Europe Digital Health Market Size

Europe Digital Health Market Analysis

The Europe Digital Health Market size is estimated at USD 81.86 billion in 2024, and is expected to reach USD 188.20 billion by 2029, growing at a CAGR of 18.11% during the forecast period (2024-2029).

The emergence of COVID-19 had a profound impact on the adoption of digital healthcare services in the region, as the lockdown restrictions and severity of infection encouraged healthcare providers and people to adopt digital health services. For instance, according to an article published in April 2021 by the Healthcare Information and Management Systems Society (HIMSS), the European Commission proposed the EU4Health program as part of a COVID-19 recovery response program. The initiative aimed to raise EUR 5.1 billion (USD 5.43 billion) for the digital transformation of the European health sector and ensure preparedness for future cross-border health threats. Thus, increasing investments by European governments toward the digital transformation of healthcare and COVID-19 contact tracing boosted the market growth during the pandemic. For instance, in January 2021, European telehealth company HealthHero acquired Ireland-based MyClinic.ie, allowing the former to have a direct-to-consumer offering in Ireland for COVID-19 care and other services. Thus, the COVID-19 outbreak increased the market's growth in its preliminary phase; and currently the market is expected to gain traction due to a significant increase in the use of digital health globally.

The rising adoption of digital healthcare services such as telemedicine, remote monitoring, electronic health record systems, and others by healthcare service providers is the major driving factor that is fueling growth in the Europe digital health market. The major benefits that are offered by digital health services are that healthcare services can be delivered in the remotest part of the region or country with the lowest cost when compared with traditional medical services or consultations, which is why digital health is gaining traction in the European Market. For instance, in October 2021 Cera Care revealed its plans for expansion in the United Kingdom, under which it will create 15 digital healthcare hubs across the United Kingdom to deliver telehealth and medication services - matching the capacity of 1,000 care homes every day.

Further, the rising adoption of digital health services and government initiatives, technological advancements in the area of digital health, and increasing demand for remote patient monitoring are among the major factors driving the growth of the studied market. For instance, in October 2021, the government proposed a EUR 650 million (USD 693 million) investment plan to speed up the country's digital health agenda. The funding will be divided into five areas: research and development, testing of digital health services, digital training for healthcare professionals, scientific innovation, and large-scale deployment of digital health in France and internationally.

Moreover, the increasing government initiatives and investments to modernize and digitize the healthcare system are also expected to fuel market growth. For instance, in October 2021, France's Health Minister invested EUR 650 million (USD 692 million) to accelerate the national digital health strategy, as part of the Health Innovation 2030 plan. Also, in June 2021, the NHS invested EUR 150 million (USD 159 million) in the digital adoption and digitization of adult social care in the United Kingdom. Digitalizing the health systems can provide clinicians with more timely access to accurate information and support changes to help improve health for all.

Data security concerns and high costs associated with the deployment and maintenance of digital health systems and services are likely to impede the market growth