The global digital healthcare market is estimated to be valued at USD 266.78 Bn in 2025 and is expected to reach USD 1,025.48 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 21.2% from 2025 to 2032.
To learn more about this report, Download Free Sample
The digital healthcare market is growing due to the rising chronic diseases, growing geriatric population, and increasing preference for online consultations and e-pharmacies. Moreover, there is growing demand for self-care and personalized medicine solutions along with emergence of digital therapeutics and artificial intelligence driven tools for disease prediction and management. Apart from this, integration of digital health solutions across care settings along with government support through favorable regulations can drive the market growth during the forecast period.
|
Current Events |
Description and its impact |
|
Regulatory and Policy Changes
|
|
|
Global Health Initiatives
|
|
Uncover macros and micros vetted on 75+ parameters: Get instant access to report
Artificial Intelligence (AI) plays a transformative role in the digital healthcare market, driving efficiency, personalization, and predictive capabilities. AI powers diagnostic imaging, virtual health assistants, and clinical decision support systems, enabling faster, more accurate diagnoses and treatment plans. In remote monitoring, AI analyzes real-time patient data to flag risks early. It also enhances operational workflows in hospitals, reducing administrative burdens. In September 2024, the National Health Authority (NHA) and IIT Kanpur signed a Memorandum of Understanding (MoU), under which a federated learning platform across a variety of machine learning model pipelines, a quality-preserving database, an open benchmarking platform for comparing & validating AI models, and a consent management system for research under ABDM would be developed by IIT Kanpur. The platform will subsequently be operated and governed by NHA, thereby unlocking the immense potential of AI for improving health outcomes.
Reimbursement policies are critical enablers for digital health adoption. They determine how healthcare providers get paid for telehealth, remote patient monitoring (RPM), digital therapeutics (DTx), and other technology-driven care models. Moreover, private players increasingly cover virtual care and digital tools, often aligning with value-based care models focused on outcomes. European countries have diverse reimbursement models, some with national coverage (e.g., France’s teleconsultation reimbursement), others relying on regional contracts.
In terms of technology, healthcare analytics segment is estimated to contribute the highest market share of 60.5% in 2025. It utilizes data, statistical analysis, and predictive models to enhance medical, financial, and operational aspects of healthcare. Factors driving its prominence include the digitization of healthcare data, aging populations, and patient demands for personalized care. It aids in evidence-based decision-making, cost reduction, and improved outcomes. mHealth, involving mobile technologies for health monitoring, and Tele-health, enabling remote clinical services, are rapidly growing segments.
For instance, according to an article published by the WHO, Teleradiology is currently the most developed telemedicine service area globally, with just over 60% of responding countries offering some form of service, and over 30% of countries having an established service. While the proportion of countries with any form of service ranged from almost 40% for teledermatology and telepathology to approximately 25% for telepsychiatry, the proportion of countries with established services in those three areas was comparable at approximately 15%. The delivery of healthcare services remotely using telecommunications technology—such as video calls, apps, messaging, and wearable devices. It includes virtual consultations, remote patient monitoring, mobile health apps, and digital diagnostics. These factors are further positively influencing the digital healthcare market share.
In terms of component, software segment is estimated to contribute the highest market share of 45.62% in 2025, owing to its critical role in enabling digital healthcare solutions. A wide range of healthcare software including electronic health records, telemedicine portals, remote patient monitoring systems, and clinical decision support are indispensable tools that improve the overall efficiency and outcomes of healthcare delivery. For instance, according to the OECD, in 2023, EU countries made significant investments to ensure reliable nationwide access to HER software, with the average availability of online digital health services rising by 8 percentage points from 2022 to reach an average of 79%. Software allows seamless data collection, storage, and sharing between providers, payers, and patients. Advanced analytical capabilities in software help providers make more informed care decisions. Customizable software solutions also offer flexibility to users. Meanwhile, innovations in AI and machine learning are further enhancing the capabilities of healthcare software.
In terms of end user, hospital & clinics segment is estimated to contribute the highest market share of 40.62% in 2025 due to their large patient volumes and leadership role in coordinating care. Hospitals are among the early adopters of digital healthcare systems as these solutions help enhance various aspects of their complex operations. Electronic health records, remote monitoring, telehealth and predictive analytics boost clinical efficiency and workflow inside hospitals. The growing number of patients is positively influencing the digital healthcare market forecast. For instance, according to the Asian Medical Tourism, the number of hospitals in India has jumped from 43,500 in 2019 to 54,000 in 2024, according to a report by Pharmarack. The number of aggregate hospital beds has surged from 1.1 million to 1.3 million during the same period.
To learn more about this report, Download Free Sample
North America has established itself as the dominant region in the global digital healthcare market it has share of 40.7% in 2025 With the U.S. being home to leading technology companies and startups, the region has a strong industry presence and high adoption rates of digital health solutions among both healthcare providers and consumers. Telehealth and remote patient monitoring services first gained popularity in the U.S., allowing North American consumers early access to virtual care options. Several virtual care platforms and connected healthcare devices were first launched and made commercially available in this region. Significant public and private sector investments in telemedicine, AI-powered diagnosis, and digital therapeutics have further helped North America to maintain its superior position. For instance, in October 2024, Softserve launched AI dreams in healthcare a reality with SoftServe at HLTH 2024 to develop tailored AI strategies to meet unique business challenges and goals This is further propelling the digital healthcare market demand.
Asia Pacific region has emerged as the fastest growing regional market for digital healthcare. Countries like India, China, Japan and South Korea are swiftly expanding their digital healthcare infrastructure and rapidly increasing investments in this sector. The presence of large patient pools and rising healthcare expenditures in these nations can offer growth opportunities. Digital health also offers solutions to meet the healthcare needs of vast rural populations with limited access to traditional healthcare facilities. Local governments are putting policies in place to promote digital healthcare adoption and development. For instance, in 2024, Australia released the National Digital Health Strategy to enhance digital health services and infrastructure.
Rising rates of chronic illness, an aging population, and developments in artificial intelligence (AI), telemedicine, remote patient monitoring, and mobile health apps are driving growth. The market is also accelerated by the growing use of digital therapies and favorable reimbursement practices. Besides this, cybersecurity and regulatory issues continue to be important factors. The digital health industry in the United States is expected to continue expanding and revolutionize healthcare delivery by making it more efficient, individualized, and accessible. According to AMA, industry surveys shows, more than 40% of U.S. physicians experience burnout at some point in their careers. As the physician’s powerful ally in patient care, the AMA is working to change this statistic.
China’s digital health market is rapidly expanding, driven by strong government initiatives like the “Healthy China 2030” plan, which promotes AI, telemedicine, and smart hospital development. Valued at tens of billions USD in 2024, the market benefits from heavy investments by tech giants such as Tencent, Alibaba, and Baidu. Rising chronic diseases and an aging population boost demand for remote patient monitoring and digital therapeutics. Advanced AI-powered diagnostics and integrated electronic medical records are transforming care delivery. Despite challenges like data privacy and regulatory hurdles, China remains Asia Pacific’s digital health leader, poised for continued growth fueled by innovation and digital infrastructure expansion.
To learn more about this report, Download Free Sample
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2024 | Market Size in 2025: | USD 266.78 Bn |
| Historical Data for: | 2020 To 2024 | Forecast Period: | 2025 To 2032 |
| Forecast Period 2025 to 2032 CAGR: | 21.2% | 2032 Value Projection: | USD 1,025.48 Bn |
| Geographies covered: |
|
||
| Segments covered: |
|
||
| Companies covered: |
Elefónica S.A., Epic Systems Corporation, QSI Management, LLC, AT&T, AirStrip Technologies, Google, Inc., Hims & Hers Health, Inc., Orange, Softserve, Computer Programs and Systems, Inc., Vocera Communications, IBM Corporation, CISCO Systems, Inc., Apple Inc., Oracle Cerner, Veradigm, Mckesson Corporation, Hims & Hers Health, Inc., Vodafone Group, Qualcomm Technologies, Inc., Samsung Electronics Co., Ltd., General Electric Company |
||
| Growth Drivers: |
|
||
| Restraints & Challenges: |
|
||
Uncover macros and micros vetted on 75+ parameters: Get instant access to report
An increasing number of patients are receiving long-term care diagnoses due to chronic diseases and other problems brought on by an aging global population. The increased monitoring requirements of an ageing population cannot be met by traditional in-office doctor visits. Digital healthcare solutions empower patients to be more proactive in managing their wellness from the comfort of their home. Remote patient monitoring devices, apps, and telehealth services allow serious medical conditions to be managed virtually on an ongoing basis between patient and provider check-ins. Vital signs such as blood pressure, blood glucose, heart rate, oxygen levels, etc., can automatically be digitally transmitted to healthcare professionals for review. This alleviates strain on medical clinics as well as hospitals by lowering unnecessary in-person visits. According to WHO, by 2030, 1 in 6 people in the world will be aged 60 years or over. The share of the population aged 60 years and over will increase from 1 billion in 2020 to 1.4 billion. By 2050, the world’s population of people aged 60 years and older will double (2.1 billion). The number of persons aged 80 years or older is expected to triple between 2020 and 2050 to reach 426 million. This is further expected to positively influence the digital healthcare market forecast.
A high prevalence of chronic diseases such as diabetes, cardiovascular conditions, and respiratory illnesses is a major driver for the digital healthcare market. According to the World Health Organization (WHO), Noncommunicable diseases (NCDs) killed at least 43 million people in 2021, equivalent to 75% of non-pandemic-related deaths globally. Digital health technologies like remote patient monitoring (RPM), wearable devices, and telehealth enable real-time tracking and personalized care, reducing hospital visits along with improving outcomes.
Technological advancement, especially the integration of Artificial Intelligence (AI), is transforming healthcare delivery and fueling market growth. AI-powered tools improve diagnostic accuracy, predict patient risks, and automate administrative tasks, increasing efficiency and reducing costs. Innovations in telemedicine platforms, big data analytics, as well as mobile health applications empower providers to deliver personalized, scalable care, making technology adoption a cornerstone of the expanding digital healthcare ecosystem worldwide.
Growing telehealth and telemedicine market can offer growth opportunities for the digital healthcare sector. With global healthcare infrastructure being challenged by the ongoing COVID-19 pandemic, telehealth has provided an innovative solution for physical distancing and virtual care. Healthcare providers have adopted telehealth at an unprecedented rate to evaluate and treat patients remotely, reducing the need for in-person visits and preserving critical medical supplies. For instance, in October 2022, The Government has launched a “National Tele Mental Health Programme”, to improve access to quality mental health counselling and care services in the country. As on January 20, 2025, 36 States/ UTs have set up 53 Tele MANAS Cells and have started tele mental health services. More than 17.6 lakh calls have been handled on the helpline number.
*Definition: The digital healthcare market encompasses technologies and services that use digital tools to improve health outcomes, care delivery, and system efficiency. It includes telehealth, remote patient monitoring, mobile health apps, electronic health records (EHRs), AI-driven diagnostics, and digital therapeutics. This market bridges healthcare and technology, enabling real-time data exchange, personalized care, and expanded access, particularly in remote or underserved areas.
Share
Share
About Author
Komal Dighe is a Management Consultant with over 8 years of experience in market research and consulting. She excels in managing and delivering high-quality insights and solutions in Health-tech Consulting reports. Her expertise encompasses conducting both primary and secondary research, effectively addressing client requirements, and excelling in market estimation and forecast. Her comprehensive approach ensures that clients receive thorough and accurate analyses, enabling them to make informed decisions and capitalize on market opportunities.
Missing comfort of reading report in your local language? Find your preferred language :
Transform your Strategy with Exclusive Trending Reports :
Frequently Asked Questions
Joining thousands of companies around the world committed to making the Excellent Business Solutions.
View All Our Clients
Schedule a meeting with report Author
