Digital oncology market segment accumulated $8B+ across 150+ funding rounds since 2014. One region emerged as the hub for the investments.
Digital oncology solutions consist of various digital health solutions that provide cancer diagnosis and clinical decision support for HCPs, facilitate symptom tracking and management support for cancer patients, and offer clinical research tools for sponsors and research sites.
Similar to other digital health markets, the growth of the digital oncology market relies on, among other things, the investments to drive innovation, accelerate research and development, and bring cutting-edge solutions at the forefront of cancer care.
During the period of 2014-2022, the market has attracted more than $8 billion USD investments in over 150 deals, grew at a CAGR of 26% (Allis.health). In this period, the average deal size hit over $48 million USD per funding deal.
Amidst the COVID-19 pandemic, there was an upsurge in investments within the digital oncology market segment. In 2021, the digital oncology solution providers secured over $4 billion USD investments across 29 deals, marking a growth of 250% YoY increase in total investment amount. This equates to an average funding amount of $130 million USD per funding round in the market segment, and CAGR of 47% between 2014-2021.
Some of the major investments that happened in 2021 in this segment include Siemens Healthineers’ $2.3 billion USD, Veracyte’s $550 million USD, and Insilico Medicine’s $255 million USD funding amounts.
Following the subsiding of investment hype caused by the global pandemic, the fundings for the digital oncology solutions experienced a downward trend, reaching around $1.5 billion USD with a YoY decrease of 64%. Moreover, the average investment deal size during this period was reduced to approx. $40 million USD per round.
The investments in the digital oncology market are distributed across APAC, EMEA, Europe and North America. The breakdown of investments in each region is:
The digital oncology market has attracted significant investments since 2014, amassing over $8 billion in 150+ funding rounds. North America and Europe emerged as primary investment hubs, with key players like ConcertAI, Veracyte, Tempus, Siemens Healthineers and Flatiron Health leading the way. The COVID-19 pandemic drove a surge of investments in 2021, particularly in Europe, while APAC and EMEA lagged behind in investments.