M&A expertise in our Digital Health Market Update: H1/2024

In 2024, the German Digital Health sector experienced modest growth compared with previous years, although deal activity declined relative to the prior year. One potential factor contributing to this slowdown is the current economic climate, which is affected by high interest rates. Despite this, valuations in select private M&A transactions remain highly attractive, signalling continued investor confidence in the long-term potential of this sector.

We analyse market developments and deal activity in the following sections:

Market overview: The global Digital Health industry reported minimal growth; in Germany by contrast the sector expanded by 15.8%, driven by major trends such as eHealth applications, AI-powered drug development, data privacy, and precision medicine. These transformative forces are positioning Germany as a frontrunner in the adoption and integration of digital health technologies.

Deal activity and valuation: M&A deal activity continued to decline in 2024, following its peak in 2021. However, market indicators point to favourable conditions for a potential rebound, driven by increased competitiveness through the comprehensive integration of digital solutions into traditional healthcare systems.

Spotlight: eHealth in Germany ‒ comprehensive connectivity within the telematics infrastructure (TI).

We thank you for your interest in our Digital Health market update.