Healthcare is now moving into our phones and smart devices.
The digital healthcare market continues to boom year after year.
For one, the market is primarily driven by AI, remote monitoring, and personalized care.
The graphic above comes from Fortune Business Insights.
TL;DR
- Between 2024 and 2032, the digital health care economy is predicted to grow from $204.47 billion to $850.30 billion at a CAGR of 19.5%
- Approximately 42% of all digital health funding was allocated to companies focused on AI.
- North America dominates the digital healthcare market (37.5%).
Note: Fortune Business Insight has released an updated report indicating that the projected figure is now much higher ($1.5 trillion by 2032).
Digital Healthcare Market Projections
Here’s a breakdown of the projected annual growth:
| wdt_ID | wdt_created_by | wdt_created_at | wdt_last_edited_by | wdt_last_edited_at | Year | Projected market size ($B) | Year-over-year change |
|---|---|---|---|---|---|---|---|
| 1 | Monica Ebunoluwa | 16/06/2026 01:41 PM | Monica Ebunoluwa | 16/06/2026 01:41 PM | 2024 | 204.47 | – |
| 2 | Monica Ebunoluwa | 16/06/2026 01:41 PM | Monica Ebunoluwa | 16/06/2026 01:41 PM | 2025 | 244.34 | 19.50% |
| 3 | Monica Ebunoluwa | 16/06/2026 01:41 PM | Monica Ebunoluwa | 16/06/2026 01:41 PM | 2026 | 291.99 | 19.50% |
| 4 | Monica Ebunoluwa | 16/06/2026 01:41 PM | Monica Ebunoluwa | 16/06/2026 01:41 PM | 2027 | 348.93 | 19.50% |
| 5 | Monica Ebunoluwa | 16/06/2026 01:41 PM | Monica Ebunoluwa | 16/06/2026 01:41 PM | 2028 | 416.97 | 19.50% |
| 6 | Monica Ebunoluwa | 16/06/2026 01:41 PM | Monica Ebunoluwa | 16/06/2026 01:41 PM | 2029 | 498.28 | 19.50% |
| 7 | Monica Ebunoluwa | 16/06/2026 01:41 PM | Monica Ebunoluwa | 16/06/2026 01:41 PM | 2030 | 595.44 | 19.50% |
| 8 | Monica Ebunoluwa | 16/06/2026 01:41 PM | Monica Ebunoluwa | 16/06/2026 01:41 PM | 2031 | 711.55 | 19.50% |
| 9 | Monica Ebunoluwa | 16/06/2026 01:41 PM | Monica Ebunoluwa | 16/06/2026 01:41 PM | 2032 | 850.30 | 19.50% |
Key Drivers of the Digital Healthcare Market
AI is a central driver, with applications evolving beyond diagnostics. Generative AI is being integrated into software to automate administrative tasks, summarize clinical notes, and enhance clinical workflows.
Apart from AI, the following categories rank as the top:
- Remote Patient Monitoring (RPM)
- Digital Therapeutics (DTx)
- Wearable Health Technology
- Telehealth and Virtual Care
- Interoperability
| wdt_ID | wdt_created_by | wdt_created_at | wdt_last_edited_by | wdt_last_edited_at | Segment | Estimated 2024 Value ($B) |
|---|---|---|---|---|---|---|
| 1 | Monica Ebunoluwa | 16/06/2026 02:05 PM | Monica Ebunoluwa | 16/06/2026 02:05 PM | Artificial Intelligence (AI in healthcare) | 26.6 |
| 2 | Monica Ebunoluwa | 16/06/2026 02:05 PM | Monica Ebunoluwa | 16/06/2026 02:05 PM | Remote Patient Monitoring (RPM) / devices | 50.4 |
| 3 | Monica Ebunoluwa | 16/06/2026 02:05 PM | Monica Ebunoluwa | 16/06/2026 02:05 PM | Wearable Health Tech | 23.1 |
| 4 | Monica Ebunoluwa | 16/06/2026 02:05 PM | Monica Ebunoluwa | 16/06/2026 02:05 PM | Telehealth / Virtual care | 42.6 |
Devices like smartwatches and continuous glucose monitors are moving beyond fitness tracking to provide clinically relevant data directly to healthcare providers.
In 2024, the U.S. wearable technology market reached $23.07 billion, with 80% of Americans owning at least one medical device.
In terms of telehealth and virtual care, post-pandemic adoption has stabilized and grown, especially among younger populations.
In 2023, 55% of Americans reported using telehealth services, up from 10% in 2019.
Virtual visits are projected to represent 25–30% of all U.S. medical visits by 2026
Digital Healthcare Market Geographic Breakdown
North America holds the largest market share in the digital healthcare market, capturing 37.5% in 2024.
This is according to Grand View Research.
| Region | 2024 share (%) |
| North America | 37.5 |
| Europe | 27.6 |
| Asia-Pacific | 25.4 |
| Latin America, the Middle East, and Africa (combined) | 9.5 |
Significant investments in key digital health technologies, such as AI, telehealth, and EHRs, are common in North America. It’s easy to figure out why the region leads.
ELI5
Think of digital healthcare as putting a doctor’s office inside your phone or watch.
Instead of going to the hospital all the time, you can talk to a doctor online, wear a smartwatch that tracks your heart or sleep, and get medicine plans made just for you using smart computers.
This is growing fast because a lot of people are getting older and need regular care, diseases like diabetes and heart problems are common, so people need tools to check their health regularly.
Technology like smart computers, apps, and wearables makes it easier for doctors to check patients quickly. Also, the Internet and 5G can help doctors see patients in distant towns without having to travel.
But there are challenges like keeping your health data safe, making sure the devices “talk” to each other, and creating fair rules for everyone.
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