The global digital health market remained stagnant for several quarters before reaching its lowest level since the third quarter of 2017 at $3.4 billion, according to a July 26 report from CB Insights. In the first half of 2023, digital health reported $6.9 billion, which is half the total seen in 2022 and the lowest since 2015, according to an Aug. 22 report from the American Hospital Association.
While a majority of digital health funding in Q2 came from the U.S., it decreased by 80 percent in comparison to Q1. Meanwhile, investments in artificial intelligence applications — especially clinical support areas, diagnostic imaging and automated documentation technology — have remained on the rise.
Despite the opposite trends seen between the markets, generative AI is expected to become more prominent across digital health systems, Alex Lennox-Miller, a CB Insights analyst, said in the Aug. 22 report.
