Digital Health Market Forecast to Reach CAGR of 5-6% by 2031, Driven by Greater Awareness of Self-monitoring Practices

Global Digital Health Market Overview
The global digital health market is projected to grow at a strong rate of around 21% over the next five years, driven by rising smartphone penetration, expanding use of wearable devices, increasing demand for remote healthcare, and rapid advancements in artificial intelligence and machine learning.

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The shift toward preventive healthcare, growing investments in digital health startups, supportive regulatory policies, and deeper integration with electronic health records continue to accelerate market expansion. As healthcare systems worldwide transition toward patient-centric, value-based care models, digital health technologies are becoming indispensable for improving accessibility, reducing costs, and enhancing patient outcomes.

Understanding Digital Health
Digital health refers to the use of digital tools and technologies to support healthcare delivery, enable remote care, and enhance patient engagement. This includes mobile health apps, wearable sensors, telemedicine platforms, artificial intelligence-driven diagnostic tools, and integrated monitoring systems. These solutions allow real-time data collection, continuous monitoring, and personalized treatment plans, making healthcare more efficient and patient friendly. By leveraging modern connectivity and advanced analytics, digital health supports preventive care, early disease detection, and improved clinical decision-making.

Increasing Adoption of Smartphones and Wearable Devices to Propel Market Demand
Global smartphone usage has grown exponentially, with approximately 4.3 billion users in 2023—equivalent to 54% of the world's population. This widespread penetration provides the foundation for mobile health (mHealth) applications used for tracking daily activity, sleep patterns, nutrition, and stress levels. Popular apps such as MyFitnessPal, Strava, and Sleep Cycle have become essential tools for wellness management.
Wearable devices have further strengthened digital health adoption by enabling continuous monitoring of vital health parameters. Devices like Fitbit, Garmin, and the Apple Watch provide real-time insights into heart rate, blood oxygen, physical activity, ECG patterns, and even sleep quality. For instance, Apple Watch Series 7 and newer models introduced advanced health tracking features, transforming the watch into a personal digital health companion.
In chronic disease management, wearables play a critical role. Solutions like Dexcom G6 for diabetes allow continuous glucose monitoring and real-time alerts to the patient and healthcare provider. Remote monitoring of chronic conditions significantly reduces hospital visits and improves treatment adherence. By offering early detection capabilities and personalized insights, wearables and smartphones are reshaping patient engagement and supporting the growth of the digital health market.

Continuous Innovation in Digital Health Driving Market Growth
Rapid innovation across digital health technologies is creating transformative changes in healthcare delivery. Artificial intelligence, machine learning, telehealth solutions, and smart wearable sensors are enabling more accurate data analysis, early diagnosis, and continuous monitoring. These technologies simplify clinical workflows, enhance precision in treatment, and provide patients with real-time health feedback.
Some notable innovations include
In January 2024, Withings launched BeamO, a 4-in-1 device combining ECG, thermometer, oximeter, and stethoscope capabilities for home-based health monitoring
In September 2023, Apple introduced the Apple Watch Series 9, featuring enhanced sensors, improved performance with S9 SiP, expanded health apps, and new functionality such as double-tap gesture for seamless use
In August 2021, Fitbit launched the Charge 5, offering advanced health insights through ECG monitoring, stress tracking, sleep analysis, and personalized wellness guidance
These advancements enable device manufacturers to gain a competitive edge. Consequently, companies are increasing investments in research and development, enhancing product capabilities, and expanding operations in high-growth regions.

Favorable Funding Environment Fuels Market Growth
Increasing investments in digital health startups are significantly boosting innovation and accelerating the adoption of advanced digital health solutions. Funding is helping companies expand geographic reach, enhance product capabilities, and integrate advanced technologies such as AI and predictive analytics. This improves solution effectiveness and increases consumer and provider confidence.
Recent related developments include
In July 2024, K Health secured $50 million in equity funding to expand its AI-enabled virtual care services
In October 2023, HealthEC received additional financing from HLM Venture Partners and Labcorp Venture Fund to strengthen its AI-based population health management platform
In July 2022, Elation Health raised $50 million in Series D funding to expand its API-enabled EHR system and support value-based primary care providers
In June 2022, WEMA Health raised $3.5 million in seed funding and launched a digital obesity management program in the UAE
These investments enhance innovation and create a strong pipeline of technologies improving accessibility, affordability, and efficiency of care delivery.

Technology Segment Outlook
The digital health market is segmented by technologies such as telehealth, mHealth, electronic health records, healthcare analytics, digital therapeutics, healthcare management systems, and others.
Telehealth continues to gain strong traction due to growing demand for remote consultations and the rapid expansion of virtual care services. Its growth was significantly accelerated by the COVID-19 pandemic and ongoing investments in digital infrastructure.
Electronic health records constitute another major segment, supported by regulatory requirements, digital transformation initiatives, and the need for seamless interoperability between healthcare systems.
mHealth technologies are witnessing rapid expansion due to increased smartphone usage, rising health awareness, and the prevalence of chronic diseases. Their integration with wearables, AI algorithms, and digital diagnostic tools continues to boost adoption across diverse user groups.

Regional Outlook: North America Expected to Dominate the Digital Health Market
North America remains one of the most advanced markets for digital health, supported by strong technological infrastructure, favorable policies, high healthcare spending, and early digital adoption. The United States leads the region with cutting-edge developments in telehealth, AI-driven diagnostics, wearable devices, and EHR systems.
Supportive government initiatives, extensive reimbursement coverage for digital health solutions, and a robust ecosystem of digital health startups contribute to regional dominance. The presence of major technology players and healthcare innovators further strengthens North America's leadership in this market.

Competitive Landscape Analysis
The digital health market includes a mix of established companies and emerging innovators. Key players include
• Koninklijke Philips N.V.
• Medtronic plc
• GE HealthCare
• OMRON Corporation
• Google Inc.
• Johnson & Johnson Services, Inc.
• Siemens Healthineers AG
• Apple Inc.
• Veradigm LLC
• athenahealth

Global Digital Health Market Segmentation
Market Size & Forecast (2024-2031), By Product & Service
Software
Services
Hardware
Market Size & Forecast (2024-2031), By Technology
Telehealth
mHealth
Electronic Health Records (EHRs)
Healthcare Analytics
Digital Therapeutics
Healthcare Management Systems
Others

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About Medi-Tech Insights

Medi-Tech Insights is a healthcare-focused business research & insights firm. Our clients include Fortune 500 companies, blue-chip investors & hyper-growth start-ups. We have completed 100+ projects in Digital Health, Healthcare IT, Medical Technology, Medical Devices & Pharma Services in the areas of market assessments, due diligence, competitive intelligence, market sizing and forecasting, pricing analysis & go-to-market strategy. Our methodology includes rigorous secondary research combined with deep-dive interviews with industry-leading CXO, VPs, and key demand/supply side decision-makers.