Digital Health - Africa

Africa

In 2024, the projected revenue in the Digital Health market in Africa is expected to reach US$4.86bn.
This market is anticipated to experience an annual growth rate of 9.33% (CAGR 2024-2029), resulting in a projected market volume of US$7.59bn by 2029.
The average revenue per user (ARPU) is expected to amount to US$30.93.
When compared globally, it is noteworthy that United States is expected to generate the highest revenue in the Digital Health market, with an estimated value of US$47,120.00m in 2024.
However, it is important to highlight that these numbers are specific to the African market.
Among the various markets within the Digital Health market, the largest market in Africa will be Digital Fitness & Well-Being, with a total revenue value of US$2.37bn in 2024.
This market demonstrates the significant potential and growth opportunities within the African digital health landscape.
Africa is experiencing a surge in telemedicine adoption, allowing remote communities in countries like Kenya to access healthcare services.

Key regions: United States, China, Japan, Asia, Europe

Market

Region

Region comparison

Currency

Analyst Opinion

The Digital Health market in Africa is experiencing a significant growth trajectory, driven by various factors such as increased internet penetration, rising smartphone adoption, and a growing awareness of the importance of health and well-being.

Customer preferences: Customers in Africa are increasingly turning to digital health solutions for convenience and accessibility. The ability to access fitness and well-being resources, consult with healthcare professionals online, and receive digital treatment and care aligns well with the busy lifestyles of many individuals in the region. Additionally, the younger population in Africa, which forms a significant portion of the market, is more tech-savvy and inclined towards digital solutions for their healthcare needs.

Trends in the market: In countries like Nigeria, South Africa, and Kenya, there is a noticeable trend towards the use of digital fitness and well-being apps. These apps offer personalized workout plans, diet tracking, and mental health support, catering to the growing interest in holistic health management. Online doctor consultations are also gaining popularity, especially in remote areas where access to healthcare facilities is limited. Patients can receive medical advice, prescriptions, and follow-up care from the comfort of their homes. Moreover, the digital treatment and care segment is seeing innovation with the introduction of telemedicine platforms and mobile health clinics, making healthcare more accessible to underserved communities.

Local special circumstances: In Africa, the digital health market faces unique challenges such as infrastructural limitations, varying healthcare regulations across countries, and disparities in internet connectivity. Despite these challenges, the market is adapting by leveraging mobile technology, partnering with local healthcare providers, and customizing solutions to suit the diverse needs of different regions. For instance, some companies are offering offline functionalities in their apps to accommodate areas with poor internet connectivity, ensuring continuity of care.

Underlying macroeconomic factors: The digital health market in Africa is also influenced by macroeconomic factors such as GDP growth, government healthcare expenditure, and investment in healthcare infrastructure. Countries experiencing economic development are witnessing an increase in healthcare spending, leading to greater adoption of digital health solutions. Additionally, the rise of health tech startups and investments in the sector indicate a positive outlook for the market, with stakeholders recognizing the potential for growth and innovation in the digital health space.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on revenues and user data of relevant mobile applications and consumer electronics companies.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, population, internet penetration, smartphone penetration, consumer spending, and healthcare spending. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.