Research2Guidance (R2G) has recently released their global annual study titled the Global Digital Health Business Outlook Survey – 2022: What will 2022 bring to the Digital Health Industry? This study sheds light on what 2022 would bring to the digital health industry regarding investments, funding, business potential, and vital trends. In this whitepaper, R2G summarizes the results from 322 digital health decision-makers across the globe that shared their views and insights on how the digital health industry will evolve in the coming year.
Research2Guidance Survey Overview
The whitepaper answers the following questions:
- Which industry will be the driving force to provide successful digital health solutions?
- Which Tech Giant will impact the digital health market the most in 2022?
- Which successful business models and digital health solution types represent the highest business potential?
- Which are the top 3 countries representing the best digital health markets in 2022?
- How will investment in digital health companies evolve in 2022?
WHAT WILL 2022 BRING TO THE DIGITAL HEALTH INDUSTRY?
Healthcare’s challenges are deeply rooted in data problems. Disconnected systems are trapping data across the healthcare spectrum, whether clinical, claims, labs, pharmacy, or other data. Artificial Intelligence (AI) remains a central component of any digital transformation strategy and has the potential to yield immediate and long-term benefits for clinical, operational, financial, and administrative performance. The R2G study found that the trending topics in the digital health industry in 2022 will be AI (57%), Digital Therapeutics (44%), and Digital Health Ecosystems (42%). Overall, the digital health industry mood is still positive in 2022 but lower than in 2021.
DIGITAL HEALTH STARTUPS AND TECH GIANTS ARE TO BE THE KEY DRIVERS OF THE DIGITAL HEALTH MARKET IN 2022
According to the Research2Guidance study, over half of the survey respondents state that digital health startups will be the pivotal drivers, and 40% of the respondents believe that the tech giants will play a vital role in the digital health industry. Other digital health players, such as pharmaceutical companies, are expected to have less impact on the market in 2022.
The second most important driver of the digital health market for 2022 will be tech giants. 40% of survey participants believe big tech companies will, on a large-scale, launch new digital health solutions, including connected devices and sensors, consumer-focused healthcare apps, health records, clinical trial solutions, telehealth services, etc.
MENTAL HEALTH SERVICES OFFER THE BEST BUSINESS POTENTIAL IN 2022
Models of remote healthcare in the home are both scaling and evolving. The Research2Guidance study found that survey respondents rated mental health (45%), cardiology (37%), and metabolism & endocrinology (35%) to be the top 3 leading therapeutic areas in the digital health industry in 2022. In previous years, digital solutions for diabetes and heart disease management were thought to have the most significant economic potential, ranking above mental health. Global funding to mental health tech startups reached $5.5 billion in 2021, jumping 139% from $2.3 billion in 2020. Thousands of new mental health vendors launched their services in the last 2 to 3 years, reinforced by investors’ massive provision of seed capital.
WHICH COUNTRIES OFF THE BEST BUSINESS POTENTIAL FOR DIGITAL HEALTH IN 2022?
According to 322 digital health decision-makers across the world that the Research2Guidance study received responses, the top 3 countries that will represent the best digital health markets in 2022 are the United States (70%), Germany (41%), and the United Kingdom (27%). From this study and others like it, it’s clear that the US market is the most attractive for digital health companies.
The main drivers are for the US market include:
- A high prevalence in most high-cost diseases.
- Relatively high consumer spending on digital health.
- The attractiveness of the employer market and a comparably favorable regulatory environment.
RPM, DATA ANALYTICS, AND TELEHEALTH SERVICES OFFER THE BEST BUSINESS POTENTIAL IN 2022
Respondents to the Research2Guidance study found that Remote Patient Monitoring (RPM) at 49%, data analytics and AI (43%), and telehealth (41%) rank as the top three digital services that offer the best business potential in 2022. Referencing a separate whitepaper that ParksAssociates just released, connected health sensors and devices are critical to expanding care applications in the home. While RPM platforms have not yet scaled to the same extent as virtual visit solutions, the market sees care professionals highly demanding these solutions. Consumer experience with connected health devices and sensors in the home continues to grow.
As the Research2Guidance study points out, the optimistic view for RPM is due to new reimbursement codes in leading markets, especially in the USA, and the growing acceptance of remote monitoring during the pandemic in almost all countries. As the adoption of RPM solutions continues, healthcare providers’ and patients’ increased acceptance of telehealth during the pandemic will endure even when the pandemic comes to an end.
“The question of what is being offered and how it is charged/billed is closely interlinked. Direct charge for the delivered digital health service (e.g., coaching, symptom tracking, access to peer groups) and remote monitoring service are ranked as the best revenue sources by the survey participants (56% and 44%). 37% of survey participants believe in bundle sales typically including an app, connected devices (e.g., scale) and service (e.g., 3 months coaching program) and consumables (e.g., test strips, asthma refills) to be the key revenue sources for digital health providers in 2022.”
Research2Guidance Survey Wrap Up
Change has long been a constant in healthcare, but it has dramatically accelerated in recent years. Digital health tools that facilitate innovative methods and modalities to improve care, enable lifestyle change, and create efficiencies are progressing quickly. The digitalization of healthcare provides a better healthcare delivery experience for both patients and clinicians. Digital is becoming so intertwined with health care that it’s now to be expected by patients.
As healthcare organizations move toward offering more personalized care solutions, they will increasingly need to rely on software and hardware solutions to support these initiatives. The view of digital health solutions is that they are long-term investments that, if implemented correctly, will net great returns. Understanding consumer attitudes and preferences across the patient journey can be central to supporting healthy behaviors, achieving better health outcomes, and improving the patient experience.
In recent years, the hype around the digital health industry has accelerated. Fueled by the pandemic investors lined up to invest more and more money into digital health startups, pharma companies have set up global digital health teams to build digital products supporting their pill plus strategies, insurance companies and hospitals intensified their collaboration with digital health companies to remotely service their members or patients and ten thousand of digital health apps have been launched providing services for all therapeutic areas.
R2G STUDY DESCRIPTION
About Research2Guidance
Research2Guidance is a consultancy and market analyst company focusing on the digital health market. Since 2010, Research2Guidance has empowered digital health innovators and supported their missions for better healthcare. Research2Guidance exists to support businesses in digital healthcare and ultimately improve the way healthcare services are delivered globally.
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