Healthtech's Meteoric Rise: A Look at the Expanding Landscape of Healthcare Technology
Innovating Wellness, from Wearables to AI
By Gianna Rivera
Healthtech is a rapidly expanding sector within the healthcare industry, driven by the growing demand for convenience and flexibility in healthcare services. It encompasses a wide array of technology-driven solutions designed to deliver healthcare outside traditional hospital and physician settings. Healthtech leverages innovations like telemedicine, cloud computing, and AI algorithms to optimize patient-centric care, reduce costs, and enhance healthcare accessibility. Emerging spaces within healthtech encompass areas such as AI-powered drug discovery, anti-aging treatments, gene therapies, mental health tech, and VR health, reflecting the sector's dynamic and innovative nature.
The global healthcare technology market is projected to grow significantly, with a forecasted increase from $371.4 billion in 2022 to $439.5 billion in 2023, and an anticipated CAGR of more than 18%. Despite disruptions caused by the Russia-Ukraine war, economic sanctions, inflation, and supply chain disruptions, the health tech market is expected to reach $852.2 billion in 2027, also with an 18% CAGR. North America led the market in 2022, followed by the Asia-Pacific region, which is poised for substantial growth. The driving force behind this growth is the rising demand for preventive care solutions, including the expansion of free preventive services to millions of people with private health insurance, Medicare beneficiaries, and Medicaid expansion under the ACA. Now, there’s a multitude of subsectors in health tech, but the main ones being focused on are fem tech and wearable tech
Femtech, a term coined by Clue founder Ida Lin, encompasses a wide range of technologies, including products, apps, medical devices, and software, all aimed at addressing women's health needs. With the femtech market valued at approximately $51 billion in 2021 and projected to reach $103 billion by 2030, it's a rapidly growing sector. North America leads the femtech market, accounting for over half of all femtech companies globally in 2022, with a significant focus on pregnancy, nursing, reproductive health, contraception, general healthcare, and menstrual health. While awareness of femtech remains somewhat limited, it represents an emerging industry with significant growth potential. The primary challenges facing femtech include securing investments, overcoming advertising restrictions and taboos, and attracting and retaining talent. Nevertheless, industry leaders foresee substantial sales growth and an increase in staffing within femtech companies in the coming years.
Wearables, gadgets designed to be worn on the body, have evolved from early devices like Pulsar's calculator wristwatch to modern smart technology with smart sensors and internet connectivity. The wearable market is thriving, with over 490 million shipments in 2022, driven by innovations like 5G technology. Key categories in the wearable market include smartwatches, hearables, fitness trackers, smart jewelry, and smart clothing. Notably, smartwatches and hearables have gained prominence, with earwear shipments projected to reach 340 million in 2023. Among wearables vendors, Apple holds the largest market share, particularly due to the success of the Apple Watch and AirPods. Xiaomi, Huawei, and Samsung are also prominent players in this growing industry, with Fitbit having a strong presence in health and fitness wearables until it was surpassed by Apple and Xiaomi.
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