Top 10 Health-Tech Market Trends

1. TOP 10 Health-Tech Market Trends to Watch in 2025 January 2025

2. Executive Summary Challenges in patient access are driving a surge in telehealth use for GLP-1 prescriptions, & a DEA policy may boost usage in 2025 Increasing cyber threats and stricter regulations in 2024 driving a growing focus on cybersecurity & data privacy in health tech for 2025 01 06 Spatial computing increases surgical precision by 35%; expected to significant impact with AR- assisted surgeries for enhanced precision 70% of MedTech innovation in India are driven by digital integration, further setting stage for transformative 2025 and beyond 02 07 With VR solutions becoming cheaper, mental health conditions are getting treated; shaping the future of treatment in 2025 and beyond Over $11 billion in venture funding, led by early- stage investments, is driving transformative growth particularly in clinical AI by 2025 08 03 Cloud computing adoption in pharma is on the rise. By 2025, data integration and decentralized care will be major areas of focus APAC'S GCC Talent pool grew by 13% with pharma & life science companies investing in India, majorly focusing on digital transformation 09 04 Recent FDA approvals have driven the development of miniature robots, with notable technological advancements anticipated in 2025 The next chapter of digital tools: transforming patient engagement and redefining healthcare experiences with growing investments in AI 05 10

3. Our Approach to Identify Top 10 Healthtech Trends for 2024 & Beyond Tracking Emerging Trends Setting Priorities & Ranking Analyze Emerging Trends Tracked and captured —100+ trends in Health-Tech in 2024 that could be a potential game changer in 2025 Captured its potential impact in 2025 and beyond Gathered key information for each trend such as focus area, novelty, lucrativeness, biopharma interest, commercialization, etc. to understand the larger impact potential of each trend Each innovation was given a weightage (60:40) and a rating on a scale of 1 to 5 based on two criteria: its impact on the future of health and ease of commercialization Trends were prioritized based on scores and different pre-assigned weights Top 10 trends were identified based on the scores of their impact on the future of health, novelty and ease of commercialization factor Finally, the top 10 innovations were analyzed deeply to understand how it will be beneficial for future health and how it can be served as powerful catalyst

4. Top 10 Heath-Tech Market Trends

5. Challenges in Patient Access are Driving a Surge in Telehealth Use for GLP-1 Prescriptions, & DEA Policy May Boost Usage in 2025 01 GLP-1 Monthly Telehealth Prescriptions as a % of Total Make Sure GLP-1 is Remained Capitalized Policies from the Drug Enforcement Administration (DEA) and HHS permitting the prescribing of controlled medications, including GLP-1 drugs, through telehealth platforms Telehealth adoption has become increasing for prescribing obesity treatments like Zepbound, Saxenda, and Wegovy. This trend is driven by the complex access requirements of these medications & the growing demand from patients Growing consumer interest in GLP-1 medications, combined with occasional supply chain issues, has made it harder for patients to obtain brand-name drugs, leading to increased demand for alternative solutions like telehealth at accessible price Telehealth companies have leaned into aggressive marketing campaigns, capitalizing on the immense popularity of GLP-1s Trulicity (%) Ozempic (%) Rybelsus (%) Saxenda (%) Mounjaro (%) Wegovy (%) Zepbound (%) 30% 25% 20% 15% 10% 5% 0% 1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 2019 2020 2021 2022 2023 2024 Telehealth Providers Offering Comprehensive GLP-1 Based Obesity Programs 2025 Outlook Temporary extension by the DEA and HHS, effective from January 1, 2025, allows continued prescribing of controlled medications like GLP-1 via telehealth, supporting increased patient access Rising use of compounded GLP-1 medications, facilitated by telehealth, demonstrates a growing demand for alternative solutions, driving sustained market expansion Increasing use of telehealth for GLP-1 prescriptions, particularly for obesity treatments, highlights a growing demand for these therapeutics, suggesting a future rise in sales In October 2024, WeightWatchers introduced compounded GLP-1, enhancing accessibility and affordability of weight loss medications Over the past six months, approximately 45% of WeightWatchers Clinic members prescribed a GLP-1 by their clinician Calibrate was one of the first companies to treat obesity by combining GLP-1 medications with one-on-one coaching Calibrate’s 2024 study, the largest real- world cohort yet, shows 17.9% weight loss at 24 months with GLP-1s

6. With 70% of Innovation Driven by Digital Integration, India is Shifting Focus from Import Reliance to Becoming a Global Hub 02 Digital Innovation Among Indian Startups Significant Advancements Significant Advancements Innovation Split Created deep-learning algorithms that can interpret radiology images (such as X-Rays, CT scans, and MRIs) within seconds, significantly speeding up the diagnostic process 79% of the innovation is driven by medical technology solutions. Of these, ~63% solutions are digitally integrated Developed AI solutions for various next-generation surgical applications ranging from robotics-surgeries, AR-based- navigation/training, cloud-based 3D surgery planning 21% of the innovation is propelled by purely digital solutions Developed the SSII Mantra 3, an advanced surgical robotic system with five arms and a 3D HD headset for precise control 2025 Outlook Medtech Solutions Digital Solutions The exponential growth in FDA approvals for AI enabled medical devices, which rose by over 176% from 80 in 2019 to 221 in 2023, demonstrates the rapid integration of digital technology in medical devices MedTech startups in India, which are increasingly focused on digital health, AI, and telemedicine, are poised to attract significant funding, with more early-stage investments expected to flow into the sector Partnering with academic institutions and fostering cross-industry collaborations will be critical to cultivating an innovation-driven ecosystem and accelerating market readiness The integration of digital technologies into medical devices and healthcare services will not only drive innovation but also improve healthcare access and patient outcomes, positioning India as a leader in the global MedTech space by 2025 Widespread Integration Of Digital Solutions: Both global and Indian startups have common innovation themes including integration of digital technologies; Indian startups are actively integrating digital solution such as AI, IoT, and cloud computing to democratize healthcare with portable devices, remote monitoring and screening tools Democratization Of Healthcare: Portable, affordable, automated, and easy-to-use medical devices to increase accessibility to quality healthcare in remote and resource-limited settings Technology Advancements: Miniaturization of diagnostics and therapeutic devices, novel materials and nanotechnology applications, advanced imaging and sensing technologies (e.g., thermal imaging)

7. 03 Over $11 Billion in Venture Funding, Led by Early-stage Investments, is Driving Transformative Growth Particularly in Clinical AI by 2025 Health-Tech AI Investment ($ Billion) Total Investment Total Investment 7.0 R&D investment remains limited due to ongoing regulatory constraints, which impact the speed of development and approval processes Clinical patient diagnostics secured $754 Million in venture capital investment, driven by advancements in precision medicine and the need for faster, more accurate diagnostic tools Platform & remote monitoring companies raised $540 million, driven by the growth of telehealth & remote patient monitoring $0.6 Billion 13% R&D $6.6 6.0 5.0 37% Clinical $5.1 $4.8 $1.7 Billion $4.7 4.0 $3.9 3.0 % of 2024 Healthtech AI Investment $2.7 2.0 Virtual assistance companies have secured over $1 Billion in funding, driven by the growing demand for automation and support services In contrast, the data structure and analytics sectors have received minimal venture capital, totaling only $215 Million, reflecting a slower investment in data-centric technologies 50% 1.0 Administ rative $2.4 Billion 0.0 2019 2020 2021 2022 2023 2024 Funding In Healthtech Companies is Increasingly Focused On Administrative Solutions 2025 Outlook In 2024, 44% of total healthcare funding is allocated to AI, doubling the 22% invested in 2022. Momentum continues towards investing in scaling proven models with sustainable growth & clear profitability pathways In October 2024, Abridge secured $250 million, raising its total funding to $457.5 million, focusing on generative AI for medical documentation Drug Discovery: AI will play a crucial role in accelerating drug discovery by enhancing accuracy and efficiency in identifying potential treatments Predictive Analytics: Advanced AI technologies will enhance predictive analytics, enabling better forecasting of patient outcomes & optimization of personalized treatment plans Operational Efficiency: AI-driven solutions will streamline healthcare operations, reducing costs & increasing the efficiency of healthcare delivery systems In July 2024, K Health raised $50M to enhance its clinical-grade AI, streamlining primary care with personalized chats and EMR integration In June 2024, Adonis raised $31 million in Series B funding. Its AI-driven platform improves revenue cycle management, reducing staffing needs and boosting collections

8. 04 APAC'S GCC Talent Pool Grew by 13% with Pharma & Life Science Companies Investing In India, Majorly Focusing on Digital Transformation Latin America, especially Mexico and Brazil, is a top choice for global companies' regional HQs, while geopolitical instability in Eastern Europe drives talent to Western Europe Emerging Low adoption Growing Mature Well Integrated Rapid integration & Adoption Adoption in healthcare and life science industry globally Big Data & Analytics RPA / Automation High APAC's talent pool increased by 13% last year, driven by global companies from Europe, North America, and the Middle East setting up centers in countries like India, the Philippines, Vietnam, and Malaysia AI/ML Cloud Cybersecurity Healthcare IT Medium India leads in center of excellence(COEs) hotspots, followed by Canada, China, and Mexico, driven by skilled tech talent, cost- effectiveness, and a growing culture of innovation powering digital transformation Experience Technology Blockchain Web3 Hybrid Cloud IOT Wearables/ AR / VR GCCs in India are driving digital transformation for global pharma companies by optimizing operations in areas like R&D, IT, and finance. Leveraging India's skilled talent and technology Low Low Medium High Technology Penetration in GCC Major Initiative 2025 Outlook In Latin America, Mexico and Brazil will continue to be prime destinations for global regional headquarters, while geopolitical instability in Eastern Europe fuels talent migration to Western Europe By 2025, India’s GCC landscape is expected to grow from 1,700 to around 2,200 centers, with a strong focus on digital transformation in life sciences and healthcare Significant investments are being made to adopt technologies like AI, big data analytics, cloud computing, and cybersecurity, driving efficiency and improving patient care GCCs are prioritizing the development of interoperable healthcare IT solutions to improve data flow and enhance patient care outcomes In July 2024, AstraZeneca announced a $30 million investment to expand its Global Innovation & Technology Centre (GITC), focusing on innovation, efficiency, & streamlined global operations In July 2024, Sanofi announced a €400 million investment to expand its Hyderabad GCC, with €100 million by 2025, focusing on digital transformation and centralized R&D and manufacturing In September 2024, Pfizer launched its first commercial analytics centre, the 'Analytics Gateway' in Mumbai, serving international markets and driving growth using data analytics, AI, and insights

9. 05 The Next Chapter of Digital Tools: Transforming Patient Engagement & Redefining Healthcare Experiences with Growing Investments on AI Using AI, algorithms, image matching & other approaches, mobile health assessment tools span the patient journey with consumer-facing apps helping to identify potential causes of symptoms, consumer wearables screening undiagnosed patients for signs of disease, & digital diagnostics enabling providers to diagnose & monitor patients remotely Over 220 provider-focused digital therapy tools are now available, designed for use in clinics or as part of digital care programs Digital care has become the leading channel for digital therapeutics, with more than 180 commercially available programs. Many incorporate virtual care to address provider adoption barriers At least 38 digital products have received FDA breakthrough device designation for addressing unmet medical needs, and 14 have been approved, offering innovative treatments and health monitoring solutions More than 360 software-based therapeutic tools are commercially available with some products available to consumers with or without a prescription and others used by providers to enhance clinical and digital care 215 Digital Therapeutics 256 90% Digital Care 560% 122 137 99 188 140 25 2021 2021 2024 2024 Notable Partnership 2025 Outlook Digital care is rapidly becoming the predominant channel for digital therapeutic use with 188 commercially available DC programs available from around 145 companies, and many more rapidly emerging Many developers are transitioning from direct-to-consumer models to employer- and health plan-mediated solutions. This shift is motivated by the higher revenue potential of mediated models, as they align more closely with structured payment systems Gated access in digital tools enhances security and aligns with healthcare systems. It streamlines patient access through provider, payer, or employer referrals. This method supports adoption while reducing regulatory constraints In September 2024, The ONCare Alliance has partnered to provide the “Unified Digital Patient Experience Platform to enhances patient engagement with tools for managing appointments, eForms, ePROs, lab results, secure messaging, & Care Management programs In November 2024, Tietoevry Care formed a strategic partnership with Helsinki University Hospital, focusing on the development of advanced health data platforms and AI-driven solutions to improve healthcare outcomes

10. 06 Increasing Cyber Threats & Stricter Regulations in 2024 Driving a Growing Focus on Cybersecurity & Data Privacy in Health Tech for 2025 The 10 largest data breaches reported to the HHS Office for Civil Rights (OCR) in 2024 impacted 137 Million individuals, with the total for the year expected to exceed 168 Million Cyber Threats Registered from 2022 to 2024 In 2024, there were 554 healthcare data breaches attributed specifically to hacking and IT incidents, highlighting the ongoing cybersecurity challenges in the sector Top Company That Experienced Cyber Threats 137 out of 194 countries have implemented legislation to secure data protection and privacy, with many more revisions made to strengthen data security in this area Major gap in healthcare identified is in cyber-resilience, including underuse of multifactor authentication and significant supply chain risks 590 540 845 2022 2023 2024 Countries That Have Implemented Data Protection Regulations in 2024 2025 Outlook As AI in healthcare evolves, security & privacy protections become essential. Both cyberthreat actors & defenders will continue to leverage AI, creating new risks & opportunities in 2025 Cyberattacks on healthcare organizations are set to increase in both frequency & sophistication, with AI- powered tools enabling more targeted & advanced threats In 2025, healthcare organizations will face evolving privacy regulations, with updates to HIPAA and more states adopting comprehensive laws like Washington’s My Health My Data Act, ensuring stronger protections for health data November 2024, Australia passed the "Privacy & Other Legislation Amendment Act 2024," amending the Privacy Act 1988 to include stronger protections for health data, along with a statutory tort for serious invasions of privacy, a Children's Online Privacy Code October 2024, the Data (Use and Access) Bill was introduced to modernize data regulation in the UK, proposing amendments to the UK General Data Protection Regulation (GDPR) & the Data Protection Act, alongside enhancing oversight and accountability September 2024, Saudi ARabia’s amended Personal Data Protection Law will come into effect, ensuring secure handling of personal and health data, including key provisions for data residency, cross-border transfers, & breach notifications August 2024, the European ARtificial Intelligence Act (AI Act) entered into force, providing a comprehensive legal framework to harmonies AI development while ensuring the protection of health, safety, & human rights

11. 07 Spatial Computing Increases Surgical Precision by 35%; Expected to Significant Impact with AR-assisted Surgeries for Enhanced Precision Spatial Computing Is an Evolving Technology That Integrates AI, AR, & VR to Enable More Interactive & Immersive Digital-physical Environment Experiences Establish Virtual Hospital SEHA Virtual Hospital Mercy Virtual Care Center AR/VR Collaborative Surgery 98% accuracy in implant alignment has been achieved with AR technology helps surgeons surpass traditional methods' precision SEHA uses metaverse & spatial technology in training healthcare professionals & enhancing imaging for more accurate diagnostics & treatment planning Mercy Virtual Care Center in St. Louis, uses spatial computing to deliver remote care across multiple states, offering accessible healthcare solutions Immersive Training & Education 230% improvement in performance was seen in medical students trained with VR for specific surgical techniques Personalized, Immersive Patient Experiences 30% higher understanding of conditions and treatment plans was achieved by patients through VR-based educational sessions In December 2024, Vietnam announced its first AI-driven hospital, utilizing spatial computing for advanced healthcare solutions 40% improvement in response times to critical patient incidents was seen through virtual command centers using VR and AR Efficiency In Resource Management Notable Partnership 2025 Outlook The future of spatial computing in VR is expected to see a "platformization" of virtual care, where integrated solutions will drive innovation and improve access to primary care, particularly for Medicare and Medicaid populations Additionally, ongoing improvements in hardware, like lighter, visually compelling and more powerful AR glasses, will facilitate easier adoption in busy surgical settings Advancements in spatial computing and wearable technology are expected to make the metaverse more accessible and integrated into daily healthcare practices July 2024, Crescent Regional Hospital in Texas, unveiled the "Holobox," an 86-inch device projecting life-sized 3D holograms of doctors for real-time patient consultations In February 2024, Sharp HealthCare established a Spatial Computing Center to enhance patient care using holographic technology & augmented reality, working in collaboration with Epic & Elsevie

12. 08 With VR Solutions Becoming Cheaper, Mental Health Conditions are Getting Treated; Shaping the Future of Treatment in 2025 & Beyond Cost is a major concern in mental health care, with 18.1% of households' monthly expenditure spent on treatment. Virtual Reality (VR) is transforming mental health care by offering immersive, cost-effective solutions Mental Health Was a Leading Concern among the Population The Impact of VR in Therapy, Stress Management & Cost Savings 0.8 VR can simulate environments reminiscent of traumatic events, enabling patients to process their experiences in a safe & controlled setting. Studies show success rates of 66% to 90% when VR exposure therapy is combined with cognitive behavioral therapy (CBT) VR is now part of mental health initiatives in schools & corporate wellness programs, helping individuals manage stress, burnout, & emotional regulation Advances in AI-driven VR therapy provide personalized therapeutic experiences, adapting simulations in real-time based on patient responses & progress VR is being utilized for various mental health treatments, including exposure therapy for anxiety & PTSD, fostering social interaction to combat loneliness, & cognitive exercises for dementia management Mental Health Stress Obesity Cancer Drug Abuse Corona Virus 0.6 44% Significant cost reduction is seen with VR adoption in healthcare, saving $5.39 per patient in VR programs & $98.49 per patient for hospitals that implemented VR 0.4 27% 27% 36% 27% 31% 0.2 0.0 2018 2019 2020 2021 2022 2023 Notable Partnership 2025 Outlook In February 2024, Cedars-Sinai researchers create a virtual reality app powered by generative AI & spatial computing to enhance the talk therapy experience The role of VR will significantly grow, enhancing therapy through real-time data collection and enabling group therapy sessions, leading to more personalized and cost-effective mental health care IN 2025, mental health care is being revolutionized by wearable technologies, immersive therapies, and AI-driven tools, making care more accessible, proactive, and personalized As workplace stress continues to rise, VR is emerging as a potential tool to transform mental health support. It offers employees on-demand access to effective stress management tools In December 2024, Universal Music Group and Rescape Innovation collaborate on a study trialing music and VR for anxiety treatment In December 2024, Metanoia VR launches virtual therapy solutions for professionals to promote mental well-being

13. 09 Cloud Computing Adoption in Pharma is on the Rise. By 2025, Data Integration & Decentralized Care Will Be Major Areas of Focus Pharma Is the Top Sector with Major EBITDA Margin Growth Across Industries by 2030 Healthcare systems and services are considered a high-impact sector expected to experience significant EBITDA growth, driven by business-enablement use cases such as cloud-based medical testing, AI/ML-powered diagnostics, and drug discovery, further supported by low current adoption rates Current Projected 83% Cloud adoption has led to a 50% improvement in project timelines and a 12.1% cost reduction for pharmaceutical organizations 9% of healthcare organizations reported that they have adopted a cloud-first strategy, driven by enhanced security features 7% 8% 8% AstraZeneca, leveraging cloud solutions to accelerate drug research and development, has achieved over 40 successful drug discovery projects Companies like Myelin-H and Ceremorphic are pushing the boundaries of technology in drug discovery. Myelin-H has developed a wireless brain headset and microscopic saliva imaging system for treating neurological diseases, while Ceremorphic uses supercomputers and AI to accelerate drug discovery 36% 29% 29% 32% Pharmaceutical & Medical device High tech Travel Telecommunication Notable Partnership 2025 Outlook The healthcare sector will witness continued growth in cloud computing, driven by technological advancements and increasing adoption In March 2024, Genesys collaborated with Epic to ensure a more consistent, connected experience between patients and the care team and help in recording clinical data across systems and departments By 2025, cloud solutions will enhance patient care, streamline operations, and transform data management. They will enable decentralized care, improve user experiences, and support drug discovery through seamless collaboration and data access The rise of edge computing will optimize critical healthcare applications by reducing latency and costs, offering efficient and scalable solutions In March 2024, Microsoft partnered with NVIDIA to advance life sciences & healthcare innovation by leveraging advanced cloud technologies, accelerated computing, & AI to enhance drug discovery and streamline pipelines

14. 10 Recent FDA Approvals Have Driven the Development of Miniature Robots, with Notable Technological Advancements Anticipated in 2025 Problem 90% Recent FDA Approval of Miniaturization Robot Miniature Robots provide a comprehensive solution, offering a compact and convenient option without compromising RAS capabilities. Virtual Incision has received FDA marketing authorization in february 2024 for the MIRA™ Surgical System MIRA is the world’s first miniaturized robotic-assisted surgery device approved for adult colectomy procedures of the operation rooms are not properly equipped with Robotic-Assisted Surgery (RAS) technology <10% Portable to any OR Set up in minutes Familiar to staff No need for block time The FDA approved the Think Surgical TMINI robotic system for use with Mobio knee system implants It features a wireless robotic handpiece that assists surgeons in performing total knee replacements of patients have access to Mainframe RAS due to extensive training, complex scheduling, & logistical delays Recent Developments & Updates under Miniaturization Surgery 2025 Outlook Miniature robots in robotic surgery are set to gain more FDA approvals in the coming years due to advancements in technology. We will see an increasing adoption of more advanced miniature robots with enhanced capabilities in areas such as: High-Definition Imaging: Miniaturized cameras and imaging systems will offer clearer, more detailed views, supporting complex surgical procedures with greater precision Integration of AI/ML: AI/ML-driven miniature robots will become more autonomous, handling repetitive and precise tasks, enabling surgeons to perform complex procedures with greater accuracy and efficiency Fab 2024, MIRA™ Surgical System, remotely operated robot, successfully completed its first simulated procedure aboard the space station, operated by surgeons approximately 250 miles away Oct 2024, NTU University in Singapore has developed millimeter-sized robots controlled by magnetic fields, enabling precise & highly maneuverable tasks, including surgeries in hard-to-reach areas like the brain

15. Authors DR. PURAV GANDHI FOUNDER & CEO RIYA DOSHI MANAGER CONTACT US 821, Sun Avenue One Manekbag, Ambawadi, Amdedabad, India contact@healtharkinsights.com www.healtharkinsights.com RAJAT PATEL CONSULTANT Copyright © 2025 HEALTHARK. All rights reserved.