Will 2024 Be the Trend Reversal for the Digital Health Market?

The annual survey of digital health solution providers by Research2guidance shows a more positive outlook for the industry in 2024. AI will be the main topic in 2024 and will also lead to a shift in competitive advantages towards Big Tech.

The annual survey of digital health stakeholders by Research2Guidance was conducted in January 2024. A total of 831 digital health decision-makers from digital health companies, pharmaceuticals, medtech companies, hospitals, and insurance companies took part. 86% of participants have at least one digital application on the market or are planning one for 2024.

The results of the study “Global Digital Health Business Outlook Survey – 2024” are available for download as a whitepaper here.

It looks like market participants see light at the end of the tunnel for 2024. The negative trend of the last three years regarding the prospects for the digital health industry has come to an end. That is the good news.

Still, the outlook for the digital healthcare business in 2024 is mixed. Digital health solution providers see a growth trend for their own business but are more pessimistic about the overall market.

Changing preferences for revenue streams, customer segments and digital health services with the highest business potential show that the digital health market has still not found the optimal business model. The route to reimbursement is the most promising business model for many digital health solution providers. However, realistically, reimbursement will only be possible for most people in the next few years. For 2024, most people still consider the chances for their digital solutions to be slim.

Unsurprisingly, AI will be the hot topic in 2024. Companies will rush to figure out how this technology can support their service offerings. We can expect an inflation of “AI-based” solutions in 2024.

The AI mega trend also seems to strengthen the position of Big Tech companies such as Apple, Amazon, Alphabet and Microsoft in the digital health market. The outstanding AI technology skills as well as the financial resources of the Big Tech companies probably played a decisive role in the evaluation. The expected difficulty in access to capital in 2024 also worsens the competitive position for not well-funded digital health startups and growers against Big Tech companies.

The digital health track record of Big Tech companies is not really great, and one has to see how they will be able to leverage their assets and financial strength to build AI platforms and solutions that become an integrated part of most digital health solutions.

Innovation and growth will come through partnerships. Even more market participants were of this opinion than in recent years.

However, the high priority that companies have for partnering does not mean that partnerships will also lead to successful innovations or the expansion of digital health business models. Most of these partnerships have at least not been successful in the past (See also R2G report “Partnerships in Digital Health – 2023, How to successfully manage digital health activities and partnerships“).

The key will be finding and managing the right partner and partnership model. Establishing efficient innovation and partnership processes will be also a key driver for successful partnerships in 2024. (see also www.R2GConnect.com, the largest partnership building platform for the global digital health market).

It will be exciting to see to what extent the trend reversal takes place in 2024. This would be desirable for all market participants.

Research2guidance will continue to monitor the market situation. If you have any questions, please do not hesitate to contact us: [email protected]