United Kingdom Digital Health Market Size (2024 - 2029)

UK Digital Health Market Analysis

The United Kingdom Digital Health Market size is estimated at USD 13 billion in 2024, and is expected to reach USD 31 billion by 2029, growing at a CAGR of 18.96% during the forecast period (2024-2029).

The COVID-19 pandemic had a significant impact on the market in 2020, as hospital and clinic operations and visits were significantly reduced due to lockdown and social distancing measures implemented by the United Kingdom's government, in turn increasing demand, awareness and acceptance of digital healthcare services. For instance, in an article published in the British Medical Journal in May 2021, over 75% of patients consulted their general practitioner remotely during the pandemic using a computer or phone in the United Kingdom.

Moreover, mobile health solutions became a lifeline for consultation, primarily through smartphones and remote monitoring. Several companies entered the market to offer digital solutions for combating COVID-19-related illnesses and monitoring patients' health. For instance, in January 2021, biometric and identity management companies Mvine and iProov reported the trials of digital COVID-19 immunity passports. The digital passport enables a person's test results or vaccination status to be registered and proven on an app without disclosing their identity. Thus, the overall impact of the outbreak on the digital health market within the country is likely to remain positive over the forecast period.

In addition, the growth of IoT (Internet of Things) and technological innovations, rising preferences for mobile technology and the Internet, and rising demand for population health management are all propelling factors for the digital health market in the country. The growing public awareness of digital health and the rising level of acceptance among healthcare professionals, combined with evidence of the efficacy of using this technology, is expected to result in significant growth for this industry.

For instance, as per NHS digital statistics in October 2021, nearly 28 million adults in the United Kingdom are registered with NHS login, the service supporting the NHS App 2021. Similarly, in November 2021, a medical start-up called Cera established 15 digital healthcare hubs across the United Kingdom to provide telehealth and medication services, equivalent to 1,000 care homes daily. Cera's technology helps older and more vulnerable people stay at home, lowering the risk of hospitalization and freeing up valuable bed space. Such establishments are driving the growth of the market.

Furthermore, the government's support in the form of grants and health tech investment is contributing to the market's long-term growth. For instance, in September 2022, Innovate UK, part of UK Research and Innovation, invested up to GBP 4 million (USD 83 million) in innovation projects in the creative technologies sector. This is across two strands of the competition. This competition aims to develop digital therapeutic extended reality (XR) solutions to provide mental health care services. These solutions may be applied and tested following a two-year R&D (research and development) cycle. They must have the potential to be adopted at scale to form part of the UK's formal mental healthcare ecosystem.

Additionally, in November 2021, the Digital Health Partnership Award was launched by the NHSX Innovation development team. This was created to assist NHS (National Health Service) organizations in England in bidding for funding to accelerate the adoption of digital health technologies to support patients with long-term conditions at home. The award brings together key players in digital health technology for the scaling process.

Thus, owing to the abovementioned factors, such as increasing usage of IoT and technological innovations, rising preferences for mobile technology, and the Internet coupled with government initiatives, the market is expected to project growth over the forecast period. However, security concerns regarding patient data will hinder the market's growth in the upcoming future.

UK Digital Health Industry Segmentation

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.