Table of Contents
Executive Summary
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- The Market
- The digital health sector in the UK
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- Figure 1: turnover for digital health segments within med tech sector, 2018
- Meditation and exercise apps top revenue generating charts in May 2020
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- Figure 2: Top grossing health and fitness apps worldwide, May 2020
- Growth in ownership in new device categories will drive the health tech market forward
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- Figure 3: Personal consumer technology ownership, March 2020
- Fem-tech can be a new driver for consumer growth
- Investments in mental health tech on the rise
- Impact of COVID-19 on health and technology
- Short, medium and long-term impact on the industry
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- Figure 4: Expected impact of COVID-19 on health and technology, short, medium and long term, [2nd July 2020]
- Companies and Brands
- Google’s Fitbit acquisition could accelerate innovation
- Huami launches the Amazfit HomeStudio at CES 2020
- Amazon to provide NHS health information via Alexa
- Samsung introduces conceptual devices for assisted living
- The consumer
- 51% of consumers have ever used a digital health app or service
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- Figure 5: Use of health technology apps and services, March 2020
- Health and wellbeing apps can be sticky
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- Figure 6: health app usage over the last 12 months, March 2020
- Barriers to use increase with age
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- Figure 7: Barriers to using health technology apps or services, March 2020
- Generation Xers can be nudged towards lifestyle changes
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- Figure 8: Potential benefits of using health apps and services, March 2020
- Time-saving and transparency are important considerations for consumers
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- Figure 9: Attitudes towards health technology, March 2020
- What we think
The Impact of COVID-19 on Health and Technology
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- Short, medium and long-term impact on the industry
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- Figure 10: Expected impact of COVID-19 on health and technology, short, medium and long term, [2nd July 2020]
- Short term
- Medium term
- Long term
- Opportunities and threats
- Consumer health technology can help guide, inform and reassure in the time of COVID-19
- Technology can help consumers discover more about healthy eating habits to boost immunity
- Health tech can help manage the treatment journey
- Shifts in consumer behaviour
- Wariness about the threat of COVID-19 persists
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- Figure 11: Consumer attitudes to the impact of coronavirus, Feb 28th-June 24th 2020
- Vitamin trackers can provide consumers with nutritional signposts
- Trends in exercise patterns may see a hybrid model evolve longer term
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- Figure 12: Use of online health and fitness resources, June 2020
- Impact on key consumer segments
- How a COVID-19 recession will reshape the market
- Consumer confidence relatively robust despite gloomy economic landscape
- Higher-end health tech device purchases will be stifled in the short term
- Higher household incomes and engaged tech savvy younger audiences can maintain the market
- Impact on the marketing mix
- Health tech can gain traction across the price spectrum
- Personal devices to monitor air quality can help consumers manage concerns over effects of pollution
- Digital offerings can help gyms hedge their bets
- COVID-19: Market context
- Economic and other assumptions
Issues and Insights
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- Focus on total wellbeing will drive holistic health tech growth
- The facts
- The implications
- Innovations in wearables can bring continuous monitoring into more aspects of everyday life
- The facts
- The implications
The Market – What You Need to Know
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- Ownership in new device categories will drive the health tech market forward
- Privacy concerns and early adopter market saturation posing a problem for genetic testing products
- Fem-tech can be a new driver for consumer growth
- NHS Apps library offers trusted go-to source for consumers
- Investments in mental health tech on the rise
- The digital health sector in the UK
- Spike in use of mental health apps in May 2020
Market Overview
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- The digital health sector in the UK
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- Figure 13: turnover for digital health segments within med tech sector, 2018
- Health and wellness apps
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- Figure 14: Top grossing health and fitness apps worldwide, May 2020
- Exercise platforms and apps
- Wearable technology for tracking activity
- Garmin sets the pace in 2003 for the GPS enabled sports watch
- Early collaboration between Nike and Apple sets the tone for health and tech crossover
- Fitbit enters market with affordable fitness trackers
- Pebble watch starts the smartwatch charge
- Withings invent the first hybrid smart watch
- Samsung Galaxy Gear benefits from early mover advantage
- Apple Watch makes timely upgrade to its operating system
- Emerging consumer health devices
- Self-cleaning water bottles
- Portable air quality monitors
- Personal monitors for vital signs
- At-home DNA testing kits
- Paternity tests arrive in the late 1990s
- DNA kits to trace ancestry
- Direct-to-consumer genetic testing for disease risk
- Diet and fitness DNA tests
- Next generation sequencing DNA tests
- Telemedicine and remote consultation
- Babylon Health
- Push Doctor
- Immedicare
- At-home tests lead the proactive health movement
- Thriva
- Viome
Market Drivers
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- Growth in ownership in new device categories will drive the health tech market forward
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- Figure 15: Personal consumer technology ownership, March 2020
- Wearable technology key to market development
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- Figure 16: Functions of smart wearables, August 2019
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- Figure 17: eSmartr wearable sleeve featuring cognitive boost technology
- Privacy concerns and early adopter market saturation posing a problem for genetic testing products
- Google’s Fitbit acquisition could accelerate innovation
- NHS trend towards digitisation of healthcare could open up opportunities for tech providers
- NHS Apps library offers trusted go-to source for consumers
- Fem-tech can be a new driver for consumer growth
- Investments in mental health tech on the rise
Regulatory and Legislative Changes
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- Medical Device and In-Vitro Medical Device regulations set to impact consumer-facing software, apps and test kits
- The Medical Device Regulation (MDR) comes into effect in May 2021
- Manufacturers will need to be clear about stated aims of health apps and wearables under MDR
- Grey area for wearable technology under the new MDR
- In-Vitro Diagnostic Medical Device Regulation (IVDR) to replace existing framework
- What it means for direct-to-consumer health apps and services
Companies and Brands – What You Need to Know
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- Google’s Fitbit acquisition could accelerate innovation
- Amazon to provide NHS health information via Alexa
- Samsung introduces conceptual devices for assisted living
- Zwift pioneers innovative approach in lockdown times with virtual professional tie-up
- Withings adds sleep monitoring to its latest smartwatch
- Google Glass sees new life in glasses for visually impaired
Launch Activity and Innovation
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- Huami launches the Amazfit HomeStudio at CES 2020
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- Figure 18: Huami Amazfit HomeStudio
- CES 2020 sees a move towards holistic health and wellness apps
- Samsung introduces conceptual devices for assisted living
- Amazon to provide NHS health information via Alexa
- Specialist sleep trackers for monitoring shut eye
- Zwift pioneers innovative approach in lockdown with virtual professional tie-up
- VR apps for meditation can provide a richer, more focused experience
- Support robots point to the future of in-home health companions
- Wearable sight aids can give vision to the visually impaired
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- Figure 19: GiveVision SightPlus 2
- Google Glass sees new life in glasses for visually impaired
- Predictive technology aims to recognise signs of health deterioration before it occurs
The Consumer – What You Need to Know
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- 51% of consumers have ever used a digital health app or service
- Health and wellbeing apps can be habit forming
- Barriers to use increase with age
- Goal-defined targets can drive health and tech use
- Time-saving and transparency are important considerations for consumers
Use of Digital Health Apps and Services
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- 51% of consumers have ever used a digital health app or service
- Younger generations latch onto health and fitness apps
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- Figure 20: Use of health technology apps and services, March 2020
- Social competitiveness drives motivation for personal improvement
- Machine learning can power digital personal trainer boom
- In-home fitness apps and classes can be intimidating for gym novices
- DNA companies need to look beyond one-off sales and focus on privacy
- High awareness lays a platform for future engagement opportunities
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- Figure 21: Awareness and use of health technology apps and services, march 2020
Regularity of Health App Services and Device Usage
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- Health and wellbeing apps can be sticky
- Emerging technologies can deliver enhanced health tech experiences
- Digital first for health technologies in the era of COVID-19
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- Figure 22: health app usage over the last 12 months, March 2020
Non-Users Attitudes Towards Health and Wellbeing Apps and Services
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- Barriers to use increase with age
- Incentive to use health technology diminishes with age and household circumstance
- COVID-19 can break old habits and help form new ones
- Consumer-facing tech brands can provide follow-up support for those turning to telemedicine
- Health technology can be part of the wider toolkit for consumers to live healthy lives
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- Figure 23: Barriers to using health technology apps or services, March 2020
Perceived Benefits of Health Apps and Devices
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- Perennial motivations of goal-defined targets can drive health and tech use
- Generation Xers can be nudged towards lifestyle changes
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- Figure 24: Potential benefits of using health apps and services, March 2020
- Gamification of exercise apps can meet current and future needs
- Online fitness platforms can be the celebrity fitness DVDs of the 21st century
- Struggling sports clubs can leverage digital health
- Digital diversification can be a tool for expansion into new markets for health clubs
- Helping to manage diet and nutrition interests younger women
- Boomerang generation can be a target demographic for health and wellness apps
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- Figure 25: Use of health technology apps and services, by lifestage, March 2020
- Mental wellness and digital detox can help young women and single parent families
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- Figure 26: Potential benefits of using health apps and services by age and gender, March 2020
- Optimising brain performance and clarity can offer personal and commercial advantages
- Esports teams and casual gamers can be a target for neuro-tech
- Higher-income households see wider range of benefits in health tech
- Younger generations can be health-tech evangelists for older generations
- High female interest in health tech highlights femtech sector potential
- Health tech can help navigate later health issues
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- Figure 27: Potential benefits of using health apps and services by age and gender, March 2020, repertoire analysis
Consumer Attitudes Towards Health Technology
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- Time-saving and transparency are important considerations for consumers
- Health tech using emerging technologies will need transparency to counter scepticism
- Science will need to be failsafe for pre-emptive disease testing tools to win
- Health apps and services offer incentives for healthy lifestyles
- Data privacy issues will be the biggest challenge for health tech
- Social competitiveness provides motivation for consumers to reach goals
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- Figure 28: Attitudes towards health technology, March 2020
CHAID analysis
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- Methodology
- Young tech enthusiasts driven by social and competitive incentives
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- Figure 29: Attitudes towards health technology – CHAID – tree output, March 2020
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- Figure 30: Attitudes towards health technology – CHAID – table output, March 2020
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
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