India Digital Health Market Size Likely to Reach at a CAGR of 17.67% By 2033

India Digital Health Market size was valued at USD 8,794.4 Million in 2024 and is expected to reach USD 47,806.9 Million by 2033, at a CAGR of 17.67% during the forecast period 2024 – 2033.

India Digital Health Market: Overview

Digital health involves integrating technology with healthcare to enhance service delivery, accessibility, and quality. This includes telemedicine, mobile health apps, wearable devices, electronic health records (EHRs), and AI-driven personalized medicine.

The market’s expansion is driven by technological advancements, increased internet penetration, and the rising demand for remote healthcare solutions. It encompasses products and services that facilitate health monitoring, diagnosis, treatment, and prevention, thus enabling efficient and personalized care.

Key players range from tech giants and startups to traditional healthcare providers and pharmaceutical companies, contributing to a dynamic ecosystem poised to shape the future of healthcare by making services more accessible and tailored to individual needs.

Government initiatives and policies significantly drive the digital health market in India. The Ayushman Bharat Digital Mission (ABDM), launched in 2021, aims to create a comprehensive digital health ecosystem by providing every citizen with a unique digital health ID to securely store and access their health records nationwide.

This initiative enhances healthcare delivery efficiency by facilitating seamless health information transfer. Additionally, the National Digital Health Blueprint (NDHB) focuses on creating a national digital health ecosystem supporting universal health coverage through services like telemedicine, e-pharmacies, and online consultations.

The government aims to digitize all citizens’ health records by 2025, significantly boosting the demand for digital health solutions.

The rapid increase in internet penetration and smartphone adoption is another key driver. By 2023, India had over 800 million internet users, mostly accessing the internet via smartphones, according to the Telecom Regulatory Authority of India (TRAI).

This widespread digital connectivity facilitates access to digital health services, including telemedicine, mobile health apps, and remote monitoring tools. Smartphones enable healthcare providers to reach a broader population, including those in rural and remote areas, where healthcare infrastructure is underdeveloped, ensuring timely consultations, prescriptions, and follow-ups without physical visits.

Despite the increasing adoption of digital technologies, a significant portion of the Indian population still lacks digital literacy, posing a substantial barrier to the market’s growth. As of 2020, only about 20% of Indians above 15 years old were proficient in basic digital skills, according to the National Statistical Office (NSO).

This lack of digital literacy limits individuals’ ability to use digital health platforms and services effectively, particularly in rural and semi-urban areas. Digital health solutions often require basic technological understanding for tasks such as booking appointments, accessing health records, and utilizing telemedicine services.

Addressing this issue requires efforts in digital education and training, particularly targeting underserved and vulnerable populations.

Data privacy and security concerns also restrain the digital health market. With the increasing digitization of health records and the use of online health platforms, there is a heightened risk of data breaches and cyber-attacks. According to the Indian Computer Emergency Response Team (CERT-In), there was a 7% increase in cyber-attacks on healthcare systems in 2022.

These breaches can lead to unauthorized access to sensitive health information, undermining patient trust in digital health services. The absence of robust data protection laws exacerbates these concerns.

Although the Personal Data Protection Bill has been proposed, it is yet to be enacted, leaving a regulatory gap in the protection of digital health data. Ensuring data security and building a strong regulatory framework is critical to mitigating these concerns and fostering user trust.

The expansion of telemedicine services presents a significant opportunity for the digital health market. The COVID-19 pandemic accelerated telemedicine adoption, providing a safe and efficient way to access healthcare services during lockdowns.

The Ministry of Health and Family Welfare reported that telemedicine consultations under the eSanjeevani platform surpassed 1.2 million by the end of 2021. Telemedicine offers convenience and bridges the gap between urban and rural healthcare access.

With the Indian government actively promoting telemedicine through initiatives like the National Telemedicine Service, there is substantial growth potential. The expansion of 5G technology is expected to further enhance telemedicine services by enabling high-definition video consultations and real-time health monitoring.

The integration of Artificial Intelligence (AI) and Machine Learning (ML) in digital health is another promising opportunity. AI and ML technologies can enhance diagnostic accuracy, personalize treatment plans, and predict disease outbreaks.

For instance, AI algorithms can analyze medical images to detect anomalies, assist in the early diagnosis of diseases such as cancer, and predict patient outcomes based on historical data. The Indian Council of Medical Research (ICMR) actively promotes the use of AI in healthcare, collaborating with tech companies and research institutions on various AI-driven projects aimed at improving healthcare delivery.

These advancements offer immense potential for improving patient care and operational efficiency in the healthcare sector. The increasing availability of big data and advancements in AI technology are expected to drive innovation and growth in the digital health market in India.

In terms of market segmentation, the digital health market in India is divided by solution, deployment, and end-user. Among solutions, software held the highest market share in 2023. Software solutions are essential for digital health services, including EHRs, telemedicine platforms, health management apps, and clinical decision support systems.

The growing demand for efficient healthcare delivery and the widespread adoption of health IT solutions drive this segment. Innovations in AI and machine learning integrated into health software further accelerate its adoption and growth.

For deployment, cloud-based solutions held the highest market share in 2023. Cloud-based solutions offer advantages such as scalability, cost-effectiveness, and remote accessibility, valuable in a geographically diverse country like India. The COVID-19 pandemic accelerated the adoption of cloud technologies due to the need for remote patient monitoring and telehealth services.

Among end-users, hospitals and clinics held the highest market share in 2023. These primary healthcare delivery points have the highest demand for digital health solutions, requiring comprehensive health IT systems for managing patient records, diagnostics, treatment plans, and administrative functions.

The diagnostic centers segment is also rapidly growing due to the increasing emphasis on early disease detection and prevention. The adoption of advanced diagnostic tools and technologies, supported by digital health solutions for data management and analysis, is driving this subsegment’s growth.

Regionally, North India, including states like Delhi, Uttar Pradesh, and Punjab, is a burgeoning hub for digital health innovations. Delhi NCR leads in the adoption of telemedicine and e-pharmacy services, benefiting from a dense network of healthcare providers integrating digital solutions.

Government schemes like Ayushman Bharat are promoting digital health in rural areas. South India, particularly Karnataka, Tamil Nadu, and Kerala, is at the forefront of digital health technology adoption. Bangalore hosts numerous health tech startups and IT companies specializing in digital health solutions.

Kerala’s public health system increasingly incorporates digital tools to manage health records and deliver telehealth services, improving rural healthcare access. Western India, including Maharashtra and Gujarat, is also a key player in the digital health landscape.

Mumbai is a major market for advanced digital health solutions, while Gujarat’s focus on medical tourism drives digital health service adoption. Eastern and North-Eastern regions, including West Bengal and Assam, are relatively nascent in digital health adoption but are witnessing gradual growth.

Government initiatives and private sector collaborations are expanding telemedicine networks and mobile health services to enhance healthcare access in remote areas.

Report Scope

CMI has comprehensively analyzed India Digital Health market. The driving forces, restraints, challenges, opportunities, and key trends have been explained in depth to depict an in-depth scenario of the market. Segment wise market size and market share during the forecast period are duly addressed to portray the probable picture of this India Digital Health industry.

The competitive landscape includes key innovators, after market service providers, market giants as well as niche players which were studied and analyzed extensively concerning their strengths, weaknesses as well as value addition prospects. In addition, the Report covers key players profiling, market shares, mergers and acquisitions, consequent market fragmentation, new trends and dynamics in partnerships, and emerging business models.

List of the prominent players in the India Digital Health Market:

• 1mg (acquired by Tata Digital)
• Practo Technologies
• DocsApp (owned by PharmEasy)
• Lybrate
• Portea Medical
• Zoylo
• Netmeds
• Cloudnine Healthcare
• Thyrocare Technologies
• 15 Minute Clinic (operated by Reliance Industries)
• HealthifyMe
• Curefit
• Medanta Hospitals
• Apollo Telemedicine
• Fortis Telemedicine
• Siemens Healthineers Pvt Ltd
• Philips Healthcare
• Medikabazaar
• PharmEasy
• Others

The India Digital Health Market is segmented as follows:

By Solution

• Software
• Services

By Deployment

• Cloud-based
• On-premises

By End-use

• Diagnostic Centres
• Healthcare Payers
• Healthcare Research Centres
• Hospitals & Clinics
• Nursing Care Centres
• Others