Innovation Trends & Opportunities within the transatlantic digital health market
The COVID-19 pandemic has propelled the world into the most severe crisis of our lifetime. As damaging as this health catastrophe has been, there is also a universal truth about crises: they are the mother of innovation! Over the past year, the urgent need for virtual care has sparked rapid responses by innovators on both sides of the Atlantic. This has accelerated digital health innovation by at least a decade. In upcoming years, digitalization and changed consumer behavior will drastically transform global healthcare. This transformation will open up new opportunities for players in transatlantic digital health.
Consumer Trends and Data as a Compass for New Solutions
Even before the pandemic people had already begun to take control of their health more than ever before. Wearable devices and personal software have allowed individuals to track their health and fitness data. According to a survey by Deloitte, 43% of consumers in the U.S. and 35% of consumers in Germany are already using technology to set health improvement goals, track prescription medications, and monitor their health and fitness. This share is expected to increase in the coming years as new innovative physical products and applications will be developed to better meet individual health goals and needs.
These new consumer trends and access to digital health data have prompted companies to develop groundbreaking products. New software and digital tests cover the entire realm of wellness and disease prevention strategies, such as:
- acute diagnosis
- chronic disease management
- detection of future disease risks
These new digital products change the way clinicians treat and diagnose diseases. One example coming out of Silicon Valley is the company, HeartFlow. Their product uses deep-learning algorithms and a non-invasive test that looks inside a patient’s coronary arteries to diagnose blockages. Traditionally, such a diagnosis has involved an invasive, painful, and somewhat risky procedure. This not only spares the patient from having to go to a hospital but according to HeartFlow, also saves $4,000 in additional treatment costs.
What are the Opportunities within the U.S. and German HealthTech Market?
As THE innovation hub for user-centric software, Silicon Valley had been a hotbed for digital health startups and investment even prior to the pandemic. However, 2020 has seen the biggest increase in venture capital to date. According to the Silicon Valley Bank Annual Healthcare Report, U.S. venture fundraising sky-rocketed to $17 billion in 2020, a 57% increase over 2019’s record. So far, this trend has continued in 2021 with its first quarter accumulating $6.7 billion in digital health funding, the most-funded quarter to date.
The world’s second-biggest healthcare market, Europe, has seen an increase in investment of $2.3 billion in Q3 2020. The market is also predicted to grow 27% over the next 5 years. While the U.K. is leading Europe’s HealthTech, Germany is Europe’s biggest MedTech market, accounting for roughly $37 billion annually. That is a share of 27.1% of the total European market. Germany’s robust health care system, in addition to its legacy industry know-how and the innovation power of a vibrant startup scene, are all key drivers.
The Potential of Collaboration between Hardware and Software
The biggest opportunities will transpire when Software and MedTech companies work together. MedTech companies that have traditionally focused on developing medical devices gain a competitive edge when shifting towards more consumer-facing products. Using the data collected from their devices, they can improve well-being, anticipate health problems and help patients change their daily behaviors. This is where the expertise of software companies comes into play. Software that enables data collection and analysis will almost certainly become a key factor in developing new, profitable products and innovating the healthcare market.
In addition to products aimed directly at consumers, MedTech companies are also in a position to help hospitals and health systems as they transition towards digital services. Therefore, they could play a significant role in reducing medical costs, optimizing surgeon performance, and improving patient outcomes through solutions like remote patient monitoring, data storage and integration as well as improving clinical efficiency.
In short, consumer technology companies’ expertise in Data Science and AI, combined with MedTech’s ability to develop meaningful medical applications and algorithms, can create powerful products that can improve a patient’s health.
Seize the Chance to Explore Synergies
With the InnoHealth USA campaign as an initiative by the German Federal Ministry for Education and Research and Research in Germany, the German government aims to strengthen scientific research and cooperation between the U.S. and German players in the health sector, including small & medium-sized enterprises (SMEs) and start-ups.
Join us from June 7-11, 2021, when 9 German Research-SME-Tandems will virtually explore opportunities and synergies within the transatlantic HealthTech market.
RSVP for the virtual symposium on June 7
Find out more about the Tandems and InnoHealth USA campaign.
