According to the statistics by the World Health Organization, the global per capita healthcare expenditure amounted to USD 1,064.741 in the year 2017. The worldwide healthcare expenditure per person grew from USD 864.313 in 2008 to USD 1,110.841 in 2018, where the U.S. is the top country that amounted to healthcare expenditure of USD 10, 623.85 per capita in 2018. As of 2018, the domestic general government healthcare spending in the U.S. was USD 5355.79, which grew from USD 3515.82 in 2008. These are some of the factors responsible for market growth over the past few years. Moreover, as per the projections by the Centers for Medicare & Medicaid Services (CMS), the estimated average annual percent change related to National Health Expenditures (NHE) in the U.S. was 5.2% in 2020 as compared to 2019 (4.5%). Furthermore, the National Health Expenditures are projected to reach USD 6,192.5 Billion in 2028, where the per capita expenditure is estimated to touch USD 17,611 in the same year. These are notable indicators that are anticipated to create lucrative business opportunities in upcoming years.
Rapid Digitalization across Various Organizations around the World – Nearly 65% of the world’s Gross Domestic Product (GDP) is predicted to be digitized by 2022, and digitally transformed organizations are projected to contribute to more than half of the global gross domestic product (GDP) by 2023, accounting for nearly USD 54 trillion.
Rising Adoption of Smart Phones – According to estimates, the number of smartphone users worldwide was approximately 6 billion in 2021, which is projected to reach 7.5 billion by the end of 2027.
Increasing Penetration of Internet – According to the World Bank data, the proportion of the population using the Internet was around 49% in 2018, which increased to 60% in 2020.
Rising Adoption of Telemedicine Practices – According to data from the Centers for Disease Control and Prevention, in March 2020, telehealth visits increased by about 154% compared to March 2019.
Growth of Geriatric Population Level – Globally, the population aged 60 years and above is projected to reach around 1.4 billion in numbers by the end of 2030, up from 1 billion in 2020, according to the World Health Organization (WHO) data.
The global mHealth services market is segmented and analyzed for demand and supply by end user into healthcare institutions, physicians, healthcare workers, and individuals. Out of these segments, the healthcare institutions segment is expected to hold the highest growth by the end of the year 2033 owing to the existence of a huge patient pool in healthcare facilities. Furthermore, rising healthcare expenditure per capita worldwide is also estimated to propel the growth of this segment in the market. According to the data by The World Bank, as of 2019, current health expenditure per capita among the global population was USD 1,121.97.
Regionally, the global mHealth services market is studied into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. Amongst these markets, the market in the North America region is projected to hold the largest market share by the end of 2033 on the back of its developing healthcare infrastructure, and rising healthcare expenditure. As of 2019, healthcare expenditure in the region accounted to 16.32% of the overall regional GDP.
The global mHealth services market is further classified on the basis of region as follows:
Our in-depth analysis of the global mHealth services market includes the following segments:
By End User
Cerner Corporation – Cerner Corporation and Oracle Corporation today jointly announced an agreement which states that Oracle will acquire Cerner for approximately ~USD 28.3 billion in equity value.
Teladoc Health Inc. – Teladoc Health Inc., the global market leader in virtual care, today announced its merger with Livongo, a leading applied health signals company. This definitive merger agreement aims to improve the delivery, accessibility and experience of consumers in healthcare around the world.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Radhika Gupta, Shivam Bhutani
Ans: Rising prevalence of chronic diseases, and increasing demand for digital health solutions are some major factors driving the growth of the market.
Ans: The market is anticipated to attain a CAGR of ~14% over the forecast period, i.e., 2023 – 2033.
Ans: Concerns related to privacy and data security, and lack of awareness are estimated to hamper the market growth.
Ans: The market in North America region is projected to hold the largest market share by the end of 2033 and provide more business opportunities in the future.
Ans: The major players in the market are Apple Inc., AIRSTRIP TECHNOLOGIES, INC., ALE International, Qualcomm Incorporated, SoftServe Inc., Vodafone Group Plc, Boston Scientific Corporation, Teladoc Health, Inc., AT&T Inc., and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by application, by end user, and by region.
Ans: The healthcare institutions segment is anticipated to garner the largest market size by the end of 2033 and display significant growth opportunities.