R2G’s annual global survey on the Digital Health Business Outlook uncovers the top therapeutic areas and digital health services with highest business potentials in 2024. In the eyes of digital health decision-makers, mental health solutions have lost a lot of their business potential for 2024.

Representing the collective expectations of 831 industry professionals, R2G’s annual Global Digital Health Business Outlook-2024 survey unveils the therapeutic areas and digital health services poised to wield the highest business potential in 2024.

Mental health maintains its pivotal role, securing the highest business potential for digital health solutions in 2024, according to 56% of survey participants. A dip from 67% in 2023. Digital health mental health solutions might have seen their peak in 2023. Similar to telehealth in 2022 or digital diabetes solutions in 2018.

High numbers of announcements, partnerships and acquisitions might also indicate the end of the mental health hype. There were many in recent months. For instance, DarioHealth has acquired the digital mental health company Twill (fka Happify Health) for $20M USD. Headspace announced the roll out of its integrated mental health care services with mindfulness, coaching and clinical mental health services targeting the employer clients, following its merger with Ginger in 2021. Several digital mental health startups landed fundings in the early 2024 already (Headlight’s $18M USD, and Tava Health’s $16M USD).

It is interesting to see that with increasing time and experience, digital solutions from the therapeutic areas of oncology and cardiology increasingly have more business potential.

Cardiology (43%) stands firm in the second position with the highest business potential. Home-use sensors and devices are transforming the digital cardiology solutions market, empowering patients to monitor their heart health remotely. Following on that, CardioSignal with its heart disease detection software-as-a-medical device, secured $10M USD from the investors in January 2024. Withings also announced at CES 2024 its newest smart device BeamO which combines ECG, oximeter, stethoscope and thermometer.

Notably, Oncology jumps above metabolic health and women’s health, and steps into the top three therapy areas with highest business potential in 2024, according to the 35% of survey respondents.

Advancements in AI and machine learning propel digital oncology space, fostering new therapy developments, accelerated diagnosis, and personalized care delivery. Consequently, in February 2024, ArteraAI raised $20M USD for its multimodal AI technology to personalize cancer treatment plans with the information retrieved from digital pathology images. Another cancer diagnostics solution provider Elephas also raised $55M USD in January this year.

The survey results in 2024 overall underscore a stable top five therapeutic areas, including Metabolism & Endocrinology (31%) and Women’s health (31%), emphasizing their enduring relevance within the digital health landscape.

Besides therapy areas, the study also sheds light on the digital health services with the highest business potential in 2024. Accordingly, Data analytics and AI services claim the lead, garnering the highest support from 55% of the survey participants. This also aligns with the other findings of the survey where Artificial Intelligence (AI) was deemed as the hot topic of 2024 by a staggering 88% of the participants (Refer to “AI and Big Tech Are Leading the Charge in Digital Health Market in 2024”).

Moreover, as mentioned in the recent research “The Pharma’s Rush into Artificial Intelligence (AI)” by R2G, in the past three years, 10 big pharma companies such as AstraZeneca, Sanofi and Bayer sealed 139 AI-focused collaborations. This underlines the growing significance of AI and related services in the digital health market.

Among the digital health services with highest business potential, Remote patient monitoring (RPM) services secure the second position by 44%. Despite losing its top spot last year, RPM remains integral in hospital-at-home services, contributing to increasing national healthcare capacities. In fact, in February 2024, HealthSnap closed $25M Series B funding for its RPM and chronic care management solutions. Additionally, GE Healthcare partnered with Biofourmis recently to support the patients outside of hospital settings, and provide integrated solutions of the two companies in the US.

Digital chronic care services follow closely at 39%, underlining the increasing significance of extending beyond real-time monitoring to encompass a blend of digital tools, educational resources, and holistic personalized interventions. Notably in this segment, Welldoc expanded its chronic care management platform by introducing weight management services last year. Additionally, TruDoc’s acquisition of Wellthy Therapeutics this year also signifies the continuing business potential of the services in the upcoming year.

Telehealth, while falling to the fourth spot, maintains valid business potential in 2024. The persistent demand for remote and accessible healthcare in rural areas, particularly for chronic and mental health conditions, along with regulatory support in various countries, contributes to its ongoing significance.

While caregiver services, self-testing services, and care navigation services are noted as promising sectors, they are recognized as needing additional time for maturity. Digital clinical trial services maintain a consistent position, with 20% anticipating high business potential in 2024.

Overall, the digital health landscape of 2024 is characterized by the enduring prominence of mental health, the steadfast presence of cardiology, and the growing focus on oncology. With data analytics and AI leading the digital health services frontier, the industry anticipates a progress marked by innovation driven by AI applications. RPM, digital chronic care and telehealth services are anticipated to retain their significance in terms of business potential in the digital health market.

The whitepaper describing the results from “Global Digital Health Business Outlook Survey – 2024” can be downloaded in here.

R2G has been constantly monitoring the global digital health industry since 2010. We provide strategic advice for how to build and grow a successful digital health business within all therapeutic areas, business models and regions. We are happy to talk and share our experience! For more information reach out to [email protected]