The convergence of healthcare and technology, often referred to as “Digital Health,” has revolutionized the healthcare sector globally. In India, this transformation is evident through various applications and innovations that aim to improve healthcare accessibility, affordability, and quality.
Market overview – Healthtech
Digital Health:
The Digital Health market encompasses technologies like mobile health apps, wearables, and telemedicine, empowering users to make informed health decisions. It supports monitoring, early disease detection, and mental health management. Divided into Fitness & Well-Being and eHealth segments, it supports fitness tracking, mental wellness, and better access to care. This evolving market has strong global demand and room for growth.
The total revenue in the Digital Health market is projected to reach US$12.20 billion in 2023. With an annual growth rate (CAGR 2023-2027) of 20.40%, the market is expected to reach US$25.64 billion by 2027.
Digital Fitness & Well-Being:
This segment is expected to generate a revenue of US$10.12 billion in 2023, with an annual growth rate (CAGR 2023-2027) of 21.59%, resulting in a projected market volume of US$22.12 billion by 2027.Digital Fitness & Well-Being Devices: Revenue is projected to be US$4.9 billion in 2023, growing annually at 23.79%. By 2027, it is expected to reach US$11.5 billion.Digital Fitness & Well-Being Apps: The revenue is estimated to be US$5.2 billion in 2023, with an annual growth rate (CAGR 2023-2027) of 19.41%. By 2027, it is projected to be US$10.6 billion.
Industry Key players
HealthTech startups are currently emphasizing the use of IoT (Internet of Things) and Artificial Intelligence (AI). About 37% of HealthTech startups are using IoT technology, and 54% are using AI and Machine Learning to offer their services. While healthcare is becoming more available, there are still challenges due to the country’s large population and strained healthcare system. Total funding in the healthtech companies in India plunged 55 per cent from USD 3.2 billion in 2021 to USD 1.4 billion in 2022.
Investment in Digital Health in India
The healthcare sector in India is experiencing rapid expansion, making it an attractive destination for Foreign Direct Investment (FDI). Digital Health tools, such as telemedicine and online pharmacies, are seen as solutions to address the limited access to healthcare facilities in rural and semi-urban areas due to a shortage of doctors. The growth of the IT sector in India has played a crucial role in the emergence of Digital Health. Below summarized a few regulations related to investments in the HealthTech segment.
Conclusion
The Indian Healthtech market presents a lot of opportunities, but with every opportunity, there are bound to be risks involved. Innovation in this sector is yet to reach a saturation point, with new products frequently being introduced on the market. The legislative framework to protect and regulate such developments will remain one step behind, as it is yet to be seen how the industry will mature. Regardless, regulators have to anticipate and ensure that in the absence of specific laws, existing laws can be harnessed to adequately regulate emerging technologies.
While the country projects the growth of HealthTech market to grow at 20.4% by 2027, with the activities of new emerging startups and innovation will ignite the fundings both from private investors as well as the government. Assuming there would be 5% more than the reported growth, the industry is expected to exhibit CAGR of 25% in the next five years from 2023 to 2027.
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