.1.6. AT&T Inc. 19.7. 19.1.7. PWC LLP 19.8. 19.1.8. GE Healthcare Limited 19.9. 19.1.9. Atos Syntel 19.10. 19.1.10. Medtronic 19.11. 19.1.11. Dell Inc. 19.12. 19.1.12. Cisco Systems, Inc. 20. Assumptions & Acronyms Used 21. Research Methodology
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Digital Transformation in Healthcare Market
