Health Tech by the Numbers: Adoption, AI, Wearables, Funding

Health Tech by the numbers: market scale and momentum

In the Health Tech sector, Digital health is now a core pillar of healthcare’s growth story. Market sizing estimates put the global digital health industry at roughly $300 billion in 2023 with a compound annual growth rate in the high 20s through 2030, according to industry reports. The revenue mix spans telemedicine, mHealth apps, remote monitoring, and healthcare analytics—areas where incumbents like Epic and Oracle Health are increasingly integrating third‑party tools while cloud vendors scale HIPAA‑compliant platforms.

Adoption metrics corroborate the shift from pandemic‑era experimentation to normalized digital touchpoints. Telehealth utilization has stabilized in the mid‑teens percentage of outpatient visits in the U.S., reflecting durable patient and provider behavior change according to recent research. Meanwhile, health systems are pairing virtual care with asynchronous messaging, online scheduling, and digital triage to reduce friction—often measured by reductions in no‑show rates and improved time‑to‑appointment.

At the app layer, chronic condition management is the dominant use case, with cardiometabolic programs (diabetes, hypertension, weight management) driving employer and payer contracts. The platformization of digital health is visible in the rise of integrated care pathways tied to outcomes‑based contracts, as providers and insurers press vendors to move from engagement stats to clinically meaningful endpoints.

Utilization trends: telehealth, virtual care, and digital touchpoints

Provider networks continue to right‑size telehealth volumes as payers update coverage policies, but the integration of hybrid models is widening. Teladoc and Amwell report steadier visit mix anchored in behavioral health and urgent care, while health systems deploy specialist teleconsults to mitigate staffing gaps. Utilization data suggest virtual behavioral health remains an outlier with persistently high volumes, supported by enterprise contracts and lower geographic barriers.

Digital front doors—self‑scheduling, e‑registration, and remote intake—are becoming measurable throughput drivers. Systems that standardize intake forms and enable real‑time eligibility checks report reductions in administrative cycle times and higher portal adoption. Epic and Oracle Health are embedding patient‑reported outcomes into workflows, allowing care teams to trigger virtual follow‑ups based on symptom scores rather than appointment slots.

For employers and payers, virtual care’s economics are increasingly assessed against avoided ER visits and improved medication adherence. Vendors offering integrated navigation (benefits literacy, provider matching, price transparency) are reporting higher net promoter scores and lower churn, suggesting member experience metrics are a leading indicator of ROI.

AI in the clinic: approvals, performance, and productivity

AI is moving from pilots to production, particularly in imaging, operations, and documentation. The U.S. Food and Drug Administration now lists hundreds of AI/ML‑enabled medical devices with clearances across radiology, cardiology, and ophthalmology—surpassing 700 as of late 2024 data from regulators show. Vendors such as GE HealthCare, Siemens Healthineers, and Philips are bundling AI triage, measurement, and quality tools into modality upgrades, while startups target workflow automation and earlier detection.

On the operations side, ambient clinical documentation and prior‑auth automation are emerging as measurable productivity levers. Health systems benchmarking AI scribes report double‑digit reductions in after‑hours charting and improved clinician satisfaction, a key statistic amid persistent burnout. Payers piloting AI for claims routing and fraud detection are quantifying cycle‑time gains, though compliance teams are instituting human‑in‑the‑loop controls to manage bias and explainability.

Expect 2025 to bring more outcomes‑linked evidence for AI, with head‑to‑head studies and post‑market surveillance data informing contracting. The commercial focus is shifting from model novelty to integration depth—how reliably AI plugs into EHR workflows, imaging archives, and revenue cycle systems.

Remote monitoring and wearables: from consumer to clinical grade

Wearables have crossed the chasm from fitness to health, with shipments approaching 500 million units globally in 2023, driven by smartwatches, hearables, and sensor‑enabled rings data from analysts. Apple, Samsung, Fitbit, and Garmin lead consumer categories, while medical‑grade devices from Abbott (FreeStyle Libre) and Dexcom (G6/G7) dominate glucose monitoring—often integrated into digital coaching programs for value‑based contracts.

In clinical settings, remote patient monitoring (RPM) programs are expanding beyond cardiometabolic to pulmonary and maternal health use cases. Providers measure success through enrollment rates, alert resolution times, and reductions in readmissions, with RPM data flowing into care pathways and risk scoring models. Vendors like Omada Health, WelbeHealth, and Current Health (Best Buy Health) are reporting deeper payer partnerships as evidence on utilization and outcomes accumulates.

The next leg of growth will hinge on reliability and workflow fit—battery life, data fidelity, and seamless triage. Health systems are standardizing device fleets and integrating dashboards into nursing workflows to avoid alert fatigue, improving adherence and clinical actionability.

Capital flows and corporate strategy: funding, M&A, and exit windows

After the 2021 peak, digital health funding reset but shows signs of cautious recovery. U.S. startups raised roughly $6 billion in the first half of 2024, with larger late‑stage rounds returning as investors prioritize proven unit economics and regulatory traction industry reports show. Megadeals clustered in AI‑enabled diagnostics, specialty care platforms, and employer benefits navigation, while seed activity remained selective.

Strategic buyers are taking advantage of valuation compression to fill capability gaps. Retail and tech entrants continue to push into care delivery—Amazon Clinic, CVS Health, and Optum are expanding virtual care, pharmacy integration, and home‑based services—while device makers bundle software subscriptions to stabilize recurring revenue. Public‑market windows reopened for a handful of health tech names, but most late‑stage companies are pursuing extension rounds or structured financings to bridge to profitability.

For 2025 planning, the operational mantra is discipline: demonstrable clinical outcomes, clear reimbursement pathways, and integration into provider and payer workflows. Statistically, vendors that can show reductions in total cost of care—via fewer avoidable admissions, better adherence, and lower administrative friction—are best positioned to capture budget share as health systems navigate tight margins.