Europe Digital Health - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026 - 2031)

According to Mordor Intelligence, Europe digital health market size in 2026 is estimated at USD 113.94 billion, growing from 2025 value of USD 96.68 billion with 2031 projections showing USD 258.74 billion, growing at 17.85% CAGR over 2026-2031.

This report Segments the Industry Into by Component (Hardware, Software, Other Components), by Technology (Tele-Healthcare, Mobile Health (mHealth), Health Analytics, Digital Health Systems), by Mode of Delivery (On-Premise Delivery, Cloud-Based Delivery), and Geography (Germany, United Kingdom, France, Italy, Spain, Rest of Europe). Five Years of Historical Data and Five-Year Forecasts are Included.

Europe Digital Health Market Trends and Insights

EU Funding & Regulatory Push

Europe's coordinated policy regime now couples multi-billion-euro grants with mandatory interoperability. Horizon Europe has earmarked EUR 13 billion for digital activities between 2025-2027, with EUR 67.5 million ring-fenced for AI-assisted healthcare . The new European Health Data Space obliges providers to offer standardized electronic records from March 2025, positioning compliant software firms for continent-wide scale. Early alignment to these requirements is already visible in Germany's electronic patient record upgrade and France's Health Data Hub expansion.

Ageing Population & Chronic-Care Demand

European demographics skew older: chronic diseases now absorb more than 70% of health spending, while the region faces a projected 1.8 million clinician shortfall by 2030. National budgets are pivoting to remote patient monitoring programs that relieve hospital capacity. Italy's Recovery and Resilience Plan alone allocates EUR 15.62 billion to community-based digital care, accelerating the roll-out of home telemetry platforms that handle high-risk cardiac, diabetic, and respiratory cohorts.

GDPR-Driven Data-Privacy Complexity

Strict personal-health-data rules add procurement friction. The European Parliament estimates GDPR has generated EUR 53 billion in cumulative compliance costs for SMEs engaged in digital transformation. Every new remote-monitoring launch must implement data minimization, patient consent, and immutable logging. Emerging AI-based devices also face dual oversight under the forthcoming EU AI Act, lengthening certification timelines and increasing legal spend.

Other drivers and restraints analyzed in the detailed report include:

1. Telehealth Normalisation Post-COVID-19
2. Cross-Border ePrescription & eID Interoperability
3. High Upfront Digitalisation Costs for SMEs

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

Services retained 38.34% revenue in 2025 because Europe's heterogeneous health-system landscape requires extensive customization and change management. Yet software revenue is set to grow at an 18.6% CAGR, signalling migration toward configurable platforms that minimize repetitive consulting engagements. Hardware continues to post steady orders for connected sensors and imaging peripherals, aided by EU funding schemes that subsidize device upgrades eligible for hospital modernisation grants.

The component mix reflects a transitional phase where hospitals replace siloed applications with unified interoperability suites. Siemens Healthineers' Teamplay Digital Health Platform added AI diagnostic modules and discharge-planning tools in 2024, enabling providers to license new functionality without extra integration overhead . Such plug-in ecosystems reduce total cost of ownership and accelerate multi-country rollouts. Continued software expansion is expected to raise software's share of Europe digital health market size to over 32% by 2031.

Telehealth accounted for 46.55% of Europe digital health market size in 2025 thanks to permanent reimbursement codes and clinician familiarity with video workflows. mHealth, however, is projected to deliver the fastest 18.78% CAGR as smartphone penetration exceeds 90% and payers reimburse evidence-based digital therapeutics. Analytics and digital health systems gain momentum as AI image reconstruction and clinical-decision support are mandated under several hospital-investment frameworks.

Consumer uptake fuels the shift: Philips SmartSpeed Precise MRI, powered by dual AI engines, shortens scan times by 3X and improves image clarity by 80%. Simultaneously, Omron's acquisition of Luscii extends remote-monitoring capabilities to 150 disease pathways, allowing clinicians to adjust regimens using real-time data feeds. These cross-device integrations intensify technology competition, particularly in chronic-care verticals.

Complete Report Scope:

• By Component
  • Hardware
  • Software
  • Services
• By Technology
  • Telehealth
  • mHealth
  • Health Analytics
  • Digital Health Systems
• By End User
  • Healthcare Providers
  • Payers
  • Patients & Consumers
• By Mode of Delivery
  • On-premise Delivery
  • Cloud-based Delivery
• By Application
  • Chronic Disease Management
  • Remote Patient Monitoring
  • Fitness & Wellness
  • Diagnostics & Imaging
  • Medication Management
  • Hospital Workflow Management
• Geography
  • Germany
  • United Kingdom
  • France
  • Italy
  • Spain
  • Rest of Europe

List of Companies Covered in this Report:

1. Allscripts
2. IBM Corp.
3. AMD Global Telemedicine
4. Koninklijke Philips
5. Teladoc Health
6. Aerotel Medical Systems
7. Cerner Corp.
8. eClinicalWorks LLC
9. McKesson Corp.
10. Cisco Systems
11. CompuGroup Medical SE
12. Siemens Healthineers
13. Babylon Health
14. Doctolib SAS
15. Ada Health GmbH
16. Infermedica Sp. z o.o.
17. Medtronic
18. Roche
19. Health Catalyst
20. Dedalus Group

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support