Industry revenues hit $1.7 billion in 2010 and are set to grow at 27 percent annually for the next five years, Parks says. Many emerging health devices and services rely on high-speed connectivity to track vital signs or enable interactive features.
"The digital health industry has many subsectors, and near-term growth will be uneven across these segments," says Harry Wang, director of Parks Associates' health research team. "Adoption of chronic-care monitoring will grow slowly, and medication management and senior fall-detection programs will expand at above-average rates. The real engines of growth in this industry will be mobile care solutions and tracking applications."For example, CES 2011 featured the "Fitness TechZone," which showcased digital innovations such as mobile apps designed to promote healthy living. In 2010, Philips, already a large player in the home health industry, introduced its consumer-focused DirectLife service, which includes an Activity Monitor that tracks a user's physical activity and helps with fitness and wellness management.
Wang is optimistic about the future of digital health industry but notes that the political impasse over the new health care law could delay investment in new health care technologies and create funding challenges for new business models. He notes, "To move forward, this industry needs smart entrepreneurs and visionary industry leaders and a regulatory and reimbursement system amenable to innovative, effective, and cost-saving technology advances."
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