In 2023, the German Digital Health sector continued its path of market growth compared to previous years, although deal activity declined compared to 2022. This may have been due to the fact that valuations returned to pre-Covid levels for some sub-sectors on publics markets.
However, valuations remain very attractive in selected private M&A deals.
We analyse market developments and deal activity in the following chapters:
Market overview: during the same period, the Digital Health industry grew by 14.7% globally and 6.8% in Germany. This growth was driven by megatrends such as telemedicine, wearables, artificial intelligence (AI) and digital therapeutics (DTx).
Deal activity and valuation: M&A deal activity continued to decline in 2023, following its peak in 2021, and decreased by approximately 4% compared to 2022. However, market indicators suggest favourable conditions for an anticipated upswing in healthcare consolidation in the future.
Spotlight: Telemedicine in Germany - gaining traction driven by healthcare labour shortage.
We would like to thank you for your interest in our Digital Health market update.
