The Digital Health Ecosystem in APAC Continues to Decline

Digital Health in APAC faced a challenging H1 2024. Despite global Digital Health funding surpassing expectations, the Asia Pacific region encountered a significant setback. Funding declined by 14% compared to the previous year, totaling $1.1 billion. While Q1 2024 outperformed the same period in 2023, a weaker Q2 dampened overall performance.

Key drivers of this downturn include the underperformance of Digital Health powerhouses, China and India, causing APAC to lag behind Europe and the United States in the global Digital Health ecosystem. Moreover, extended funding cycles have intensified pressure on established APAC health tech startups. As venture capital inflow dwindles, the funding climate for ventures across all stages in the region is becoming increasingly competitive.

Galen Growth’s 2024 Mid-Year Analysis uncovers the dynamic landscape of Asia Pacific’s Digital Health startup ecosystem. This report delves into key trends driving demand, including ecosystem growth, strategic partnerships, regulatory advancements, and venture funding.

Powered by HealthTech Alpha, our proprietary data platform, we offer unmatched, data-driven insights into the global Digital Health sector.

H1 2024 Digital Health Funding Highlights from APAC

• Funding Contraction: Despite a promising start in Q1, APAC’s Digital Health funding slumped in Q2, resulting in a 14% year-over-year decline to $1.1 billion.
• Global Market Share Erosion: The region’s share of global Digital Health funding dwindled to 9%, underscoring the increasing competitiveness of the global landscape.
• Healthcare Provider Partnerships Surge: Collaborations with healthcare providers soared, reflecting a growing emphasis on integrating digital solutions into patient care.
• Online Marketplaces Gain Traction: Online marketplaces secured $261 million in venture capital, primarily driven by a substantial investment in India’s Pharmeasy.
• Cautious Generative AI Adoption: The adoption of Generative AI in APAC’s Digital Health sector remains nascent, with only 1% of ventures leveraging the technology, primarily in tech bio and medical diagnostics.

This report, powered by HealthTech Alpha – a Galen Growth proprietary solution and the world’s leading Digital Health private market data, intel, and insights platform – provides a comprehensive overview of the APAC Digital Health ecosystem, empowering stakeholders to make informed decisions in this evolving landscape.

Ventures and Companies Covered in the Report:

The “2024 Mid-Year Digital Health APAC Key Trends Report” includes data on the following companies:

• ExaWizards (エクサウィザーズ), Humanscape (휴먼스케이프), Lunit (루닛), TXP Medical (TXP Medical), Qure.ai, Pharmeasy, TaiDoc Health (太医管家), Aillis (アイリス), Omniscient Neurotechnology, Allozymes, Manteia (Manteia), Ultrahuman, Zeno Health, Mei Miao Miao (梅苗苗), CureSkin, Portea Medical, HC Medical (慧创医疗), Kismet, ACTNOVA (액트노바), Qoala, Quintessence, MeDaCa (メディカルデータカード), Link Assistive, Algorics, Docosan, XtalPi (晶泰科技), MaNaDr, Osara Health, The Garage, Sengenics, Microsoft, AstraZeneca, Stanford University, Bayer, Merck, Guardian Life Insurance Company of America, Adventist Health, Duke Health, Asuransi Maximus

Read our other regional H1 Key Trends reports

Download our complimentary H1 2024 Digital Health Funding: Global Key Trends Report, or our premium reports on the United States and Europe:

• • 2024 Mid-Year Digital Health in the United Stated Key Trends Report
  • 2024 Mid-Year Digital Health in Europe Key Trends Report

Additionally, we release regional analyses in our blog.