The COVID-19 pandemic has significantly boosted digital health technology development and adoption, however the question is what does 2023 behold for digital health. To gain insight into the investment, funding, business opportunities, partnerships, and key trends that will shape the digital health industry in 2023, R2G has conducted a comprehensive survey and released the findings in a new whitepaper.
The COVID-19 pandemic has accelerated the adoption and development of digital health solutions, and has also led to increased investment in the digital health sector in recent years. Typically, focus has been on rapidly adapting to the innovative technologies into healthcare systems across the world. Even though trend towards digitization of healthcare is expected to continue in the future, the question remains what 2023 will bring to the digital health industry in terms of funding, business growth and partnerships!
In order to convene opinions and predictions of the digital health decision makers on topics like trending themes, partnership building, driving forces of the digital health industry and many more, R2G launched a global annual survey in December 2022 (closed on January 15, 2023). The survey included stakeholder judgement from various institution categories of digital health industry including healthcare providers/ hospitals, health insurances, pharmaceuticals, med-tech companies, research facilities, digital health companies and start-ups.
The findings of this survey, addressing key questions such as the primary customer segments for digital health solution providers, or countries with the greatest business potential for digital health solutions, are presented in our latest whitepaper titled: “Global Digital Health Business Outlook Survey– 2023: What will 2023 bring to the Digital Health Industry?” (Get your copy of the whitepaper by clicking here)The survey results mainly reveal seven key trends in 2023.
KEY TRENDS FOR 2023
THE OPTIMISM ABOUT THE DIGITAL HEALTH INDUSTRY IS SLOWLY DECLINING IN 2023: Attitudes toward the digital health industry, as measured by the Mood Index, dropped from 2,1 to 2,0 for 2023 on a scale between 0 and 3.
THE MAJORITY OF DIGITAL HEALTH SOLUTION PROVIDERS EXPECT ACCESS TO CAPITAL AND REVENUE TO REMAIN AT THE PREVIOUS YEAR’S LEVEL, BUT WANT TO HIRE NEW TEAM MEMBERS: Half of the respondents offering a digital health solution expect similar funding (52%) and sales (51%) as in 2022, with 52% expressing their willingness to hire new team members.
IT WILL BE ALL ABOUT AI, DIGITAL ECOSYSTEMS, AND DTX IN 2023: Trending topics in the digital health industry in 2023 will be artificial intelligence (68%), digital health ecosystems (40%) and digital therapeutics (36%).
STARTUPS AND INDUSTRY OUTSIDERS SUCH AS AMAZON AND APPLE ARE STILL SEEN AS THE MAIN DRIVERS OF THE DIGITAL HEALTHCARE MARKET IN 2023, BUT INCUMBENTS ARE CATCHING UP: Over half of the survey respondents (53%) say that digital health start-ups will be the key drivers, followed by tech giants (45%). Within this group Apple and Amazon stand out. Companies originating in the healthcare system like Pharma, health insurances or providers seem to catch up. Their perceived importance for 2023 increased significantly compared to 2022.
PARTNERSHIPS ARE THE BIG THING IN 2023: 64% of the 2023 survey participants are interested in building partnerships with either digital health companies (45%), hospitals (43%), health insurance companies (42%), and pharmaceutical companies (36%).
THE USA IS STILL THE MOST ATTRACTIVE DIGITAL HEALTH MARKET IN 2023: The top 3 countries predicted to have the most attractive digital health markets in 2023 are still the same as in 2022: USA (72%), Germany (45%), and the UK (30%), with France chasing at the fourth rank.
KEY SOURCES OF REVENUE WILL BE DIGITAL HEALTH SERVICES, RPM, AND BUNDLE SALES: The top three projected revenue sources for digital health companies in 2023 are the same as in 2022: digital health services (47%), RPM tools and services (39%), and bundle sales (36%).
R2G’s Global Business Outlook survey takes a deep dive in all these topics to gather industry stakeholder’s projections. Despite a slower pace of growth compared to previous years, the digital health market is expected to show positive signs of development in 2023. However, investment in the market may be impacted by the after effects of the COVID-19 pandemic and/or the situation in Ukraine, which could lead to an economic downturn in this year. The whitepaper can be downloaded 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!
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