Many business analysts across industries believe that the pandemic accelerated the adoption of digital and virtual solutions. Biotech, especially within the health and wellness sector, saw rapid growth during the pandemic. The sector earned over $20 billion in 2021 and is expected to bring in up to $1 trillion in 2022. Some of the techs that will contribute to the sector’s anticipated growth are discussed below.
Thanks to quarantine, many people are now accustomed to being direct participants in their own health and wellness. Medical personnel are also becoming more comfortable with patients monitoring themselves using consumer products.
The crossover between consumer-facing wearables within the health and wellness sector and medically approved devices is narrowing, according to Mark Day, the VP of research for an AI health organization. As more health wearables are seeking and getting FDA approval, the industry is expected to grow exponentially. One wearable device company, Whoop, has been valued at $3.6 billion. Another, called Oura Ring ha been valued $2.5 billion.
Mercom Capital Group reports that telehealth companies raised $4.2 billion in the first six months of 2021. This growth is expected to continue. Telehealth services during the pandemic totaled 38 times more than prior to the pandemic. Analysts speculate that the growth has leveled off, but an expansion in chronic care services has primed the industry to gain profit.
Telehealth users are no longer seeking urgent care, but those with chronic conditions like heart disease or kidney disease are relying on telehealth clinics to monitor and treat their chronic conditions. The expansion into specialized virtual clinics has been referred to as Telehealth 2.0.
Mental health apps are also seeing growth post-pandemic, but digital therapeutics, or DTx, take apps one step further. The FDA has approved several therapeutic apps for the treatment of substance abuse problems and other mental health conditions. There is ongoing work to ensure the apps meet regulatory requirements and improve accessibility, but DTx is expected to reach $13.6 billion in 2026.
With so many potential products and increasing demand, it is no surprise that health and wellness tech is in a position for growth in the coming years. Furthermore, as people seek to live longer and healthier lives, more consumption and investment is going to flood the broader longevity space.