In Europe, the digital health industry is going through a time of rapid expansion and innovation. The market is loaded with prospects for both healthcare and technology enterprises, with a projected compound annual growth rate (CAGR) of 16% from 2023 to 2030.
This development is attributed to a number of factors, such as the rising incidence of chronic diseases, technological advancements, improved internet access, and the COVID-19 pandemic's rapid uptake of digital health technologies. These forces are altering the way healthcare is delivered, transforming the healthcare environment, and empowering patients. They are also enhancing access to care.
Europe's digital health markets are booming, with certain major nations spearheading the sector's expansion. The development of wearables, remote monitoring, and diagnostic software is being fuelled by the emergence of the United Kingdom and France as major investors in health technology products.
Digital Health Market Overview
The market for digital health in Europe was estimated to be worth USD 45.3 billion in 2022, and from 2023 to 2030, it is anticipated to increase at a CAGR of 16%. As a result, the market is expected to grow up to USD 80.44 billion by 2027.
The expansion of the market is caused by the rising number of people in the European region who suffer from various illnesses, particularly chronic diseases. According to Eurostat, 35.2% of Europeans were projected to be dealing with chronic health issues in 2021. With each passing year, the EU's senior population grows significantly, which is expected to accelerate the need for more medical personnel to address the demand for treatment and is also helping the region's digital health sector.
Digital technology advancement, better internet access, and rising demand for virtual healthcare services are among the key elements expected to speed up growth. Additionally, the current COVID-19 pandemic problem has encouraged the use of telehealth services and digital health technologies, which is expected to propel market expansion.
Biggest markets of Digital health in Europe
Europe's digital health market has seen rapid expansion, and there are a large number of new start-ups and well-established businesses operating there. For the next five years, the United Kingdom (UK) and France are anticipated to continue to be the top two investors in health tech products. The fastest-growing segment in the UK is remote monitoring and wearables. The 'golden triangle' of London, Oxford, and Cambridge is where the majority of the UK's health tech growth is centered. Five of the top 25 institutions in the world for life sciences and medicine are located in this region, which is also a prominent center for research and development.
Regarding France, which is the second-largest market when it comes to health tech investment, screening, and diagnostic software is the fastest-growing health tech segment. Radiology analytics is one segment of that market. General diagnosis for chronic illnesses is another interesting area.
The largest market, Germany, is currently falling behind in terms of health tech digitalization. There are more and more elderly persons and those living with chronic illnesses in Germany. The Digital Health Care Act, which would alter Germany's healthcare system, was passed by the German parliament in 2019. Users in remote locations now have access to both in-person and online healthcare thanks to this project. The new law played a significant role in Germany's market expansion.
Although the market will gradually warm up, investing is anticipated to begin in order to catch up. The innovative healthcare sectors and openness to outsourcing, which is anticipated to continue relevant, make the Nordic, Dutch, and Swiss markets appealing.
Mobile Health segment
The largest share of the European digital health market in 2021 belonged to the mobile health sector. One of the key elements helping the segment to take the lead among all segments is the rise in the number of mHealth apps in Europe. Based on the technology, the mHealth segment held the highest revenue share of 33.6% in 2022.
The usage of digital health platforms is anticipated to increase in response to growing smartphone adoption and the escalating need for remote patient monitoring. For instance, 92% of young people in the EU-27 countries used their mobile phones to access the internet in 2019, and 94% of those young individuals used the Internet daily. Older adults use telehealth and smartphone apps to monitor and protect their health conditions and communicate with healthcare professionals. The widespread use of smartphones and the internet in Europe has also expanded the potential applications for health, fitness, and medical apps, supporting market expansion.
Key players in the Digital Health market in Europe
The leading players are concentrating on technical advancement and cost-effective product creation in response to the growing need for digital platforms for better remote healthcare services. The market expansion is also predicted to be fueled by product innovation strategies and rising industry consolidation activities, such as collaboration and partnership by the main players to expand the product range.
Some of the key factors projected to propel market expansion include the introduction of startups and rising acquisition activities by the top industry players to expand their service portfolios and market share.
For example, Oura Ring, founded in Finland in 2013, is a producer of a wearable ring that monitors vital signs using sensor technology. The Oura Ring offers a special combination of style, practicality, and cutting-edge health-tracking capabilities. Its key benefit is that it has a clean and simple look while offering customers detailed insights and analytics on their sleep, exercise levels, and general health.
Another example is Mendelian, which is based in the United Kingdom and founded in 2015, is a diagnostics platform using AI that focuses on uncommon diseases. It is intended for use by professionals and helps them to provide an earlier diagnosis to their patients, improving patient care. Mendelian can help an already overloaded healthcare system save time and money by facilitating the early detection of rare diseases.
Conclusion
The European market for digital health is expanding and offers huge possibilities for investors, technology firms, and healthcare providers. Accessibility, patient-centered treatment, and better health outcomes are given priority in this revolutionary period in healthcare. The future of healthcare will be greatly influenced by the continuous developments and partnerships in the European digital health sector.
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