Digital health and telemedicine have moved from the margins to the mainstream. Fueled by technological innovation, shifting consumer behavior, and healthcare system inefficiencies, the digital transformation of medicine is accelerating. What was once considered futuristic is now essential. For investors and entrepreneurs alike, this sector presents a wealth of opportunities—if you know where to look.
Why Digital Health Is Booming
Several trends are converging to drive the rapid expansion of digital health:
- Post-COVID Momentum: The pandemic normalized remote care. Patients and providers adopted telemedicine out of necessity—and many won’t go back.
- Rising Healthcare Costs: Digital platforms reduce overhead and improve efficiency, appealing to both providers and insurers.
- Chronic Disease Management: As populations age and chronic conditions rise, virtual care offers scalable solutions for ongoing treatment.
- Regulatory Support: Governments around the world are updating laws to accommodate and encourage digital health services.
- Consumer Demand: Patients increasingly prefer the convenience, accessibility, and speed of virtual consultations and remote monitoring.
According to Fortune Business Insights, the global digital health market is projected to grow from $211 billion in 2022 to over $1.5 trillion by 2030.
Ways to Profit from This Trend
Here are five key strategies to capitalize on the digital health boom:
1. Invest in Publicly Traded Telehealth Companies
Several companies are leading the charge in virtual care, remote diagnostics, and wearable technology. Look for:
- Telemedicine Providers: Teladoc Health (TDOC), Amwell (AMWL)
- Digital Therapeutics: Pear Therapeutics (recently acquired), Omada Health (if/when they go public)
- Wearables & Health Tech: Apple (AAPL) with its health-integrated devices, or Garmin (GRMN)
- Health Data Platforms: Cerner (now owned by Oracle), or Change Healthcare
Tip: Focus on companies with strong user retention, partnerships with health systems, and scalable tech platforms.
2. Private Market and Startup Investing
If you have access to venture capital opportunities or crowdfunding platforms like SeedInvest or Republic, digital health startups are active fundraising targets.
Promising areas include:
- AI-powered diagnostics
- Virtual mental health (e.g., Headspace, Talkspace)
- At-home testing and monitoring (e.g., Everlywell, Levels)
- Digital pharmacies (e.g., Capsule, Truepill)
3. Build a Business in the Digital Health Ecosystem
You don’t have to be a doctor to build a profitable company in this space. Consider:
- Software for Clinics: Scheduling, billing, or compliance tools tailored to telehealth
- Marketing Services: Specialized agencies helping digital health providers reach patients
- Health Content Creation: Monetizable blogs, newsletters, or YouTube channels offering expert-backed health advice or reviews of digital tools
4. Develop or License Intellectual Property
If you’re a tech innovator or researcher, this is a fertile space for:
- Mobile health app development
- AI/ML tools for diagnostics or image recognition
- APIs and platforms that improve interoperability between devices and medical records
Patentable solutions can attract licensing deals or acquisition offers from larger health tech players.
5. Real Estate and Infrastructure Support
Telehealth may be virtual, but it still depends on physical infrastructure like:
- Data centers for storing patient information
- Logistics for at-home testing or medication delivery
- Regional telehealth clinics in rural areas
Investors in REITs focused on healthcare infrastructure, or service providers supporting the “back end” of digital health, can also benefit.
Risks to Consider
Despite the growth, digital health isn’t without challenges:
- Regulatory uncertainty: Changes in reimbursement laws can affect profits
- Privacy and cybersecurity: Patient data breaches can be costly
- User fatigue: Not all patients or providers are comfortable long-term with virtual care
- Valuation volatility: Many digital health stocks are still speculative and can swing wildly