United Kingdom Digital Health Market Analysis by Mordor Intelligence
The United Kingdom digital health market size stands at USD 15.46 billion in 2025 and is projected to reach USD 36.84 billion by 2030, reflecting 18.9% CAGR. Continued public funding, post-Brexit regulatory autonomy, and the National Health Service (NHS) mandate for electronic patient records have accelerated technology adoption across care settings. A growing preference for data-driven decision making, the expansion of virtual wards, and rapid approvals for digital therapeutics under the Medicines and Healthcare products Regulatory Agency (MHRA) International Recognition Procedure underpin the market’s momentum. Meanwhile, strategic investments in cloud infrastructure, interoperability, and artificial intelligence (AI) solutions reinforce the United Kingdom's digital health market as a leading ecosystem for both domestic innovators and global suppliers.
Key Report Takeaways
- By technology, tele-healthcare led with 34.6% United Kingdom digital health market share in 2024, while healthcare analytics is forecast to expand at a 16.2% CAGR through 2030.
- By component, software solutions accounted for a 58.2% share of the United Kingdom digital health market in 2024, whereas services represent the fastest growth at a 13.4% CAGR to 2030.
- By application, chronic disease management held a 41.7% share of the United Kingdom digital health market in 2024, and diagnostics and decision support are advancing at a 15.1% CAGR through 2030.
United Kingdom Digital Health Market Trends and Insights
Drivers Impact Analysis
Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
---|---|---|---|
Increasing adoption of digital healthcare | 4.20% | National; early gains in London, Manchester, Birmingham | Medium term (2-4 years) |
Rise in AI, IoT & big-data analytics | 3.80% | National; concentrated in major NHS trusts and academic centres | Long term (≥4 years) |
Growing use of mobile-first health apps | 2.90% | National; higher penetration in urban districts | Short term (≤2 years) |
NHS “virtual wards” & digital-first funding | 3.50% | National; pilots in Scotland and Northern England | Medium term (2-4 years) |
Integrated Care Systems (ICS) digital budgets | 2.10% | England; 42 ICS regions | Medium term (2-4 years) |
Post-Brexit MHRA fast-track for therapeutics | 1.80% | UK-wide; spillover benefits to Commonwealth markets | Long term (≥4 years) |
Source: Mordor Intelligence
Increasing Adoption of Digital Healthcare
The EUR 3.4 billion (USD 3.8 billion) government fund has accelerated electronic patient-record (EPR) rollouts, producing measurable productivity gains: hospitals on the Federated Data Platform treat 114 more patients each month than non-adopters.[1]NHS Providers, “Why Digital Transformation Matters,” nhsproviders.org East and North Hertfordshire NHS Trust’s Orbis U installation typifies integrated clinical platforms linking inpatient, outpatient, and community workflows. Data Academies launched with Multiverse have already trained more than 500 NHS employees in analytics skills, ensuring frontline staff can leverage new data tools. Nationwide support for digitization remains high; 75% of adults are willing to share anonymized health data to improve care quality.
Rise in AI, IoT & Big Data Analytics
Twenty-nine percent of UK physicians now use AI for diagnostics or decision support, underpinned by a EUR 21 million (USD 24 million) NHS AI Diagnostic Fund. Leicester, Leicestershire and Rutland ICS employs AI-based image analysis to expand dermatology capacity and cut unnecessary referrals. On the IoT front, NHS Greater Glasgow and Clyde launched a 1,000-bed virtual ward, one of the largest globally, combining connected devices with risk-stratification algorithms to manage complex cases remotely[3]Digital Health, “Glasgow Launches 1,000-Bed Virtual Ward,” digitalhealth.net. The convergence of AI and IoT within the Federated Data Platform allows predictive resource planning, reducing emergency-department waits and preventing avoidable readmissions.
Growing Use of Mobile-First Health Apps
The NHS App recorded more than 50 million logins per month, with 99.7% of GP surgeries connected. New features such as prescription reordering, test-result access, and virtual appointment scheduling—saved 1.5 million face-to-face bookings and EUR 622 million (USD 711 million) in avoided administrative costs. To close inclusion gaps, librarians across 3,000 public libraries now guide users through the app, ensuring equitable access for digitally marginalised groups. Clinicians likewise rely on mobile clinical documentation tools, which have lowered paperwork times by up to 30% in pilot trusts.
NHS “Virtual Wards” & Digital-First Funding Boosts
Official policy targets 40-50 virtual-ward beds per 100,000 people; capacity surpassed 10,000 beds by late 2023 and treated more than 100,000 patients in the first year. Greater Glasgow and Clyde’s large-scale ward employs remote monitoring and AI risk scoring to deliver hospital-level care at home, freeing acute beds for elective cases. Economic modelling indicates the approach can cut inpatient length of stay by two to three days per episode, easing backlog pressures without compromising safety.
Integrated Care Systems (ICS) Digital Budgets
England’s 42 ICS regions each control ring-fenced digital budgets, accelerating procurement of shared care records, population-health platforms, and AI decision tools. Early adopters report 8% reductions in duplicated diagnostics and 12% faster discharge turnaround when multidisciplinary teams access unified records.
Post-Brexit MHRA Fast-Track for Digital Therapeutics
The International Recognition Procedure approves qualifying software-as-a-medical-device products in 60 days, versus the pre-Brexit average of 210 days, positioning the United Kingdom digital health market as a launchpad for global vendors seeking rapid European access.
Restraints Impact Table
Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
---|---|---|---|
Cyber-security & data-privacy concerns | -2.80% | National; highest risk for major urban trusts | Short term (≤2 years) |
Interoperability gaps in legacy NHS IT | -2.10% | National; smaller trusts most affected | Medium term (2-4 years) |
Clinician digital fatigue & adoption resistance | -1.60% | National; more pronounced in rural settings | Medium term (2-4 years) |
Patchy rural 5G/broadband infrastructure | -1.30% | Rural England, Scotland, Wales, Northern Ireland | Long term (≥4 years) |
Source: Mordor Intelligence
Cyber-Security & Data-Privacy Concerns
Ransomware events are increasingly linked to patient-safety risks. The Synnovis attack in June 2024 disrupted London pathology services, cancelled more than 1,100 procedures, and exposed 300 million records[2]Infosecurity Magazine, “Synnovis Ransomware Attack Disrupts 1,100 NHS Procedures,” infosecurity-magazine.com. Separately, Advanced Computer Software Group was fined EUR 3 million (USD 3.4 million) for lapses that affected nearly 80,000 individuals. The forthcoming Cyber Security and Resilience Bill, along with a voluntary NHS supplier charter, mandates multifactor authentication and incident-response drills for all vendors. However, capital diverted to cyber-defense may delay innovative deployments in resource-constrained trusts.
Interoperability Gaps in Legacy NHS IT
Fragmented systems hinder real-time data sharing. While the Data Protection and Digital Information Bill requires HL7 FHIR UK Core compliance, many trusts run ageing infrastructures that cannot ingest or transmit standardized data without expensive upgrades. The NHS Interoperability Summit 2025 highlighted development deficits, with chief information officers citing manual data reconciliations that add two to four hours to daily clinical workflows. Incomplete interoperability also limits AI training datasets, reducing algorithm accuracy and scalability.
Segment Analysis
By Technology: Healthcare Analytics Drives Innovation
Healthcare analytics registers the fastest expansion at 16.2% CAGR as trusts shift from reactive to predictive care models that anticipate demand and allocate resources ahead of time. The United Kingdom digital health market size for healthcare analytics is forecast to more than triple over the next five years, catalyzed by the Palantir-backed Federated Data Platform that aggregates nationwide data for population health management. Tele-healthcare retains 34.6% United Kingdom digital health market share in 2024, buoyed by virtual-ward scale-ups and remote monitoring kits that connect patients to clinicians from home.
Analytics solutions enable trusts to reduce outpatient follow-ups by flagging low-risk cases for virtual review, freeing capacity for complex referrals. AI diagnostic engines sift through imaging backlogs, shortening turnaround times for radiology reports and improving cancer detection rates. Meanwhile, mHealth apps funnel real-time vitals into analytics dashboards, allowing proactive interventions that curb unplanned admissions. Vendors able to integrate seamlessly into the Federated Data Platform enjoy a first-mover advantage as data governance hurdles recede.
Note: Segment shares of all individual segments available upon report purchase
By Component: Services Accelerate Digital Transformation
Software dominates with 58.2% share, reflecting extensive EPR, patient-portal, and decision-support deployments across hospital and community settings. Demand for services nevertheless outpaces other components at 13.4% CAGR, underscoring the complexity of change management, configuration, and ongoing optimization within a multi-stakeholder healthcare environment. The Clinical Digital Health Solutions Framework, valued at EUR 2 billion (USD 2.2 billion), consulting, implementation, and managed-service offerings into a single procurement route for trusts.
Cloud migrations are a key growth catalyst. NHS England’s directive against stand-alone data centers has spurred contracts for infrastructure-as-a-service, bolstering the United Kingdom digital health industry’s partner ecosystem. No-code platforms such as FlowForma let clinicians automate workflows without relying on scarce developer resources, further inflating service revenues linked to training and governance.

Note: Segment shares of all individual segments available upon report purchase
By Application: Diagnostics Transform Clinical Workflows
Chronic disease management holds 41.7% share in 2024 as the NHS tackles long-term conditions responsible for 70% of hospital admissions. Diagnostics and decision support post the quickest rise at 15.1% CAGR, propelled by imaging AI tools, clinical triage chatbots, and evidence-based treatment algorithms. Leicester’s AI skin-lesion assessment platform cut unnecessary in-person dermatology appointments by 20% within six months of launch.
Improved analytics quality encourages earlier detection, enabling personalized treatment pathways that reduce acute exacerbations and lower total cost of care. Administrative automation—including digital scribes and smart-routing of referrals—further boosts clinical productivity. Preventive-health apps complement diagnostics, nudging citizens toward healthier behaviors via gamified incentives delivered through the NHS App.

Note: Segment shares of all individual segments available upon report purchase
By End-user: Integrated Care Systems Drive Adoption
Hospitals and NHS trusts represent the largest purchaser group, channeling budgets into unified EPR suites, command-center dashboards, and advanced analytics. Primary-care practices, connected through the NHS App and shared-care records, increasingly leverage digital tools for seamless hand-offs to secondary care. Virtual-ward rollouts bring patients and home-care providers to the center of service delivery, evidencing a shift in market power toward community settings.
ICS organizations operate as technology orchestrators, procuring platforms that span acute, primary, mental-health, and social-care providers. Their pooled budgets underpin multi-year transformation plans aimed at reducing unwarranted variation across regions. Commissioners simultaneously deploy population-health analytics to align payment mechanisms with outcomes rather than activity, a trend favoring vendors able to supply integrated clinical and financial datasets.
Geography Analysis
England remains the primary growth engine, benefiting from centralized NHS policies, the largest share of digital-transformation funding, and clusters of academic health-science centers in London, Manchester, and Birmingham. The capital hosts technology giants, start-ups, and accelerators that collectively anchor the United Kingdom digital health market, serving as a sandbox for pilots such as the Federated Data Platform and AI diagnostic pathways.
Scotland pursues its own digital strategy under NHS Scotland, spotlighted by the 1,000-bed virtual ward in Greater Glasgow and Clyde that combines connected devices with AI triage to manage complex chronic cases remotely. The nation’s emphasis on community-based care positions it as a reference site for other global health systems exploring large-scale remote monitoring. Wales and Northern Ireland, although smaller, integrate UK-wide regulatory advantages such as the MHRA fast-track route while tailoring solutions to rural geographies.
Persistent connectivity gaps mark the rural-urban divide: just 36% of rural premises have gigabit broadband versus 75% in cities. Project Gigabit plans to raise gigabit coverage to 99% by 2030, while the Shared Rural Network targets 95% 4G reach by 2025. Successful deployments in low-bandwidth environments will unlock latent demand as virtual-care models expand beyond major conurbations.
Competitive Landscape
Market structure is moderately fragmented. Incumbent vendors such as EMIS Health, The Phoenix Partnership (TPP), Epic Systems, and Oracle Health maintain entrenched positions through long-standing NHS contracts and deep knowledge of regulatory requirements. EMIS Health’s acquisition by UnitedHealth Group drew scrutiny but was cleared by the Competition and Markets Authority, signaling continued appetite for consolidation under strict oversight. Oracle Health recently secured multiple EPR wins by emphasizing interoperability with neighboring trust systems, an attractive differentiation in an environment of budget pressure and resource sharing.
Platform competition intensifies as providers demand end-to-end functionality spanning scheduling, clinical documentation, analytics, and patient engagement. Epic, TPP, and Alcidion position themselves as workflow orchestrators capable of integrating heterogeneous data sources. At the same time, niche innovators specialize in AI decision support, cybersecurity, or patient-experience modules, capitalizing on procurement frameworks that allow trusts to mix and match best-of-breed components.
Cybersecurity vendors experience heightened traction because of mandatory risk-mitigation requirements arising from high-profile breaches. Start-ups offering zero-trust architecture, continuous penetration testing, and security-operations-center-as-a-service secure multi-year agreements with larger trusts. Cloud hyperscale’s partner with service integrators to host sensitive health data in sovereign-cloud instances that comply with UK data-residency policy, thereby reinforcing their footprint within the United Kingdom digital health market.
United Kingdom Digital Health Industry Leaders
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EMIS Health (Optum)
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TPP (SystmOne)
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Cerner (Oracle Health)
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Epic Systems
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Alcidion
- *Disclaimer: Major Players sorted in no particular order

Recent Industry Developments
- April 2025: NHS Greater Glasgow and Clyde unveiled a 1,000-bed virtual ward, the largest UK deployment of remote hospital care, illustrating the scalability of home-based monitoring technologies.
- March 2025: The UK Government confirmed that NHS England will be absorbed into the Department of Health and Social Care by March 2027, aiming to save EUR 500 million (USD 571 million) per year.
- January 2025: “A Blueprint for Modern Digital Government” outlined a six-point programme that includes AI integration, strengthened infrastructure, and the launch of a GOV.UK App and Digital Wallet.
- January 2025: The MHRA International Recognition Procedure became fully operational, reducing approval times for qualifying digital therapeutics to 60 days.
- November 2024: Two-thirds of NHS trusts and Integrated Care Boards reported live use of the Palantir-powered Federated Data Platform, underscoring growing reliance on centralized analytics.
United Kingdom Digital Health Market Report Scope
As per the scope of this report, digital health, which includes digital care programs, is the convergence of digital technologies with health, healthcare, living, and society to enhance the efficiency of healthcare delivery and make medicine more personalized and precise. The United Kingdom digital health market is segmented by technology (telehealthcare, mHealth, healthcare analytics, and digital health systems) and components (software, hardware, and services). The report offers the value (in USD) for the above segments.
By Technology | Tele-healthcare |
mHealth | |
Digital Health Systems | |
Healthcare Analytics | |
By Component | Software |
Hardware | |
Services | |
By Application | Chronic Disease Management |
Preventive & Wellness | |
Diagnostics & Decision Support | |
Administration & Workflow | |
Others | |
By End-user | Hospitals & NHS Trusts |
Primary Care & GP Practices | |
Patients / Home-care Settings | |
Payers & Commissioners |
Tele-healthcare |
mHealth |
Digital Health Systems |
Healthcare Analytics |
Software |
Hardware |
Services |
Chronic Disease Management |
Preventive & Wellness |
Diagnostics & Decision Support |
Administration & Workflow |
Others |
Hospitals & NHS Trusts |
Primary Care & GP Practices |
Patients / Home-care Settings |
Payers & Commissioners |
Key Questions Answered in the Report
How big is the United Kingdom Digital Health Market?
The United Kingdom Digital Health Market size is expected to reach USD 15.46 billion in 2025 and grow at a CAGR of 18.96% to reach USD 36.84 billion by 2030.
What is the current United Kingdom Digital Health Market size?
In 2025, the United Kingdom Digital Health Market size is expected to reach USD 15.46 billion.
Who are the key players in United Kingdom Digital Health Market?
Allscripts Healthcare Solutions Inc., Athenahealth Inc., Cerner Corporation, AMD Global Telemedicine Inc. and McKesson Corporation are the major companies operating in the United Kingdom Digital Health Market.
What years does this United Kingdom Digital Health Market cover, and what was the market size in 2024?
In 2024, the United Kingdom Digital Health Market size was estimated at USD 12.53 billion. The report covers the United Kingdom Digital Health Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the United Kingdom Digital Health Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.