Entering the European Digital Healthcare Market
The European digital health market is predicted to grow at a CAGR of 27.1% from 2020 to 2025. The exceptional growth comes from the increase in demand for remote healthcare services for monitoring and consultancy of patients due to the rise in incidences of chronic diseases across the globe as well as the pandemic giving a boost.
Drivers of European digital health growth
- Mobile applications are widely used for improving health and lifestyle
- Mobile health apps for both patients and doctors for managing diseases and the growing need for health improvements are continuously being developed
- High market penetration of technically advanced digital health devices
- Pressure on the growing demand for healthcare and reduction of cost
- Government-supported programs and funds to move to a paperless, efficient, and cost-effective healthcare system.
Key challenges in the European health market
- Regulatory requirements: the new MDR guidelines will require stricter and stronger clinical evidence for clinical technologies. This makes the barriers to entering the EU market more difficult;
- Highly fragmented market: As each country within the EU has its own healthcare infrastructure, language, and processes, will require a custom infrastructure approach for new markets to enter;
- Funding: Even though there are subsidized programs and VCs interested in investing in them, the fragmented market and fast-growing competing solutions make it difficult to find the right partner with the right funds.
Top 3 largest digital markets to enter
The European digital health market is the second-largest market after the US. The largest digital health markets are the UK, Germany, and France.
As the largest digital health market, the UK is benefitting from starting with digitalization 30 years ago. It currently has the most sophisticated systems globally, used to track and deliver patient-centered services. This culture and advancement will help UK become a world leader in medical AI solutions.
The German-speaking countries (Germany, Austria, and France)
As the largest medical device market after the US, the German market is forecasted to experience strong growth and implementation of new digital health applications. Germany has a high technology adoption with the relief of regulations during the pandemic.
Also with funding Germany ranks behind the UK with €900m funding versus €2bn. Funding in the UK for digital health tech startups.
The digital health market in France is behind the fastest-growing markets, but the expectation is this growth will be caught up in the next years. France is struggling with the growing costs of healthcare such as prescription medication and the increasing number of chronic diseases.
EuroDev will assist you with entering the European digital healthcare market. With our local expertise, we can help you understand the diversity of Europe while helping your company to gain a foothold in the European market.
EuroDev, established in 1996 with offices in The Netherlands and France, has a single, defined purpose to help mid-sized North American companies expand their business in Europe. We have created a proven, successful business development model and since our founding, have partnered with over 300 companies to help them define and meet their European business goals. Services provided include Sales Outsourcing, HR Outsourcing, and Digital Marketing.
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