Health Tech by the Numbers: Growth, AI Clearances, and the Hybrid Care Shift

Health Tech by the Numbers

The digital health market continues to expand, with the sector projected to surpass $800 billion by 2030 on high-teens compound annual growth, according to industry sizing from Grand View Research. After a reset in 2022–2023, deal activity is showing signs of stabilization as strategic buyers and late-stage backers focus on scalable care models and enterprise integrations.

Funding patterns have shifted from growth-at-all-costs to metrics-first discipline. Analysts report that investment has concentrated in virtual care, AI-enabled diagnostics, and data interoperability platforms, with a rebound in late-stage rounds for category leaders, CB Insights’ State of Digital Health shows. That recalibration is reshaping roadmaps for incumbents like Teladoc Health while drawing in retail and payer platform entrants.

Telehealth Becomes the New Front Door

Telehealth has cemented a durable role in the care continuum, stabilizing at roughly the mid-teens share of outpatient visits in the U.S.—well above pre‑pandemic baselines—McKinsey analysis indicates. Scale players including Teladoc Health have broadened capabilities from on-demand urgent care to chronic care and mental health, while retail-backed offerings such as Amazon Clinic and integrated care platforms from CVS Health have optimized convenience and price transparency.

Payer-backed virtual care models are also maturing, with Optum folding telehealth into digital navigation, behavioral health, and pharmacy benefits. The strategic focus is shifting to hybrid care—blending virtual and in‑person visits—where analytics determines the “right site of care” and steers patients to the most efficient channel.

AI Diagnostics, EHR Interoperability, and the Data Dividend

AI and machine learning are moving from pilots to production in clinical workflows. The U.S. Food and Drug Administration lists more than 500 authorized AI/ML‑enabled medical devices across imaging, cardiology, and monitoring categories, underscoring accelerating commercialization on its public tally. Imaging leaders including Siemens Healthineers and Philips are embedding decision support at the modality level, while care delivery platforms tap ambient documentation and triage tools.

Meanwhile, interoperability statistics are improving as health systems embrace standardized exchange frameworks and APIs. The Office of the National Coordinator for Health IT reports steady gains in information sharing among hospitals and clinicians, aided by FHIR-based services and large EHR platforms such as Epic Systems and Oracle Health, with cloud-scale tooling from Microsoft and Google Cloud lowering integration friction, according to ONC data. These building blocks are enabling outcomes-linked contracts, population health analytics, and value-based care playbooks to spread across networks. This builds on broader Health Tech trends.

Profitability, Outcomes, and the 2025 Outlook

Connected device ecosystems are tying reimbursement to measurable results. Continuous glucose monitoring from Dexcom and smart insulin delivery from Medtronic illustrate how remote monitoring, algorithmic titration, and patient engagement can drive lower readmissions and tighter disease control—key levers for employers and payers seeking total cost of care reduction. As CPT codes expand and quality measures harden, the advantage shifts to platforms that can prove clinical efficacy at scale.

After the funding reset, the growth narrative is tilting toward durable unit economics. Startups including Omada Health, Hims & Hers, and Ro are leaning into longitudinal programs, subscription models, and pharmacy integration to diversify revenue and compress acquisition costs. Consolidation remains likely as retail health, EHR vendors, and cloud providers hunt strategic tuck-ins and proof points. For more on latest Health Tech innovations.