South Africa Digital Health Market Analysis

South Africa Digital Health Market Executive Summary

South Africa's Digital Health market is projected to grow from $xxBn in 2022 to $xxBn by 2030, registering a CAGR xx% during the forecast period of 2022-30. The health expenditure per capita for South Africa declined from $564.5 in 2018 to $546.7 in 2019, while the healthcare expenditure % of GDP rose from 8.86% in 2018 to 9.11% in 2019 according to the World Health Organization Global Health Expenditure database. This spending is inclusive of both public and private spending on healthcare. The government funds the majority of the public healthcare sector in South Africa, while the private sector is financed by a blend of private health insurance and out-of-pocket expenditures by citizens.

Digital health is being accepted and utilized in different ways in South Africa, including telemedicine, electronic health records (EHRs), mHealth, and eHealth. The South African government has made efforts to encourage and assist the development of digital health technologies, such as by implementing a national health information system and telemedicine services in public health institutions.

MomConnect is a platform established by the National Department of Health in collaboration with public and commercial entities. MomConnect had shown to be effective in teaching and motivating women to care for themselves and use available prenatal and postnatal services throughout and after pregnancy. As of March 31, 2019, more than 2.5 million moms were enrolled with MomConnect. Another notable mHealth application is the Stock Visibility System (SVS), which is used as an electronic stock management system in clinics and hospitals.

Market Dynamics

Market Growth Drivers

South Africa's government has set up a national health information system and telemedicine services in public health institutions, while private hospitals and clinics have also incorporated electronic medical records and telemedicine. The expansion of digital health in South Africa intends to alleviate the dearth of healthcare facilities and workers in remote regions, as well as to enhance access to excellent healthcare for all. Moreover, the market is also being led by the need to increase the availability of healthcare in rural regions, rising smartphone and internet usage, government backing for digital health initiatives, and private sector investment in the digital health market.

Market Restraints

The adoption of digital health solutions is hampered by a lack of suitable digital health infrastructure. Many healthcare professionals are unable to afford digital healthcare due to the high cost of technology. Data security and privacy are also key issues, as digital health systems sometimes include the keeping of sensitive personal health information. In remote locations, poor internet access can also hamper the development of digital healthcare initiatives. Furthermore, many healthcare professionals may be cautious to accept new digital health technology, resulting in delayed adoption and market development. In South Africa, the absence of clear standards and norms for digital health solutions can generate confusion for both healthcare practitioners and patients.

Competitive Landscape

Key Players

• Philips: A worldwide health technology leader that provides digital health solutions for telemedicine, imaging, and patient monitoring
• GE Healthcare: A leading provider of medical imaging, health monitoring, and digital health solutions throughout the world
• Siemens Healthineers: Global medical technology firm that provides a variety of digital health solutions such as telemedicine, remote monitoring, and e-health services
• IBM: IBM Watson Health is a division of IBM that offers a variety of digital health solutions including EHR, population health management, precision medicine, medical imaging, and virtual health through AI and other advanced technologies
• Altron (ZAF): Altron has created a variety of critical proprietary platforms and solutions that help the industry manage healthcare
• Vitls (ZAF): Manufacturer of a wearable gadget for remote monitoring of patients. It provides a cloud-based vital sign monitoring platform that measures body temperature, pulse rate, and other parameters in real-time

Healthcare Policies and Regulatory Landscape

South African Health Products Regulatory Authority (SAHPRA) governs the registration and monitoring of pharmaceuticals, medical devices, and clinical trials including the software required for digital health. National Health Information System Authority (NHISA) - Sets and administers a national health information system, including Electronic Health Records (EHRs) and telemedicine platforms, to improve healthcare efficiency and quality.

In collaboration with other government departments, the National Digital Health Strategy for South Africa, 2019-2024 will enhance digital health systems of governance, create strongly integrated platforms for the advancement of information systems, and build the necessary telecommunications infrastructure.

Reimbursement Scenario

In South Africa, National Health Insurance (NHI) Provides a national health insurance program to ensure universal access to excellent healthcare. The reimbursement for digital health is currently limited and underdeveloped. The South African healthcare system is normally supported by a combination of private health insurance and state health funding, however, coverage for digital health services such as telemedicine and mHealth is restricted.