Digital Health revenues jump 34%, hit $177.5B by 2023

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Although the COVID-19 pandemic put enormous pressure on the global healthcare sector, one of the promising side effects has been the rapid growth of digital health services.

During the crisis, hospitals were facing the most challenging public health threat they have ever experienced. However, digital health has stepped in providing innovative and effective solutions for chronic patients or those in need of immediate healthcare. As a result, the revenues of the entire sector jumped by 30% YoY, reaching $109bn in 2020.

According to data presented by TradingPlatforms.com, digital health revenues are expected to hit $132.2bn in 2021. The entire industry is forecast to continue growing and reach a $177.5bn value by 2023, a 34% increase in two years.

Digital Fitness Revenues to Jump by 40% in Two Years, eHealth Segment Follows with a 27% Increase

The digital health market covers many technologies, including mobile health apps, connected wearable devices, and telemedicine. By tracking physical activities or identifying early signs of developing diseases, these technologies enable millions of people worldwide to monitor and record their health conditions more efficiently and in a user-friendly manner.

The surge in the use of the internet and smartphones and the shift towards a healthier lifestyle helped to drive the impressive growth of the entire sector even before the pandemic. However, the COVID-19 pandemic has undoubtedly fuelled the widespread use of digital health apps and solutions.

In 2019, the entire market generated $83.3bn in revenue, revealed the Statista data. After the pandemic struck, revenues jumped by $25.6bn in a year. The widespread use of digital health solutions is expected to continue this year, with the entire sector growing by 20% YoY. By 2023, global digital health revenues are forecast to increase by another $45.3bn.

As the largest segment of the market, digital fitness is expected to generate $76.3bn in revenue in 2021. By 2023, this figure is forecast to grow by nearly 40% to $106.2bn.

E-health services are set to witness a 27% growth in this period, with revenues rising from $55.8bn to $71.3bn.

China and the United States to Generate 50% of Total Revenues

The Statista survey also revealed the following years are set to witness substantial growth in the number of people using digital fitness apps and eHealth services.

In 2021, the unified market is expected to count close to 3 billion users, almost 40% more than before the pandemic struck. By 2023, this figure will jump over 3.5 billion and continue growing to 4 billion by 2025.

The number of people using digital fitness apps is expected to jump by 27% in the next two years, rising from 980 million to over 1.2 billion. The eHealth segment is forecast to witness a 17% growth in this period, with the number of users reaching 2.2 billion by 2023.

As the world`s largest digital health market, China is forecast to generate $38.5bn in revenue in 2021, up from $30.8bn last year. In the next two years, the Chinese market is expected to hit $52.7bn value.

With 261.6 million users and $26.3bn in revenue in 2021, the United States ranked as the second-largest market globally. By 2023, this figure is set to jump to $31.4bn.

India, Japan, and Germany follow with $6.2bn, $4.2bn, and $3.5bn in revenue in 2021, respectively. Statistics show that China and the US, as the two largest markets, are expected to generate nearly 50% of global digital health revenues this year. By 2023, their combined revenue share is expected to slip to 47%.

The full story can be read here: https://tradingplatforms.com/blog/2021/06/02/digital-health-revenues-to-jump-by-34-and-hit-177-5b-by-2023-2/

Chris Price
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