Europe Digital Health Market share was valued at USD 38.1 billion in 2019 and is expected to witness 28.3% CAGR from 2020 to 2026.
Digital health refers to the use of information and communication technologies in medicine and other health professions to manage various illnesses. Digital health includes digital care programs that converge the digital technologies with health, healthcare and society to enhance the efficiency of healthcare delivery and make medicine more personalized and precise. Furthermore, technological advancements in the digital health industry will boost market expansion.
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There has been a tremendous rise in the use of smartphones by individuals and physicians in the Europe leading to increased practice of digital health. The penetration of smartphones, tablets and other mobile platforms is one-third of all European adults, with physicians adopting them twice as compared to the general population. Currently, it is estimated that more than 80% of European population own a mobile device, out of which over half of them are smartphones. This has led to enormous growth of mobile applications for healthcare needs in the region.
Furthermore, the growth of digital health market is driven by remote patient monitoring services due to their capability to monitor various chronic conditions from remote location. Increasing prevalence of diseases such as cardiovascular, cancer, and diabetes should propel the adoption of remote patient monitoring services. The market is witnessing growing demand for independent and healthy living life by growing aging population, thereby, impacting the remote patient monitoring devices market. With the growing trend of remote monitoring, patients can get access to high-quality healthcare facilities conveniently and save a large amount of time and money, thereby, fostering the market growth. However, security concerns regarding patient’s data could limit the market growth.
Europe Market, By Technology
By technology, the Europe digital health market is segmented into tele-healthcare, mHealth, healthcare analytics and digital health system. Tele-healthcare accounted for USD 1.7 billion in 2019 and is expected to exhibit 26.1% CAGR during the analysis timeframe. The tele-healthcare technology provides patients with the device to manage their health, extend services to remote areas, and enable experts to mediate in real time. Telehealth signifies well-organized and cost-effective means for the industry in improving patient satisfaction and for making healthcare more supportive. Furthermore, tele-healthcare market is expected to witness healthy growth due to increasing prevalence of chronic diseases, increase in funding for telehealth, development in telecommunication infrastructure and increasing awareness levels of tele-health. This will increase the demand and propel the segmental growth.
Europe Market, By Component
By components, the digital health market is divided into hardware, software and services. Hardware segment is estimated to witness robust growth in the forthcoming years owing to rise in use of digital health devices including wearables. These devices are revolutionizing the consumer space, as more individuals utilize devices to track their wellness and fitness. This enables doctors and patients to benefit considerably. Furthermore, rising interest of manufacturers in the development of innovative wearables will propel segment growth. For instance, in March 2019, Fitbit announced the launch of four new wearable smartwatches with the aim to make fitness tracking more affordable. Hence, growing demand for wearable devices have boosted digital health hardware market growth over the projected timeframe.
Europe Market, By Country
Germany digital health market is forecasted to expand at a significant pace of 28.8% CAGR during the forthcoming time period. High prevalence of chronic disorders, rapid technological advancements and acceptance of novel technology is set to impel the growth of digital health market in this country. In Germany, mobile health market is gaining momentum, with mobile applications widely being used for improving health and lifestyle. For instance, the Digital Healthcare Act (DVG) officially granted doctors in Germany to prescribe medications via apps to their patients. Thus, huge array of mHealth apps for patients and doctors for health improvements are constantly being developed in the country, thereby augmenting the local market growth.
Competitive Market Share
Major market players operating in digital health market include BioTelemetry, Allscripts Healthcare, McKesson Corporation, Koninklijke Philips, Cerner Corporation, Cisco and Qualcomm among others. Companies undertake various strategies such as acquisitions, geographic expansions, mergers, collaborations, new product launch to strengthen their market position. For instance, in March 2020, Phillips announced the launch of HealthSuite System, the launch is expected to help Phillips expand their customer base and revenue generation from the digital health space. The system helps with data integration and expedites the deployment of digital propositions for healthcare.
Digital health and care refers to tools and services that use information and communication technologies (ICTs) to improve diagnosis, prevention, treatment and monitoring of a disorder. Digital health technology also has potential application in the field of precision medicine. This is an emerging approach for disease treatment and prevention based upon individual’s genetic composition, environment, and lifestyle. Using digital health technology in precision medicine is set to revolutionize the way diseases are treated through a research effort in Europe. Furthermore, high market penetration of technically advanced digital health devices and the existence of favorable government initiatives is expected to drive digital health market in Europe during the forecast period.