2025 is just around the corner, and the healthtech industry is gearing up for another year of innovation and transformation.
After a challenging 2024 marked by economic uncertainty and shifting investor sentiment, healthtech companies are now focused on building resilience and capturing new opportunities.
In this article, we delve into the key trends and challenges shaping the future of healthtech, drawing insights from Bessemer Venture Partners’ latest report.
BVP State of Healthtech Report 2024
2024 has been a year of resilience for the healthtech industry. After the market correction of 2022, the sector has shown remarkable adaptability. A new cohort of companies is thriving in this challenging environment.
One of the most significant developments in 2024, according to the Bessemer Venture Partners State of Healthtech Report 2024, has been the rapid adoption of artificial intelligence (AI) in healthcare.
Venture capitalists, tech leaders and other investors are increasingly investing in AI-enabled technologies. They’ve recognised AI’s potential to revolutionise healthcare delivery and management.
Several startups emerging at the intersection of health and AI are achieving rapid growth and significant traction.
What were some new innovations in healthcare in 2024?
#1 AI in healthcare
While 2023 saw the introduction and possibilities of AI in healthcare, 2024 witnessed them come to life. The year saw AI and ML (machine learning) reshape healthcare, especially when it comes to patient safety.
AI algorithms are now analysing vast datasets to identify patterns and trends that often go unnoticed by human clinicians.
With predictive analysis, AI is now predicting the likelihood of future health risks, including hospital readmissions and disease progression.
AI in medical imaging is powered to analyse medical images with greater accuracy and speed.
As a result, healthcare providers are now able to intervene early, diagnose accurately and take preventive measures to improve patient outcomes. This is particularly beneficial in cases like cancer, where early detection and intervention are crucial.
#2 Digital Health Technologies
Smartwatches, fitness trackers and other wearable devices have become increasingly sophisticated this year. They are now equipped with advanced sensors that can accurately monitor heart rate, blood pressure, oxygen levels, blood glucose levels and other vital signs.
This real-time data is empowering individuals to manage their health proactively. It is also helpful for providers to treat potential issues before they escalate.
Apart from wearables, technologies like Electronic Health Records (EHRs) have become a cornerstone of modern healthcare. They provide a comprehensive digital record of a patient’s medical history, streamlining access and reducing errors.
#3 Improved Patient Safety
Advanced patient monitoring systems are providing real-time insights into patient health. This has enabled early detection of changes, facilitating timely interventions.
Modern hospital beds are now equipped with advanced sensors to monitor patient movements and vital signs. These can detect falls, abnormal vital signs and other changes to alert healthcare staff immediately.
The ability to share real-time patient data is revolutionising healthcare. Integrated systems enable seamless communication between different departments. This is making critical information readily accessible.
Emerging Healthtech Market Predictions for 2025
The healthcare industry is undergoing a digital transformation, driven by advancements in technology and a growing emphasis on value-based care. BVP’s report shares key trends and predictions that will shape the healthtech sector in 2025:
#1 AI-Powered Healthcare Services
AI is revolutionising healthcare by automating routine tasks, improving decision-making, and enhancing patient care. BVP experts expect to see a surge in AI-powered services, particularly in the areas of:
- Payer Administration: AI can streamline claims processing, utilisation management, and contract negotiations. This will reduce costs and improve efficiency.
- Pharmacy: AI can enable more transparent and cost-effective drug distribution.
- Clinical Care: AI can assist clinicians in patient triage, diagnosis, and treatment planning, leading to improved patient outcomes.
#2 Value-Based Care and Data-Driven Insights
The shift towards value-based care is accelerating, with a focus on improving patient outcomes while reducing costs. Key areas of opportunity include:
- Risk Stratification: Identifying high-risk patients and prioritising care to prevent adverse events.
- Population Health Management: Managing the health of specific populations, like the elderly or those with chronic conditions.
- Value-Based Contract Management: Tracking performance metrics and ensuring compliance with contract terms.
#3 Digital Health and Remote Care
Digital health technologies, including telemedicine and wearable devices, are transforming healthcare delivery.
These technologies enable remote monitoring, virtual consultations, and personalised care plans, improving patient access and convenience. As digital health continues to evolve, BVP anticipates increased adoption of:
- Remote Patient Monitoring: Using wearable devices and other sensors to monitor patient health conditions from afar.
- Telehealth: Providing virtual consultations to patients, reducing the need for in-person visits.
- Mobile Health Apps: Empowering patients to manage their health through mobile apps.
To conclude
BVP State of Healthtech Report 2024 is optimistic about the future of healthtech. It says,
“The resilience demonstrated by digital health companies over the past year, coupled with the transformative potential of AI and other emerging technologies, sets the stage for a new era of innovation in healthcare.
While challenges remain—from regulatory hurdles to the ongoing need for sustainable business models—we believe the health tech sector is well-positioned to drive meaningful improvements in healthcare delivery, outcomes, and cost-effectiveness.”
-Bessemer Venture Partners State of Health Tech Report 2024
By Rohini Kundu and AHT Team
