The global digital transformation market size was USD 76.34 billion in 2018. The major factor driving digital transformation in healthcare includes higher penetration of smartphones and high adoption of cloud technology-related HCIT services. As big data effectively manage population health management programs through data analytics and eventually cuts expenses on chronic health conditions. Besides, sharing health data with academic researchers has grown with healthcare IT and it helps in developing new medical drugs and therapies.
Furthermore, rapidly growing aging population and the subsequent increase in number of chronic diseases has propelled the demand of health monitoring digital devices in healthcare industry. In addition to rise in demand, the implementation of numerous healthcare reforms like affordable care act (PPACA) and patent protection supplemented the market growth. But at the same time, growing concerns regarding patient’s data safety and security may hinder the market growth.
Moreover, assurance of transparent information management with the compilation of an endless amount of information relating to people's conduct and health from new industrial players is a key problem. Additionally, health systems regulations are poorly tailored to fast modifications in technology that delays the market growth. Other factors that oppose the digital transformation in healthcare includes issues relating to the authorization and certification of digital technologies, licensing of inter-jurisdictional practice, and delegation of duties, prescription or reimbursement of certain mobile apps, teleworking of clinicians and remuneration of telehealth operations.
On geographical front, Asia-Pacific dominated the global digital transformation in healthcare market which was valued at USD 25.95 Billion in 2018 and is expected to do so over the forecast period 2019 – 2025. However, North America is predicted to have fastest growth rate by acquiring 14.2% CAGR during the forecast period. In Asia-pacific, Australian state federal government took initiative of HealthSmart which is four-year technology programme in the state of Victoria and HealthConnect. This has boosted adoption of digital technology in healthcare industry. Apart from that, ageing population and higher chronic diseases in this region has given rise to the transition where main focus is prevention instead of treatment, population health instead of individual and higher use of technology.
The prominent players handling global digital transformation market in Healthcare includes Fitbit, HealthVault, Apple, Osso VR, SentiAR, Xealth, Meditech. Most of the players lead the way in this market by being the part of merger and acquisitions or by partnerships. For ex- in August 2019, RedCard Systems and Zelis Healthcare declared that they will merge organizations to develop a healthcare payments optimization platform. The main focus of this amalgamation would be to deliver best-in-class claim cost savings performance, deeper electronic penetration and a transformational billing and payments experience, holistic way to offer benefit to payers, providers and consumers.
Segment Overview of Global Digital Transformation in Healthcare Market
Regional Overview, 2015-2025 (USD Billion)
- North America
- Rest of Europe
- Asia Pacific
- Southeast Asia
- Rest of APAC
- South America
- Rest of South America
- Middle East and Africa