Market Overview

The Europe digital health market was valued at USD 130.37 Billion in 2025 and is forecast to reach USD 314.32 Billion by 2034, growing at a CAGR of 10.3% during 2026-2034. This growth is driven by accelerated digital transformation in healthcare, favorable regulatory frameworks, and increasing demand for accessible medical services in the region. Europe offers advanced technology infrastructure and government initiatives that boost eHealth acceptance and adoption, enhancing patient health management across urban and rural areas.

Study Assumption Years

• Base Year: 2025
• Historical Period: 2020-2025
• Forecast Period: 2026-2034

Europe Digital Health Market Key Takeaways

• The market size was USD 130.37 Billion in 2025, with a CAGR of 10.3% during 2026-2034.
• Telehealth leads by type with a 28% market share driven by virtual consultations and remote monitoring.
• Software dominates the market component with a 57% share backed by investments in cloud-based and AI-powered platforms.
• The United Kingdom holds the largest country segment with a 26% share, supported by NHS digital initiatives.
• The market features a competitive landscape including established corporations, startups, and specialized solution providers.
• Digital health solutions encompass telemedicine, mobile health apps, wearables, analytics, and AI-powered tools.

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Market Growth Factors

Also, as the population in Europe is aging, this is helping grow the digital health market, as Europe is known to be one of the oldest continents. In early 2024, 20% of the EU population ages toward 65 or beyond. Digital health technologies in the form of remote patient monitoring, telehealth consultations, or digital therapeutics for chronic diseases are used in continuous care to reduce hospitalizations and lower health care costs.

Government support is key. Nationally coordinated plans for uptake exist, and the EU Regulation on the European Health Data Space standardizes electronic health records and cross-border data sharing. A digital health ecosystem at European level is created. Underneath German law, physicians can prescribe reimbursed digital health applications certified under the DiGA framework. Public-private partnerships innovate in healthcare and integrate it within statutory systems, and they focus on public needs.

The European healthcare workforce has shortages, so clinical productivity must rise through digital tools. In Germany, by 2025, staffing was insufficient at 90% of hospitals because organizations invested in AI technologies for scheduling, remote patient monitoring, telemedicine, and administrative responsibilities to address related challenges. AI-assisted diagnosis and virtual care models can improve efficiency through freeing up staff to work at the top of their license. Decision-support tools can improve upon allied health tasks. Care quality must be maintained if demographics and workforce pose challenges, so transform digitally.

Market Segmentation

By Type:

• Telehealth: Dominates with a 28% share in 2025, enabling virtual consultations and remote diagnostics, addressing rural and underserved healthcare access challenges. The telehealth market was valued at USD 6.62 Billion in 2025 and is projected to reach USD 25.98 Billion by 2034.
• Medical Wearables
• EMR/EHR Systems
• Medical Apps
• Healthcare Analytics
• Others

By Component:

• Software: Leads with 57% market share in 2025, serving as the backbone with electronic health record platforms, clinical decision support, patient engagement apps, and analytics tools. Investments include Kaiku Health's EUR 4.4 million raised for digital therapeutics expansion. Software evolution focuses on cloud deployment, interoperability, AI integration, and regulatory compliance.
• Hardware
• Service

By Country:

• United Kingdom: Holds 26% market share in 2025, boosted by NHS digital transformation, strong government health tech investments, and supportive post-Brexit regulatory autonomy.
• Germany
• France
• Italy
• Spain
• Others

Regional Insights

The United Kingdom is the dominant regional player with a 26% share of the Europe digital health market in 2025. The extensive NHS digital transformation initiatives, robust government investment in health technology, and strong venture capital interest contribute to this leadership. Post-Brexit regulatory flexibility and a concentration of innovation-driven healthcare, research institutions, and tech companies have fostered an energetic digital health ecosystem.

Recent Developments & News

In June 2025, Hims & Hers announced its European expansion through the acquisition of digital health platform ZAVA. This strategic move accelerates Hims & Hers’ entry into key markets including the UK, Germany, France, and Ireland. The acquisition broadens personalized digital care services across dermatology, mental health, weight management, and other areas, strengthening the company’s European digital health presence.

Key Players

• Hims & Hers
• ZAVA
• Kaiku Health
• Doccla

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