![]() ![]() This market, however, is relatively mature compared to other digital health areas and is expected to grow at a slower rate of 8 percent per annum compared with other value pools, which are typically growing at 10 percent or more per annum.Īn emerging opportunity, nevertheless, exists in value pools in the finance and operations category. Many companies in this value pool provide precision-medicine solutions that are aimed at enabling faster drug discovery (for instance, Tempus) or AI-enabled patient recruitment and decentralized- or virtual-trial solutions to improve the efficiency of clinical trials (for example, Medable and TrialSpark). Bolstered by strong interest from large pharmaceutical companies, the R&D category represents the single largest value pool by market size ($109 billion in 2019). The combination of large market size and high growth rates makes competing in care-delivery value pools an attractive proposition for companies interested in entering digital health, but patient care is not the only potentially promising opportunity available for digital health entrants. Notably, every value pool in this category is expected to grow by at least 10 percent per annum through 2024.Īs of 2019, digital health represented a global market of approximately $350 billion with many opportunities to compete across multiple subcategories. Companies in this category either provide novel therapeutic solutions enabled by digital technologies-such as Livongo for diabetes-or use technology to broaden patient access to healthcare solutions, for example, telemedicine company Teladoc (offering remote patient support) or online pharmacy PillPack (supplying therapies to patients). About 49 percent of the digital health companies we studied fall into theĬare-delivery category (that is, offering more effective therapies, providing remote patient support, or supplying therapies to patients)-a $157 billion market (as of 2019) comprising 45 percent of the overall digital health market. Understandably, the bulk of digital health players develop technologies that have a direct impact on patient care. What are the largest and fastest-growing digital health markets?Īs of 2019, digital health represented a global market of approximately $350 billion with many opportunities to compete across multiple subcategories moreover, the markets for technologies in every value pool are expected to grow by at least 8 percent per annum (Exhibit 2). What impact has the COVID-19 pandemic had on digital health value pools?Įxamining each of these questions in detail helps provide a comprehensive understanding of the digital health market.Which value pools are patients most excited about?.Which value pools are investors most excited about?.How do digital health companies typically demonstrate value?.What are the largest and fastest-growing digital health markets?.With these value pools in mind, we have identified the following five questions that are commonly asked by CXOs and executives interested in entering the digital health market: Our extensive experience in business building and healthcare has enabled us to categorize digital health technologies into nine “value pools” across five main categories: R&D, wellness and disease prevention, screening and diagnosis, care delivery, and finance and operations (Exhibit 1). Digital health technologies can broadly be categorized into nine ‘value pools’īroadly, digital health can be defined as the application of digital technology to improve health or care delivery. We also examine the impact of COVID-19 on digital health and provide strategic guidance for companies considering an entry into the healthcare sector. In this article, we provide an overview of the digital health market and its growth potential, including perspectives on how investors, patients, and incumbent healthcare players are interacting with the ecosystem. megadeals, such as Teladoc Health’s $18.5 billion acquisition of Livongo and accelerated virtual care delivery, such as telehealth and remote monitoring. The first half of 2020 has seen unprecedented digital health activity: record levels of venture funding of $5.4 billion 1 Nina Chiu, Alex Kramer, and Aditya Shah, 2020 midyear digital health market update: Unprecedented funding in an unprecedented time, Rock Health, July 2020,. ![]() As the COVID-19 crisis continues to shape the next normal, it is crucial that stakeholders in the healthcare industry understand the digital health landscape. Digital technology has enabled healthcare players to provide more targeted and effective interventions to patients worldwide. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |