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US Digital Healthcare Market Research Report: By Digital Health Technology (Tele-Healthcare, M-Health, Healthcare Analytics, Digital Health System), By Component (Software, Hardware, Services), By Application (Cardiology, Diabetes, Neurology, Sleep Apnea, Oncology, Gastroenterology, Others) and By End User (Healthcare Providers, Healthcare Payers, Others) - Forecast to 2035


ID: MRFR/ICT/13400-HCR | 100 Pages | Author: Garvit Vyas| December 2023

US Digital Healthcare Market Overview:


As per MRFR analysis, the US Digital Healthcare Market Size was estimated at 66.87 (USD Billion) in 2023. The US Digital Healthcare Market Industry is expected to grow from 81.14(USD Billion) in 2024 to 300 (USD Billion) by 2035. The US Digital Healthcare Market CAGR (growth rate) is expected to be around 12.623% during the forecast period (2025 - 2035).


Key US Digital Healthcare Market Trends Highlighted


The US Digital Healthcare Market is experiencing significant trends driven by technological advancements and changing consumer expectations. Key market drivers include the increasing adoption of telehealth services, accelerated by the COVID-19 pandemic, which has led to a broader acceptance of virtual consultations among patients and providers. Additionally, a growing emphasis on remote patient monitoring and wearable health devices is helping to enhance patient engagement and care management, making healthcare more accessible and efficient in the US. Opportunities to be explored in this market involve the expansion of healthcare data analytics and artificial intelligence applications.


As health systems emphasize value-based care, there's a demand for tools that can analyze patient data effectively to improve outcomes and reduce costs. Also, enhancing cybersecurity measures for digital health platforms remains crucial to build trust among consumers and healthcare institutions. Recent trends show a rise in consumer-driven healthcare, with more patients seeking digital solutions that empower them to take control of their health. This shift is evident in the growth of mobile health applications that provide users with personalized wellness plans and medication reminders, further supporting the trend of self-managed health. Additionally, initiatives from the US government aimed at improving healthcare interoperability are facilitating seamless data sharing between providers, enhancing care coordination.Overall, the US Digital Healthcare Market is poised for continued growth as it adapts to these evolving trends and meets the needs of a more connected and health-conscious population.


US Digital Identity in Healthcare Market size



Source: Primary Research, Secondary Research, MRFR Database and Analyst Review


US Digital Healthcare Market Drivers


Increasing Demand for Telehealth Services


The US Digital Healthcare Market Industry is experiencing significant growth driven by the burgeoning demand for telehealth services. According to the Health Resources and Services Administration, approximately 60 million Americans utilized telehealth services during the COVID-19 pandemic in 2020, representing a dramatic increase compared to previous years. This surge has prompted major healthcare providers, such as Mayo Clinic and Cleveland Clinic, to invest heavily in telehealth technologies and platforms, significantly enhancing their service delivery capabilities. The growing preference for remote consultations and follow-ups is also motivating barriers to deployment, leading to the establishment of stricter regulations that facilitate the remote delivery of healthcare. These shifts position telehealth as a central pillar of the US Digital Healthcare Market and forecast future growth, with analysts predicting that telehealth services alone could generate as much as USD 250 billion in revenue annually by 2025.


Rising Incidence of Chronic Diseases


The increasing prevalence of chronic diseases, such as diabetes and hypertension, is serving as a key driver for the US Digital Healthcare Market Industry. Statistics from the Centers for Disease Control and Prevention state that over 30 million Americans are diagnosed with diabetes, a number projected to reach 54 million by 2030, leading to a significant demand for continuous monitoring and management solutions. Companies like Apple and Google have begun integrating health-monitoring features into their devices, promoting not just fitness, but also chronic disease management. These adaptations directly cater to patients who require ongoing care, effectively encouraging digital health solutions that provide real-time health data to physicians and result in better patient outcomes. The development of remote monitoring devices and health applications is expected to further bolster growth in this sector.


Healthcare Payment Reform Initiatives


Significant reforms in healthcare payment structures are fostering the expansion of the US Digital Healthcare Market Industry. With the transition from fee-for-service models to value-based care, providers are incentivized to adopt digital healthcare solutions that enhance patient outcomes while controlling costs. According to the Centers for Medicare & Medicaid Services, over 34 million beneficiaries are enrolled in value-based care programs, facilitating investments in digital health technologies aimed at improved patient engagement and outcome tracking. Major health systems like Kaiser Permanente have actively embraced this model, incorporating digital health tools in their care paths to optimize resources and enhance care efficiency. The increasing focus on value-based payment models indicates a structural shift in how medical services are delivered and valued, driving investments in digital healthcare innovations.


US Digital Healthcare Market Segment Insights:


Digital Healthcare Market Digital Health Technology Insights


The Digital Health Technology segment represents a vital component of the US Digital Healthcare Market, which has been steadily evolving due to advancements in technology and increasing consumer demand for health-related digital solutions. With the rapid adoption of technology in healthcare settings, digital health technologies are reshaping patient care, streamlining healthcare delivery, and enhancing the overall healthcare experience. Within this segment, Tele-Healthcare has become increasingly important, allowing patients to consult healthcare professionals remotely, thus reducing the need for physical visits and enhancing access to care, particularly in rural or underserved areas.


The rise of mobile health (M-Health) applications has similarly transformed the landscape by empowering individuals to monitor their health on-the-go, providing a significant boost to preventive care and chronic disease management. Healthcare Analytics plays a crucial role in this sector by leveraging data to improve healthcare outcomes, optimize operational efficiency, and reduce costs, thereby enabling providers to make data-informed decisions that benefit patients. Furthermore, Digital Health Systems integrate various technologies, ensuring seamless communication between patients and healthcare providers and fostering an environment conducive to collaborative care.


As these elements intertwine, the US Digital Healthcare Market segmentation indicates a holistic growth trajectory that is characterized by an increasing emphasis on patient-centric models and innovative solutions aimed at enhancing healthcare accessibility and efficiency. This growing focus on integrating technology into healthcare is driven by various factors, including rising healthcare costs, an increasing prevalence of chronic diseases, and the need for more personalized treatment options. Alongside these positive trends, challenges remain, such as data security concerns and the need for regulatory clarity.However, with ongoing investments and a strong push towards digital transformation in healthcare, the Digital Health Technology segment is set for significant progress, promising enhanced health outcomes and a shift towards more efficient care delivery systems. The overall landscape supports a thriving ecosystem where each aspect of the segment contributes to the collective goal of improving healthcare accessibility, quality, and management in the United States. .


US Digital Identity in Healthcare Market segment



Source: Primary Research, Secondary Research, MRFR Database and Analyst Review


Digital Healthcare Market Component Insights


The US Digital Healthcare Market has a robust segmentation focused on Components, which includes Software, Hardware, and Services, each playing a crucial role in advancing healthcare delivery. Software solutions dominate the landscape, enabling efficient management of patient records and facilitating telemedicine, thereby improving accessibility. Meanwhile, Hardware, such as mobile devices and wearable technology, is significant for remote patient monitoring and enhances the patient experience through real-time data collection. Services, including consulting and implementation, are essential for integrating digital solutions into existing healthcare systems, driving adoption and ensuring compliance with increasing regulatory standards.The growth in the US Digital Healthcare Market is propelled by rising demand for advanced healthcare solutions, increasing investments in healthcare IT, and the growing focus on patient-centered care. However, challenges remain, including data security concerns and the need for interoperability among various digital platforms. Overall, the US Digital Healthcare Market is witnessing substantial advancements in Component segments, driven by a supportive regulatory environment and technological innovations aimed at improving healthcare outcomes.


Digital Healthcare Market Application Insights


The US Digital Healthcare Market, particularly in the Application segment, has been witnessing notable growth and transformation. This segment includes a broad array of applications, such as those focused on Cardiology, Diabetes, Neurology, Sleep Apnea, Oncology, and Gastroenterology, among others. Cardiology applications are leveraging digital technologies to improve patient monitoring and disease management, which significantly enhances the quality of care provided. Diabetes management tools, including mobile applications and glucose monitoring systems, facilitate self-management and better health outcomes.Neurology applications play a crucial role in managing conditions such as epilepsy and multiple sclerosis, employing advanced data analytics for patient monitoring and treatment recommendations. For Sleep Apnea, digital solutions enable continuous monitoring and contribute to timely interventions, helping to reduce health risks. Oncology innovations in this segment provide personalized treatment plans and improve patient engagement. Gastroenterology applications streamline the management of chronic conditions, aiding in early detection and intervention. The responsiveness of these applications to patient needs drives their significance and dominance in the US healthcare landscape, leading to improved patient outcomes and a shift towards more proactive healthcare delivery. As technology continues to evolve, the opportunities for further advancements in these applications remain substantial, reflecting ongoing trends in the US Digital Healthcare Market.


Digital Healthcare Market End User Insights


The US Digital Healthcare Market has seen significant growth, particularly within its End User segment, which includes Healthcare Providers, Healthcare Payers, and Others. Healthcare Providers have been pivotal in driving the adoption of digital solutions, as they seek ways to enhance patient care and streamline operations through technology. This segment is characterized by an increasing trend toward telemedicine and digital health records, enabling providers to offer more efficient services. Healthcare Payers play a crucial role, as they manage reimbursement processes and are increasingly investing in digital health solutions to improve patient outcomes while controlling costs.


This makes them a formidable segment that leverages technology to facilitate better care management and claims processing. The "Others" category comprises various stakeholders, including technology vendors and regulatory bodies, who contribute to the overall ecosystem by supporting innovation, compliance, and further integration of digital health solutions. Overall, the US Digital Healthcare Market segmentation reveals a complex landscape where collaboration among these stakeholders is essential for the advancement of digital health solutions.


US Digital Healthcare Market Key Players and Competitive Insights:


The US Digital Healthcare Market is a rapidly evolving landscape characterized by technological advancements, regulatory changes, and an increasing demand for efficient healthcare delivery systems. This market encompasses a wide range of services, including telemedicine, electronic health records (EHR), health management software, and mobile health applications, all of which are transforming how healthcare providers interact with patients. The competitive insights within this market reveal a diverse array of players, each leveraging unique strengths to capture market share and drive innovation. Companies are focused on enhancing patient engagement, improving clinical outcomes, and reducing healthcare costs, presenting various opportunities and challenges as emerging technologies continue to reshape the industry.SAP has established a significant presence in the US Digital Healthcare Market, leveraging its robust enterprise solutions to deliver value across the healthcare ecosystem. The company's strengths stem from its comprehensive product offerings that integrate data analytics, cloud solutions, and enterprise resource planning (ERP) capabilities. SAP's focus on interoperability ensures that healthcare providers can seamlessly exchange data across platforms, leading to better patient care and streamlined operations. The company’s partnerships with healthcare organizations aim to harness big data analytics, thus enabling predictive modeling and enhanced decision-making processes. Utilizing frameworks for real-time data utilization, SAP has positioned itself as a vital player in improving operational efficiency and supporting healthcare organizations in navigating the challenges posed by digital transformations.


Allscripts Healthcare Solutions is a prominent player in the US Digital Healthcare Market, offering a wide array of solutions ranging from electronic health records and practice management to revenue cycle management and data analytics. The company's key products, such as its EHR and population health management platforms, cater to a diverse clientele that includes hospitals, outpatient care centers, and independent physician practices. Allscripts has built a solid market presence by focusing on interoperability and open architecture, allowing healthcare organizations to connect and communicate effectively. The company's strengths lie in its ongoing commitment to ensure that providers can access and share critical patient information efficiently. In recent years, Allscripts has also engaged in strategic mergers and acquisitions to bolster its portfolio and expand its capabilities in the market, reflecting its vision to lead the digital health transformation in the US. These initiatives position Allscripts as a key player capable of addressing the evolving needs of healthcare providers within a complex and competitive landscape.


Key Companies in the US Digital Healthcare Market Include:



  • SAP

  • Allscripts Healthcare Solutions

  • CVS Health

  • Medtronic

  • Anthem

  • UnitedHealth Group

  • IBM Watson Health

  • Amazon Care

  • Teladoc Health

  • McKesson Corporation

  • Google Health

  • Microsoft

  • Deloitte

  • Epic Systems

  • Cerner Corporation


US Digital Healthcare Market Industry Developments


The US Digital Healthcare Market has seen noteworthy developments recently, with significant growth driven by innovations and increased adoption of telehealth services. Companies like CVS Health and Teladoc Health are capitalizing on this trend by enhancing their telehealth platforms to improve access to healthcare services. In September 2023, UnitedHealth Group acquired a major stake in a digital mental health firm, expanding its offerings in the mental wellness space. Furthermore, in August 2023, SAP entered a partnership with Epic Systems to integrate their health solutions, streamlining healthcare operations. The demand for digital health solutions continues to rise, leading to increased valuations across the sector. 


For instance, Medtronic has recently reported a substantial growth in its digital health revenue, indicative of the market's expansion. Over the past two to three years, the sector has witnessed various mergers and collaborations, including the acquisition of Cerner Corporation by Oracle, which was finalized in June 2022, showcasing a trend of consolidation aimed at enhancing technological capabilities. Overall, the evolving landscape of digital healthcare in the US is characterized by strategic partnerships, acquisitions, and a sustained increase in technology adoption among healthcare providers and patients alike.


US Digital Healthcare Market Segmentation Insights


Digital Healthcare Market Digital Health Technology Outlook



  • Tele-Healthcare

  • M-Health

  • Healthcare Analytics

  • Digital Health System


Digital Healthcare Market Component Outlook



  • Software

  • Hardware

  • Services


Digital Healthcare Market Application Outlook



  • Cardiology

  • Diabetes

  • Neurology

  • Sleep Apnea

  • Oncology

  • Gastroenterology

  • Others


Digital Healthcare Market End User Outlook



  • Healthcare Providers

  • Healthcare Payers

  • Others

Report Scope:
Report Attribute/Metric Source: Details
MARKET SIZE 2018 66.87(USD Billion)
MARKET SIZE 2024 81.14(USD Billion)
MARKET SIZE 2035 300.0(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR) 12.623% (2025 - 2035)
REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR 2024
MARKET FORECAST PERIOD 2025 - 2035
HISTORICAL DATA 2019 - 2024
MARKET FORECAST UNITS USD Billion
KEY COMPANIES PROFILED SAP, Allscripts Healthcare Solutions, CVS Health, Medtronic, Anthem, UnitedHealth Group, IBM Watson Health, Amazon Care, Teladoc Health, McKesson Corporation, Google Health, Microsoft, Deloitte, Epic Systems, Cerner Corporation
SEGMENTS COVERED Digital Health Technology, Component, Application, End User
KEY MARKET OPPORTUNITIES Telehealth expansion, AI-driven diagnostics, Remote patient monitoring, Digital therapeutics growth, Interoperability solutions.
KEY MARKET DYNAMICS Rising telehealth adoption, Increasing regulatory support, Growing patient engagement, Data security concerns, Integration of AI technologies
COUNTRIES COVERED US


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