Digital Diagnostics Market Trend, Share, Growth, Size, Analysis and Forecast 2032

Digital Diagnostics Industry Prospective:

The global digital diagnostics market size was worth around USD 1,472.56 million in 2023 and is predicted to grow to around USD 6,784.82 million by 2032 with a compound annual growth rate (CAGR) of roughly 18.50% between 2024 and 2032.

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Digital Diagnostics Market: Overview

Digital diagnostics is an emerging class of medical diagnosis. It deals with the use of digital systems for diagnosing medical conditions. These devices are non-invasive and hence more patient-focussed. Traditional diagnostic tools can be invasive and uncomfortable. The growing investments and advancements in the digital space have allowed the healthcare industry to explore the offerings resulting in the growing focus on digital diagnosis of medical conditions. The industry encompasses services, platforms, and tools that can be used for monitoring vital health signs continuously. The information collected by these tools can be further used for developing accurate medical care plans for treating patients. Moreover, digital diagnostics can be used in tandem with traditional diagnostic measures for improved diagnosis. One of the key aspects of digital diagnostics is the integration of computer and human intelligence facilitated by the use of advanced diagnostic solutions. The industry’s future is expected to be dependent on the progressive work being conducted across segments such as biostatistics & bioinformatics, Artificial Intelligence (AI) solutions, and advanced analytical tools that are likely to help the industry grow in the future. The forecast period is expected to deliver significant growth opportunities but the high cost of development and hesitancy toward accepting new technologies could lead to a limited growth rate.

Key Insights:

• As per the analysis shared by our research analyst, the global digital diagnostics market is estimated to grow annually at a CAGR of around 18.50% over the forecast period (2024-2032)
• In terms of revenue, the global digital diagnostics market size was valued at around USD 1,472.56 million in 2023 and is projected to reach USD 6,784.82 million, by 2032.
• The market is projected to grow at a significant rate due to the rising patient rate globally
• Based on the end-user, the hospitals segment is growing at a high rate and will continue to dominate the global market as per industry projection
• Based on the product, the hardware segment is anticipated to command the largest market share
• Based on region, North America is projected to dominate the global market during the forecast period

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Digital Diagnostics Market: Growth Drivers

Rising patient rate globally may drive the market demand during the forecast period

The global digital diagnostics market is expected to grow due to the growing number of patients globally. The increase in population as well as diminishing immune strength of the general population has resulted in an increase in the global healthcare industry to deliver optimal medical care. Several environmental, social, and genetic factors act as influencers in determining the immune level of an individual. For instance, in most cases, people associated with occupational hazards such as harsh or toxic chemicals or dust are more vulnerable to developing respiratory conditions and certain types of cancer. For instance, studies indicate that people who regularly work with water-based paints develop gastrointestinal problems along with excessive urination and skin sensitivity. Some of the most commonly reported medical conditions globally are dementia, cancer, flu, diabetes, bronchitis, heart conditions, kidney diseases, and Human immunodeficiency viruses. Certain conditions are treatable while a large number of medical problems have not found a cure and can be fatal if left untreated for a long time. Type 1 diabetes, for instance, does not have a cure and only disease management protocols have been developed so far. A patient with type 1 diabetes is required to follow a strict lifestyle for managing blood sugar levels. Apart from diseases, the general population is exposed to other forms of medical conditions such as injuries and age-related issues thus requiring advanced diagnostic solutions for timely diagnosis associated with treatment.

Higher investments in improving medical imaging solutions could help the industry thrive in the coming years

Digital diagnostics is expected to benefit from the growing investments in improving the accuracy and application of imaging solutions. These devices are essential for correct diagnosis. In addition to this, the evolving nature of medical diseases and conditions has resulted in greater demand for diagnostic tools that can assist in delivering advanced medical care. Wearables, for instance, are a new class of digital diagnostics. These solutions are compact and provide real-time information on a patient's health conditions. Moreover, the awareness around medical wearables and their advantages has grown at a tremendous pace in the last few years thus making significant contributions to the global digital diagnostics market.

Digital Diagnostics Market: Restraints

Issues related to integration with legacy systems could restrict the market expansion rate

The global industry for digital diagnostics is expected to be restricted due to concerns over the seamless integration of modern diagnostic methods with traditional legacy technologies. For instance, older technologies may not be compatible with advanced algorithms that are an essential part of digital diagnostic solutions. In addition to this, the lack of skilled professionals and other resources required for the smooth running of sophisticated diagnostic solutions could further limit the market adoption rate.

Digital Diagnostics Market: Opportunities

Increased investments in research & development along with simultaneous growth in partnering technologies could further generate high-growth opportunities

The global digital diagnostics market is expected to generate growth opportunities due to the growing investments in research & development. Medical device manufacturers are investing heavily in innovating new more accurate solutions that can provide real-time information on patient’s health. In January 2024, researchers at Penn Medicine announced the launch of a new artificial intelligence (AI) tool that is supposed to help in analyzing gene activities present in medical images. The tool is called Inferring Super-Resolution Tissue Architecture (iStar) and as per claims by scientists, it can be used for improved diagnosis and subsequent treatment of cancer that other technologies may be unable to diagnose. In the same month, another company called Quibim launched QP-Prostate. The organization focuses on using imaging markers for delivering precision medicine and QP-Prostate is an AI tool for prostate cancer.

Surging focus on rare or elusive diseases and their early diagnosis is showing exceptional growth opportunities

The medical community globally is putting efforts toward deploying a more robust ecosystem surrounding the diagnosis and treatment of rare or elusive diseases that cannot be easily recognized using normal diagnostic procedures. In March 2024, a study was published that highlighted the impact of smartphone-based dedicated memory tests for detecting mild cognitive impairment. It is considered a critical indicator of Alzheimer's disease. These tests have been reported to have high accuracy. In May 2024, Topcon Healthcare, Inc. announced a partnership with  RetiSpec, Inc. through which the companies will work in the direction of bringing eye diagnostic artificial intelligence (AI) technology by RetiSpec to the commercial market. The technology is an Alzeihmer’s detecting AI tool and may contribute to the global digital diagnostics market.

Digital Diagnostics Market: Challenges

High cost of developing innovative digital diagnostic tools may inhibit the market’s expansion trajectory

The global industry for digital diagnostics is expected to be challenged by the high cost involved in the development of innovative solutions. These technologies demand years of experiments and research. Moreover, the statutory regulations surrounding the commercial launch of novel systems are extremely complex, further leading to inhibited growth in the industry.

Digital Diagnostics Market: Segmentation

The global digital diagnostics market is segmented based on end-user, application, product, and region.

Based on the end-user, the global market segments are clinical laboratories, hospitals, and others. In 2023, the highest growth was observed in the hospitals segment. The growing acceptance of digital technologies in hospitals across the globe will drive the segmental demand during the forecast period. In May 2024, reports emerged suggesting that Abu Dhabi will soon witness the launch of an AI academy to improve the health workforce skillset. In January 2024, the Astellas Global Health Foundation provided new funding to African regions. The funds are worth USD 2.6 million and will be used to meet the healthcare needs of the region.

Based on application, the global digital diagnostics industry is segmented into pathology, neurology, cardiology, and others.

Based on the product, the global market divisions are software and hardware. In 2023, the highest demand was observed in the hardware segment driven by the growing need for advanced medical imaging tools. Medical professionals can make more informed decisions regarding treatment using accurate medical images. The growing demand for painless medical imaging systems may promote the market expansion rate. In 2023, the global medical imaging industry was valued at over USD 33.05 billion.

Digital Diagnostics Market: Report Scope

Digital Diagnostics Market: Regional Analysis

Market dominance will be witnessed in North America during the forecast period

The global digital diagnostics market will be dominated by North America in the coming years. The region has been the leading revenue generator in the past and will continue the same trend during the projection period. Growth in North America is the result of the hold that the US has on the global healthcare infrastructure. It is home to one of the world's most renowned medical care systems with multiple patients globally visiting the country for advanced care. As per the US International Trade Commission, around 0.5% of all people traveling to the US visit the country for health-related reasons. The country houses several diagnostic centers equipped with state-of-the-art devices for diagnosis of all types of medical conditions including the most rare issues. In March 2024, ChestPal, a UK-based medical technology company, announced the launch of ChestPal Pro. It is a new-age digital stethoscope. In February 2024, Hologic, Inc. launched the Genius™ Digital Diagnostics System powered by the Genius™ Cervical AI algorithm. The tool has received the necessary approval from the US Food & Drugs Administration (FDA) thus becoming the only FDA-approved digital cytology system working as a combination of advanced volumetric imaging technology and deep-learning-based artificial intelligence (AI).

Digital Diagnostics Market: Competitive Analysis

The global digital diagnostics market is led by players like:

• Bio-Rad Laboratories
• Philips Healthcare
• Cerner Corporation
• Illumina
• Sysmex Corporation
• Roche Diagnostics
• Abbott Laboratories
• Becton Dickinson (BD)
• Agilent Technologies
• Siemens Healthineers
• PerkinElmer
• GE Healthcare
• Qiagen
• Thermo Fisher Scientific and Danaher Corporation.

The global digital diagnostics market is segmented as follows:

By End-User

• Clinical Laboratories
• Hospitals

By Application

• Pathology
• Neurology
• Cardiology

By Product

• Software
• Hardware

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa