R2G’s 2025 Global Digital Health Business Outlook Report: Cautious Optimism Amid Market Uncertainty
The Global Digital Health Business Outlook Report 2025 by Research2Guidance, based on insights from 1,234 participants, reveals a cautiously optimistic industry with strong growth ambitions, increasing partnerships, and a dominant focus on AI, despite funding challenges and market uncertainty. While hiring and revenue expectations remain positive, declining business satisfaction and shifting industry dynamics highlight a sector adapting to post-pandemic realities.
Published Today: Key Insights from the Latest Research2Guidance Report.
The Global Digital Health Business Outlook Report 2025 by Research2Guidance (R2G) has been released today, offering an in-depth analysis of the current state of the HealthTech industry. The findings reflect a market that remains cautiously optimistic about its future, despite facing significant challenges such as funding constraints and market uncertainty. While growth ambitions, new partnerships, and a strong focus on artificial intelligence (AI) continue to shape the industry, shifting dynamics and tempered enthusiasm highlight the complexities of the HealthTech landscape in 2025.
A Market Adjusting to Post-Pandemic Realities
The HealthTech sector has evolved significantly since the surge in digital health investments during the COVID-19 pandemic. While optimism remains, the sector is no longer riding the same wave of enthusiasm that characterized previous years. According to R2G’s Mood Index, the industry sentiment stands at 2.0 out of 3.0, reflecting a generally positive outlook but with a clear acknowledgment of ongoing challenges. Compared to the heightened expectations of the pandemic era, companies are now navigating a more mature and measured landscape.
Business Satisfaction Declining, but Growth Ambitions Remain
One of the more concerning trends identified in the report is a growing dissatisfaction among HealthTech companies. In 2024, 37% of companies reported dissatisfaction with their business performance, a notable increase from 29% in 2023. This decline in satisfaction signals that while the industry is still advancing, many businesses are struggling with market conditions, regulatory hurdles, and the competitive environment.
Despite these concerns, growth ambitions remain strong. Many companies are focusing on revenue expansion, innovation, and market positioning to stay ahead in an increasingly competitive field.
A Surge in Partnerships to Strengthen Market Positioning
Collaboration continues to be a major strategy for growth, with 84% of companies planning to establish new partnerships in 2025 – a significant jump from 72% in 2024. The most common partnerships are expected to be formed with other HealthTech firms (57%) and hospitals (42%). These collaborations indicate a shift toward ecosystem-based approaches, where companies seek synergies with complementary players to drive innovation and market penetration.
Hiring Outlook: Optimism in Workforce Expansion
Encouragingly, 62% of HealthTech companies plan to hire in 2025, suggesting continued confidence in business expansion. This hiring trend is primarily supported by anticipated revenue growth, with 50% of companies expecting increased revenues. While hiring plans indicate optimism, the challenges of talent acquisition and retention in the digital health space remain pressing issues for many organizations.
Funding Remains a Pain Point
Access to capital continues to be a primary concern for HealthTech firms, with 56% of companies actively seeking new funding in 2025. Notably, most of this demand is for early-stage investments, as companies look for seed funding to support their business models. However, overall market expectations remain tempered, with only 27% of respondents anticipating significant market growth.
Investors, while slightly more optimistic than in 2024, remain cautious. The report indicates that 32% of investors expect improved conditions, a modest increase from 30% in the previous year. This cautious stance highlights the need for businesses to demonstrate clear value propositions and sustainable growth plans to attract investment.
AI Continues to Dominate the Digital Health Agenda
As expected, artificial intelligence remains at the forefront of HealthTech innovation. The report underscores that AI is the top focus area for 2025, outpacing other key digital health trends such as Remote Patient Monitoring (RPM) and Digital Therapeutics (DTx). AI-driven solutions, particularly in health data analytics and predictive modeling, are seen as the most promising areas for future growth.
Shifting Industry Influence: The Rise of Big Tech
The influence of startups in HealthTech appears to be waning, with only 44% of industry stakeholders viewing them as key market drivers – a decline from previous years. Meanwhile, Big Tech continues to solidify its dominance, with 48% of respondents identifying major technology firms as the most influential players in the industry. Among them, Apple leads the pack, with 65% of industry professionals recognizing it as the top HealthTech player. This shift signals a growing reliance on established tech giants for innovation, infrastructure, and investment.
Mental Health, AI, and Health Data Analytics Lead Business Opportunities
The report identifies mental health as the most promising area in digital health, with 59% of respondents highlighting it as a key business opportunity. Additionally, AI-driven health data analytics is viewed as having the highest potential (66%), reinforcing the industry’s strong focus on leveraging data for improved healthcare outcomes.
Revenue Streams Evolving: Shifting Business Models
Revenue generation in HealthTech is undergoing notable shifts. While service charges remain the primary revenue source for 54% of companies, technology licensing fees are gaining traction (29%). On the other hand, employer interest in HealthTech solutions is declining, dropping from 40% in 2023 to 27% in 2025. These changes reflect an evolving monetization landscape where companies must diversify their revenue strategies to remain competitive.
A Market in Transition
The Global Digital Health Business Outlook Report 2025 paints a picture of an industry in transition. While optimism persists, particularly around AI, partnerships, and revenue growth, challenges such as funding difficulties and market uncertainty continue to weigh on business confidence. The industry is adapting to new realities, shifting from a startup-driven ecosystem to one increasingly influenced by major tech firms.
As HealthTech companies navigate this evolving landscape, strategic partnerships, sustainable business models, and continued innovation will be crucial in determining long-term success. The insights from this year’s report provide valuable benchmarks for businesses looking to align their expectations and strategies with broader industry trends.
For those interested in deeper insights and detailed analysis, the full Global Digital Health Business Outlook Report 2025 is available now from Research2Guidance.
