In an era marked by unprecedented technological advancement and economic transformation, the healthcare technology sector stands at a critical inflexion point.

As we navigate the complexities of post-pandemic recovery and economic restructuring, healthtech has emerged not merely as a vertical within the broader technology ecosystem but as a fundamental driver of healthcare delivery, accessibility, and economic growth.

Market landscape: Exponential growth

The global healthtech market has demonstrated remarkable resilience and expansion, even amidst economic uncertainties. According to Grand View Research, the global digital health market size was valued at US$211.0 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 18.6 per cent from 2024 to 2030, reaching an estimated US$665.5 billion by the end of the forecast period.

This growth trajectory significantly outpaces many traditional economic sectors, signalling a fundamental shift in both healthcare delivery models and investment priorities.

Within this broader landscape, several sub-sectors demonstrate particularly compelling growth metrics:

• Telemedicine: The global telemedicine market size was valued at US$87.41 billion in 2022 and is expected to expand at a CAGR of 24.0 per cent from 2023 to 2030.
• AI in healthcare: According to Bloomberg Intelligence, the AI healthcare market is projected to reach US$187.95 billion by 2030, growing at a CAGR of 37.0 per cent.
• Digital therapeutics: Market valuation exceeded US$4.3 billion in 2022, with projections suggesting growth to US$32.5 billion by 2030.

The macroeconomic context: Healthcare as economic imperative

The expansion of healthtech must be understood within the broader economic context. Healthcare expenditures now constitute approximately 18.3 per cent of GDP in the United States and between 8-12 per cent in most developed economies, according to World Bank data from 2023. Two critical macroeconomic factors are accelerating healthtech adoption:

Demographic pressures and healthcare labour shortages

The World Health Organisation projects a global shortage of 10 million healthcare workers by 2030. With OECD populations aging rapidly (65+ increasing from 17 per cent to 27 per cent by 2050), technological solutions that amplify provider capacity and enable remote care have become essential.

Value-based care transitions

The Centres for Medicare and Medicaid Services aims to have 100 per cent of Medicare beneficiaries in accountability-based care relationships by 2030. healthtech solutions supporting preventive care and chronic disease management are critical enablers of this economic transformation.

Also Read: Striking the right balance: Financial health, talent retention, and business growth

Six key trends shaping the future

• AI integration beyond diagnostics

AI is moving beyond imaging to transform entire clinical workflows. Nature Medicine reports AI-enhanced clinical decision support systems have demonstrated a 32 per cent reduction in diagnostic errors and 27 per cent improvement in treatment optimisation.

Google DeepMind’s breakthroughs in protein folding are accelerating drug discovery by an estimated 70 per cent, revolutionising therapeutic development.

• Ambient clinical intelligence

A 2023 JAMA study found physicians spend nearly half their time on EHR tasks. Ambient clinical intelligence technologies like Microsoft and Nuance’s DAX have shown 27 per cent productivity improvements, allowing physicians to see three to five additional patients daily.

• Digital therapeutics as standard of care

The Digital Therapeutics Alliance reports over 35 DTx products have received regulatory approval as of mid-2023. IQVIA Institute projects DTx interventions could generate healthcare savings of US$46 billion annually in the US by 2030.

• Decentralised clinical trials

Deloitte’s 2023 Life Sciences Outlook finds decentralised trials reduce costs by 15-20 per cent while accelerating recruitment by 30-50 per cent. This model has increased diverse participant enrolment by 33 per cent according to the Clinical Trials Transformation Initiative.

• Healthcare ecosystems and interoperability

The healthcare interoperability market is projected to reach US$9.4 billion by 2028. Regulatory frameworks including the European Health Data Space and 21st Century Cures Act are accelerating this transformation.

Also Read: The most-funded healthtech startups in Southeast Asia: A decade in review

• Healthcare software development solutions

The healthcare software development market is projected to reach US$12 billion by 2027 (Grand View Research). This growth is fuelled by rising demand for patient management systems and telehealth applications. Innovations in AI and machine learning are enhancing diagnostics and care, while regulatory frameworks like HITECH are promoting secure and interoperable solutions.

Challenges and economic constraints

Despite promising growth, healthtech faces several constraints:

• Reimbursement frameworks

While telehealth reimbursement has expanded significantly—with 43 US states now having telehealth parity laws—many innovative healthtech solutions still face reimbursement challenges. A survey by the Digital Medicine Society found that 67 per cent of digital health companies cited reimbursement as their primary commercial obstacle.

• Data privacy and security concerns

Healthcare data breaches increased by 35 per cent between 2022 and 2023, according to a report from the Ponemon Institute, with the average cost of a healthcare data breach reaching US$10.93 million. These security challenges represent both an economic liability and a potential innovation barrier.

• Regulatory harmonisation

Fragmented regulatory approaches across global markets introduce friction into healthtech commercialisation. The FDA’s Digital Health Center of Excellence and the EU’s Medical Device Regulation provide frameworks within their jurisdictions, but global harmonisation remains elusive, creating additional costs for multinational deployment.

healthtech represents both a resilient investment sector and a catalyst for healthcare transformation. By addressing the fundamental challenges of access, quality, and cost, these technologies offer pathways to sustainable healthcare systems that align economic and human imperatives.

For forward-thinking organisations, the strategic imperative is clear: position for a future where healthtech becomes healthcare’s fundamental operating system rather than merely a component of care delivery.

—

Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic.

Join us on Instagram, Facebook, X, and LinkedIn to stay connected.

We’re building the most useful WA community for founders and enablers. Join here and be part of it.

Image credit: Canva Pro

The post The future of fintech, healthtech, and edutech industries in the context of the new economy appeared first on e27.