M&A expertise in our digital health market update: H1/2025

In the first half of 2025, the German digital health sector showed substantial growth, with a projected CAGR of 6.7% from 2025 to 2029. M&A deal activity remains stable, reflecting continued interest from investors despite challenging economic conditions resulting from characterized by geopolitical uncertainties and inflation. Valuations in select private M&A transactions remain attractive, indicating sustained investor confidence in the long-term potential of the sector.

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

Market overview: The global digital health market is forecasted to grow consistently, recording a CAGR of 6.8% from 2025 to 2029. In Germany, the sector is evolving thanks to key trends such as AI-powered support in making clinical decisions, digital therapeutics, remote patient monitoring, and improved patient data interoperability. These technologies are increasingly shaping the future of healthcare, positioning Germany to benefit from the ongoing digital transformation.

Deal activity and valuation: In 2025, M&A activity in the digital health sector showed signs of stabilisation after peaking in 2021. Transaction volumes show a slight increase, with consolidation continuing as companies strengthen portfolios and adapt to a rapidly evolving landscape. Advances in technology, including generative AI and digital tools, are driving growth opportunities, with companies prioritising enhanced capabilities and better patient care.

Spotlight: AI-powered clinical decision support in Germany – AI is increasingly being utilised to improve diagnostic accuracy and efficiency, enhancing patient treatment across healthcare settings.

We would like to thank you for your interest in our digital health market update.