5 Key Healthcare Industry Trends to Watch in 2024

What are trends in healthcareThe healthcare industry is undergoing rapid transformation, driven by groundbreaking new technology and the need for more cost-effective care and improved health outcomes.

According to the latest market research reports, future trends in healthcare will center on advances in telemedicine, artificial intelligence, and remote monitoring devices, as well as the need for greater cybersecurity. Analysts have also noted an increase in value-based care.

These changes and developments will open up significant market opportunities for companies in the healthcare sector and other adjacent industries.

1. Rise of Telemedicine and Virtual Healthcare Services

The increasing use of telemedicine and virtual healthcare services is a major trend to watch. Due to the COVID-19 pandemic, telehealth became an essential tool for providing remote patient care, and it is expected to continue to grow in popularity, particularly in North America where advanced healthcare technologies are adopted at a high rate.

The global telemedicine market was an estimated $104.44 billion in 2021, and it is projected to rise to $272.76 billion in 2027, growing at a robust compound annual growth rate (CAGR) of 20.5% over the forecast period, according to the recently published report Telemedicine Market – Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028) by Mordor Intelligence.

“Telehealth solutions have demonstrated the ability to enhance health outcomes and reduce costs,” the report explains. “Telemedicine has been decreasing the cost of healthcare while increasing efficiency through improved management of chronic diseases, reduced travel times, shared health professional staffing, and fewer and shorter hospital stays.”

2. Growth of AI and Machine Learning in Healthcare

Another trend is the increasing use of artificial intelligence (AI) and machine learning (ML) in healthcare. AI and ML can be used to analyze patient data, detect patterns, and improve clinical decision-making. They can also be used to personalize treatment plans and improve patient outcomes.

For example, the company Caption Health—which is in the process of being acquired by GE Healthcare—developed a clinical application that uses AI to assist in conducting ultrasound scans to identify signs of heart failure. This technology can be used by non-specialists, making it more accessible and affordable for patients.

As technologies like these continue to advance, the global artificial intelligence in healthcare market is expected to accelerate rapidly. The AI in healthcare market was an estimated $14 billion in 2020, but is projected to reach $119.8 billion by 2027, rising at a CAGR of 35.9%, according to a recent report by Global Industry Analysts. The U.S., China, Japan, Canada, and Germany are expected to lead the market.

3. Value-Based Care Gains Momentum

A shift towards value-based care was also highlighted by market analysts. In value-based care, healthcare providers are paid based on patient outcomes rather than the volume of services they provide. This unique model could help address unsustainable levels of healthcare spending in countries like the U.S.

“This value-based care (VBC) model aims to offer better outcomes and care quality to patients cost-effectively,” according to the report US Value-Based Care for Medical Technology Growth Opportunities by Frost & Sullivan. “Multiple stakeholders, including payers, healthcare providers, and medical technology (medtech) players, can share the revenue risk and incentive for providing better value. The United States is a pioneer in VBC adoption, followed by countries in Western Europe.”

Value-based care has experienced a surge in momentum recently; investment quadrupled during the pandemic, per McKinsey & Company, and the model has the potential to benefit both patients and investors.

4. New Wearables and Remote Monitoring Devices

Another trend is the increasing use of wearables and other remote monitoring devices. Wearables can track a patient's health status, including their heart rate, blood pressure, and physical activity. Remote monitoring devices can also be used to help manage chronic conditions, such as diabetes or hypertension, and provide real-time data to healthcare providers.

Wearable devices are useful across a wide range of settings for patients at home, in hospital wards, and nursing homes. “Many consumer-grade wearable device companies, such as Apple and Fitbit, are entering the medical-grade wearables market to meet increasing demand,” according to Global Clinical-Grade Wearables Growth Opportunities by Frost & Sullivan.

The report explains that cardiac wearables are the fastest growing market segment because of the need for continuous ECG monitoring, and blood pressure monitoring is another feature that will become more widespread. North America is the largest market for wearable devices, but Asia-Pacific is expected to grow at the fastest rate.

5. Importance of Healthcare Cybersecurity

The final trend is the pressing need for healthcare cybersecurity. With the increasing amount of patient data being stored and transmitted electronically, healthcare providers are facing growing security risks. Cyberattacks can compromise patient data, disrupt healthcare services, and damage a provider's reputation.

In 2020 alone, the number of hacking incidents reported in healthcare jumped 42% in North America, as cybercriminals sought to exploit a vulnerable period for already strained health systems, according to Healthcare Cybersecurity Market – Global Outlook & Forecast 2021-2026.

To prevent these types of nightmare security breaches, healthcare providers are investing in cybersecurity measures, which will boost healthcare cybersecurity market growth. The healthcare cybersecurity market had an estimated value of $9.52 billion in 2020 and is expected to reach $24.1 billion by 2026, rising at a CAGR of 16.7%.

Access More Healthcare Market Research

To get more detailed data and analysis, explore our collection of healthcare industry research reports from leading market research firms like Frost & Sullivan, BCC Research, IBISWorld, Kalorama Information, Global Industry Analysts, and many others. These reports provide market data and forecasts, competitive intelligence, and strategic analysis to help companies identifying promising business opportunities and build successful strategic plans.

About the Author: Sarah Schmidt is a Managing Editor at MarketResearch.com, a leading provider of global market intelligence products and services.

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Topics: Healthcare Industry Insights