Health app market to reach $6.7 billion by the end of 2014

By Aditi Pai

Female Doctor with TabletThe mobile health market is expected to be valued at $6.7 billion by the end of 2014, according to a report from research firm Visiongain.

London-based Visiongain defines mobile health as "the practice of medicine and health services, through mobile devices" and analyzed smartphone and tablet apps for its report. Apps included in the report range from free apps all the way to premium apps that have diagnostic features.

"Austerity measures have forced many health departments around the globe to rein in their spending and find more cost-effective ways of operating," Visiongain explains in its summary. "Enabling them to diagnose, monitor, and communicate with patients remotely, mHealth promises extensive cost-savings for healthcare professionals and institutions. This new industry will also pay dividends to network operators, software developers, and data platform management providers who may turn their core competencies onto the medical field."

A few weeks ago, consulting firm Accenture reported that funding for digital health startups will reach $6.5 billion by the end of 2017, up from $3.5 billion in 2014. The firm then broke down the total funding for digital health startups to date, $10.2 billion, and found $2.9 billion, went into startups that were working on infrastructure issues, like interoperability and health analytics. Digital health startups that work on engagement offerings, which Accenture says includes wearable devices and incentive programs, received $2.6 billion. Telehealth services also raised $2.6 billion and remote patient monitoring raised $2.1 billion.

Similarly, this week, Rock Health reported that so far in 2014, digital health startups have raised $3 billion in investment.