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 carried out in partnership with unbiased market analysis supplier PureSpectrum. It acquired responses from 103 digital well being senior leaders.
Listed below are 5 key findings:
1. Optimistic outlook: Greater than 50% of leaders have a “very optimistic” outlook on the digital well being financial panorama in 2025, whereas 31% are cautiously optimistic. One other 19% are not sure or have a detrimental outlook, citing buyer budgets, financial uncertainty and competitors.
2. Funding panorama: About 79% of digital well being leaders stated their firms are pursuing new funding capital within the subsequent 12 months. When requested about their greatest obstacles to elevating capital, 42% stated they’re fearful they gained’t get their desired phrases (valuation, rate of interest), 38% stated they’re involved they gained’t elevate their goal quantity and 36% anticipate challenges find new buyers.
“Whereas we suspected many digital well being firms could be in search of funding round this time, roughly three or 4 years for the reason that record-setting investments of 2020 and 2021, the flood of firms planning to lift is staggering,” stated Seth Joseph, founder and managing director of Summit Well being Advisors, in an electronic mail. “And contemplating over 41% of digital well being firms are fearful about making payroll and 35% are struggling to accumulate new clients, the state of affairs may very well be dire. 2025 shall be a vital inflection level in digital well being.”
3. Go-to-market challenges: The most important go-to-market challenges for digital well being firms are growing 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 develop internationally, citing U.S. market saturation and unmet income expectations domestically.
“Competitors from massive incumbents and new entrants was essentially the most prevalent exterior problem digital well being firms are going through in the present day,” Joseph stated. “On prime of this, the commonest inside challenges firms are scuffling with is successfully differentiating their merchandise and creating compelling worth props. Understanding the aggressive panorama, market wants and your organization’s distinctive worth shall be vital to keeping off the competitors.”
4. Polarized on telehealth: About 50% of respondents stated telehealth is the digital well being subsector with the best development potential over the subsequent 12 months, whereas 27.7% stated it has the least development potential. As well as, 44% of executives stated telehealth is the place they predict essentially the most M&A exercise over the subsequent 12 months.
AI can be prime of thoughts for digital well being execs, with 43% saying there’s house for development in AI functions and 41% saying it has proven sturdy ROI potential. Nonetheless, 25% stated 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.
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