The strong demand for healthcare services due to rising chronic diseases and an aging population has been driving the growth of the healthcare industry over the past few years. The COVID-19 pandemic has led to rapid digital transformation in healthcare systems, including the evolution of telehealth. Furthermore, digital integration has accelerated the industry’s growth, supported by the increasing availability of advanced digital medical solutions, coupled with favorable initiatives by the government and private sectors. According to Grand View Research, Inc, the global digital health market is expected to reach $295.40 billion by 2028, growing at a 15.1% CAGR.
Healthcare stocks are considered attractive investments due to their ability to hedge against market uncertainties, given the inelastic demand for healthcare products and services. Fundamentally solid healthcare companies can pay high dividends and generate a steady income stream for the investors. The bullish sentiment surrounding the industry is evidenced by iShares U.S. Healthcare ETF’s (IYH) marginal gains over the past year.
