Key Trends in Healthtech for Economic Developers
When looking at some of the most exciting market trends in the world today, you’d be hard-pressed to ignore the health technology (“healthtech”) sector.
Healthtech is an expansive term for technological tools that provide patients with faster, cheaper, and more accessible care. From televisits with medical professionals to sophisticated hardware that can provide granular health data, companies in the healthtech space can save patients’ lives. Moreover, they can help healthcare providers better serve their patients and reduce expenses at the same time. In this market overview, we’ve got everything you need to help you understand what’s happening in this expanding market, along with a comprehensive list of target companies in this sector ranked by their growth score.
Breaking Down the Healthtech Market
According to Global Market Insights, the healthtech market was estimated to be over $106 billion in 2019. That number is expected to grow to nearly $640 billion in 2026 (representing a 28.5% compounded annual growth rate).
Another report from VynZ Research projects that the healthtech market will grow to $510 billion by 2025 (a 29% compounded annual growth rate). While the precise numbers may vary slightly, the total addressable market is certainly compelling.
The precise definition of the market can be quite amorphous. However, one of the best breakdowns of the healthtech market comes from Deloitte. They break down the healthcare or “digital health” market into four distinct categories within the healthtech market. They include the following:
–Telehealthcare: Also referred to as telecare or telehealth, telehealthcare provides health support and assistance via information and communications technologies (“ICT”). Essentially, telehealthcare encompasses the electronic exchange of data between medical professionals and patients.
–mHealth: mHealth represents mobile phone applications that relate to health and/or wellbeing. Connected wearable devices are also included in this category.
–Health analytics: This category is all about assimilating big data through software and analytical capabilities.
–Digitized health systems: Finally, digitized health systems include things like the storage and exchange of digitized patient records.
These four broad buckets are not isolated. Rather, they interact with each other. For example, Deloitte expects the telehealthcare and mHealth categories to become increasingly blurred as the technology continues to develop. The space is changing fast and the various sectors are very much interconnected.
This year inspired confidence that the industry, which favors agility and innovation in the face of new problems, can weather economic storms without shedding value or jobs. While certain negative indicators, such as loan defaults, increased, the World Bank reports that the industry saw transaction volumes increase by 11% YoY in the first half of 2020. Despite massive job losses in the larger economy, total Fintech jobs actually grew by 2% in 2020, with significant growth expected in 2021.
Trends in the Healthtech Market
As we have witnessed in the past year, the benefits of innovation in this sector has a direct impact on our lives. Because of this, some of the most exciting and innovative trends are happening in this fast-growing industry.
Virtual Care for All
To start, one of the more obvious trends has been the rise of remote patient care through video conferencing tools. This sort of technology isn’t exactly new (some even claim that the first instances of telehealth occurred shortly after the invention of the telephone). Yet 2020 was the year of telemedicine due to Covid-19. Companies that specialize in this technology—most notably Teladoc—have seen their stock prices break out. Not only is it easier for doctors and patients to meet in a safe setting, but they can provide cost savings to patients. According to one study, net cost savings for one telemedicine visit ranged from $19 to $120 per patient visit.
Deloitte is on board with this trend. It is projecting that virtual doctor visits will rise by approximately 5% around the world in 2021. This is a substantial increase from the 1% estimate in 2019. This 5% increase in virtual doctor visits represents about 400 million video visits and around $25 billion in value. With the global pandemic continuing to be a key story in 2021, there is a good chance that virtual doctor visits will become even more prevalent this year.
Internet of Medical Things (IoMT)
Beyond remote patient care via video, health monitoring through connected devices is also poised to accelerate in 2021. A Gartner report reveals that 79% of health care providers with at least $100 million in annual revenues are relying on the Internet of Medical Things (“IoMT”) in their processes. According to Allied Market Research, the global IoMT market is expected to reach nearly $137 billion in 2021. As a subset of that, the healthcare wearable market, according to Juniper Research, will hit around $60 billion by 2023.
IoMT is a fast-growing segment of the healthtech space because of the value it brings. There are many different startups and well-established companies that are exploring this space. At a more basic level, you may already be using wearable fitness trackers and smartwatches to monitor your heart rate or even atrial fibrillation. Going beyond these tools, however, the connected device space can provide even more granular information about a patient’s health. For instance, smart pill technology can measure medication treatment effectiveness and even monitor patients’ internal health. The demand is certainly there. With over 75% of wearers agreeing that wearable devices help them engage with their own health, we’ll likely see continued innovation in this area.
Rise of Artificial Intelligence in Healthtech
Finally, a key trend that we are paying close attention to in 2021 is the continued rise of artificial intelligence (“AI”) in the healthtech space. While AI receives a lot of attention in every sector, the massive benefits of machine learning in the healthcare sector are undisputed. Starting from a broad-based view, one report from Accenture estimates that the health AI market will save the United States healthcare economy a stunning $150 billion by 2026. While the overall health AI market was around $600 million in 2014, the market is estimated to reach $6.6 billion this year.
The Accenture report goes on to describe some of the top AI applications in the 2021 healthtech space. At the top of the list is robot-assisted surgery at $40 billion. Following robot-assisted surgery are virtual nursing assistants ($20 billion), administrative workflow assistance ($18 billion), fraud detection ($17 billion), dosage error reduction ($16 billion), and connected machines ($14 billion).
As you can see, the rise of AI in healthtech will impact the entire healthcare ecosystem. AI-assisted robot surgery is especially exciting. Combining robotics, AI technology, and skilled medical professionals, these robots can conduct more minimally invasive surgery. One study found that AI-assisted robotic procedures had five times fewer complications compared to procedures where surgeons are operating alone. Another study showed that these robots led to a 21% reduction in patients’ hospital stays. We are still in the early innings of AI development, so it will be extremely exciting to see how it affects the healthtech market for the years to come.
On the Forefront of the Digital Transformation
Covid-19 has been one of the most disruptive forces in recent memory. That being said, disruption goes both ways. The healthtech market, which was already growing before the global pandemic, is set to become a massive force for change and innovation in the next few years. With so much cash, innovation, and global attention on this market, healthtech is the perfect sector to target. But with so many companies out there, which ones should you focus on? We’ve highlighted twenty healthtech companies that should be on your radar. To access hundreds more, along with detailed information such as their current expansion projects, simply sign up for a free trial. This list will help you get you in front of the right healthtech companies!
Top Healthtech Hubs
Where is healthtech booming? We ranked the top 10 Healthech Clusters in the US and globally. Our analysts examined the wealth of data provided by the Gazelle.ai platform to provide this ranking for us. The cluster rankings are based on the amount of VC funding, start-up activity and presence of established companies.
Healthtech is a truly global industry with major hubs appearing in 3 continents. Most are clustered in North America and Europe, along with a few key hubs in Asia.
Silicon Valley ranked first, with New York City coming in second and Boston taking the third spot for the top 10 in North America. London ranked first, with New Delhi coming in second and Singapore taking the third spot for the top 10 international clusters.
These are the top cities that are driving healthtech innovation forward!
Top 20 Healthtech Companies to Watch
Start your Gazelle.ai free trial and get access to the full list & growth companies across every sector!
CompuGroup Medical is a global eHealth provider with a comprehensive portfolio of cutting-edge IT solutions for the healthcare industry. Their solutions include everything from electronic health records to innovative practice management systems.
Higi is a consumer health engagement company that empowers consumers to measure, track and act on their health numbers— blood pressure, pulse, weight, BMI, body composition, hydration—through easily accessible self-screening smart health stations.
VillageMD is a leading provider of healthcare for organizations moving toward a primary care-led, high-value clinical model. The VillageMD solution provides the tools, technology, operations, and staffing support needed for physicians to drive the highest quality clinical results across a population.
Singlera Genomics focuses on non-invasive genetic testing with solutions that include tumor diagnosis and personalized treatment, non-invasive prenatal diagnosis, pre-implantation genetic screening, and customized scientific research services.
Analytical scientists and clinical researchers worldwide rely on Agilent to help fulfill complex laboratory demands. Their instruments, software, services and consumables address the full range of scientific and laboratory management needs.
Oscar Health Insurance is a technology-driven health insurance company. They focus on the health insurance industry through telemedicine, healthcare-focused technological interfaces, and transparent claims pricing systems.
OPKO Health is a medical test and medication company focused on diagnostics and pharmaceuticals.
Athenahealth partners with hospitals and ambulatory customers to drive clinical and financial results. They offer medical record, revenue cycle, patient engagement, care coordination, and population health services.
BenevolentAI unites technology with human intelligence to re-engineer drug discovery and deliver life-changing medicines. They developed the Benevolent Platform®, a drug discovery platform built on powerful data foundations with state of the art machine learning and AI technology.
Medtronic is the world’s largest medical technology company, offering an unprecedented breadth and depth of innovative therapies to fulfill their mission of alleviating pain, restoring health, and extending life.
NeoGenomics is a cancer reference laboratory that provides cancer testing and partnership programs to pathologists and oncologists.
Cerascreen is a start-up in the digital health industry providing self-tests for blood, saliva, urine, and breathing gas analysis via eCommerce and Online Marketing channels to enable point-of-care tests for patients at home accompanied by personalized digital health assessment and analysis.
Quest Diagnostics is the world’s leading provider of diagnostic testing, information, and services that patients and doctors need to make better healthcare decisions
Pear Therapeutics is the leader in FDA-cleared Prescription Digital Therapeutics. They integrate clinically-validated software applications with previously approved pharmaceuticals and treatment paradigms to provide better efficacy for patients, smarter engagement and tracking tools for clinicians, and cost-effective solutions for payers.
Rally Health, Inc. is a consumer-centric digital health company that makes it easy for individuals to take charge of their health and collaborates with health plans, care providers, and employers to engage consumers. The company’s flagship offering is Rally®, a digital health platform featuring a suite of solutions that help people manage their health care needs.
HealX is the world’s most efficient AI platform for rare diseases. It makes drug discovery faster, smarter and safer, and supports our team and partners in discovering and translating new treatments towards the clinic.
Centene is the largest Medicaid managed care organization in the country and provides a portfolio of services to government sponsored healthcare programs.
Verge Genomics is a next-generation biopharmaceutical start-up using systems biology to accelerate the development of life-saving treatments for neurodegenerative diseases.
Clover Health is reinventing the health insurance model by integrating technology into every aspect of its members’ healthcare. The Clover data and analytics platform uses continuous, real-time monitoring to prevent hospital admissions, reduce avoidable spending, and identify and better manage chronic diseases.
Wildflower Health is building a mobile health engagement platform to improve healthcare quality and lower medical costs.
Share This Story, Choose Your Platform!