Digital Health Market Size Forecasted to Reach USD 1,171.24 Bn By 2035 Rising Chronic Diseases and Telehealth Adoption Driving Market Growth
According to Precedence Research, the global digital health market size is estimated to reach nearly USD 1,171.24 billion by 2035, increasing from USD 483.07 billion in 2026, growing at a strong CAGR of 10.8% from 2026 to 2035.
Ottawa, Feb. 11, 2026 (GLOBE NEWSWIRE) -- The Digital Health Market is expanding globally due to rising chronic diseases, growing telehealth adoption, technological advancements, and increasing demand for cost-effective healthcare solutions.
What is the Digital Health Market Size in 2026?
The global digital health market size is valued at USD 483.07 billion in 2026 and is expected to be worth USD 1,171.24 billion by 2035, with a robust CAGR of 10.8% from 2026 to 2035. The growing demand for telemedicine is the key factor driving market growth. Also, rapid innovations in AI and IoT, coupled with the growing adoption of smartphone/wearable devices, can fuel market growth further.
Key Highlights of the Digital Health Market
- Europe accounted for approximately 34.67% of the total market revenue in 2025.
- By component, the services segment held the largest share, contributing 65.67% in 2025.
- By technology, telehealthcare dominated the market with a 41.01% revenue share in 2025.
Global Digital Health Market Revenue, by Component, 2022 to 2024 (USD Million)
| Component | 2022 | 2023 | 2024 |
| Hardware | 45,974.0 | 53,929.3 | 62,673.1 |
| Software | 45,349.4 | 53,157.7 | 61,719.6 |
| Services | 1,71,309.3 | 2,02,843.3 | 2,37,964.6 |
Global Digital Health Market Revenue, by Technology, 2022 to 2024 (USD Million)
| Technology | 2022 | 2023 | 2024 |
| Telehealthcare | 1,02,965.6 | 1,02,965.6 | 1,48,618.6 |
| mHealth | 80,610.0 | 80,610.0 | 1,09,741.7 |
| Digital Health Systems | 47,699.6 | 47,699.6 | 61,787.6 |
| Health Analytics | 31,357.5 | 31,357.5 | 42,209.3 |
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Increasing Adoption of telehealth is helpful for the Growth of the Digital Health Market
The growing adoption of telehealth is the latest trend in the market, shaping positive market growth. Health tracking apps, telemedicine sites, and online consultation platforms can now directly access medical facilities via digital channels. Furthermore, the convenience of minimized travel,on-demand consultation, and lower healthcare costs has supported many individuals in adopting telehealth solutions.
Increasing emphasis on Preventive Healthcare is helpful for the Growth of the market.
The market is increasingly impacted by an increasing emphasis on preventive healthcare. As awareness regarding health issues increases, individuals are more prone to seek proactive measures to maintain their well-being. In addition, digital health solutions such as online platforms and mobile applications optimise access to preventive care resources, leading to market growth soon.
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New Trends in the Digital Health Market
- The rapid transition towards remote consultations is improving patient satisfaction and allowing healthcare providers to extend their reach. This trend is further fuelled by the rising preference for accessibility and convenience among patients.
- Innovations in smart chips and Brain-Computer Interfaces (BCIs) are increasingly being developed to treat paralysis and chronic pain among many patients.
- AI algorithms are increasingly being used to detect early signs of diabetic retinopathy and cancer with greater precision than human review alone.
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Market Dynamics
What are the growth Drivers of the Digital Health Market
The market is witnessing a huge growth as AI algorithms for disease diagnosis and treatment are increasingly gaining traction. In addition, Integration of the telemedicine platform with wearable sensor data is fuelling this growth, allowing remote patient monitoring compliance and enhancing adherence to medication.
High Implementation Costs Hampering the Growth of the Digital Health Market
The significant financial burden of acquiring, installing, and keeping cutting-edge digital health systems like the cloud-based platforms and s AI-driven diagnostics is hindering the adoption, especially in emerging nations. Moreover, inconsistent reimbursement for remote monitoring and teleconsultations under conventional insurance schemes further discourages the adoption of digital health solutions.
Digital Infrastructure Initiatives are Creating Lucrative Opportunities in the Market.
Major national programs such as China's Healthy China 2030 and India's Ayushman Bharat Digital Mission (ABDM) are building the infrastructure for interoperable records and universal digital health IDs, creating lucrative opportunities in the market soon. Governments in various developed countries, such as the US, France, and Germany, have expanded their digital health and telehealth applications, which makes these services financially viable for providers.
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Digital Health Market Report Coverage
| Report Highlights | Details |
| Market Size in 2025 | USD 420.08 Billion |
| Market Size in 2026 | USD 483.07 Billion |
| Market Size by 2035 | USD 1,171.24 Billion |
| Growth Rate (2026 – 2035) | 10.8% CAGR |
| Largest Market | Europe |
| Base Year | 2025 |
| Forecast Period | 2026 to 2035 |
| Segments Covered | Component, Technology, and Region |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
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Digital Health Market Regional Insights
What is the Europe Digital Health Market Size in 2026?
The Europe digital health market size is exhibited at USD 163.42 billion in 2026 and is projected to be worth around USD 353.12 billion by 2035, poised to grow at a CAGR of 9.39% from 2026 to 2035.
Europe held the largest digital health market share in 2025. The dominance of the region can be attributed to the increasing prevalence of chronic diseases along with the extensive adoption of 5G/smartphone penetration. In addition, growing funding for digital health facilities and strong GDPR regulations optimising data security, and initiatives for digitalized healthcare records are contributing to regional expansion further.
Asia Pacific is expected to grow at the fastest CAGR over the forecast period. The growth of the region can be credited to the growing investments in wearables, AI diagnostics, and remote patient monitoring. Moreover, governments are heavily investing in digital infrastructure, such as telehealth and Electronic Health Records (EHR), to enhance healthcare access.
North America is expected to grow at a notable CAGR over the forecast period. The growth of the region can be driven by robust government support for Electronic Health Records (EHR) and ongoing investment in AI-driven medical solutions. Furthermore, a well -established healthcare infrastructure in the region with high adoption of machine learning (ML) and artificial intelligence (AI) further optimises the integration of digital health tools.
What is the U.S. Digital Health Market Size?
The U.S. digital health market size is estimated at USD 92.08 billion in 2025 and is predicted to increase from USD 106.31 billion in 2026 to approximately USD 266.47 billion by 2035, poised to grow at a CAGR of 11.21% from 2026 to 2035.
U.S. Digital Health Market Highlights
- Based on component, the services segment held the largest market share in 2025.
- The hardware segment, by component, is projected to register the fastest growth during the forecast period.
- In terms of technology, the telehealthcare segment led the market in 2025.
- The mHealth segment is anticipated to experience the highest growth rate over the forecast timeframe.
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U.S. Digital Health Market Scope
| Report Coverage | Details |
| Market Size in 2025 | USD 92.08 Billion |
| Market Size in 2026 | USD 106.31 Billion |
| Market Size by 2035 | USD 266.47 Billion |
| Market Growth Rate from 2026 to 2035 | CAGR of 11.21% |
| Base Year | 2025 |
| Forecast Period | 2026 to 2035 |
| Segments Covered | By Component, Technology |
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Digital Health Market Segmentation
Component Insights
Why Services Segment Dominates the Digital Health Market?
The services segment dominated the market with the largest share in 2025. The dominance of the segment can be attributed to the growing incidence of chronic disease and the need for cost-effective healthcare delivery systems. In addition, healthcare providers are increasingly adopting various digital tools to improve productivity, enhance patient outcomes, and reduce hospital readmissions.
The software segment is expected to grow at the fastest CAGR over the forecast period. The growth of the segment can be credited to the rapid transition towards cloud-based solutions, enabling on-demand access to administrative and clinical applications. Software particularly designed for managing chronic conditions such as cardiovascular diseases and diabetes is further impacting positive segment growth.
Technology Insights
How did the Telehealthcare Segment Hold the Largest Share in the Digital Health Market?
The telehealthcare segment held the largest market share in 2025. The dominance of the segment can be linked to the growing demand for cost-effective care, along with the rapid integration of AI in diagnostics. Additionally, government initiatives supporting digital adoption, along with favorable reimbursement policies, are boosting the adoption of telehealth technology in the near future.
The mHealth segment is expected to grow at the fastest CAGR during the projected period. The growth of the segment can be driven by growing demand for remote patient monitoring (RPM) along with the increasing emphasis on preventive care. Furthermore, the ongoing transition towards proactive health management has raised the adoption of wellness applications, impacting positive market growth soon.
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Top Companies of the Digital Health Market
- BioTelemetry Inc
- eClinicalWorks
- Allscripts Healthcare Solutions Inc
- iHealth Lab Inc
- AT & T
- Honeywell International Inc
Recent Developments in the Digital Health Market
- In December 2025, Tata Elxsi announced a collaboration with the University of Illinois Urbana-Champaign and OSF HealthCare to tackle healthcare challenges in rural America. This partnership will use AI-powered digital health kiosks using Tata Elxsi's TEngage platform. (Source: Scanx Trade)
Segments Covered in the Report
By Component
- Software
- Hardware
- Services
By Technology
- Telehealthcare
- Telehealth
- Video Consultation
- LTC Monitoring
- Telecare
- Remote Medication Management
- Activity Monitoring
- Telehealth
- mHealth
- Apps
- Fitness Apps
- Medical Apps
- Wearables
- Glucose Meter
- BP Monitor
- Pulse Oximeter
- Neurological Monitors
- Sleep Apnea Monitor
- Others
- Apps
- Digital Health Systems
- E-prescribing Systems
- Electronic Health Records
- Health Analytics
By Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East & Africa
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