US Digital Health Market Analysis

US Digital Health Market Analysis


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US's Digital Health market is projected to grow from $88.6 Bn in 2022 to $302.7 Bn by 2030, registering a CAGR of 16.6% during the forecast period of 2022-30. One of the main factors driving the growth would be the prevalence of chronic diseases and patients being open to adopting new technologies as a part of patient care. The market is segmented by solution, by deployment, and by end-use. Some of the major players include Cerner Corporation, Allscripts & Apple Inc.

ID: IN10USDH005 CATEGORY: Digital Health GEOGRAPHY: US

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US Digital Health Market Executive Summary

US's Digital Health market is projected to grow from $88.6 Bn in 2022 to $302.7 Bn by 2030, registering a CAGR of 16.6% during the forecast period of 2022-30. In 2020, U.S. national health expenditure was seen to rise high up to 19.7% of its Gross Domestic Product (GDP) from 17.6% in 2019. According to the World Health Organization (WHO) Global Health Expenditure database, US healthcare expenditure per capita has risen to $10,921.01 as compared to $ 10,515.32 in 2018. Healthcare spending in the US has been growing at a faster rate than the overall economy for many years.

Digital healthcare entails the use of digital tools and communication platforms to offer healthcare services and information remotely. Video consultations with physicians, remote monitoring of patient's health status, and the use of mobile applications to track symptoms and manage chronic diseases are examples of this. They have been widely impactful in providing convenience and accessibility to patients and potentially lower healthcare costs. The US is found at the forefront of adopting healthcare innovations with a number of companies and organizations creating and integrating a wide range of digital health solutions.

US Digital Health Market Analysis

Market Dynamics

Market Growth Drivers

US digital market is expected to be driven by the rising prevalence of chronic diseases and with advancing geriatric population. By extending access to treatment and allowing patients to get care remotely, digital healthcare can assist satisfy this need. Increasing healthcare costs has generated space for low-cost provisions driven by advancement in digital technologies, and an increase in access to electronic health data and various data analytics tools and thus have been the key to providing more personalized patient care.

Moreover COVID – 19 pandemic has led to more and more adoption of digital ways of treatment both for care providers as well as for patients. Furthermore, support from the US government through improvised policies and good funding for the adoption of digital health technologies will rise.

Market Restraints

Increasing adoption of digital technologies will lead to the requirement for more robust data security and privacy, the breach of which might lead to cybersecurity issues. Moreover, the lack of standardized protocol to manage a wide range of technology and its applications can also be a barrier to the efficient exchange of information and continuity of care. Lack of reimbursement policy to provide full coverage of insurance can also be a main factor with a major role to play in allowing patients and providers to adopt the new technology.

Competitive Landscape

Key Players

  • Cerner Corporation (USA)
  • Allscripts (USA)
  • Apple Inc. (USA)
  • Epic System (USA)
  • McKesson Corporation (USA)
  • AT&T
  • AirStrip Technologies
  • HIMS (USA)

Notable Recent Deals

October 2020: Teladoc completed its massive $18.5 billion acquisition of Livongo which provides diabetes monitoring and remote monitoring devices to create a leading consumer digital health platform.

October 2019: Cerner Corporation and Amazon Web Services have collaborated to develop "Project Apollo," a next-generation cloud-based health platform.

Healthcare Policies and Regulatory Landscape

The Centers for Medicare and Medicaid Services (CMS) has created telemedicine reimbursement standards that allow Medicare reimbursements for some telemedicine services given to patients in rural regions. Intending to run a high-quality healthcare system CMS offers access to coverage, better medical care, and improved health.

The Health Insurance Portability and Accountability Act (HIPAA) is a federal legislation that mandates healthcare providers and organizations to safeguard Personal Health Information (PHI)

The 21st Century Cures Act: This legislation is designed to speed up the development, review, and approval of drugs and devices, which will help to foster innovation in digital healthcare.

The Affordable Care Act (ACA) promotes the use of Electronic Health Records (EHRs) and other Health Information Technology (HIT), which boosts the development of digital health technologies.

Reimbursement Scenario

In the United States, the reimbursement landscape for digital healthcare can be complicated and differs depending on the type of service or technology.

In 2021, CMS has expanded the list of covered telehealth services for Medicare beneficiaries to include more than 130 additional services. CMS has also introduced new reimbursement models such as the Merit-Based Incentive Payment System (MIPS) and the Alternative Payment Models (APM), that rewards providers for using digital health technologies and achieving better outcomes.

Private insurance firms may have their own reimbursement criteria for digital healthcare services, which might differ significantly. Some private insurers may deny coverage for some digital healthcare services, or they may need pre-authorization before providing coverage. Some employer plans are self-insured and they may not follow the same reimbursement policies as public or commercial insurance plans.

1. Executive Summary
1.1 Digital Health Overview
1.2 Global Scenario
1.3 Country Overview
1.4 Healthcare Scenario in Country
1.5 Digital Health Policy in Country
1.6 Recent Developments in the Country

2. Market Size and Forecasting
2.1 Market Size (With Excel and Methodology)
2.2 Market Segmentation (Check all Segments in Segmentation Section)

3. Market Dynamics
3.1 Market Drivers
3.2 Market Restraints

4. Competitive Landscape
4.1 Major Market Share

4.2 Key Company Profile (Check all Companies in the Summary Section)

4.2.1 Company
4.2.1.1 Overview
4.2.1.2 Product Applications and Services
4.2.1.3 Recent Developments
4.2.1.4 Partnerships Ecosystem
4.2.1.5 Financials (Based on Availability)

5. Reimbursement Scenario
5.1 Reimbursement Regulation
5.2 Reimbursement Process for Diagnosis
5.3 Reimbursement Process for Treatment

6. Methodology and Scope

Digital Health Market Segmentation

The Digital Health Market is segmented as mentioned below:

By Solution (Revenue, USD Billion):

  • Software
  • Services

By Deployment (Revenue, USD Billion):

  • Cloud-based
  • On-premises

By End-use (Revenue, USD Billion):

  • Diagnostic Centres
  • Healthcare Payers
  • Healthcare Research Centres
  • Hospitals & Clinics
  • Nursing Care Centres
  • Others

Insights10 will provide you with the reports within 10 key parameters which are:

  1. Market Overview
  2. Market Growth Drivers & Restraints
  3. Epidemiology of Disease Type
  4. Market Segmentation
  5. Market Share
  6. Competitive Landscape
  7. Key Company Profiles
  8. Healthcare Policies & Regulatory Framework
  9. Reimbursement Scenario
  10. Factors Driving Future Growth

Based on our many years of experience, we believe that these are the parameters that are critical to decision-making for business stakeholders. Our focused approach to developing reports focused on 10 key parameters, enabled us to arrive at the name “Insights10”.

 

Stage I: Market Data Collection

Primary Interviews: We have developed a network of experts, freelancers, and researchers across countries through which we engage with local experts to gather key data points and assumptions about each market. We also engage regularly with some of the best market research agencies such as Atheneum, GuidePoint, GLG, etc. to conduct surveys and interviews, and build intelligence. We have language translators as a part of our team, who between them can cover 30+ languages allowing us to extract better local insights.

Secondary Data Collection: We have developed strong expertise and experience in secondary data collection methods for developing unique data sets and research material. We gather data from multiple reliable sources to maintain a high level of accuracy and consistency. The market data is analyzed and forecasted using appropriate statistical and coherent models. The report offers an overall analysis of the market size, growth, and market share as well as a segment-level analysis of the specific market. Our report includes precise, to-the-point information related to the overall market, competition, growth drivers, challenges, regulatory updates, and competition.

Data Sources: We have access to multiple highly reliable free and subscription data sources. We have many years of experience to understand which sources are more dependable for what and which to prefer for the reliable and latest information. The key sources of information include the following, but are not limited to:

 

 

Stage II: Market Data Analysis and Statistical Model

Market Trends: We generally look at macro parameters and micro indicators. The macro parameters include changes in government policies, demand and supply of the market, government intervention programs, and major market share. The micro indicators are GDP growth, market size, market volume, etc. We also understand nuances specific to each country like the US, Canada, India, Germany, etc., and have worked across 60+ countries and hence not only understand global trends but how these differ by country, how payment models, market structure, cultural parameters, etc. differ in each country.

Market Sizing and Analysis: Our expert data analytics team has created various market forecast models by employing the top-down approach i.e. starting with the large overall market and segmenting different areas and the bottom-up approach i.e. starting with population and epidemiology and rolling up based on spend, etc., estimating the size of the market, and distributing among the geographic and/or product segments.

The top-down approach is mainly used for new product forecasting and the bottom-up approach is used for demand estimation of any product for different countries summed up to form the total market. We are able to round off insights and build stronger forecasts because we always do both these methods and triangulate the final numbers.

The study on the market covers the analysis of the leading geographies such as Asia-Pacific, Africa, Europe, Middle East, North America, and  Latin America for the period of 2022 to 2030. The qualitative analysis covers the industry landscape and trends, market opportunities, competitive landscape, and policy and regulatory scenario, and the quantitative analysis covers different market estimates and forecasts.

Data Triangulation & Validation:

Data triangulation of various sources and results of the research are carried out by benchmarking with reliable sources such as industry statistics, statistical databases, and company-level averages, etc.

We make sure to finalize the numbers in alignment with the market research. Firstly, our internal experts ensure thorough validation and checking to ensure accurate and precise analysis and then validation is also done using a multiple-data analysis model. Two-level validation is done and entails the finalization of the report scope and the way of representation pattern.

 

 

Stage III: Interpretation and Presentation

Analysis & Interpretation: The information gathered is then analyzed and synthesized. The second series of interviews are done if necessary to check and validate. The future opportunities are analyzed by understanding product commercialization and many other factors. It also comprises the analysis of data discrepancies observed across various data sources. Information procured from secondary and primary results is then, interpreted by considering the following parameters: (a partial list)

  • Establishing market drivers and trends
  • Analyzing the regulatory landscape to understand future growth
  • Market Segment based analysis to obtain revenue/volume
  • ​Analyzing current needs and determining penetration to estimate the market

Insights: Our reports deliver actionable insights backed with supporting facts and figures to assist you in achieving exemplary growth. Our in-depth analyses are interspersed with relevant insights and statistics to offer an executive-level view of a given market. The description helps in correlating many minor factors affecting the market and their impact on the different segments within the market.

Data curated from the analysis and interpretation are drawn to portray all in one consolidated report.

Presentation & Reporting: The market research report is presented in different forms such as charts by using a scientific approach for easy understanding. Historic, current, and future analysis is provided for each market in terms of both value and volume. The size of the market is interpreted in the US Dollar value and the respective unit, based on the product, for volume consumption.

The foreign exchange rates are calculated on the respective dates and for the respective regions covered in the study.

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  • Market size and forecasts from 2022 to 2030
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  • Analysis of the market share and competitive landscape
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Last updated on: 20 February 2024
Updated by: Ritu Baliya

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