In recent years, the healthtech industry in Germany has emerged as a powerhouse. After the United States and Japan, Germany is the third largest healthcare technology market in the world, with over 270 healthtech companies.
Within Europe, Germany has the largest healthtech market, with a size that is twice as large as France and three times larger than Italy, the United Kingdom, and Spain. The forecast of the Federal Ministry for Economic Affairs and Climate Action, Germany’s digital health market is projected to reach €38 billion by 2025.
Healthtech Germany: Future growth
Source: Scaler8
Factors shaping the future of the German healthcare landscape
The German healthtech industry has some unique characteristics that differentiate it from other countries. And in order to gain a better understanding of the future trajectory of the German healthcare landscape, it is important to take a look at the underlying factors and pre-conditions fueling the growth:
- Strong healthcare infrastructure. Germany has one of the most advanced healthcare systems in the world, offering a solid foundation for the growth of healthtech innovations. In 2019, Germany spent EUR 4,505 per capita on health, which is the highest number in the European Union.
- Universal healthcare coverage. Germany has an obligatory health insurance system, covering both public and private sectors, which ensures that all citizens have access to healthcare services. This comprehensive coverage creates a large market for healthtech solutions and encourages the development of technologies that improve access, efficiency, and patient outcomes.
- Public-private collaboration. The German healthtech industry benefits from strong collaboration between public and private stakeholders. Government initiatives, such as the Digital Healthcare Act (DVG), support adopting digital solutions and foster a favorable environment for healthtech startups, investors, and established companies.
- Strict data protection regulations. Germany is known for its stringent data protection laws, including the General Data Protection Regulation (GDPR). Healthtech companies operating in Germany must adhere to these regulations, which aim to safeguard sensitive patient data and ensure privacy.
These factors create a perfect environment for the rapid growth of the healthcare software development sector in Germany, shaping the way how new technologies are adopted and integrated.
Most promising healthcare technology trends
1. Telemedicine and remote patient monitoring
Ever since the COVID-19 pandemic has highlighted the value of telemedicine in driving accessibility, this trend continues to grow. Aging population and a large share of chronic diseases further underpin the demand for telehealth solutions — the online doctor consultations industry in Germany is forecasted to experience a CAGR of 6.48%, leading to a projected market size of US$0.89 bn by 2027, according to Statista.
Various technologies like video conferencing platforms, video chats, and secure messaging apps have facilitated the growth of telehealth and remote patient monitoring. These telehealth platforms often incorporate features like appointment scheduling, electronic prescriptions, and billing, providing a seamless experience for both patients and healthcare providers.
Several key players are leading the charge in the German telemedicine market. Zava, for instance, is one of the top telemedicine providers offering services to patents in Germany, Great Britain, Ireland and France. TeleClinic is another leading platform for on-demand doctor visits in Germany that allows patients to make an appointment as fast as possible, in anywhere from 30 minutes to two hours.
2. 3D printing and bioprinting
3D printing and bioprinting is another prominent healthtech trend poised for growth in the coming years. By 2030, the global 3D bioprinting market is projected to reach USD 5.3 billion, growing at a CAGR of 12.5%.
Applications of 3D bioprinting for the manufacturing of vaccines, therapeutics, and delivery systems
Source: Nature
Being at the forefront of driving innovation in the bioprinting field, Germany is home to several leading 3D printing companies and startups like Cellbricks, MEDPRIN, INNOTERE. From prosthetics and implants to human tissue and organs, German healthtech startups explore applications and develop novel techniques to advance personalized medicine, address the shortage of donor organs, and accelerate drug testing.
The German government recognizes the potential of bioprinting in healthcare and actively supports R&D activities in this area through funding. This backing, along with a strong emphasis on research and collaboration, guarantees that the bioprinting trend in Germany will continue to thrive in the years to come.
3. Digital Health Applications (DiGAs)
DiGAs (“Digitale Gesundheitsanwendungen” in German) are health apps or software solutions that are officially recognized and approved by the German Federal Institute for Drugs and Medical Devices (BfArM). DiGAs undergo a rigorous evaluation process by BfArM, which assesses their quality, data security, functionality, and effectiveness.
The Digital Healthcare Act (Digitale-Versorgung-Gesetz or DVG) has facilitated the prescription and reimbursement of DiGAs through statutory health insurance in Germany. As a result, healthcare professionals can prescribe DiGAs to their patients, and the cost will be covered by the patient’s statutory health insurance. By allowing healthcare professionals to prescribe DiGAs, Germany is actively promoting the use of digital health solutions by both patients and healthcare providers. And the general willingness to adopt DiGAs and mHealth apps among the German population is as high as 76%, especially if they are governmentally certified.
As more digital health apps are developed and approved in Germany, DiGAs are expected to play a crucial role in shaping the future of healthcare in the country, with an emphasis on accessibility, personalization, and efficiency.
4. Internet of Medical Things (IoMT) and wearables
IoMT and wearables have emerged as a significant healthtech trend in Germany lately. IoMT comprises a connected network of medical devices, software solutions, and health systems that communicate with each other through the Internet. This network allows for the seamless sharing of health data, improving patient monitoring, diagnostics, and treatment. Wearables like fitness trackers and smartwatches are an essential component of the IoMT, enabling real-time health data collection and analysis for both patients and healthcare providers.
Applications of IoT in healthcare
Source: Insights2techinfo
The adoption of IoMT and wearables in Germany has been fueled by a growing interest in preventive healthcare, digitalization, and the desire for personalized care, and today Germany dominates the Europe Internet of Medical Things (IoMT) market. The increasing availability of sophisticated sensors, improved connectivity, and sophisticated data analytics tools have made it possible for wearables to track various health metrics accurately. And this trend is expected to continue growing in the nearest future.
5. Artificial intelligence
In 2018, the German Federal Ministry of Education and Research (BMBF) announced an AI strategy, with the aim to achieve technology leadership and establish the “AI made in Germany” trademark as a seal of quality.
Since then Germany has been actively investing in the development and integration of artificial intelligence within its healthcare system. By harnessing advanced algorithms and computational power to analyze large datasets, AI-driven solutions help healthcare professionals identify patterns and generate insights that support clinical decision-making across different areas, from diagnostics and treatment planning to drug discovery and personalized medicine.
The integration of AI into healthcare is a promising trend that is worth monitoring closely in the years to come. There are already a number of German startups and companies pushing the envelope with their AI-driven healthtech solutions. Some notable examples include Ada Health, which focuses on personalized symptom assessment and care navigation; Aidoc, specializing in AI-powered radiology solutions; and Apheris AI, a company dedicated to secure data collaboration for drug discovery and healthcare research.
The bottom line
Backed by a strong healthcare infrastructure, government support, and a thriving startup ecosystem, Germany’s healthtech industry is poised for significant growth in the coming years. And investors, healthcare professionals, and healthtech entrepreneurs should keep a close eye on the German healthtech landscape as it continues to evolve and push the boundaries.
While there are ways that technology is shaping the future of healthcare, the most prominent trends to watch in the nearest future will include telehealth, 3D bioprinting, digital health applications, IoMT, and artificial intelligence. The next few years are certain to bring transformative changes to the German healthtech industry, promising exciting opportunities and breakthroughs.
