Digital technologies are revolutionizing the healthcare sector, which is great news for patients, medical practitioners, researchers, and investors. Find out why healthtech is a trend with massive global potential.
Healthtech is one of the fastest-growing segments in the healthcare sector. “Healthtech” refers to the use of digital technology (databases, applications, mobile and wearable devices) to improve the delivery and quality of medical care. In the same way that tech is transforming sectors like finance and education, digitalization is increasing the accuracy, efficiency, and user-friendliness of healthcare services.
Healthtech has already had a significant impact on the way we prevent, diagnose and treat illness, but it’s still early days. Companies are only just beginning to unlock the vast potential benefits of the digital healthcare revolution. So from an investment point of view, there’s still time to secure an early-mover advantage in the market.
How is digitalization revolutionizing healthcare?
Advances in healthtech are enabling doctors and researchers to extend our lifespans and to manage the issues and complexity associated with longevity. For instance, new bioengineering techniques are being developed to “treat aging” and increase our healthspan, which is the period in which we are free of major chronic diseases.
Less radical yet no less life-changing are innovations such as smartwatches that measure blood pressure, continuous glucose monitors, and mobile electrocardiogram devices. The data generated by these technologies empower patients to independently manage their health and improve their quality of life. This data can also be linked with digital medical records, ensuring doctors have access to accurate, up-to-date information.
Key areas of growth in healthtech
Demand for smart devices and digital healthcare solutions is expected to increase, not least due to aging populations worldwide and the soaring cost of providing healthcare.
Digital healthcare solutions are accessible, cost-effective, customizable, and preventative. So it’s not surprising that the healthtech industry has shown considerable growth in recent years. According to Uwe Neumann, Senior Equity Analyst at Credit Suisse, the four key areas worth watching are diagnostics (for example modern imaging and genetic analysis), therapeutic health technology, care delivery at distance and support functions which are transforming electronic healthcare records into more relevant, useful and transferrable tools, artificial intelligence playing an essential role in these technological advances.
Artificial intelligence is becoming an essential part of healthcare
In the healthcare sector, AI helps to identify patient needs, reduce costs, and increase efficiency. Intelligent technologies also make healthcare more personal and accessible, with AI-assisted online consultation services providing patients with a convenient first point of contact, for example.
Fertility medicine is also benefitting from AI, in the form of wearable fertility tracking bracelets that can help avoid the need for costly and invasive treatments.
The time is ripe for investment
Healthtech is part of a Supertrend we call “technology at the service of humans” and may provide interesting investment opportunities.
The healthtech market is now broad enough to enable a wide portfolio of digital health stocks, yet still new enough for investors to secure an early-mover advantage.
The value of the health technology market is set to increase 18-fold in seven years, offering excellent opportunities for investors.