KSA Digital Health Market Overview to 2028

KSA Digital Health Market Overview

• The KSA Digital Health Market was valued at USD 1.1 billion. The rapid adoption of telemedicine, mobile health applications, and electronic health records (EHR) across hospitals and healthcare centers has fueled market growth.
• Major players in the market are Philips Healthcare, Siemens Healthineers, Cerner Corporation, and GE Healthcare. These companies have made major investments in digital healthcare solutions to enhance care delivery and patient outcomes. Local players like Saudi Telecom Company (STC) and Al Faisaliah Group have also established a foothold through partnerships and technological innovation.
• In October 2023, Lunit signed an MoU with Seha Virtual Hospital as part of Saudi Vision 2030's Healthcare Sandbox. This partnership aims to integrate Lunit's AI-powered cancer detection solutions across 150 hospitals, starting with King Saud Medical City. The collaboration supports Saudi Arabia’s national cancer screening program and plans to co-develop AI-based diagnostic tools for cancer and tuberculosis.
• Riyadh dominates the market due to its advanced healthcare infrastructure and high penetration of digital technologies. The total digital health revenue, driven by numerous public and private healthcare projects. The city’s well-established telemedicine network and partnerships with global tech companies make it a leader in the digital health ecosystem.

KSA Digital Health Market Segmentation

The market is segmented in various factors like product, end user, and region.

By Product: The market is segmented by product into like mobile health (mHealth), telemedicine, and electronic health records (EHR). Telemedicine held a dominant share by increasing demand for remote consultations, especially post-pandemic.

By End-User: The market is segmented by end-user into hospitals and clinics, home healthcare, and insurance companies. Hospitals and clinics held the largest market share due to the widespread adoption of EHR systems and telemedicine platforms. This segment dominates due to its capacity for integrating advanced digital health solutions, improving patient care, and managing large volumes of data.

By Region: The market is segmented by region into North, South, East, and West regions. The Northern region led the market due to its advanced digital health infrastructure and the presence of several key healthcare institutions.

KSA Digital Health Market Competitive Landscape

• Philips Healthcare : In October 2023, Philips launched the Zenition 10 C-arm system at the Global Health Exhibition in Saudi Arabia. This mobile imaging device enhances surgical precision and efficiency, supporting minimally invasive procedures. Philips also introduced the Compact 5000 portable ultrasound to improve first-time-right diagnoses, aligning with Saudi Vision 2030’s healthcare goals.
• Cerner Corporation : In 2023, Cerner Corporation partnered with King Saud University to implement electronic health record (EHR) systems across two hospitals in Riyadh. This initiative will integrate around 30 Cerner software solutions over 12 to 18 months, aiming to enhance patient care through improved data accessibility and reduced treatment errors.

KSA Digital Health Market Analysis

Market Growth Drivers

• Increasing Prevalence of Chronic Diseases: As of 2023, Saudi Arabia has over 7.5 million patients with chronic diseases such as diabetes and cardiovascular disorders. This growing number is driving the need for advanced digital health solutions, including telemedicine and remote patient monitoring. The Kingdom's healthcare expenditure is increased and fuel the adoption of digital health technologies to manage chronic conditions effectively.
• Government Funding [ys5] for Digital Health: Saudi Arabia's healthcare sector is experiencing transformative growth driven by substantial government investments, which increased from $46.6 billion in 2018 to $68.2 billion in 2023. This funding supports advanced digital health solutions, including telemedicine and AI technologies, enhancing service delivery and accessibility, particularly in underserved areas.
• Increased Access to Healthcare in Rural Areas: With around 25% of Saudi Arabia’s population residing in rural regions, the lack of access to quality healthcare has driven investments in telemedicine and mobile health applications. In 2023, the Seha Virtual Hospital facilitated over 500,000 remote consultations, significantly increasing healthcare accessibility.

Market Challenges

• Data Security and Privacy Concerns: As digital healthcare solutions expand, data breaches are becoming a growing concern. In 2023 alone, Saudi Arabia witnessed over 10,000 cases of data breaches involving healthcare information. The rise of telemedicine and digital record-keeping poses a challenge in ensuring that patient data remains secure and complies with stringent regulatory standards, which the market must address to build trust.
• Limited Digital Literacy Among Healthcare Professionals: One of the challenges facing the KSA digital health market is the low digital literacy rate among healthcare professionals. In a 2023 survey, over 40% of healthcare workers expressed difficulty adapting to new digital health technologies. This skill gap is a major hurdle that needs to be addressed through training programs and educational initiatives by 2024.

Government Initiatives

• Launch of Seha Virtual Hospital: In 2023, the Saudi Ministry of Health launched Seha Virtual Hospital, the largest virtual hospital in the region. This initiative aims to provide advanced telehealth services and integrate digital healthcare solutions across the Kingdom. By 2024, it is expected to connect 150 hospitals, with plans for further expansions into rural areas.
• Saudi Vision 2030 – Digital Health Transformation[ys6] : In 2023, Saudi Arabia's Vision 2030 initiative allocated $65 billion to transform the healthcare sector, with plans to privatize 290 hospitals and 2,300 primary healthcare centers. The Ministry of Health aims to launch 21 health clusters, focusing on digital health and expanding access to remote regions through e-health services.

KSA Digital Health Market Future Outlook

Future trends include the expansion of telemedicine services, widespread adoption of AI-driven diagnostics, growth in mobile health applications, and a focus on preventive healthcare through digital health platforms.

Future Market Trends

• AI-Driven Diagnostics in Every Hospital: By 2028, it is estimated that over 90% of Saudi hospitals will integrate AI-based diagnostic tools. These tools will enhance diagnostic accuracy and reduce patient waiting times. The adoption of AI in healthcare will boost the Kingdom’s ability to manage chronic diseases, particularly cancer and cardiovascular conditions.
• Increased Focus on Preventive Healthcare: Saudi Arabia is likely to shift towards preventive healthcare by 2028, driven by the increased use of digital health technologies for early disease detection. By 2028, the government plans to implement nationwide screening programs using AI-driven diagnostic tools, with an estimated 5 million people screened annually for chronic diseases such as diabetes and hypertension.