Global Digital Transformation Market in Healthcare: Industry Analysis and Forecast to 2025

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Digital health has become a buzz word with increasing deployment of digital health platforms such as telehealth, mobile health and other wireless solutions across hospitals and nursing homes so as to provide patients with real time healthcare services. Impact of digital technology among end-user verticals such as public, retail, banking, financial service and insurance (BFSI) and Manufacturing sectors is phenomenal, but it is becoming a game changer technology in healthcare sector with increasing dependency of end-user on digital health platform. These platforms are being increasingly implemented to perform remote monitoring for chronic disease and to access electronic medical and personal health record through broadband and mobile. Increasing demand for m-health (mobile health) with innovative mobile applications and solutions is expected to catalyze the growth of digital health market across globe.

Market Value and Forecast

The global digital transformation market in healthcare is anticipated to grow at a double-digit CAGR during the forecast period. Growth of the global digital transformation market in healthcare is mainly driven by increasing per capita healthcare spending, growing ageing population, increasing introduction of ehealth initiative by governments, proliferation of wearable and mobile devices, increasing demand for cloud-based services, growing adoption of EHR, enhanced customer experience and online visibility. Moreover, the trend that follows with the growth of digital transformation market in healthcare are introduction of healthcare mobile applications, introduction of incentive programs by government agencies in developed countries, acquisitions and mergers, partnerships and collaborations, outsourcing of operations.

Segmentation by Type

The global digital transformation market in healthcare can be segmented, based on type, into solution and service. Out of these segments, solution accounted for over 50% of the global digital transformation market in healthcare share in 2014. The service segment market is expected to dominate the global digital transformation market in healthcare by 2025. In addition, the service segment is anticipated to expand at a double-digit CAGR from 2015 to 2025.

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The solution segment can be sub segmented into connected electronic health record (EHR), connected billing, connected healthcare information system, CRM, ERP, collaboration tools, and remote patient monitoring. Out of these sub segments, connected electronic health record (EHR) dominated the global digital healthcare segment in 2014, but is expected to lose out its market share to other solutions such as connected healthcare information system, collaborations tools and remote patient monitoring solution sub segment by 2025.

Segmentation by Service

The service segment can be sub segmented into customer application development, business process outsourcing (BPO), consulting, and integration service. Out of these sub segments, integration service sub segment dominated the global digital healthcare segment in 2014 and is expected to continue its dominance in the sub segment by 2025.

Segmentation by Customer Service

The customer service sub segment can be categorized into custom app development, cloud based service, big data analytics and healthcare mobility. Out of these categories, big data analytics category dominated the customer service sub segment in 2014 and is expected to continue its dominance in the sub segment by the end of 2025.

Segmentation by End User

End user includes clinic, government hospital, general hospital and specialty hospital. Among end users government hospital dominated the overall digital transformation market in healthcare in terms of value share in 2014 and is projected to remain dominant throughout the forecast period.

Key Regions

The global digital transformation market in healthcare includes seven major regions – North America, Western Europe, Asia-Pacific Excluding Japan (APEJ), Japan, Eastern Europe, Latin America and Middle East & Africa. Of all the regions, North America dominated the market with over 50% of overall digital transformation market in healthcare share of in 2014. Western Europe ranked second with more than 25% market share in 2014, followed by Japan. In addition, Asia-Pacific is anticipated to become the fastest growing region in the digital transformation market in healthcare.

Key Players

Some of the key players identified in global digital transformation market in healthcare are IBM Corporation, Accenture PLC, AT&T Inc., CGI Group Inc., Syntel Inc., and Deloitte Consulting LLP. Major players in the market follow the strategy of introducing innovative and cost effective solution to buy out competition. In addition, strategic partnership, collaborations and joint ventures are the other major strategies followed by the digital health solution provider to outperform competitors.

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