India Digital Health Market 2024–2033

Reports Description

India Digital Health Market 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.

Digital health encompasses the integration of technology with healthcare, aiming to enhance the delivery, accessibility, and quality of medical services. It includes a wide range of applications such as telemedicine, mobile health apps, wearable devices, electronic health records (EHRs), and personalized medicine driven by data analytics and artificial intelligence.

The digital health market, as of recent years, is rapidly expanding, driven by advancements in technology, increased internet penetration, and the growing demand for remote healthcare solutions. This market includes products and services that facilitate health monitoring, diagnosis, treatment, and prevention, enabling more efficient and personalized care.

Key players in this sector range from tech giants and startups to traditional healthcare providers and pharmaceutical companies, all contributing to a dynamic ecosystem. As a result, the digital health market is poised to play a crucial role in shaping the future of healthcare, making medical services more accessible and tailored to individual needs.

India Digital Health Market: Growth Factors

Government Initiatives and Policies

India’s digital health market is significantly propelled by robust government initiatives and policies aimed at enhancing healthcare infrastructure and promoting digital health solutions. One of the most noteworthy initiatives is the Ayushman Bharat Digital Mission (ABDM).

Launched in 2021, the ABDM aims to create a comprehensive digital health ecosystem by providing a unique digital health ID for every citizen, which will store their health records securely and can be accessed across the country. This initiative not only facilitates the seamless transfer of health information but also enhances the efficiency of healthcare delivery.

According to the Ministry of Health and Family Welfare, the ABDM aims to integrate various digital health services under one umbrella, thus promoting the adoption of digital health technologies across public and private healthcare sectors.

Additionally, the National Digital Health Blueprint (NDHB) is another significant policy framework designed to strengthen the digital health infrastructure. The NDHB focuses on creating a national digital health ecosystem that supports universal health coverage through a wide range of services, including telemedicine, e-pharmacies, and online consultation.

By 2025, the government aims to digitize the health records of all citizens, which is expected to boost the demand for digital health solutions significantly.

Rising Internet Penetration and Smartphone Adoption

The rapid increase in internet penetration and smartphone adoption in India is another key driver for the digital health market. According to the Telecom Regulatory Authority of India (TRAI), India had over 800 million internet users by 2023, with a majority accessing the internet via smartphones.

This widespread digital connectivity facilitates the accessibility of digital health services, including telemedicine, mobile health apps, and remote monitoring tools.

The proliferation of smartphones has made it easier for healthcare providers to reach a larger segment of the population, including those in rural and remote areas where healthcare infrastructure is typically underdeveloped.

This accessibility ensures that patients can receive timely consultations, prescriptions, and follow-ups without the need for physical visits. The digital health market benefits from this trend, as more people are inclined to use mobile health applications and online health services for their medical needs.

India Digital Health Market: Restraints

Lack of Digital Literacy

Despite the increasing adoption of digital technologies, a significant portion of the Indian population still lacks digital literacy, which poses a substantial barrier to the growth of the digital health market. According to the National Statistical Office (NSO), as of 2020, only about 20% of Indians above the age of 15 were proficient in basic digital skills.

This lack of digital literacy limits the ability of individuals, particularly in rural and semi-urban areas, to effectively use digital health platforms and services.

Furthermore, digital health solutions often require a basic understanding of technology for tasks such as booking appointments, accessing health records, and utilizing telemedicine services. The digital divide is exacerbated by factors such as age, education level, and socio-economic status, which further impedes the widespread adoption of digital health services.

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

Data Privacy and Security Concerns

Data privacy and security concerns are significant restraints on the digital health market in India. 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 a report by the Indian Computer Emergency Response Team (CERT-In), there was a 7% increase in cyber-attacks on healthcare systems in 2022 compared to the previous year. These breaches can lead to unauthorized access to sensitive health information, which undermines patient trust in digital health services.

Moreover, 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 trust among users.

India Digital Health Market: Opportunities

Expansion of Telemedicine Services

The expansion of telemedicine services represents a significant opportunity for the digital health market in India. The COVID-19 pandemic has accelerated the adoption of telemedicine, as it provided a safe and efficient way to access healthcare services during lockdowns and social distancing measures.

According to the Ministry of Health and Family Welfare, the number of telemedicine consultations under the eSanjeevani platform surpassed 1.2 million by the end of 2021.

Telemedicine not only offers convenience but also 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 potential for growth.

The expansion of 5G technology is expected to further enhance the quality and reach of telemedicine services, enabling high-definition video consultations and real-time health monitoring.

Integration of Artificial Intelligence and Machine Learning

The integration of Artificial Intelligence (AI) and Machine Learning (ML) in digital health is another promising opportunity. AI and ML technologies can significantly 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 even predict patient outcomes based on historical data.

The Indian Council of Medical Research (ICMR) has been actively involved in promoting the use of AI in healthcare. In collaboration with tech companies and research institutions, the ICMR is working 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.

India Digital Health Market: Segmentation Analysis

India Digital Health market is segmented by Solution, Deployment and end user.

Based on Solution, India Digital Health market is segmented into Software and services. Among all these segments, Software held the highest market share in 2023.  Software solutions are essential for the functioning of digital health services, including Electronic Health Records (EHR), 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 by hospitals, clinics, and other healthcare providers drive this segment. The need for interoperability, data analytics, and the rising trend of personalized medicine are propelling the growth of digital health software.

Moreover, innovations in AI and machine learning integrated into health software further accelerate its adoption and growth.

Based on Deployment, India Digital Health market is segmented into Cloud based and on premises. Among all these segments cloud-based based held the highest market share in 2023.  Cloud-based solutions offer significant advantages such as scalability, cost-effectiveness, and remote accessibility.

These benefits are particularly valuable in a diverse and geographically dispersed country like India. Additionally, the increasing trust in cloud security and compliance standards encourages more healthcare providers to adopt cloud-based deployments.

The rapid digital transformation across various sectors, including healthcare, is driving the demand for cloud-based solutions. The COVID-19 pandemic has further accelerated the adoption of cloud technologies due to the need for remote patient monitoring and telehealth services.

Based on end use, India digital Health Market is segmented into Diagnostic Centres, Healthcare Payers, Healthcare Research Centres, Hospitals & Clinics, Nursing Care Centres, and Others. Among all these segments Hospitals and Clinics held the highest market share in 2023.

Hospitals and clinics are the primary healthcare delivery points and thus have the highest demand for digital health solutions. They require comprehensive health IT systems for managing patient records, diagnostics, treatment plans, and administrative functions, making them the largest consumers of digital health technologies.

The diagnostic centres segment is witnessing rapid growth 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 the growth of this subsegment.

Additionally, the increasing availability of high-throughput diagnostic devices and integration with digital health platforms contribute to its fast-paced expansion.

Report Scope

India Digital Health Market: Regional Analysis

India’s digital health market is rapidly evolving, driven by a combination of increased internet penetration, government initiatives, and a growing demand for healthcare services. As of 2024, the market is witnessing significant growth across various regions, each displaying unique dynamics and adoption patterns.

North India, encompassing states like Delhi, Uttar Pradesh, and Punjab, is a burgeoning hub for digital health innovations. Delhi NCR, with its advanced infrastructure and higher disposable incomes, leads to the adoption of telemedicine and e-pharmacy services.

The region benefits from a dense network of healthcare providers integrating digital solutions to streamline operations and enhance patient care. Government schemes like Ayushman Bharat are pivotal in promoting digital health in rural areas, and improving access and affordability.

South India, particularly states like Karnataka, Tamil Nadu, and Kerala, is at the forefront of digital health technology adoption. Bangalore, known as India’s tech capital, hosts numerous health tech startups and IT companies specializing in digital health solutions, from AI-driven diagnostics to health management apps.

Kerala’s robust public health system is increasingly incorporating digital tools to manage health records and deliver telehealth services, significantly improving rural healthcare access.

Maharashtra and Gujarat are key players in the digital health landscape of Western India. Mumbai, with its high concentration of hospitals and private healthcare providers, is a major market for advanced digital health solutions, including remote patient monitoring and mobile health applications.

Gujarat’s focus on medical tourism also drives the adoption of digital health services, ensuring high standards of patient care and streamlined operations.

While the Eastern and North-Eastern regions, including states like West Bengal and Assam, are relatively nascent in digital health adoption, they are witnessing gradual growth.

The challenge of geographic and infrastructural barriers is being addressed through targeted government initiatives and private sector collaborations to expand telemedicine networks and mobile health services, enhancing healthcare access in remote and underserved areas.

Overall, India’s digital health market is poised for substantial growth, with regional disparities gradually narrowing as technology becomes more accessible and integrated into the healthcare system nationwide.

India Digital Health Market: Recent Developments

• In March 2024, Artificial intelligence (AI) is playing an increasingly important role in digital health. Reliance Jio and Fortis Healthcare are developing AI-powered chatbots for symptom checkers and basic health advice. Additionally, startups like SigTuple and Niramai are using AI for medical image analysis, aiding in faster and more accurate diagnoses.

• In February 2024, mental health startup Lyfe received a Series C funding round of $25 million. The Indian digital health market is attracting significant investments from venture capitalists and private equity firms. This influx of capital is fueling innovation and growth in the sector.

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

These key players are adopting various organic and inorganic growth strategies such as mergers & acquisitions, joint ventures, expansion, strategic alliances, new product launches, etc. to enhance their business operations and revenues.

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