Achieving Leadership in Digital Health
At $95 billion in 2019, Digital Health (DH) is rapidly approaching 8% of the $12 trillion global healthcare market.
Today 56% of DH is computer/web-based (eHealth) and 44% is mobile (mHealth). However in the next five years, mobile, offering greater ease of use, convenience, and accessibility, will grow more quickly and overtake computer/web.
In addition, while hardware is still leading in eHealth with a share of 56%, software is the driver of mHealth (63%) and is growing faster.
Despite this rapid growth, the industry remains extremely fragmented. Except for the more established Health Information Technology (HIT) segment, where the top 10 players (i.e. Cerner, McKesson, IBM, etc.) account for 45% of the market, we see opportunities for consolidation, most likely by the hand of large insurers or tech giants.
So how can healthcare organizations tackle this emerging opportunity, optimize strategy, and investments? What market forces will push the industry forward? Which segment(s) will drive consolidation? And how will demand and adoption by patients and healthcare providers impact growth?
Naturally, regulation will play a critical role (i.e. interoperability of healthcare information systems and reimbursement for digital care).
To keep pace with this rapidly evolving space, Luminous is mapping and tracking the dynamics of several key market forces:
· Access to healthcare and technology
· Healthcare delivery and provider consolidation
· Big data and real-world evidence solutions
While each of these elements alone represents a significant driver in healthcare technology progress, individually they add limited value in investment returns and patient outcomes.
Digital health value creation and leadership will be generated by those organizations that clearly and directly focus on developing and delivering a best in class customer experience through the convergence of these dynamics.
To that end, Telehealth will become increasingly mobile. Other eHealth solutions, such as Health Information Technology (HIT) will continue to add mobility to their offerings while maintaining a strong cloud-enabled computer/web presence.
Digital Medicine (DiMe) and Digital Therapeutics (DTx) represent the next frontier. While only 6% of the market today, we expect these two segments to grow substantially as they are significantly more attractive and provide measurable value to patients, healthcare providers, payers, and investors.
The pace of digital transformation in healthcare may at times puzzle industry leaders and investors. Ultimately, success will come to those who marry access, delivery, and technology solutions with a best in class user experience.
By putting the Spotlight on patients, Luminous can help you navigate the complexity, unpack opportunities, and build digital health strategies and solutions.