Germany Digital Health Market Analysis

Germany Digital Health Market Analysis


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The Germany digital health market is projected to grow from $7.72 Bn in 2022 to $26.75 Bn by 2030, registering a CAGR of 16.8% during the forecast period of 2022 - 2030. The major drivers of the market include a higher healthcare spending capacity in Germany and government initiatives in order to promote the growth of the same. The market is segmented by solution, by deployment & by end-use. Some of the major players include Siemens Healthineers, Celesio AG & Allianz SE.

ID: IN10DEDH005 CATEGORY: Digital Health GEOGRAPHY: Germany

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Germany Digital Health Market Executive Summary

The Germany Digital Health market is projected to grow from $7.72 Bn in 2022 to $26.75 Bn by 2030, registering a CAGR of 16.8% during the forecast period of 2022 - 2030. Germany has one of the highest healthcare spendings as a percentage of Gross Domestic Product (GDP) among developed countries. Germany spent 12.8% of its GDP on healthcare in the year 2021 as compared to 11.7% in 2019. The government initiated the annual federal grant to the umbrella health fund and direct subsidies to fight the COVID – 19 pandemic.

To strengthen the healthcare system, the German government encourages the use of digital health technology such as electronic health records, telemedicine, and mobile health apps. Germany has a standardized EHR system called "elektronische Patientenakte" (ePA) that is being expanded across the country to improve patient coordination and continuity of treatment. The country also has a robust telemedicine infrastructure in place, with a variety of telemedicine services presently available.

In the digital health industry, Germany also has a significant start-up environment, with numerous creative businesses focusing on digital health solutions such as wearables, diagnostic tools, and patient interaction platforms.

germany digital health market

Market Dynamics

Market Growth Drivers

Considering Germany as a leader in medical innovations amongst other developed countries, it has well-trained medical professionals and a well-developed network and framework required to grow in this sector.

The German government has long advocated for the use of Electronic Health Records (EHRs) to enhance the efficiency and quality of healthcare services. The government has issued regulations for the use of EHRs, which include measures for data protection and security; this will raise demand for EHR systems and will propel the digital health industry forward.

Having a higher spending capacity to meet the demands of digital health services, a robust start-up ecosystem, technological advancements, increase in aging populations have been adding to the factors driving the growth of Germany digital health market.

Market Restraints

While Germany has an advanced healthcare system, there are still gaps in digital infrastructure, especially in rural regions. This may limit the adoption of digital solutions in some parts of the country. Also, the expense of implementing and sustaining digital health solutions may be an obstacle to adoption for some healthcare professionals and patients. Other factors such as privacy and security concerns about medical data, resistance to change by the care providers and patients, and lack of regulation & interoperability can at times hinder the growth of the digital health market in Germany.

Competitive Landscape

Key Players

  • Siemens Healthineers (DEU)
  • Celesio AG (DEU)
  • Allianz SE (DEU)
  • AOK Bundesverband (DEU)
  • Deutsche Telekom AG (DEU)

Notable Recent Deals

November 2021: Allianz completed the acquisition of Aviva’s operations in Poland and Lithuania. It involved Aviva’s life and non-life insurance operations as well as its pension and asset management businesses.

August 2020: Siemens Healthineers announced that it has successfully completed the acquisition of Varian Medical Systems, Inc to build a partnership called “EnVision” to create a fully digital, diagnostic, and therapeutic environment that incorporates patient management. & to accelerate the development and implementation of data-driven precision care, redefine cancer diagnosis, patient care, and post-treatment survivability. 

Healthcare Policies and Regulatory Landscape

In December 2021, the new federal administration made the digital transformation of Germany's healthcare system a priority and proposed the construction of a national e-health policy. Objectives of which included realigning the telematics infrastructure and advancing the countrywide rollout of electronic patient records and e-prescriptions.

Germany has implemented the General Data Protection Regulation (GDPR) to regulate the collection, use, and storage of personal information. The GDPR applies to digital health solutions as well, which are required to comply with the regulations on data protection. The regulations also address concerns about data privacy and security and are in line with the European Union (EU) regulations, which aim to create a single market for digital health solutions in the EU. Moreover, a centralized EHR system called the "elektronische Patientenakte" (ePA) is rolled out across the country. This system allows for better coordination and continuity of care for patients.

Reimbursement Scenario

The healthcare system in Germany is divided into two parts: Statutory Health Insurance (SHI) and Private Health Insurance (PHI). The SHI system, which is supported by payments from both employers and employees, covers the vast majority of the population. Individuals with greater earnings are more likely to use the PHI system, which is paid by premiums. Telemedicine services & medical devices are covered by SHI but at a lower rate compared to in-person consultations whereas other digital applications are yet to be covered.

Reimbursement for digital healthcare has also improved over time, with the inclusion of remote patient-monitoring reimbursement codes for heart failure and a reversal of telemedicine laws. Since around April 2022, reimbursement for teleconsultations was limited to 30% of total consults for a specific healthcare profession (earlier in the COVID-19 pandemic, physicians and psychotherapists could get reimbursed for an unlimited number of teleconsultations) The reimbursement scenario in Germany is likely to undergo changes owing to collaborative work of insurance companies and government.

1. Executive Summary
1.1 Digital Health Overview
1.2 Global Scenario
1.3 Country Overview
1.4 Healthcare Scenario in Country
1.5 Digital Health Policy in Country
1.6 Recent Developments in the Country

2. Market Size and Forecasting
2.1 Market Size (With Excel and Methodology)
2.2 Market Segmentation (Check all Segments in Segmentation Section)

3. Market Dynamics
3.1 Market Drivers
3.2 Market Restraints

4. Competitive Landscape
4.1 Major Market Share

4.2 Key Company Profile (Check all Companies in the Summary Section)

4.2.1 Company
4.2.1.1 Overview
4.2.1.2 Product Applications and Services
4.2.1.3 Recent Developments
4.2.1.4 Partnerships Ecosystem
4.2.1.5 Financials (Based on Availability)

5. Reimbursement Scenario
5.1 Reimbursement Regulation
5.2 Reimbursement Process for Diagnosis
5.3 Reimbursement Process for Treatment

6. Methodology and Scope

Digital Health Market Segmentation

The Digital Health Market is segmented as mentioned below:

By Solution (Revenue, USD Billion):

  • Software
  • Services

By Deployment (Revenue, USD Billion):

  • Cloud-based
  • On-premises

By End-use (Revenue, USD Billion):

  • Diagnostic Centres
  • Healthcare Payers
  • Healthcare Research Centres
  • Hospitals & Clinics
  • Nursing Care Centres
  • Others

Insights10 will provide you with the reports within 10 key parameters which are:

  1. Market Overview
  2. Market Growth Drivers & Restraints
  3. Epidemiology of Disease Type
  4. Market Segmentation
  5. Market Share
  6. Competitive Landscape
  7. Key Company Profiles
  8. Healthcare Policies & Regulatory Framework
  9. Reimbursement Scenario
  10. Factors Driving Future Growth

Based on our many years of experience, we believe that these are the parameters that are critical to decision-making for business stakeholders. Our focused approach to developing reports focused on 10 key parameters, enabled us to arrive at the name “Insights10”.

 

Stage I: Market Data Collection

Primary Interviews: We have developed a network of experts, freelancers, and researchers across countries through which we engage with local experts to gather key data points and assumptions about each market. We also engage regularly with some of the best market research agencies such as Atheneum, GuidePoint, GLG, etc. to conduct surveys and interviews, and build intelligence. We have language translators as a part of our team, who between them can cover 30+ languages allowing us to extract better local insights.

Secondary Data Collection: We have developed strong expertise and experience in secondary data collection methods for developing unique data sets and research material. We gather data from multiple reliable sources to maintain a high level of accuracy and consistency. The market data is analyzed and forecasted using appropriate statistical and coherent models. The report offers an overall analysis of the market size, growth, and market share as well as a segment-level analysis of the specific market. Our report includes precise, to-the-point information related to the overall market, competition, growth drivers, challenges, regulatory updates, and competition.

Data Sources: We have access to multiple highly reliable free and subscription data sources. We have many years of experience to understand which sources are more dependable for what and which to prefer for the reliable and latest information. The key sources of information include the following, but are not limited to:

 

 

Stage II: Market Data Analysis and Statistical Model

Market Trends: We generally look at macro parameters and micro indicators. The macro parameters include changes in government policies, demand and supply of the market, government intervention programs, and major market share. The micro indicators are GDP growth, market size, market volume, etc. We also understand nuances specific to each country like the US, Canada, India, Germany, etc., and have worked across 60+ countries and hence not only understand global trends but how these differ by country, how payment models, market structure, cultural parameters, etc. differ in each country.

Market Sizing and Analysis: Our expert data analytics team has created various market forecast models by employing the top-down approach i.e. starting with the large overall market and segmenting different areas and the bottom-up approach i.e. starting with population and epidemiology and rolling up based on spend, etc., estimating the size of the market, and distributing among the geographic and/or product segments.

The top-down approach is mainly used for new product forecasting and the bottom-up approach is used for demand estimation of any product for different countries summed up to form the total market. We are able to round off insights and build stronger forecasts because we always do both these methods and triangulate the final numbers.

The study on the market covers the analysis of the leading geographies such as Asia-Pacific, Africa, Europe, Middle East, North America, and  Latin America for the period of 2022 to 2030. The qualitative analysis covers the industry landscape and trends, market opportunities, competitive landscape, and policy and regulatory scenario, and the quantitative analysis covers different market estimates and forecasts.

Data Triangulation & Validation:

Data triangulation of various sources and results of the research are carried out by benchmarking with reliable sources such as industry statistics, statistical databases, and company-level averages, etc.

We make sure to finalize the numbers in alignment with the market research. Firstly, our internal experts ensure thorough validation and checking to ensure accurate and precise analysis and then validation is also done using a multiple-data analysis model. Two-level validation is done and entails the finalization of the report scope and the way of representation pattern.

 

 

Stage III: Interpretation and Presentation

Analysis & Interpretation: The information gathered is then analyzed and synthesized. The second series of interviews are done if necessary to check and validate. The future opportunities are analyzed by understanding product commercialization and many other factors. It also comprises the analysis of data discrepancies observed across various data sources. Information procured from secondary and primary results is then, interpreted by considering the following parameters: (a partial list)

  • Establishing market drivers and trends
  • Analyzing the regulatory landscape to understand future growth
  • Market Segment based analysis to obtain revenue/volume
  • ​Analyzing current needs and determining penetration to estimate the market

Insights: Our reports deliver actionable insights backed with supporting facts and figures to assist you in achieving exemplary growth. Our in-depth analyses are interspersed with relevant insights and statistics to offer an executive-level view of a given market. The description helps in correlating many minor factors affecting the market and their impact on the different segments within the market.

Data curated from the analysis and interpretation are drawn to portray all in one consolidated report.

Presentation & Reporting: The market research report is presented in different forms such as charts by using a scientific approach for easy understanding. Historic, current, and future analysis is provided for each market in terms of both value and volume. The size of the market is interpreted in the US Dollar value and the respective unit, based on the product, for volume consumption.

The foreign exchange rates are calculated on the respective dates and for the respective regions covered in the study.

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  • Qualitative, acute and result oriented market analysis
  • Market size and forecasts from 2022 to 2030
  • Opportunities for expansion and in-depth market analysis
  • Segmentation and regional revenue forecasts
  • Analysis of the market share and competitive landscape
  • Strategic Recommendations to chart future course of action
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Last updated on: 16 January 2023
Updated by: Shivam Zalke

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