Introduction

China’s digital health sector remains a key player in global healthcare innovation, boasting the third-largest ecosystem globally. With a mix of domestic and international ventures, the landscape in China is marked by notable achievements in digital diagnostics, health management, and patient solutions. This short report, powered by HealthTech Alpha provides an analysis of the key trends driving the digital health ecosystem in China from 2014 to 2024, including funding patterns, investor activity, and therapeutic focus areas. It highlights how China is adapting to the challenges of digital health, supported by significant venture capital investment and clinical advancements.

Key Messages from the China Digital Health Key Trends 2024

1. Ecosystem Size and Survival Rate: China has 663 domestically founded digital health ventures and 83 international ventures operating in the country. The survival rate of digital health ventures in China is 85%, lower than the global average of 93%.
2. Venture Capital Funding: Over the last decade, China has raised $32.4 billion in venture capital for digital health ventures, ranking second globally. Despite a peak in 2017, with $6.6 billion raised, investments have seen a decline, with $998.9 million raised in 2024 YTD.
3. Key Digital Health Categories: The top categories in China’s digital health landscape are medical diagnostics (20%), health management solutions (19%), and patient solutions (10%), reflecting the country’s focus on improving healthcare workflows and patient care.
4. Investor Activity: More than 1,400 investors have participated in China’s digital health funding rounds, with key players including HongShan, Matrix Partners China, and Tencent Holdings.
5. Partnership Activity: Partnership growth has slowed, with over 230 partnerships announced from 2020 to 2024. The pharmaceutical sector dominates partnerships, accounting for 29% of total collaborations.

These highlights emphasize China’s growing influence in digital health, despite recent funding challenges. The sector’s focus on disease-specific solutions, supported by partnerships and clinical validation, points to a resilient and evolving ecosystem.

Also read our United States Digital Health Key Trends 2024.