HealthTech sector landscape
The HealthTech industry has seen substantial expansion in recent years, largely propelled by the widespread acceptance of digital healthcare services. The COVID-19 pandemic has brought about a shift in people’s attitudes, resulting in increased confidence in virtual healthcare delivery and a noticeable increase in participation by service providers, a trend that has been historically low. In our latest insight piece, we summarise the global HealthTech sector landscape.
- Global HealthTech sector continues to experience strong growth with a total market size of US$860bn+ in 2022, expected to grow at a 15% CAGR to 2028
- COVID-19 disrupted the healthcare industry with HealthTech being the most direct beneficiary with an increase in both user and provider adoption
- Healthcare eCommerce continues to be the path to monetisation, however, more companies are now adding digital health services to provide holistic offerings
- Revenue Cycle Management (RCM) is one of the largest segments within the HealthTech sector with the US occupying ~55%+ of the global RCM market
- Regulatory mandates for adoption of Electronic Health Records are driving growth for the RCM market. Outsourcing is expected to grow faster on the back of growing reimbursement complexity, need for increasing cash flow for hospitals operating at low margins, and offshoring capabilities
- Expect to see significant cross-over, partnership and/or merger between pure healthcare eCommerce and digital health services platforms
- Offline + Online integration expected to continue with traditional healthcare service providers adding digital capabilities through inorganic path
- Consolidation in the digital HealthTech sector is expected to increase due to market fragmentation and slowdown in funding availability
- Healthcare Analytics and RCM outsourcing players will continue to see significant traction from PE investors due to high growth and profitability
Download the full report for more insights regarding the global HealthTech sector landscape
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