Many digital well being leaders are optimistic concerning the digital well being sector in 2025, however nonetheless anticipate headwinds, a latest survey from Summit Well being Advisors revealed.
Summit Well being Advisors is a healthcare consulting agency. Its Digital Well being Go-to-Market Report was performed in partnership with unbiased market analysis supplier PureSpectrum. It obtained responses from 103 digital well being senior leaders.
Listed here are 5 key findings:
1. Constructive outlook: Greater than 50% of leaders have a “very constructive” outlook on the digital well being financial panorama in 2025, whereas 31% are cautiously optimistic. One other 19% are not sure or have a adverse outlook, citing buyer budgets, financial uncertainty and competitors.
2. Funding panorama: About 79% of digital well being leaders mentioned their firms are pursuing new funding capital within the subsequent 12 months. When requested about their largest limitations to elevating capital, 42% mentioned they’re apprehensive they received’t get their desired phrases (valuation, rate of interest), 38% mentioned they’re involved they received’t elevate their goal quantity and 36% anticipate challenges find new traders.
“Whereas we suspected many digital well being firms can be looking for funding round this time, roughly three or 4 years because the record-setting investments of 2020 and 2021, the flood of firms planning to lift is staggering,” mentioned Seth Joseph, founder and managing director of Summit Well being Advisors, in an e-mail. “And contemplating over 41% of digital well being firms are apprehensive about making payroll and 35% are struggling to accumulate new clients, the state of affairs might be dire. 2025 will likely be a crucial inflection level in digital well being.”
3. Go-to-market challenges: The most important go-to-market challenges for digital well being firms are rising market crowdedness, rising competitors, and the “incapacity to successfully place towards these aggressive threats,” based on the report. To cope with competitors, 67% are planning to increase internationally, citing U.S. market saturation and unmet income expectations domestically.
“Competitors from giant incumbents and new entrants was probably the most prevalent exterior problem digital well being firms are dealing with right this moment,” Joseph mentioned. “On prime of this, the commonest inside challenges firms are combating is successfully differentiating their merchandise and growing compelling worth props. Understanding the aggressive panorama, market wants and your organization’s distinctive worth will likely be crucial to heading off the competitors.”
4. Polarized on telehealth: About 50% of respondents mentioned telehealth is the digital well being subsector with the best development potential over the following 12 months, whereas 27.7% mentioned it has the least development potential. As well as, 44% of executives mentioned telehealth is the place they predict probably the most M&A exercise over the following 12 months.
AI can be prime of thoughts for digital well being execs, with 43% saying there’s area for development in AI functions and 41% saying it has proven sturdy ROI potential. Nonetheless, 25% mentioned AI is overhyped.
5. Companions for go-to-market efforts: About 31% of digital well being leaders imagine their groups want to boost their understanding of their markets and competitors. Of this group, 94% view bettering this understanding as a prime organizational precedence. Almost all respondents (99%) depend on exterior companions to assist develop and implement their go-to-market methods, with 71% reporting that the majority or all of their initiatives are supported by these exterior companions.
Photograph: carloscastilla, Getty Pictures
